Agence France Presse
October 22, 2008 Wednesday

‘Serious damage’ to Armenian economy from Georgia conflict: PM

YEREVAN, Oct 22 2008

Armenia’s economy has suffered damages of 670 million dollars (520
million euros) from the August war between Russia and neighbouring
Georgia, Prime Minister Tigran Sarkisian said Wednesday.

"Armenia has suffered serious damage from the Georgia-Russia
conflict," he said at a session of the ex-Soviet republic’s
parliament. Officials have previously said Armenia’s trade was
disrupted and investors were scared off.

Georgia lies between Armenia and Russia, which are close allies.

Sarkisian’s comments came on the same day that an international donor
conference in Brussels pledged 4.55 billion dollars (3.5 billion
euros) in aid to conflict-stricken Georgia, which was partly occupied
by Russian troops.

Georgia is a crucial transit country for Armenia, as neighbours
Azerbaijan and Turkey have closed their borders with the country over
its support for Armenian separatists in Azerbaijan’s breakaway region
of Nagorny Karabakh.

Sarkisian said both Moscow and Washington would provide "financial and
technical help" to soften the impact of the conflict on the Armenian
economy.

Armenia is also one of the largest recipients of foreign aid from the
United States, home to a large Armenian diaspora.

Russia sent troops into Georgia on August 8 to repel a Georgian
military attempt to retake the Moscow-backed rebel region of South
Ossetia.

Russian forces occupied swathes of the country, but later withdrew to
within South Ossetia and another rebel region, Abkhazia, which Russia
has recognised as independent states.

The conflict raised fears of instability throughout the South
Caucasus, a strategic region wedged between Iran, Russia and Turkey.