Armenia's wheat supplies will last 2 weeks: Bagrat Asatryan

Russia’s ban on grain exports will seriously affect also Armenia, Bagrat Asatryan, former president of Armenia’s Central Bank, told a press conference today.

“Russia remains that same country of the Gogol-era, the country of the stupid and bad roads. Nothing has changed” said he, adding that the decisions in Russia are being made for no special purposes.

It comes after US wheat futures jumped more than 5 percent on Friday, taking weekly gains to around 25 per cent as Russia's Prime Minister Vladimir Putin signed a decree to temporarily halt grain shipments which in turn sparked a buying frenzy.

According to Asatryan the world is holding breath to see what is coming next after Moscow’s notorious ban.

Armenia, in his words, has traditionally been an importer of wheat, but at the same time it has been able to support about 30-40 per cent of its demand in wheat. But that is really not enough; especially given the wheat production in Armenia is very much on the decrease: in 2005 more than 132,000 hectares of land were used as wheat plants, while in 2007 that number was only 93,000.

Further Mr Asatryan said that in countries like Armenia the state should start accumulate some supplies, adding that he has made such proposals but they have been ignored.

At the same time he said he had tried to find out how much supplies the state currently has. “Rather miserable figures: some two-weeks’ supplies,” said he, adding that this current economic system in Armenia serves for the benefit of only a group of people, and that the situation will not become any better unless the market is diversified.