Opening of Turkish-Armenian border will have positive effect on both countries’ economies: EBRD

YEREVAN, November 30, /ARKA/. Valeriu Razlog, head of the European Bank for Reconstruction and Development (EBRD) Yerevan Office, said the opening of the Turkish-Armenian border will have a positive effect on both countries’ economies.

‘Armenia and Turkey have shares in EBRD and are its beneficiaries. I think the opening of the border will have a positive impact both on Armenian and Turkish economies,’ he said in an interview with ARKA.

In his opinion, the regional integration and cooperation are positive factors for any investor. He said the EBRD believes that the open border will have positive influence on bilateral trade and investments.

Valeriu Razlog said once the border opens Armenia will become a railway and motorway transit country and will also get additional energy opportunities. 

Turkey and Armenia have had no diplomatic ties since Armenia became independent from the Soviet Union in 1991. Turkey closed its border with Armenia in 1993 in a show of support for its ally, Azerbaijan, which had a dispute with Armenia over Nagorno-Karabakh, the ethnic Armenian enclave of Azerbaijan. 

There are several sensitive issues complicating the establishment of normal relations between the two countries, particularly, Ankara’s blatant support of Azerbaijan in the Nagorno-Karabakh conflict resolution process and Turkey’s refusal to acknowledge the mass killings of Armenians in the last years of the Ottoman Empire as a genocide.

On October 10 Armenia and Turkey signed two protocols on establishment of diplomatic relations and development of bilateral relations, which yet need to be ratified by both countries’ parliaments.

“Of course, we want to help Armenia and Turkey implement regional projects; we are ready to help both improve their road infrastructure, communications and railways. We are ready to consider any project that will help both countries’ integration,’ he said.

He said the opening of the border will lead to increasing investments in different sectors of Armenian economy and raise its attraction for foreign investors.

“I hope to see Turkish investments in Armenia and Armenian investments in Turkey,’ he said.
The EBRD expects its commitments in Armenia to reach approximately $150 million by the end of 2009 from $75 million in 2008. To date the EBRD has invested over 335 million Euros across more than 70 projects in various sectors of the Armenian economy. -0-