Turkish press: Turkey, Azerbaijan to complete joint military exercises

Helicopters carry out drills during joint military exercises conducted by the Turkish and Azerbaijani armed forces in Azerbaijan, Aug. 9, 2020. (AA Photo)

The 13-day joint military exercises conducted by Turkish and Azerbaijani armed forces are expected to be completed on Monday.

Turkey and Azerbaijan, with the participation of the countries' air and ground forces, launched joint military drills in the wake of recent Armenian attacks on Azerbaijani border points.

The war exercises began on July 29, and Aug. 5 was the last day of ground engagements – including artillery, armored vehicles and mortars striking simulated targets – in the capital Baku and the exclave of Nakhchivan, Azerbaijan's autonomous region bordering Turkey. Air combat drills involving jets and helicopters were scheduled to continue in Baku, Nakhchivan, Ganja, Kurdamir and Yevlakh through Monday.

Last month, Armenia attacked Azerbaijani troops in the northwestern Tovuz border region. As a result, at least 12 Azerbaijani soldiers, including a major general and a colonel, were killed and another four soldiers wounded. A 76-year-old Azerbaijani citizen also lost his life.

Azerbaijan accused Armenia of taking "provocative" actions, with Ankara warning Yerevan it would not hesitate to stand against any kind of attack on Azerbaijan.

Nagorno-Karabakh, an internationally recognized territory of Azerbaijan, has been under illegal Armenian occupation since 1991.

International organizations, including the United Nations, have demanded the withdrawal of the occupational forces.

The Organization for Security and Cooperation in Europe (OSCE) Minsk Group, co-chaired by France, Russia and the U.S., was formed in 1992 to find a peaceful solution to the conflict but to no avail.

Mexico lawmakers call Armenia, Azerbaijan for peace

News.am, Armenia
Aug 6 2020

12:48, 06.08.2020
                  

Armenia stock market anticipated to reach $11,497,532,470.0 by 2026, registering at a CAGR of 8.0%

OPEN PR
Aug 3 2020
08-03-2020 06:53 AM CET | Business, Economy, Finances, Banking & Insurance

 

Introduction of a new exchange technology, and offering incentives to banks drive the growth of the Armenia stock market. Whereas, immature capital markets and lack of private equity, and decline in public stock market impede the market growth. On the other hand, cooperation in the Armenia market is expected to offer new opportunities to the market.

The Armenia stock market generated $5,601,849,231.9 in 2017, and is anticipated to reach $11,497,532,470.0 by 2026, registering at a CAGR of 8.0% from 2019 to 2026. The report offers a comprehensive analysis of the Industry dynamics, key market segments, market trends and estimations, top investment pockets, and competitive landscape.

Download Sample Report: https://www.alliedmarketresearch.com/request-sample/6412

The Armenia stock market segmentation includes type and issuer type. Based on type, the market is divided into equity, corporate bonds, government bonds, REPO, foreign exchange, and auctions. The auctions segment held the largest market share in the Armenia stock market, accounting for nearly 97.3% of the total market share in 2018, and is expected to maintain its lead position throughout the forecast period. However, the foreign exchange segment is anticipated to grow the fastest CAGR of 16.9% from 2019 to 2026.

Based on type, the market is bifurcated into private organization and government organization. The private organization segment contributed to nearly 98% of the total share of the Armenia stock market in 2018, and is expected to dominate in terms of revenue during the forecast period. However, the government organization segment is anticipated to register the fastest CAGR of 8.6% from 2019 to 2026.

Enquire for Discount: https://www.alliedmarketresearch.com/purchase-enquiry/6412

The market report includes an in-depth analysis of major market players include Ameriabank CJSC, ARARATBANK, Ardshinbank CJSC, Black Sea Trade & Development Bank, ACBA Credit Agricole CJSC, Converse Bank, FINCA, Inecobank CJSC, Armenian Economy Development Bank, Unibank OJSC, and Black Sea Trade & Development Bank.

About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

Contact:
David Correa
5933 NE Win Sivers Drive
#205, Portland, OR 97220
United States
USA/Canada (Toll Free):
+1-800-792-5285, +1-503-894-6022, +1-503-446-1141
UK: +44-845-528-1300
Hong Kong: +852-301-84916
India (Pune): +91-20-66346060
Fax: +1(855)550-5975
[email protected]
Web: https://www.alliedmarketresearch.com

Armenia makes significant progress in mining sector: USAID

Save

Share

 10:17,

YEREVAN, JULY 30, ARMENPRESS. Armenia has made significant progress in implementing the global standard for good governance in its mining sector, USAID Armenia said on Facebook.

Recently, Armenia became the 9th out of the 53 countries participating in the Extractive Industries Transparency Initiative (EITI) to achieve the highest status rating for implementing the 2016 EITI Standard, the global document outlining the compliance requirements for countries having joined the EITI.

“Following Armenia’s first validation assessment since it joined the EITI in 2017, the EITI Board commended the Government of Armenia (GOAM) and the EITI Multi-Stakeholder Group for its exemplary progress, highlighting its efforts to elevate mining issues into broader transparency and governance efforts, integrate the EITI process into the reform agenda of the mining sector, and set a precedent for constructive dialogue and cooperation between different constituencies”, the statement says.

Armenia became an EITI candidate country in March 2017, with political and technical support from the USG. The United States Agency for International Development (USAID) provided direct assistance to the Government of Armenia to facilitate Armenia’s application for EITI membership and catalyzed other donor support to the EITI effort. USAID’s current support focuses on strengthening civil society’s capacity to conduct oversight of the EITI implementation and fostering professional media coverage of the mining sector and the EITI process.

RFE/RL Armenian Report – 07/29/2020

                                        Wednesday, 

Armenia Bars Turkish Weapons Inspectors

        • Emil Danielyan

Turkey - Turkish officers (L) greet Armenian colleagues inspecting their army 
unit near Igdir, 28Nov2012.

Citing “unprecedented” security threats emanating from neighboring Turkey, 
Armenia on Wednesday banned Turkish officers from inspecting Armenian military 
bases and verifying Yerevan’s compliance with an international arms control 
treaty.

It announced the decision as Turkey and Azerbaijan began joint military 
exercises in the wake of deadly hostilities on the Armenian-Azerbaijani border 
which heightened tensions in the Nagorno-Karabakh conflict zone.

Signed in 1990 and revised in 1999, the Treaty on Conventional Forces in Europe 
(CFE) places specific limits on the deployment of troops and heavy weapons from 
the Atlantic coast to Russia's Ural mountains. Armenia, Georgia and Azerbaijan 
signed it after gaining independence.

Signatories to the treaty are allowed to inspect each other’s compliance with 
the arms ceilings through random visits to practically any military base. 
Military inspectors from Turkey and other NATO member states have regularly 
visited Armenia since the mid-1990s. The Armenian Defense Ministry had first 
sent a group of CFE inspectors to eastern Turkey in March 2010.

The Armenian Foreign Ministry said it informed the Organization for Security and 
Cooperation in Europe on Wednesday that Yerevan has decided to “suspend” Turkish 
inspections of its armed forces.


Azerbaijan -- A Turkish military-transport plane lands at Nakhichevan airport, - 


In a statement, the ministry attributed the move to Turkey’s “unilateral support 
to Azerbaijan” and “unprecedented threats against Armenia” voiced following the 
border clashes that broke out on July 12. It also pointed to the 
Turkish-Azerbaijani war games, saying that they “further aggravate the 
situation” in the Karabakh conflict zone.

“Any [further] military inspection conducted on the territory of Armenia by 
Turkey … would adversely impact Armenia’s security interests and may jeopardize 
the security of its population,” read the statement. It indicated that weapons 
inspectors from other OSCE member states will be allowed to continue to visit 
Armenia.

Turkey has blamed Armenia for the border clashes and vowed to boost its military 
and diplomatic support for Azerbaijan. Yerevan has responded by accusing Ankara 
of trying to destabilize the region.

The Armenian military said on Tuesday that it will be closely monitoring the 
Turkish-Azerbaijani drills which will be held in various parts of Azerbaijan for 
nearly two weeks. Defense Minister Davit Tonoyan said Armenian army units as 
well as Russian troops stationed in Armenia will use “all reconnaissance means” 
at their disposal for this purpose.


Turkey - Senior Armenian and Turkish army officers sign a protocol, 29Nov2012.

Armenia and Turkey have carried out mutual on-site arms inspections despite not 
having diplomatic relations and an open border. Neither country has accused the 
other of violating the CFE.

By contrast, the Armenian and Azerbaijani militaries have never inspected each 
other in line with a gentlemen’s agreement dating back to the 1990s. Yerevan and 
Baku have long traded accusations of exceeding arms quotas set by the Cold 
War-era treaty.




Lawmakers Want To Extend Tax Breaks, Subsidies For Armenian Border Villages

        • Marine Khachatrian

ARMENIA -- Aram Vardazaryan stands inside his home which suffered of bombing 
attacks in the village of Aygepar, Tavush region, recently damaged by shelling 
during armed clashes on the Armenian-Azerbaijani border, July 18, 2020

Pro-government lawmakers have introduced legislation that would extend and 
expand wide-ranging economic benefits enjoyed by residents of Armenian towns and 
villages close to the border with Azerbaijan.

People living in the 36 mostly rural communities affected by periodical 
Armenian-Azerbaijani border skirmishes have been exempt from property and 
agricultural land taxes since 2015. A law initiated by the former Armenian 
government also requires the state to subsidize the prices of electricity, 
natural gas and water supplied to them.

Amendments to the law drafted by parliament deputies from Prime Minister Nikol 
Pashinian’s My Step bloc would extend the tax exemptions by three more years, 
until January 2024. They also call for the government to continue paying half of 
the local residents’ utility bills.

Irrigation water used them would also be covered by the subsidies. And their 
children going to school would receive textbooks for free or at knockdown prices.

The proposed amendments would further commit the government to repairing homes 
damaged by cross-border gunfire from Azerbaijan, which has been a regular 
occurrence ever since the early 1990s.

The government has until now been legally obliged to help only the owners of 
homes completely destroyed by Azerbaijani shelling. The latter are eligible for 
new and free housing.


Armenia -- A view shows a house which locals said was damaged during a recent 
shelling by Azerbaijani forces in the village of Aygepar, Tavush Province, July 
15, 2020.

In addition, the bill stipulates that residents of the border towns and villages 
severely wounded as a result of truce violations would not only receive free 
healthcare but also financial compensation ranging from 1 million to 3 million 
drams ($2,100-$6,300). The state would pay 5 million drams to the families of 
civilians killed by enemy fire.

The bill, which the Armenian parliament is due to debate this fall, was 
circulated in the wake of deadly fighting that broke out along the border 
between Armenia’s northern Tavush province and the Tovuz district in Azerbaijan 
on July 12. Armenia and Azerbaijan have accused each other of shelling border 
villages during the hostilities that lasted for several days and left at least 
17 soldiers dead.

According to the provincial administration, 89 houses in three Tavush villages 
were damaged as a result of the border clashes. The Armenian government has 
pledged to fully repair those properties. The repairs reportedly began last week.




Armenia Reports Further Drop In Coronavirus Cases

        • Robert Zargarian

Armenia -- Pedestrians wear face masks in downtown Yerevan, July 10, 2020.

The Armenian health authorities reported on Wednesday another decrease in the 
number of new coronavirus cases and deaths caused by them.

The Ministry of Health said in the morning that 308 people have tested positive 
for COVID-19 over the past 24 hours, down from an average of 550-600 single-day 
infections registered in the first half of July. They brought to 37,937 the 
total number of confirmed cases in Armenia.

The ministry recorded more than 730 cases a day at one point in late June. This 
might explain a subsequent rise in coronavirus-related deaths.

Around 15 fatalities a day were reported from July 6 through the end of last 
week. Significantly fewer people infected with COVID-19 have died in recent 
days, according to the Ministry of Health.

The ministry said on Wednesday that six people infected with COVID-19 have died 
in the past day. It said the virus was the primary cause of four of those deaths.

Armenia’s official death toll from the pandemic thus rose to 723. The health 
authorities say 225 other infected people have died from other, pre-existing 
diseases.


Armenia -- A healthcare worker in protective gear tends to a COVID-19 patient at 
the Surp Grigor Lusavorich Medical Center, Yerevan, June 5, 2020.

Government data also shows that less than 17 percent of the latest coronavirus 
tests carried out across the country of 3 million came back positive.

The positive test rate hovered between 20 percent and 25 percent in previous 
days. It averaged around 30 percent throughout June and early July.

The Ministry of Health spokeswoman, Alina Nikoghosian, described the latest 
figures as further proof of a continuing fall in the country’s infection rates. 
She attributed it to an increased number of Armenians wearing mandatory face 
masks in all public spaces and following other anti-epidemic rules set by the 
government.

“We have been more vigilant during the last few months,” Nikoghosian told 
RFE/RL’s Armenian service. “I hope that this pace [of improvement] will 
continue.”

Nikoghosian emphasized the fact that for several consecutive the daily number of 
people recovering from COVID-19 has exceeded that of new infections. But she 
cautioned that so far there has been no sizable drop in the number of COVID-19 
patients that are in a severe or critical condition.

The deputy director of the Surb Grigor Lusavorich Medical Center, Armenia’s 
largest hospital treating such patients, also spoke of an improving 
epidemiological situation. “I can say for certain that the number of deaths will 
fall further in the coming weeks given the decrease in severe cases,” said 
Petros Manukian.


Armenia -- A priest wears a face mask at the Echmiadzin-based Mother See of the 
Armenian Apostolic Church, June 11, 2020.

Manukian said that around one-fifth of intensive-care beds at his hospital are 
currently vacant. As recently as on July 13, Health Minister Arsen Torosian 
noted a continuing lack of such beds at the Surb Grigor Lusavorich and other 
Armenian hospitals dealing with the coronavirus.

Opposition groups have for months decried the government’s handling of the 
coronavirus crisis, saying that Armenia has one of the highest infection rates 
in the world. Prime Minister Nikol Pashinian, Torosian and other government 
officials have dismissed the criticism.

Ever since controversially lifting nationwide lockdown restrictions in early 
May, the government has put the emphasis of getting Armenians to practice social 
distancing, wear face masks and follow other safety rules. It says that this 
strategy is working.

Deputy Prime Minister Tigran Avinian told the Armenian parliament on July 14 
that the government hopes to cut the daily number of new cases to roughly 140 by 
the beginning of September. He said this would allow the government to reopen 
the country’s schools shut down by it in March.


Reprinted on ANN/Armenian News with permission from RFE/RL
Copyright (c) 2020 Radio Free Europe / Radio Liberty, Inc.
1201 Connecticut Ave., N.W. Washington DC 20036.

 


Government nominates candidate for Constitutional Court judge

Save

Share

 12:57,

YEREVAN, JULY 23, ARMENPRESS. The Armenian government nominated Vahram Avetisyan’s candidacy for the position of judge of the Constitutional Court.

The respective decision was adopted today at the Cabinet meeting.

During the session Vahram Avetisyan presented his approaches and plans in case of elected as CC judge.

Vahram Avetisyan is a Doctor of Law, Professor and Chair of the YSU Civil Law department.

On July 22 Speaker of Parliament of Armenia Ararat Mirzoyan signed the law, adopted by the Parliament on June 3, on making changes and amendments to the Law on the Constitutional Court.

On June 30 the Parliament adopted the bill submitted by the ruling My Step faction which sets a pension for the judges of the Constitutional Court whose powers have been suspended based on the recent changes. After the adoption of the bill President of Armenia Armen Sarkissian announced that he would not sign it.

On June 22 the Parliament adopted the bill on the Constitutional amendments submitted by a group of the ruling My Step faction MPs, which proposes to replace the Constitutional Court President and those judges of the Court which have served no less than 12 years. The Constitutional amendments have entered into force. Hrays Tovmasyan is no longer the President of the Constitutional Court, and the powers of three judges of the Court – Felix Tokhyan, Hrant Nazaryan and Alvina Gyulumyan have been suspended. The three new judges of the Court must be elected within two months.

Editing and Translating by Aneta Harutyunyan

Complaints of torture on rise in Turkey’s Kurdish southeast

AL-Monitor



The Turkish government no longer sees the need to conceal torture,
especially of Kurdish women in the southeast of the country.

By Pinar Tremblay
July 8, 2020


Picture this: A woman is home alone in Diyarbakir province in Turkey's
Kurdish-majority southeast. At 5 a.m., 100 policemen from
counterterrorism and special forces units storm the apartment,
instructing the neighbors to stay inside and not communicate with
anyone. Then they sledgehammer the door and unleash two police dogs to
attack Sevil Rojbin Cetin. But that is only the beginning.

Cetin is an activist in women’s movements and a former Peoples'
Democratic Party (HDP) mayor, elected in 2014 and replaced by a
government appointee in 2016.

Cetin was interrogated for 3½ hours in her apartment while her legs
were bleeding from multiple dog bites. The apartment was turned upside
down, while she was blindfolded and beaten.

She was stripped half naked with her hands tied, while photos were
taken of her. The physical and sexual torture was coupled with verbal
abuses; a gun was held to her head. “At one point she was taken to the
balcony and the officer told her, ‘If your apartment was on the 5th
floor, you would have jumped by now and we would not have to deal with
you,” said Meral Danis Bestas, a pro-Kurdish HDP lawmaker.

Cetin’s Attorney Gulistan Ates, who took photos of her injuries after
the ordeal and shared them with the press, was called to the police
station and an investigation has been launched against him.

The 2019 US State Department human rights report emphasized that
violations affect Turkey's Kurdish citizens disproportionally. Kurdish
women or women who refuse to be model citizens in the eyes of the
Turkish state are increasingly becoming targets of arbitrary arrests,
strip searches, sexual violence in detention, insults and threats of
rape.

Remziye Tosun, HDP lawmaker who has been targeted for wearing white
scarves in the parliament, told Al-Monitor, “During the siege of Sur
[in 2016], I stayed at home with my young children. Then they
[security forces] took us outside; I had my two daughters with me —
one was 18 months and the other nine years old. The security forces
were determined to send my children to social services despite my
pleas to call my family. But they sent my 9-year-old to an orphanage;
my nursing child was allowed to stay in prison with me.”

Tosun said that since 2015 state forces have increased gradually the
intensity of torture and abuse of women. “We have gone back in time —
back to the days of Esat Oktay Yildiran. That is the mentality of the
AKP [Justice and Development Party] right now; torture has come back
with a vengeance.” (Yildiran was a military officer who was notorious
for his gruesome torture techniques at the Diyarbakir prison in the
1980s.)

Tosun’s house in Sur was demolished, and she was imprisoned for 15
months with her youngest child. Despite all that has happened, she
keeps her kind and compassionate spirit. “The thing that hurt the most
was not the physical hardship but the humiliation. One day we were
cleaning the newly built prison in Elazig, but we had little access to
cleaning products. We saw a group of female guards staring at us, so
one of the inmates asked why the guards laughed nervously among
themselves. One replied, 'Look they speak, they are human.' This I
cannot forget, but I understand.”

Tosun said that she has forgiven those guards, adding, “The prejudice
against the Kurds, the sayings about the Kurds having tails and not
being civilized is still happening because of the official education
system. And that mindset helps justify cruel treatment and
discrimination.”

The Kurds in Turkey are perceived as pseudo-citizens, and therefore as
potential terrorists. The Kurds are accepted to some degree, and as
long as they assimilate diligently they are viewed as prospective
Turks.

Ayse Acar Basaran, HDP lawmaker and spokeswoman for the HDP’s Women’s
Council, told Al Monitor, “Since July 2015, we have had over 16,000
members of our party detained by the security forces. About 4,000 are
in prison.”

Basaran noted that all women’s organizations have been shut down since
the July 15, 2016, coup attempt. Violence against women has spiked
even further as men are given a blank check and women are left more
vulnerable in their homes and on the streets. “When the government
ended the peace process and intensified its aggressive security
policies women became the biggest victims. Now they are arresting
members of the two remaining women’s associations — Rosa Women's
Association and TJA-Free Women’s Movement. The charges against the
members include attending International Women's Day on March 8,
promoting peace, searching for missing women and seeking justice for
female victims of domestic violence. Women — particularly those in the
Kurdish women’s movement — pose a direct challenge to the AKP’s wish
to monopolize power, because they are so organized,” she added.

Eren Keskin, vice-president of Turkey’s Human Rights Association and a
prominent attorney, told Al-Monitor that torture of women both “in
detention and while being taken into detention is becoming routine.
Torture is clearly defined as illegal in both the Turkish Constitution
and several international treaties that Turkey has signed.”

In the 1980s, torture was hidden and frequently denied by government
officials. Today, senior bureaucrats welcome and even encourage it.
For example, Interior Minister Suleyman Soylu said in April, “I told
[the security forces] when you catch them [terrorists] tear them
apart.” Soylu also said that photos of the bodies would be made
public. Some of those commenting on these images on social media
suggest further gruesome acts on the alleged terrorists. In what seems
to have become the normalization of torture and violence, the display
of the mutated body parts of Kurdish women have become an event to
celebrate.

Sebnem Korur Fincanci, president of the Human Rights Foundation of
Turkey, announced that according to the foundation's records one in
every 500 people in Turkey has been tortured.

HDP lawmakers are now asking who is responsible for torturing Cetin
for 3½ hours, and who gave the order for this torture. The images of
the torture did not cause an uproar among social media users. So far,
no police investigation has been launched about any torture claims.
The problem of impunity of government officials in Turkey has reached
levels never seen before. Instead, we can expect more investigations
for human rights lawyers, HDP lawmakers and journalists who dare to
report cases of torture or abuse.

There are several loopholes in the law to protect torturers. Although
torture is to receive severe punishment, the prosecution can easily
turn the case into “an act of brutality,” which would not even cost
the officer his job. These acts are becoming routine because they are
condoned by the government and justified under the argument of
“combatting terrorism” — with little to no room left to ask how
torturing these women helps combat terror.

Turkey is regressing fast to the days when police officers marched
chanting, “Damn human rights” — starting in 1992 at a funeral of four
officers.


 

Artsakh’s President proposes amnesty

Public Radio of Armenia
July 3 2020

Armenia’s inability to solve pandemic-related economic problems – Modern Diplomacy

Published

  

on

 

By

 Orkhan Baghirov

According to data from the Armenian government, in 2019 the country’s economy grew by about 7.6%,which was the highest figure since 2008. Further data from the Statistical Committee of Armenia show that the trade and service sectors were the main drivers of economic development. In the same period, 9% growth in industrial output and a 4% reduction in agricultural output were also recorded. Inspired by these growth numbers, during a cabinet meeting in January, Prime Minister Nikol Pashinyan said that he was confident that, as a result of the joint efforts of government members, even higher figures will be registered in 2020. However, as a result of subsequent pandemic-related events, his confidence disappeared and difficulties in solving economic problems have proven the inability of the Armenian government to act independently.

Since the declaration of an emergency situation on March 16, economic activity has significantly slowed, thus leading to the creation of various economic problems and a financial deficit. Even though some restrictions were softened in May, that did not lead to a noticeable increase in economic activity. As a result, the economic forecasts for Armenia in 2020 worsened. According to the European Bank for Reconstruction and Development, the economy of Armenia will contract by about3.5% in 2020 as a result of global uncertainty and falling demand. However, the Armenian government is more optimistic in its prediction of a decline in GDP of 2%.

One of the main problems created by the pandemic-related economic restrictions is the impossibility of implementation of government-approved budget projects for 2020. As the forecast for Armenia’s GDP worsens, it will lead to lower tax revenues than initially planned for. According to the Finance Minister, Atom Janjughazyan, with the forecast 2% decline of GDP at the end of the year, tax revenues will decrease by about 10% compared with the planned volume. If the economy diminishes by more than 2%,that will lead to an even greater reduction in tax revenues. Janjughazyan also noted that the government plans to keep budget spending unchanged in order to mitigate the negative consequences and create the preconditions for a quick recovery. Although this decision could help to prevent social discontent and avert some economic problems, it could have long-lasting economic consequences by significantly increasing the budget deficit. With a reduction in taxes generated of about 10%, the budget deficit will double, reaching 5% of the projected GDP or $676.4 million (1 Armenian Dram=0.0021 USD). To run the budgeted projects with such a high level of deficit, the government will have to amend the budget legislation in order to exceed existing restrictions.

Another financial problem for Armenia is related to the implementation of support programs. As the emergency situation has substantially impacted economic development, the government has had to implement support programs. Even though these programs have been important in supporting the economy, they have also created financial problems as the government does not have enough resources to implement them independently. To support the economy, the government approved a support package of $315 million. Of these funds, $168 million will be used for long-term economic development programs;$52.5 million for the elimination of economic problems, social tension and liquidity issues; and $42 million for the redistribution of reserve funds. So far, the Armenian government has approved 20 crisis measures for the implementation of support programs.

Financing the high budget deficit and extensive support programs creates financial problems as Armenia does not have sufficient financial resources. Therefore, Armenia must attract funds from other countries or international financial institutions. Based on the calculations of the Armenian government for financing the combined support programs and budget deficit,it needs to raise an additional$546 million. Armenia already has a large volume of external debt (40% of GDP in 2019) and raising additional funds will significantly increase that debt. Taking on an additional $546 million of debt will increase the government’s external debt by about 10%. Taking into account that, during 2019, the total public debt of Armenia increased by about 14.8%, the increase of external debt by about 10% from only one source shows how seriously it will affect the financial security of the country.

Armenia also is facing economic problems in the energy sector. On April 1,GazpromArmenia, the Russian-owned natural gas distributing company, declared that it was going to ask the Public Services Regulatory Commission (PSRC) for changes to gas prices in Armenia. It proposed to set the same price for all customers beginning from July 1. This change would eliminate the discount for low-income families, thus leading to a 35% increase in price for them but a2.2% decrease for consumers that use up to 10,000 cubic meters of gas per month. The Armenian government was dissatisfied with the offered gas rates as it was already dealing with pandemic-related economic problems and it requested that Russia decrease the price of gas that they sell to Armenia.

As the talks with Russia did not lead to desired results, the PSRC accepted the changes but kept the price for domestic users and low-income families unchanged. The PSRC wants the average weighted price of 1,000 cubic meter of gas be set at $266.7 USD,$16.43 below the price that Gazprom Armenia had proposed. The price of natural gas will increase from $212 to $224 per thousand cubic meters for agricultural companies, and from $242 to $255.92for consumers who use more than 10,000 cubic meters of gas per month. The new prices will enter into force on July 19, except for thermal power plants. Despite the fact that PSRC was able to prevent price changes for ordinary citizens, the new rates will create unemployment problems. In order to operate with accepted price changes Gazprom Armenia has to lay off about 1500 employees and reduce its annual revenues about 6%.

The inability of the Armenian government to solve its economic problems with its own financial resources or to diversify its energy imports will lead to significant economic problems. Many countries around the world are facing economic and financial problems and are therefore looking to obtain foreign assistance, and this reduces opportunities to access foreign finance by intensifying competition. Therefore, it is not currently easy for Armenia to attract financial resources. The dependence of the energy sector on the price policies of other countries also creates economic instability. Even though the PSRC was able to avoid natural gas price rises for ordinary citizens, it cannot prevent unemployment issues and price rises for businesses. Therefore, countries that are dependent on foreign financial assistance and are unable to implement independent economic and energy policies during the pandemic and in the post-pandemic period will face serious economic issues. Taking into account that social and economic problems were among the main drivers of the change of government in Armenia in 2018,the pandemic-related economic problems will also have political consequences.

Newspaper: Why was Armenia premier’s Moscow visit canceled?

News.am, Armenia
Newspaper: Why was Armenia premier's Moscow visit canceled? Newspaper: Why was Armenia premier's Moscow visit canceled?

09:21, 20.06.2020