Thursday, July 7, 2022 Iran Again Warns Against ‘Geopolitical Changes’ In South Caucasus Armenia - Prime Minister Nikol Pashinian greets Ali Shamkhani, secretary of Iran’s Supreme National Security Council, Yerevan, July 7, 2022. A senior Iranian security official reaffirmed Tehran’s opposition to “geopolitical changes” in the South Caucasus and support for Armenian sovereignty over transit roads passing through Armenia when he visited Yerevan on Thursday. Ali Shamkhani, the secretary of Secretary of Iran’s Supreme National Security Council, met with Prime Minister Nikol Pashinian and his Armenian opposite number for talks that focused on regional security and Armenian-Iranian economic cooperation. “Ali Shamkhani emphasized that Iran considers any attempt to change the geopolitical situation in the region unacceptable and noted that his country also supports the process of unblocking [transport] infrastructures within the framework of preserving the territorial integrity and sovereignty of states,” Pashinian’s press office said in a statement on the talks. Other Iranian officials, notably President Ebrahim Raisi, have made similar statements in recent months amid Armenian-Azerbaijani negotiations on restoring transport links between the two South Caucasus states. Such links are envisaged by the Russian-brokered ceasefire that stopped the 2020 war in Nagorno-Karabakh. The deal specifically commits Yerevan to opening rail and road links between Azerbaijan and its Nakhichevan exclave. Azerbaijani President Ilham Aliyev has claimed that it calls for an exterritorial land corridor that would pass through Syunik, the sole Armenian province bordering Iran. Armenian leaders deny this, saying that Azerbaijani citizens and cargo cannot be exempt from Armenian border controls. “Statements made about transport corridors are unacceptable to us,” the Iranian ambassador in Yerevan, Abbas Badakhshan Zohouri, reportedly said during a visit to Syunik in late April. Armenia - An Armenian flag is hoisted at a military base on the border with Iran, October 7, 2021. According to the Armenian government statement, Shamkhani told Pashinian that Iran is ready to deepen ties with Armenia “in all spheres.” The two men stressed in that regard the importance of increasing bilateral trade and implementing joint energy and transport projects. The official Iranian news agency IRNA quoted Shamkhani as telling Armen Grigorian, the secretary of Armenia’s Security Council, that Tehran sees “no limitations for expanding bilateral ties as the Iranian and Armenian nations have over the past decades backed each other in difficult times at the regional and international levels.” Grigorian’s office said the two officials stressed the importance of Chabahar, an Iranian cargo port in the Gulf of Oman, “in the context of Armenian-Iranian relations and especially the development of Syunik.” India has built two terminals at Chabahar to bypass Pakistan in cargo traffic with Iran, Afghanistan and central Asian countries. Meeting in Yerevan last October, Foreign Minister Ararat Mirzoyan and his Indian counterpart Subrahmanyam Jaishankar called for establishing an Armenian-Indian transport link passing through Chabahar. Mirzoyan said the Iranian port could be used for cargo shipments to not only Armenia but also neighboring Georgia, Russia and even Europe. An Indian-Armenian intergovernmental commission on economic cooperation held its latest session in Yerevan earlier this week. Pashinian Wants Quick Implementation Of Border Deal With Turkey • Sargis Harutyunyan Turkey - The Church of Tigran Honents at the ruins of Ani, the capital of a medieval Armenian kingdom, on the Turkey-Armenia border, 11Sep2008 Prime Minister Nikol Pashinian told Armenian government agencies on Thursday to closely cooperate with their Turkish counterparts for implementing “as soon as possible” an agreement to open the Turkish-Armenian border to citizens of third countries. Special envoys of Armenia and Turkey reached the agreement in Vienna last week during a fourth round of negotiations on normalizing relations between the two neighboring states. The Turkish and Armenian foreign ministries said after the talks that “third-country citizens visiting Armenia and Turkey” will be allowed to cross the land border “at the earliest date possible.” They said the two sides also agreed to launch “direct air cargo trade between Armenia and Turkey.” “It is now very important that our agencies work with relevant Turkish agencies because the implementation of the political agreements depends on that work,” Pashinian said at a weekly cabinet meeting in Yerevan. “So my order is that we work in a coordinated way so that we implement the agreements reached as soon as possible.” Turkey -- Turkish soldiers stand guard on a road near Kars leading to a closed border crossing with Armenia, 15Apr2009 Pashinian did not give any time frames for what would be the first step towards the opening of the border which Turkey has for decades kept closed. Nor did he specify administrative and logistical measures that need to be taken for that purpose. The Armenian Ministry of Territorial Administration and Infrastructures, which deals with transport-related issues, did not immediately comment on those steps. Armenia and Turkey do not have diplomatic ties. Ankara has long made the normalization of relations with Yerevan conditional on a resolution of the Nagorno-Karabakh conflict acceptable to Azerbaijan. Turkish Foreign Minister Mevlut Cavusoglu has repeatedly said that his government coordinates the Turkish-Armenian dialogue with Baku. Armenian leaders have said, for their part, that they want an unconditional normalization of Turkish-Armenian ties. Foreign Minister Ararat Mirzoyan complained in late May that Ankara is “synchronizing” the Turkish-Armenian normalization process with Armenian-Azerbaijani peace talks. Armenia -- President Armen Sarkissian (second from right) visits a Russian-Armenian border guard post on Armenia's border with Turkey, July 4, 2020. Pashinian and members of his political team regularly stress the economic significance of cross-border commerce with Turkey as well as Azerbaijan. Economy Minister Vahan Kerobian insisted on Thursday that it will have “very big economic effects” on Armenia. But he did not back up his optimism with concrete economic projections. Most Armenian opposition politicians as well as some economists and businesspeople are far more skeptical about the likely impact of an open border with Turkey. They say that it would primarily lower the cost of importing Turkish goods to Armenia and thus hurt local manufacturers and farmers. Turkish imports accounted for the bulk of Turkish-Armenian trade which stood, according to Armenian government data, at 73.5 billion drams ($180 million) last year. Armenian Inflation Hits Double Digits • Robert Zargarian Armenia - A supermarket in Yerevan, April 29, 2021. Inflation in Armenia continued to rise in June, reaching an annual rate of 10.3 percent, government data shows. According to the Armenian government’s Statistical Committee, soaring food prices remained the key factor behind the increased cost of living. They were up by an average of 17 percent year on year. The Statistical Committee reported an almost 46 percent surge in the average cost of vegetables mostly grown in the country. It said the prices of bread and beef were up by about 20 percent from June 2021. Economy Minister Vahan Kerobian admitted on Thursday that the much higher-than-projected inflation rate could increase poverty in Armenia, which already grew in 2020 due to the coronavirus pandemic. But he said that the impact of the rising consumer prices should be offset by robust economic growth recorded in the first five months of this year. The growth is translating into new jobs and higher wages, he told journalists. Kerobian also pointed to the government’s decision last week to raise the national minimum wage by 10 percent, to 75,000 drams ($182). The measure will take effect in January 2023. Government officials have said that pensions will also rise next year. But they have not yet specified the extent of the promised increase. Inflation hit the double-digit rate last month despite a sharp appreciation of the Armenian currency, the dram, which began in mid-March amid an influx of thousands of Russians who left their country following the Russian invasion of Ukraine. The dram’s exchange rate has also been affected by a significant strengthening of the Russian ruble. Armenia’s Central Bank has made clear that it will not cut interest rates or intervene in the domestic currency market to reverse the dram’s appreciation which is hitting hard some Armenian exporters. The bank’s governor, Martin Galstian, insisted last month that the stronger dram is somewhat easing external inflationary pressures on the Armenian economy. Reprinted on ANN/Armenian News with permission from RFE/RL Copyright (c) 2022 Radio Free Europe / Radio Liberty, Inc. 1201 Connecticut Ave., N.W. Washington DC 20036.