Armenia faces economic difficulties if it reduces ties with Russia: Georgy Ostapkovich

Georgy Ostapkovich, Research Director of the Center for Business Tendency Studies at the Institute for Statistical Studies and Economics of Knowledge, HSE University, commented to Alpha News on the possible economic consequences of Armenia’s rapprochement with the European Union and the reduction of its economic ties with Russia.

According to the expert, Armenia’s reorientation toward the European market could complicate its economic relations with Russia, with which the republic actively cooperates in natural resources, agriculture and industry.

“From an economic point of view, of course, if Armenia leaves the EAEU, it will face problems, because Armenia has extensive economic interaction with Russia, including in natural resources, in the sale of fruit and vegetables, and even in the construction of individual enterprises.

It’s hard for me to say how much of this will remain if Armenia goes over to Europe completely. And probably no one can say. Economically, Armenia will lose all these facilities, lose capital investment, lose revenue. Joining Europe will give Armenia revenue, but whether it will be comparable in volume to Russian revenue, or larger, or smaller, is also hard to say for now, because the process of joining the EU will take another five to six years, or even longer.

Overall, if Armenia leaves the EAEU, the economic situation will of course become more difficult, because Armenia has fairly strong economic ties with Russia. And whether Russia will leave the Armenian market is also an open question,” Ostapkovich concluded.