ARMENIA’S POLITICAL AMBITIONS THREAT ECONOMIC TRAGEDY FOR WHOLE NATION: TREND NEWS COMMENTATOR
Elmira Tariverdiyeva, commentator at the Trend European Desk

Trend
March 4 2009
Azerbaijan

Yerevan must be ready for worsening of the economic situation after
"black Tuesday" when the Central Bank of Armenia’s announcing floating
rate of the American dollar provoked a panic in the country. The
resolution of the Nagorno-Karabakh conflict, which has turned the
country into a social outcast, is the only chance to save Armenia’s
collapsing economy

Armenian is violating international norms and principles and
Azerbaijan’s territorial integrity to the detriment of the Armenian
people.

Yesterday everything fell into place. The exchange rate was 305-306
dram to dollar and dollar was sold at 309 dram at early morning
of Tuesday while these indicators reached 350 and 390 respectively
later that day. Armenian currency’s sharp depreciation was followed
by a price rise on medicaments. Some drug stores in Yerevan closed
down a day before and today. The drug store workers say the price on
medicaments will increase 20-30 percent once they are opened.

Price on fuel, sugar, oil and other essential goods saw a rise as
well. Some shops have closed down for the time being. These are
just preliminary consequences of the financial crisis in one country
which has been isolated from the two neighbor countries due to its
political ambitions.

The International Monetary Fund says Armenian economy will further
fall 1.5, the IMF permanent representative in Armenia Ninke Omes
said on March 3. IMF forecast came after fall in prices on metal,
Armenia’s key export item and fall in remittance to the country,
ArmInfo reported.

Omes attributed fall in remittance to the hard economic situation
in Russia from where Armenia receives great part of remittances. She
also noted drop in direct investments coming mainly from Russia who
handles financial crisis with difficulty itself.

Moreover, delivery of cargo from Russia to Armenia via Georgia has
been complicated in wake of the August war in Tskhinvali due to
Tbilisi’s unwillingness to transit Russian goods via its territory.

Considering options for reconciliation between Baku and Yerevan on the
basis of Azerbaijan’s conditions, it is clear that this would give a
strong impetus and enormous benefits to Armenia’s pulling down economy.

For the first time over the last 15 years, Armenia could have restored
the communication with Turkey and Azerbaijan that would increase
Yerevan’s trade turnover. Now, Armenia has open border only with two
countries of the region.

Ankara has repeatedly stated that the Armenia-Turkey ties could only
be improved through regulation of the Nagorno-Karabakh conflict.

Yerevan depends on Iran due to lack of economic relations with Ankara
and Baku. And Iran lays out tariffs on fuel and energy resources in
favor of the country.

Opening of the borders would have ensured resumption of trade with
two neighbors, which would secure Armenia of "Black Tuesdays".

Another "enduring pain" of Yerevan is its isolation from all the
transport and energy projects the region.

If Yerevan to make concessions to Baku in resolving the
Nagorno-Karabakh conflict, then railway between Azerbaijan and Armenia
will operate that may benefit Armenia’s economy.

The railway communication with Ankara will simplify the export and
import of goods to Europe, compared to the current transport through
the Georgian port of Poti.

Its is time for Armenia to prevent collapse of economy through giving
up its political ambitions and liberating the occupied territories
of Azerbaijan.