Putinru.com, Russia
Aug 20 2004
INFORMATION ON RUSSIAN-ARMENIAN RELATIONS
Armenia is Russia’s strategic ally in the Southern Caucasus and an
important partner within the Collective Security Treaty Organization
(CSTO).
The development of military cooperation began on August 21, 1992, in
Moscow when the presidents of Russia and Armenia signed a treaty on
the legal status of Russia’s Armed Forces in Armenia. On March 16,
1995, the two countries’ presidents signed a treaty on a Russian
military base in Armenia for a term of 25 years with an automatic
extension if both sides agree.
There are 2,500 Russian military personnel in Armenia. The Armenia
group of Russia’s Federal Border Service is also deployed in Armenia.
In keeping with a 1972 agreement, the group guards the republic’s
borders with Turkey and Iran.
The Declaration on Allied Interaction was signed in September 2000.
The Agreement on Questions of Joint Planning of Using Troops in the
Interests of Ensuring Joint Security came into effect in January
2002.
On November 11, 2003, Russian Defense Minister Sergei Ivanov and
Armenian Defense Minster Serzh Sarkisyan signed a plan for military
cooperation in 2004 and two protocols concerning the location and the
allotment of land for the 102nd Russian military base.
In keeping with the new accords, the Russian installations at Guimri
will be combined into a single military complex. The numerical
strength of the Russian base’s personnel is about 3,000. It is
Russia’s largest military installation in the Caucasus.
Russia played the determining role in ceasing the armed conflict
between Armenia and Azerbaijan over Nagorny Karabakh in 1994, and
continues to provide assistance in settling the conflict.
Russia is, as before, Armenia’s leading economic partner. According
to Russia’s Statistics Committee, in 2003 the goods turnover between
the two countries increased by 34.5% to reach $203.3 million. Exports
grew by 33.5% to reach $126.2 million, and imports grew by 36.2%
($77.1 million).
Russian exports grew largely because Russia supplied nuclear fuel and
equipment to Armenia for its nuclear power plant, energy carriers,
and rough diamonds. The export of Russian tobacco and chocolate
products dramatically increased. Russia also imported a larger amount
of aluminum, alcohol, and fruit and vegetable produce from Armenia.
Russia, which invested about $180 million in Armenia, is its largest
investor. The Russian investors accounted for 40% of all investments
made in Armenia in 2003.
According to Armenia’s National Statistics Service, Armenia invested
$91.83 million in Russia in 2003, $68.42 million of which were direct
investments in the real sector of the economy.
Russian investments increase by 92.2% compared to 2002, with direct
investments increasing by 9.73 times.
Russia invested in over 400 enterprises registered in Armenia.
Russia is Armenia’s largest creditor. The republic’s debt to Russia
amounts to about $100 million.
The debt emerged mainly because of the Russian deliveries of nuclear
fuel to the Armenian nuclear power plant. Armenia owes over $10
million to Itera for Russian gas.
In March 1999 on the 10th anniversary of a destructive earthquake in
Spitak, Russia signed an agreement with Armenia on providing
humanitarian aid to Armenia and in keeping with the agreement, part
of Armenia’s debt to Russia was written off.
In November 2002, the sides signed an agreement on settling Armenia’s
$93.7 million debt that transferred five Armenian industrial plants
(the Razdan thermal power plant, the Mars factory, the scientific
research institute of automatic control systems, the scientific
research institute of mathematical machines, and the scientific
research institute of materials technology) to Russia.
The fuel and energy sector remains the most promising sphere of
Russian-Armenian cooperation. The Armenian nuclear power plant, which
produces about 40% of all electricity in the republic, is the major
cooperation project in this sector.
Electronics, instrument-making, transportation, engineering, iron and
steel, and chemical production, as well as industrial cooperation and
financial and credit relations are potential areas of future
Russian-Armenian cooperation.
Fifty of Russia’s 89 regions maintain trade relations with Armenia.
About 2 million Armenians live in Russia, Armenian newspapers are
published in Russia, and there are Armenian schools in Russia. The
Union of Armenians of Russia was set up in 2000.
The Russian-Armenian University that has about 1,200 students
enrolled and six departments, is a positive example of cooperation in
the sphere of education. Eleven branches of Russian state and
non-state higher educational establishments operate in Armenia.
The Program of Cooperation in the Cultural Sphere for 2003-2005 was
signed.
Days of Armenia’s Culture were held in Russia in November 2001, and
Days of Russia’s Culture were held in Armenia in April 2004.
In June 2004, the National Television and Radio Broadcasting
Committee of Armenia gave Kultoura (Culture) All-Russian state
television channel a broadcast frequency in the republic.
Work to prepare a number of agreements in the fields of production
cooperation, tourism, encouragement and protection of investments,
and other areas is under way.