Armenian, Turkish businesspeople continue cooperation despite closed border, says association chief

Relations between Armenian and Turkish businesspeople have not been interrupted even in the absence of diplomatic relations and with the border kept closed, President of the Union of Manufacturers and Businessmen of Armenia Arsen Ghazaryan has said.

In remarks delivered at the Armenia-Türkiye Business Forum being held in Yerevan, Ghazaryan said the opening of the Armenian-Turkish border will make it possible to significantly reduce transportation costs, develop trade between neighboring regions and implement joint investment projects.

He thanked the European Union for approving and implementing a program supporting the normalization of Armenia-Türkiye relations, as well as his Turkish counterparts for participating in the initiative.

“First of all, I would like to thank our EU ambassador for approving and implementing this program. I thank our partners on the Turkish side for undertaking this work at this historically important stage.

This is the second time that we are trying to study, understand and help restore Armenian-Turkish economic, social and cultural ties,” Ghazaryan said.

He stressed that the program is aimed at normalizing relations between the two countries, but relations between Armenian and Turkish businesspeople themselves have been normal for decades.

“When we say that the program’s goal is to normalize relations between businesspeople, there is no such thing. Our relations as businesspeople have been normal since 1993.

The border was closed in 1993 by a unilateral, unofficial directive from Türkiye. The Armenian border was never officially closed,” the President of the Union of Manufacturers and Businessmen of Armenia said.

According to him, even while the border has been closed, Turkish goods and services have continued to enter Armenia, while opportunities to export from Armenia to Türkiye have been severely limited and have mainly been carried out through third countries.

“From 1993 until today, Turkish goods and services have been entering Armenia as Turkish goods and services, and their volume reaches $150 million, $200 million, $300 million. We do not even have the right to export a twig or a match to Türkiye. We export from Armenia to Türkiye through indirect routes.

So, businesspeople work with each other. Our businesspeople, particularly with businesspeople from the Istanbul region, continue to work with each other,” Ghazaryan said.

He highlighted the fact that even in the absence of diplomatic relations and state support and protection for business, Armenian and Turkish businesspeople have been able to cooperate and develop their projects.

“Over these years, despite the absence of diplomatic ties and state support and protection for business, Armenian and Turkish businesspeople have worked normally, as the Turks would say, with dedication, and have continued to develop their business projects,” the President of the Union of Manufacturers and Businessmen of Armenia said.

According to Ghazaryan, the situation is currently changing, and businesspeople are once again waiting for the border between Armenia and Türkiye to open.

“Today, the situation is changing. Once again, they are waiting for the border to open soon. Soon: for 33 years they have been saying that the border will open soon,” he said.

The President of the Union of Manufacturers and Businessmen of Armenia expressed his satisfaction that businesspeople from the border-adjacent Van, Iğdır and Kars had arrived in Armenia to participate in the forum. In his assessment, with an open border, reaching Yerevan or Gyumri from those regions would be much faster and easier.

“I am very happy that our neighbors have arrived today — businesspeople from Van, Iğdır and Kars, who, if the border were open, would reach Yerevan or Gyumri in 45 minutes and would not have so many difficulties,” Ghazaryan said.

He called on Turkish businesspeople to thoroughly study Armenia’s economic and investment opportunities, actively participate in the bilateral B2B meetings being held as part of the forum and find partners in Armenia.

“When compared with Türkiye, Armenia seems small both in terms of its economy and population, but we have great potential, and we have proven this in international business and trade, in working with one another, including with Turkish businesspeople.

I would ask you to study carefully, work during the B2B meetings, find partners for yourselves and develop neighborhood business,” the President of the Union of Manufacturers and Businessmen of Armenia said.

In his assessment, the opening of the Armenian-Turkish border will almost eliminate additional transportation costs for businesspeople in the border regions of the two countries. At the same time, it will create a need and new opportunities for implementing joint projects.

“If the border opens, transportation costs become almost nothing. Implementing projects together becomes a necessity.

There will always be goods, production and services that are more developed in one country and less developed in the other, and they should complement each other,” Ghazaryan stressed.

He also highlighted the importance of establishing diplomatic relations between Armenia and Türkiye, noting that this would enable businesspeople from the two countries to implement joint investment projects.

According to Ghazaryan, the possibility of direct investment from Türkiye to Armenia has so far been limited, and such transactions have mainly been carried out through third countries.

“If diplomatic relations are finally established, we will also be able to implement investment projects together.

To date, any investment from Türkiye has been prohibited. They were carried out through a third country, and we did not have the opportunity to put the Turkish and Armenian flags side by side. That was the procedure; now the situation is changing,” he said.

The President of the Union of Manufacturers and Businessmen of Armenia urged Turkish businesspeople to take advantage of the changing situation, establish new relations, find partners and prepare to work in the market.

“You have come to Armenia at a very timely moment, because we should take advantage of the opportunity, set a precedent for creating new relations, have partners and work in the market,” Ghazaryan said.

Concluding his remarks, he called on the members of the Turkish delegation to make effective use of the two days of the forum and assured them that the Union of Manufacturers and Businessmen of Armenia, the Van Chamber of Commerce and Industry and the Iğdır exporters union are ready to support the establishment of new ties and the selection of reliable partners.

“I want to tell you again: welcome. Try to make effective use of these two days.

We, as organizations — the Union of Manufacturers and Businessmen of Armenia, the Van Chamber of Commerce and Industry and the Iğdır exporters union — are ready to support the creation of ties, the selection of partners, vouch for them and stand by your side.

I hope that after some time we will also be able to present to the public, the European Union and our countries the results we will have from these business studies and meetings,” the President of the Union of Manufacturers and Businessmen of Armenia concluded.

A two-day forum bringing together the business communities of Armenia and Türkiye is being held in Yerevan on September 3-4. It is organized by the Union of Manufacturers and Businessmen of Armenia within the framework of the “Support to Armenia-Türkiye Normalization: Enhancing Cross-Border Linkages” project, funded by the EU.

The forum aims to bring together representatives of the business and government sectors of Armenia and Türkiye on one platform to discuss opportunities for economic cooperation between the two countries, identify new areas and formats for cooperation, and promote the establishment of new business ties and partnerships.

The event includes discussions and meetings on the potential for bilateral economic cooperation, the development of business ties and opportunities for cross-border cooperation.