ARMENIA: YEREVAN SEEKS EASY TRADE ROUTE VIA GEORGIA

June 8, 2009

Armenia’s Foreign Minister, Edward Nalbandian, had a meeting with his
Georgian counterpart, Grigol Vashadze, in Tbilisi to discuss trade
and economic relations. The key topic on the agenda was the transit
of Armenian exports and imports via Georgia.

"It’s cheaper to deliver goods [to Armenia] via any country than via
[the Georgian port of] Poti to Yerevan," said Nalbandian. "We also
discussed the checkpoint in Lars [on the Georgian-Russian] border. I’m
sure negotiations will resolve these issues."

The closest land routes to and from Armenia run through Georgia – via
the Black Sea ports of Poti and Batumi and via the border checkpoint of
Kazbegi-Verkhny Lars on the Georgian-Russian border. The checkpoint was
closed down by Russia in 2006 following a freeze in relations between
Moscow and Tbilisi. [For background see the Eurasia Insight archive].

Russia reportedly reconstructed the checkpoint and is ready to reopen
it. Notably, according to Vashadze, Moscow notified Yerevan about
the possible reopening before it notified Tbilisi. In a separate
statement, Vashadze said that Georgia is ready to negotiate the
re-opening with Russia. "After the Russian Federation, via the Swiss
Embassy, suggested that we start the negotiations, and we agreed, we
are expecting developments, but nothing has happened yet," Vashadze
was quoted by the Russian news agency Regnum on June 8.

Yerevan is reportedly actively lobbying for the opening of
the checkpoint. Other routes to Russia are longer and more
expensive. Georgian President Mikheil Saakashvili is expected to
visit Armenia on June 24-25. Trade and transit are expected to feature
prominently on his visit’s agenda.