OPENING OF TURKISH-ARMENIAN BORDER WILL HAVE POSITIVE EFFECT ON BOTH COUNTRIES’ ECONOMIES: EBRD

ARKA
Nov 30, 2009

YEREVAN, November 30, /ARKA/. Valeriu Razlog, head of the European
Bank for Reconstruction and Development (EBRD) Yerevan Office, said
the opening of the Turkish-Armenian border will have a positive effect
on both countries’ economies.

‘Armenia and Turkey have shares in EBRD and are its beneficiaries. I
think the opening of the border will have a positive impact both on
Armenian and Turkish economies,’ he said in an interview with ARKA.

In his opinion, the regional integration and cooperation are positive
factors for any investor. He said the EBRD believes that the open
border will have positive influence on bilateral trade and investments.

Valeriu Razlog said once the border opens Armenia will become a
railway and motorway transit country and will also get additional
energy opportunities.

Turkey and Armenia have had no diplomatic ties since Armenia became
independent from the Soviet Union in 1991. Turkey closed its border
with Armenia in 1993 in a show of support for its ally, Azerbaijan,
which had a dispute with Armenia over Nagorno-Karabakh, the ethnic
Armenian enclave of Azerbaijan.

There are several sensitive issues complicating the establishment of
normal relations between the two countries, particularly, Ankara’s
blatant support of Azerbaijan in the Nagorno-Karabakh conflict
resolution process and Turkey’s refusal to acknowledge the mass
killings of Armenians in the last years of the Ottoman Empire as
a genocide.

On October 10 Armenia and Turkey signed two protocols on establishment
of diplomatic relations and development of bilateral relations,
which yet need to be ratified by both countries’ parliaments.

"Of course, we want to help Armenia and Turkey implement regional
projects; we are ready to help both improve their road infrastructure,
communications and railways. We are ready to consider any project
that will help both countries’ integration,’ he said.

He said the opening of the border will lead to increasing investments
in different sectors of Armenian economy and raise its attraction
for foreign investors.

"I hope to see Turkish investments in Armenia and Armenian investments
in Turkey,’ he said.

The EBRD expects its commitments in Armenia to reach approximately
$150 million by the end of 2009 from $75 million in 2008. To date the
EBRD has invested over 335 million Euros across more than 70 projects
in various sectors of the Armenian economy.