Armenia may become financial hub for Russia's interaction with the world, Russian economist says (exclusive)

YEREVAN, April 29. /ARKA/. Armenia may become a financial hub for Russia's interaction with the world, says Director of the Institute of Economics of the Russian Academy of Sciences Mikhail Golovnin.

In an interview with ARKA News Agency, Golovnin comments on Armenia's economic development prospects, on the risks that may stem from the Armenian-Russian economic cooperation and how the relocation of a number of Russian companies to Armenia may impact it. 

ARKA- What do you think about the prospects for Armenia's economy in the new reality? 

М. Golovnin - New opportunities are emerging triggered by what is going on now - development of foreign trade, on the one hand, and migration flows and, most importantly, capital flows, on the other. Armenia may become a financial hub for Russia's interaction with the rest of the world. 

ARKA- What steps should be taken to make this a reality?

М. Golovnin - It is necessary to ensure favorable investment climate, attract Russian capital, including the development of integration within the EEU which is also becoming an important formal component. 

ARKA- What are the main risks in the Armenian-Russian economic cooperation under the current world situation? 

М. Golovnin - The main risks are the possible secondary sanctions, but let's hope they can be avoided. And, of course, the possibility that the flows will bypass Armenia. This is why there is a certain challenge for Armenia. 

ARKA- In light of recent events, many Russian companies are relocating to Armenia. How may this influence the economic ties between the two countries? What are the risks and advantages for both sides? 

М. Golovnin - The advantages are clear – an opportunity to attract Russian capital into the Armenian economy. The risk is whether the Armenian economy is able to absorb this amount of capital? But the opportunities are really great, and there is a chance to stimulate the growth of the Armenian economy. 

Earlier, Armenian Economy Minister Vahan Kerobyan said that since the start of the Russian-Ukrainian conflict some 70-100 thousand Russians have come to Armenia. Some of them are tourists, while others are entrepreneurs and companies that intend to establish or expand their businesses in Armenia. According to his information, 30 thousand non-resident bank accounts have been opened in Armenia since the beginning of the conflict in Ukraine. --0--