FOREIGN TRADE OF NAGORNO KARABAKH REPUBLIC IN 2008

NKR Government Information and Public Relations Department
June 05, 2009

The NKR Statistic Service published the statistic collection of
"Foreign Trade of Nagorno Karabakh Republic in 2008" in accord with
the programme of state statistic activities of 2009.

The data received from the statistic accounts and from the State
Tax Service adjunct to the NKR Government served as a basis for
constituting the collection.

The collection contains data on export and import volumes (in material
and price values), on export and import structure, export and import
volumes according to countries and regions and on export and import
volumes according to the two-valued level of "Standard Classification
of International Trade".

The main indices of the Republic’s foreign trade circulation are
presented in the context of the latest four years which enables to
reveal their dynamics.

Because of the exceeding upgrowth of import volumes against the export
volumes the negative balance of the Republic’s foreign trade increased
during the latest four years, in 2008 the mentioned upgrowth against
2007 formed 47.3 %.

In 2008, the average propensity to export formed 19.3% instead of
the last year’s 35.1%, and the average propensity to import – 87.8%
against the previous year’s 99.1%.

In 2008, coefficient of import volume waiving at the expense of export
volume formed 0.22 instead of 0.35 of 2007.

Dynamics of NKR Foreign Trade In 2005-2008 (in USA thousand dollars)

At factual prices of 2008, the volume of the foreign trade circulation
of Nagorno Karabakh Republic formed AMD 93249.4 mln or USD 305063.9
thousand, including AMD 16812.4 mln (USD 55089.3 thousand) on part of
the export of products and AMD 76437.0 mln (USD 249974.6 thousand)
on part of the import. Trade negative balance forms AMD 59624.6 mln
(USD 194885.3 thousand).

In 2008, the volume of foreign trade circulation increased by 10.0%,
meanwhile, in comparison with 2007, the export volume decreased by
24.1% and the import volume increased by 22.0%. The volume of foreign
trade circulation out of re-exporting products increased by 24.3%,
meanwhile, export volume decreased by 0.5% and import volume increased
by 31.1%.

In 2008, the volume of foreign trade circulation with CIS countries
formed AMD 87540.2 mln (USD 286328.5 thousand) or it formed the 93.0 %
of the entire trade circulation, with other countries it formed AMD
5709.2 mln (USD 18735.4 thousand) or 6.1%. Products at cost of AMD
15614.3 mln (USD 51138.7 thousand) were exported to the CIS countries
and those at cost of AMD 71925.9 mln (USD 235189.8 thousand) were
imported from these countries.

Negative trade balance forms AMD 56311.6 mln (USD 184051.1 thousand).

Products at cost of AMD 1198.1 mln (USD 3950.6 thousand) were exported
to other countries and those at cost of AMD 4511.1 mln (USD 14784.8
thousand) – imported from these countries. The trade balance is
negative, it is equal to AMD 3313.0 mln (USD 10834.2 thousand).

In 2008, 92.8% of the export volume was directed to the CIS countries
(from which 97.5% to the Republic of Armenia, 1.9% to the Russian
Federation, 0.6% to Moldova), and only 7.2 % of it was directed to
other countries. 94.1% of the import volume passed to the CIS countries
(from which 99.8% to the Republic of Armenia and 0.2% to the Russian
Federation ), and 5.9% of it passed to other countries.

Foreign Trade Structure of Nagorno Karabakh Republic

In 2008, 90.6% of the NKR foreign trade circulation fell to Stepanakert
city’s organizations and physical persons engaged into an economic
activity, 3.3% to those of Askeran region, 2.2% to Martouni, 1.2%
to Hadrout, 1.1% to Martakert, 0.9% to Kashatagh and 0.7% to the
region of Shoushi.

In 2008, crude ore formed 57.7% of the total volume of products
exported from the Republic, ready-made food products formed 11.3% of
it, vegetable food – 11.1%, equipments and facilities – 5.2%, shoes,
umbrellas and hats – 4.3%, furniture, toys and other ready-made goods
– 2.8%, live animals and animal products – 2.2%. 21.8% of the import
volume fell to crude ore, 20.5% to ready-made food products, 10.5%
to furniture, toys and other ready-made goods, 9.7% to air, water and
motor transport means, 6.0% to equipments, facilities and machinery.