Armenia to face systematic crisis: expert

/By AzerNews/

By Mushvig Mehdiyev

Integration within the Eurasian Economic Union (EEU) was not a progressive decision. It breaks off all connections between member-states of the alliance, said Ashot Egiazaryan, an Armenian economist.

Egiazaryan said that the common trend within EEU is characterized by independent trade and customs policy pursued by member-states without coordination.

"The Astana meeting in May demonstrated that the union is not a single market and January will not differ from May. No integration process has been observed within the EEU since May. This comes as disintegration has turned into a common trend in the union," Egiazaryan said.

He noted that Armenia will have problems with customs duties following its membership at the Russia-led union.

"The legally binding contracts in the EEU can lead to problems for the Armenian authorities. So, the integration can be viewed as an aggravation of the existing situation in the country," Egiazaryan noted.

He believes that the economic recession would be inevitable in Russia. Meanwhile, inflation reduction and investment growing are hardly expected given Russian authorities' economic scenario for the next two years.

"It is naturally a threat for Armenia. Its economy has reached a point where factors of development have exhausted because most of these factors including money transfers and investments depend on Russia. Crisis in Russia will result in economic decline in Armenia," Egiazaryan said.

He noted that the economic, tax, budget and financial fields in Armenia are at risk by the ongoing economic processes.

"Armenia has entered into an unstable stage since last September. Armenia limited its opportunities considerably and lost a chance to access the huge European market, attract investments and to ensure high-level security," Egiazaryan said.

He believes that Armenia has willingly refused to follow the European path and preferred a way which is not clear yet.

"In this case, Armenia will face a systematic crisis. Objective assessment of the situation in Armenia says it is a crisis," Egiazaryan said.

Slava Rabinovich, a well-known Russian financier, said earlier that Armenia faces a great risk of being infected with the ongoing events in Russia, adding that the post Soviet nation joined the EEU as a country with weak positions, which has lost its independent approach to many issues.

Armenia is currently facing a financial trouble characterized by a sharp devaluation of its national currency the dram against the foreign currencies, the dollar and the euro in particular.

According to the recent media reports, Armenia has lost nearly 5 billion euros by canceling its European integration program and pinning its future on the Eurasian Economic Union.