ARMENIA’S TRADE WITH EU UP, WITH EEU DOWN – ECONOMIST

20:57 * 02.03.15

This January Armenia registered an increase in trade turnover with
a number of EU member-states and, on the other hand, a decrease in
the country’s trade turnover with the Eurasian Economic Union (EEU)
member-states.

Economist Artak Manukyan does not consider it strange.

He cites a number of reasons for that, particularly the Russian rouble
depreciation and sanctions against Russia.

“Considering exchange risks, exporters prefer export to EU
member-states because the Euro has been more stable during the period
under review. Rouble depreciation made competition possible,” he said.

Another factor is a difference between products exported to the EEU
and EU member-states. The EU mainly imports copper concentrate because
it is in steady demand in European markets.

As compared with previous years, copper and gold prices are lower
now, and producers are increasing capacities by increasing exports
at lower prices. Less foreign currency can be said to come to Armenia.

“We can say it is increasing because the Teghut molybdenum plant has
been re-operated,” Mr Manukyan said.

He forecasts a further price rise.

“The Chinese economy will gradually be growing, and the Russian exports
of raw materials will cause demand to grow, with lower supply, which
will influence prices as well.”

The third factor is seasonality.

“Armenia is mainly exporting agricultural produce to Russia, Belarus
and other CIS members. However, raw materials are in constant demand.”

A possible reason is that sanctions do not allow Russian companies
to export. For example, a Russian product is exported to Armenia and,
later, to the EU at a lower price.

“It is because there may be mechanisms that could be evaded,” Mr
Manukyan said.

From: Emil Lazarian | Ararat NewsPress