‘Russia wants us to pull its chestnuts out of the fire’ – Gagik Makaryan

In an interview with Tert.am Gagik Makaryan, Chairman of the Republican Union of Employers of Armenia (RUEA), commented on Russia’s restrictions on the import of Norwegian salmon to Armenia.

According to him, the restrictions will later apply to many other products. Russia is seeking to draw Armenia into its own conflict with Europe.

Mr Makaryan, Russia has applied to Armenia for restricting the import of Norwegian salmon. Do you think restrictions may be imposed on other products as well? And what about food security?

I am strongly critical of this ban, and I do not think it is a mere step involving only salmon or Norway. With sanctions imposed on it, Russia is in a severe crisis, given the latest USD appreciation, and has caused problems to both European states and Customs Union member-states. And this ban has a political purpose now. Not to remain alone, Russia will try to make its partners act as it itself is acting. It is a soviet model: drawing as many states as possible, including Armenia, into a conflict with the European Union.

At the Eastern Partnership conference and business forum in Riga, European delegates repeatedly stated their political will to continue assisting Armenia in drafting different economic laws, SME development, integration and implementation of reforms. And one of the important programs involving the six eastern partnership member-states, including Armenia, is a business internationalization program and bilateral trade with European states. And further restrictions will draw us into a serious political conflict with Europe.

So you are sure the list of goods will be expanded?

Yes, I am. Moreover, I can say with confidence that Russia will try to isolate us by drawing us into a conflict. And if we are in union with Russia, it wants us to pull its chestnuts out of the fire and have sanctions imposed on us. Or, Europe can see Russia’s crazy steps create serious problems for the Eastern Partnership project and will have to step back. Two months ago Russia considered the eastern partnership project as running counter to its national interests. That is, it is an unacceptable program for Russia, and that state will struggle against the program. Although Armenia did not plan a deep and comprehensive free trade agreement with the European Union, it is getting aid. Serious fermentation is in progress in Russia, and it has to resolve the problems in such a way.

If Russian leaders cannot find compromises, they are trying to make other face problems as well. So we should be most cautious and present serious demands to Russia - paying for gas in terms of roubles, for example. We do not need depreciated roubles and we are not going to pay in US dollars. And one of the reasons for the US Dollar deficit in Armenia is that the US Dollar is tending to appreciate. And we are now paying for gas in US dollars. That is, I propose giving Russia a major task it cannot agree to and will have to let us alone. Or even if it agrees to it, we will benefit from it.

Could you cite any figures that would show what would happen if Armenia severed its ties with Europe because Russia is our second major partner after the EU?

Russia was our second major partner in the past because our foreign trade is lacking. But what are we expecting of Europe? First, we are expecting huge funds of Europe and receiving them for our reforms. Who is funding our reforms? It is the World Bank, International Monetary Fund and European aid on a much larger scale. If we stop cooperating with the European Union, customs and judicial reforms, business internationalization and competition programs will prove futile efforts. Hundreds of millions of Euros will stop coming to Armenia. Who is going to support us?

Will you propose that Armenia’s government raise the issues before Russia?

Certainly we will because we are going to have a very active autumn, with grave problems because of the economic situation, inflation and Russian capital. And we have not enough time to diversify our economy, promote investment, develop new markets – all of this requires time and resources.
We, as it were, are fighting on several fronts. Besides the Russian crisis, we are dealing with sanctions, Turkey and Azerbaijan. We also have to think of developing our economy and implementing reforms. We cannot do it.