Armenia to remain on sidelines if it doesn’t join China's New Silk Road railway project
15.12.2015,
10:55
Armenia will be left on the sidelines if it doesn't join China's New Silk Road railway project, Vilen Khachatryan, an economist, told ARKA News Agency.
YEREVAN, December 15. /ARKA/. Armenia will be left on the sidelines if it doesn't join China's New Silk Road railway project, Vilen Khachatryan, an economist, told ARKA News Agency.
On December 13, the first train arrived in Tbilisi. The train formally opened the Silk Railroad. It has crossed China, Kazakhstan, Azerbaijan and will go to Turkey through Georgia and then to European countries.
Cargoes sent from the most easterly point of China will come to Istanbul maximum in 14 or 15 days, while a ship need 40-45 days to do the same.
”The key problem is that first of all this road is build round about to Armenia, and Armenia is again on the sidelines, not in the center of transportation links’ crossroad,” Khachatryan said.
Another version of Silk Road is a railway connecting China, Kazakhstan, Turkmenistan and Iran. In his words, if Armenia fails to join these roads, they will be bypass roads for it.
On August 7, 2014, the Armenian government upheld a preliminary program for construction of Iran-Armenia Railway. This railway will allow the country to join the Silk Road theoretically.
The economist thinks Armenia may take some advantage of this railroad – it will get an opportunity to purchase directly Chinese and other countries’ goods in Georgia.
This means the road will open opportunities for imports, not exports, since Armenia exports mostly natural resources, particularly precious metals, ores and agricultural products.
Vardan Bostanjyan, another economist, thinks the opening of Silk Road doesn’t rule out reasons for opening similar transportation links with Armenia’s participation.
”It can be said at first thought that road through Georgia already provides Armenia with a way to Chinese market, and there is no any reason to build another railroad,” he said. “But Armenia-Iran railway will allow diversifying transportation communications in the region, since there are various purposes, various political and economic interests.”
Bostanjyan said that the opening another road through Georgia would make the region more attractive and Armenia can benefit from that. But, in his opinion, this will depend on Armenia’s products.
”The region is becoming more attractive, and Armenia should develop particular segments of its economy which may be attractive for China and other transit countries,” he said. “It means we should have a powerful economy to attract other countries’ interesting.”
In March 2015, Armenia’s economy ministry and China’s commerce ministry signed a cooperation-strengthening memorandum for creating an economic zone for the Silk Road.
The New Silk Road is an unprecedented infrastructural project initiated by China, which will make shipment of Chinese goods to Europe through the Central Asia and Caucasus significantly cheaper.
Beijing has established a $40-billion fund for the Silk Road and the $100-billion Asian Infrastructure Investment Bank that started functioning on June 29, 2015 --0----
On December 13, the first train arrived in Tbilisi. The train formally opened the Silk Railroad. It has crossed China, Kazakhstan, Azerbaijan and will go to Turkey through Georgia and then to European countries.
Cargoes sent from the most easterly point of China will come to Istanbul maximum in 14 or 15 days, while a ship need 40-45 days to do the same.
”The key problem is that first of all this road is build round about to Armenia, and Armenia is again on the sidelines, not in the center of transportation links’ crossroad,” Khachatryan said.
Another version of Silk Road is a railway connecting China, Kazakhstan, Turkmenistan and Iran. In his words, if Armenia fails to join these roads, they will be bypass roads for it.
On August 7, 2014, the Armenian government upheld a preliminary program for construction of Iran-Armenia Railway. This railway will allow the country to join the Silk Road theoretically.
The economist thinks Armenia may take some advantage of this railroad – it will get an opportunity to purchase directly Chinese and other countries’ goods in Georgia.
This means the road will open opportunities for imports, not exports, since Armenia exports mostly natural resources, particularly precious metals, ores and agricultural products.
Vardan Bostanjyan, another economist, thinks the opening of Silk Road doesn’t rule out reasons for opening similar transportation links with Armenia’s participation.
”It can be said at first thought that road through Georgia already provides Armenia with a way to Chinese market, and there is no any reason to build another railroad,” he said. “But Armenia-Iran railway will allow diversifying transportation communications in the region, since there are various purposes, various political and economic interests.”
Bostanjyan said that the opening another road through Georgia would make the region more attractive and Armenia can benefit from that. But, in his opinion, this will depend on Armenia’s products.
”The region is becoming more attractive, and Armenia should develop particular segments of its economy which may be attractive for China and other transit countries,” he said. “It means we should have a powerful economy to attract other countries’ interesting.”
In March 2015, Armenia’s economy ministry and China’s commerce ministry signed a cooperation-strengthening memorandum for creating an economic zone for the Silk Road.
The New Silk Road is an unprecedented infrastructural project initiated by China, which will make shipment of Chinese goods to Europe through the Central Asia and Caucasus significantly cheaper.
Beijing has established a $40-billion fund for the Silk Road and the $100-billion Asian Infrastructure Investment Bank that started functioning on June 29, 2015 --0----
