Expert: $7.9 billion invested in Armenia’s economy for two decades

YEREVAN, September 12. /ARKA/. On Thursday, Vazgen Safaryan, chairman of the Union of Domestic Commodity Producers, answering ARKA News Agency’s question at a news conference, said that $7.9 billion had been invested in Armenian economy’s real sector from the outside for two decades.

Of this amount, $5.9 billion has been invested directly.

Russia has invested about $3.2 billion, of which $2.4 billion directly. Russia’s investments constitute 41.5% of total foreign investments in Armenia’s economy, Safaryan said. 

The second largest investor was France with its $761.8 million (12.1%) invested in Armenia’s economy, of which $715.9 million has been invested directly. 

The third biggest investor in the Armenian economy is Greece with $478.8 million (6%) and $307.7 million respectively.  

“Germany’s investments in Armenia’s economy for 20 years total $393.6 million, of which $367.7 million has been invested directly, and the United States’ $390.1 million, including $244 million direct investments. This makes up 4.9% of total foreign investments.” 

According to the National Statistical Service of Armenia, foreign investments in Armenian economy’s real sector for the first six months of this year total $293 million – 34.7% year-on-year decline. 

Safaryan found it natural that foreign investments in Armenia shrank recently. He said this happened because Armenia is torn between the Customs Union and the EU Association Agreement – both sides refrained from investment pending Armenia’s decision. 

“And now, when Armenia unveiled its intention to join the Customs Union, the flow of Russian investments into Armenia’s economy will intensify,” he said adding that the bulk of these investments will target Armenian Nuclear Power Plant and the country’s railway. 

Armenian and Russian presidents, Serzh Sargsyan and Vladimir Putin, made a joint statement after they met in Moscow one week ago. It has become known from the statement that Armenia has decided to join the Customs Union and it intends to take part in formation of Eurasian Economic Union in the future.  

The announcement came as Armenia was poised to sign the Association Agreement with the European Union.

President Putin said that Russian Railroads can invest 15 billion rubles in Armenia’s railroad and that Rosatom will work with Armenian experts to prolong the life of the Armenian Nuclear Power Plant for ten years. ---0----