Armenia, Nagorno-Karabakh united economic organism – risks and benefits of Eurasian integration

With Armenia’s accession to the Eurasian Economic Union (EEU) being in progress, Tert.am has sought comments from politicians over possible advantages and disadvantages of the deal.

Tevan Poghosyan, an opposition lawmaker from the Heritage party, said he cannot now predict any outcomes and risks despite being familiar with the treaty.

“I do not believe that the project will be realized; those are hypothetical issues that were outlined in the document. The whole problem is that the steps have to be put in action to make the situation favorable for Armenia,” he said.

Poghosyan considered problematic the earlier concerns about the absence of a border checkpoint between Armenia and the Nagorno-Karabakh Republic. “I know now how they will work. They are simply clauses outlined in a document, but I have no idea as to what the practical experience will show,” he said, expressing his skepticism about a positive outcome.

The opposition MP said he thinks that the question about the possible advantages and disadvantages would be a good food for thought for businessmen. “Our conclusions now can be based only on the technical assumption that in case Armenia hypothetically joins the EEU, the four [member] countries’ markets will generate such and such income, and such and such part of it will go to Armenia's budget. But what about working with a country which is facing sanctions? So that’s a question too,” he added.

Asked whether he doesn’t think that the EU Association Agreement was more clearly worded, Poghosyan replied, “The EEU [Treaty] is about 40-60 pages, whereas the EU Association Agreement, only its economic part, is over one thousand. And that implies that it is more detailed and can be understood better than the document that the EEU has proposed us,” he added.

Poghosyan further expressed his skepticism about the promised economic growth. “I don’t know what the promised before and what percent of it was realized. Russia was claimed to be a strategic ally, but it later turned out to be selling weapons to our enemy [Azerbaijan],” he noted.

As for the possible risks that the Customs Union accession may necessitate a border checkpoint between Armenia and Nagorno-Karabakh, Poghosyan said he hopes that the authorities will keep their promise not to decide on such a measure for now. “Time will show,” he said.

Asked whether the idea is reflected in the document, Poghosyan said he finds that it depends of the way of interpretation.

Speaking to Tert.am, Khosrov Harutyunyan, a former prime minister now representing the ruling Republican faction in parliament, ruled out any possibility of a customs checkpoint. “I think the political leadership of the republic has stated unequivocally that ‘whenever we say Armenia, be kind enough to count Karabakh as well. As to who likes or dislikes it, it’s another aspect of the question,” he added.

Harutyunyan referred to the higher customs tariffs as a possible risk. “The Armenian Government’s negotiations with our partners imply a transitional stage that will mitigate the customs duties, preventing the Armenian manufacturers, including consumers, from a crisis. Those privileges are necessary in the short run, but from a longer-run perspective, Armenia’s economy needs upgrading to be able to resist such customs tariffs,” he noted.