The Armenian-American steel plant under construction in Yeraskh, a village bordering the Azerbaijani exclave Nakhichevan, will be relocated due to safety concerns. The site was targeted by Azerbaijani troops, resulting in injuries and property damage. The $70 million project's new location will be close to the original site, according to the Minister of Economy, Vahan Kerobyan.
A recent announcement from Armenia's Minister of Economy, Vahan Kerobyan, confirmed that a $70 million Armenian-American steel plant under construction will be moved to a new location. The construction site, GTB Steel LLC, is currently located in Yeraskh, a village that has suffered from cross-border fire from Azerbaijani troops.
This volatile situation led to serious injuries to two Indian nationals working on the site, as well as damage to equipment and buildings. This level of risk prompted the decision to change the construction location, but interestingly, the new site will not be far from the original one.
Kerobyan stated that the construction process is privately funded, allowing investors to steer the project as they see fit. "We, taking into account the geographical location and the regional environment, are trying to be as helpful to them as possible," said the minister.
The minister also spoke on the broader implications of the security situation, indicating that the instability serves as a significant deterrent for economic projects and investments in Armenia. This issue extends beyond the steel plant and could potentially hamper the country's economic growth.
For Armenia, attaining peace in the region is a critical factor in terms of attracting investment. Kerobyan emphasized, "Peace in the region will be of the utmost importance in terms of investment attractiveness. And it is necessary to strive for long-term peace in the region."
The minister's statements underscore the complex interplay of economic development and geopolitical stability. As Armenia seeks to foster growth, it must concurrently address security issues to create an environment conducive for investment.
The relocation of the Armenian-American steel plant in Yeraskh highlights the challenges of pursuing large-scale economic projects in regions with ongoing geopolitical tensions. While the immediate concern is the safety of the workers and the viability of the $70 million project, the long-term question is how Armenia can create a stable environment that is attractive for both domestic and international investors.