Russian, Armenian Leaders To Talk Trade, Energy, Caucasus

RUSSIAN, ARMENIAN LEADERS TO TALK TRADE, ENERGY, CAUCASUS

RIA Novosti
09:58 | 21/ 10/ 2008

MOSCOW, October 21 (RIA Novosti) – Russian President Dmitry Medvedev
will discuss trade, energy and conflict in the South Caucasus with
his Armenian counterpart, Serzh Sargisyan, at talks in Armenia on
October 21, a Kremlin official said.

Bilateral trade grew 13%, year-on-year, in the first eight months of
2008 to reach $536.5 million, the Kremlin said earlier. Russia is a
leading trade partner of Armenia and is one of the biggest investors
in the country’s economy, with accrued investment from Russia topping
$1.6 billion from 1991 to July 1, 2008.

The parties will also focus on joint energy projects and the industrial
development of uranium deposits in Armenia, the official said earlier.

At their talks in the capital Yerevan, the presidents will also discuss
the situation in the South Caucasus following Russia’s brief war with
Georgia, and other pressing international issues.

Russia recognized South Ossetia along with Georgia’s other breakaway
region Abkhazia as independent states on August 26, after it forced
out Georgian troops that had tried to retake control of South
Ossetia. Tensions remain high in the region, and Georgia continues
to demand that Russia withdraw its troops from the two republics.

In September Armenia and other countries in the post-Soviet alliance
Commonwealth of Independent States announced their support for Russia
over its conflict with Georgia, but stopped short of recognizing the
two provinces.

Ex-Soviet Armenia is itself locked in a bitter territorial conflict
with Azerbaijan.

Armenia receives most of its gas from Russia.

The tiny Caucasus nation has high unemployment and widespread
poverty. Its economic problems are aggravated by a trade embargo,
imposed by neighboring Turkey and ex-Soviet Azerbaijan since the
dispute over Nagorny Karabakh.

Russia has a military base in Gyumri in Armenia.