Possible backtracking on its decision to join Eurasian Economic Union would cost Armenia about $3 billion – expert

YEREVAN, November 24. / ARKA /. A possible backtracking on its decision to join the Russia-led Eurasian Economic Union (EEU) would cost Armenia about $3 billion, according to Armenian expert Ashot Tavadyan.

Speaking at a parliamentary discussion on Armenia’s accession to the EEU Tavadyan said almost all of Armenia-made finished products are exported to Russia. He also recalled that Armenia depends on Russian energy sources receiving the entire fuel for its nuclear power plant and over 90% of natural gas from that country.

According to him, most of the investment and private transfers also come from that country. Besides, Armenia buys Russian natural gas at $189 dollars per 1,000 cubic meters which will allow Armenian consumers to save about $1 billion over the next five years.

"Integration in the EEU will provide Armenia with real opportunities and bring it real economic benefits, such as economic growth, changes in the GDP structure, new jobs and economic security guarantees,’ he said.

According to the National Statistical Service of Armenia, Russian investments in the real sector in the first six month of 2014 amounted to about 213.2 billion drams. Russia was the leading country by size of investments in Armenia. 

Private transfers from Russia to Armenia in January-September 2014 through the banks for non-commercial purposes decreased by 2.2% compared to the same period last year, to about $ 1.103.9 billion. According to the Central Bank of Armenia, remittances from Russia accounted for 83.4% of all money transfers to the country contributing to about 15.4% of Armenia’s GDP ($ 1.6 billion.) .- 0--