- Narine Ghalechian
Deputy Prime Minister Mher Grigorian sounded a note of caution on Thursday as the Armenian government approved new licensing rules aimed at helping local fish farms blacklisted by Russia redirect their exports to the European Union.
The decision proposed by the Economy Ministry was the latest in a series of government measures meant to mitigate the severe impact of Russia’s recent bans on the import of agricultural products and beverages from Armenia. Moscow imposed the sanctions amid its growing warnings about the economic cost of Yerevan’s deepening ties with the EU.
Fish farming in the landlocked country has grown exponentially in the last 10-15 years on the back of soaring fish exports almost fully absorbed by Russia. The latter reportedly imported about $80 million worth of Armenian fish last year, sharply up from $3.6 million in 2016.
The decision approved during a weekly cabinet meeting in Yerevan sets a legal procedure for government registration and certification of fish exported to EU member states. The process will be handled by Armenia’s Food Safety Inspectorate. The government agency is to share information submitted by fish farms with relevant EU bodies.
“After that, a business entity will receive a unique code, which will be sufficient to carry out an export operation,” said Economy Minister Gevorg Papoyan. “With this code, the relevant EU authorities will be able to see the company’s data and authorize the export.”
Grigorian, who chaired the meeting in Prime Minister Nikol Pashinian’s absence, disagreed, saying that the government should also put in place a system of “physical traceability and electronic sealing” of products exported to the EU. Such exports will be more costly and time-consuming without that, he warned.
Visiting Yerevan on July 2, European Commission President Ursula von der Leyen promised that the EU will open its tightly protected and regulated market to Armenian products in addition to providing 52 million euros ($60 million) in urgent financial aid to Yerevan. She again denounced Moscow’s “economic coercion” after talks with Pashinian.
Many Armenian farmers and agribusiness firms heavily dependent on the Russian market are skeptical about prospects for redirecting their exports to the EU. They argue, in particular, that the EU market is also protected by stringent food safety standards and other non-tariff barriers. Some fish farm executives interviewed by RFE/RL’s Armenian Service late last month said meeting those standards and finding buyers in Europe will take many years.
Russian officials put at over $700 million the annual amount of Armenian imports covered by the sanctions. Armenia’s overall exports to Russia reached almost $3 billion last year, compared with $667 million worth of goods shipped to the EU.
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