Since May, the export of flowers from Armenia has been restricted, and in June, the export of fruits and vegetables to the Russian market has been limited. Starting from July 27, the export of dairy products from Armenia will also be restricted. This decision was made by the Federal Service for Veterinary and Phytosanitary Surveillance - "Rosselkhoznadzor", citing the quality of products as the reason.
Does the Russian market no longer need Armenian products, is this decision political, and is it possible that at some point the market will reopen to Armenian producers based on their own interests?
The President of the Republican Union of Employers, economist Gagik Makaryan stated that Russia is one of the few countries in the world that consistently overestimates political interests over economic ones.
"Russia never prioritizes economic benefit; if it did, it would be possible to lift the restrictions on the import of Armenian goods at some point. For it, political interests are a priority, and it has decided to use political levers against economic ones," he noted.
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Of course, our products also have issues. To be honest, we should not think that the actions of the Russian side are only political and lose our vigilance, thinking that our products are good, but Russia has made political decisions. Our cognac, products also have issues, fish too; if this were not the case, our Food Safety Inspection could prove it, conduct measurements, and tell the Russian side that the decision is entirely political," said Gagik Makaryan in an interview with 168.am.
According to the economist, even if we assume that this decision by Russia is political, it does not mean that it will retreat. After the elections, it not only did not lift the restrictions but also increased its sanctions.
"When Russia realizes that the number of goods going from Armenia to Europe is increasing to the point where its sanctions lose their effectiveness, it may try to take some steps to make concessions. Or it may send brigades here to check and ensure that everything is in order. It may also attribute this to itself, saying, 'For example, on the way to Europe, you have started to improve the standards of your products, and we also accept these standards.'
In the EAEU, the technical regulations that are similar to EU directives are documents of the same strength. It is not that the EAEU is a market for low-quality goods; in terms of competition, it is simply a less competitive market," added Gagik Makaryan.
According to the economist, by law, the EAEU is the same as the EU market; it's just that Armenia, so to speak, found a common language with this market by giving bribes, making connections, knowing Russian, and having similar cultures; Armenians in Russia play a significant role in mediation issues, and so on. However, when Russia began to emphasize standards, it saw that many did not meet these standards, or it was previously aware of this but turned a blind eye to this fact.
"Now this market is occupied by Turkish, Azerbaijani, and also Georgian products; it is not that Russia will suffer greatly in terms of harvest. For example, Armenian cognac is already being replaced by Azerbaijani or Georgian products, or wines, agricultural products. It is enough to say that Turkey supplied 40 percent of EU agricultural products until 2000, and now it is more than half," emphasized our interlocutor.
In other words, we are dealing with a very powerful economy. Turkey will sell many products to Russia and already does. Now Russia, even if it oppresses its people and they have fewer goods, will not give up its positions," our interlocutor emphasized.
Gagik Makaryan also emphasized that Armenia must actively work towards entering the EU market, and it is not the case that many producers will export their products to Europe next year.
"The level of actions being taken does not inspire hope that we will be better off in this regard next year.
There is also one more question; these risks may lead to problems in the grape-growing sector," Gagik Makaryan emphasized.
