Armenian finished goods exports to Russia growing significantly - economist

YEREVAN, SEPTEMBER 6, ARMENPRESS. Armenian exports of finished goods to its main trade partner Russia are growing significantly, doctor of economic sciences Professor Ashot Tavadyan told ARMENPRESS.

He said that the growth in the first half of the year was 50%.

Professor Tavadyan said that two of the most important indicators for the country’s development are exports of finished goods and the chance of having comparably cheap energy resources. For solving these issues, Tavadyan sees the biggest potential in the Armenian-Russian relations.

“In conditions when gas prices in the international market are over 2000 dollars for 1000 cubic meters, we are buying it for 165 dollars. This certainly has big importance in terms of competitiveness,” Tavadyan said.

Exports from Armenia grew 36,3% in the 6 months. “Finished goods go to Russia, the growth is 48,4% compared to last year’s first six months,” he said, adding that export volumes to Russia comprised 365 million dollars last year, whereas this year it is already 543 million dollars. “For many years our exports stood at 1,7 billion dollars without progress, but when we joined the EAEU our exports surpassed 2,5 billion dollars in a few years. This year we already expect exports to exceed 3 billion dollars. The Armenian-Russian economic relations and joining the EAEU played the main role,” he said.

In the past, exports to Russia was 25% of all Armenian exports, this year the figure grew to 30%, with finished goods having very important role. “Finished goods, which allows to create additional jobs, contains higher added value, and go to Russia. Furthermore, since 2019 exports to Russia are more diversified, not only agricultural products and alcoholic drinks are exported but also textile products and some equipment,” Tavadyan said.

Tavadyan noted that Armenia is receiving targeted loans from Russia, including for the nuclear power plant.

Tavadyan said that Armenia must modernize its economic policy and clearly aim for growth of finished goods exports. He also called for changes in the tax policy to further develop economic ties.

“We must use domestic and external potential in order to have bigger growth of finished goods exports to Russia, which is steadily growing.”