Author: David Nargizian

 19:11,

YEREVAN, JANUARY 29, ARMENPRESS. Armenian Prime Minister Nikol Pashinyan on Monday met with Kamal Kharrazi, Foreign Policy Advisor to Iran's Supreme Leader and Head of the Strategic Council on Foreign Relations of Iran.

According to the PM’s Office readout, Pashinyan emphasized the importance of Kamal Kharazi's visit to Armenia and expressed confidence that it would give a new impetus to the further development and strengthening of Armenia-Iran relations.

Nikol Pashinyan noted that they had agreed with the President of the Republic of Iran to take consistent steps in the direction of the continuous increase in the volume of trade turnover. At the same time, the Prime Minister mentioned that he fondly remembered the meeting with the Supreme Leader of Iran and asked to convey his warm greetings.

According to the source, the interlocutors discussed various issues related to the Armenia-Iran cooperation agenda. They related to political, economic relations, cooperation in energy, infrastructures and other fields and implementation of joint projects.

It is noted that ideas were exchanged on issues related to security and stability in the South Caucasus. The Prime Minister emphasized Armenia's key approaches on this issue.

In the context of unblocking infrastructures in the region, the PM Pashinyan lauded Iran's positive position regarding the Crossroads of Peace project developed by the Armenian government.

 12:13,

YEREVAN, JANUARY 27, ARMENPRESS. U.S. President Joe Biden's administration on Friday formally informed Congress of its intention to proceed with the $23 billion sale of F-16 fighter jets to Turkey, Reuters reports.

The State Department sent the notification to advance the sale of 40 Lockheed Martin F-16s and nearly 80 modernization kits to Turkey, a day after Ankara fully completed ratification of the NATO membership of Sweden, a move that became directly linked to the jet sales.

The Biden administration simultaneously advanced the sale of 20 Lockheed F-35 stealth fighter jets to fellow NATO ally Greece, an $8.6-billion deal that Washington advanced as it tries to strike a balance between two alliance members with a history of tense relations.

Turkey first made the request for the jets in October 2021, but Ankara's delay in approving the ratification of Sweden's NATO bid had been a major obstacle to winning congressional approval for the sale, according to Reuters.

Following 20 months of delay, the Turkish parliament earlier this week ratified Sweden's NATO bid, and subsequently U.S. President Joe Biden wrote a letter to key congressional committee leaders, urging them to approve the F-16 sale "without delay."

The State Department's Friday night notification came only a day after Turkish President Tayyip Erdogan gave his final sign-off on Sweden's ratification, and hours after the instrument of accession was delivered to Washington.

"My approval of Turkey’s request to purchase F-16 aircrafts has been contingent on Turkish approval of Sweden’s NATO membership. But make no mistake: This was not a decision I came to lightly," said Democratic Senator Ben Cardin, chair of the Senate Foreign Relations Committee, one of four key committees that needs to approve arms transfers.

Turkey needs to urgently improve its human rights record, cooperate better on holding Russia accountable for its invasion in Ukraine and help lower the temperature in the Middle East, Cardin listed.

"My concerns have been strongly and consistently conveyed to the Biden administration as part of our ongoing engagement, and I am encouraged by the productive direction of their discussions with Turkish officials to address these issues," he said.

Leaders of the Senate Foreign Relations Committee and House of Representatives Foreign Affairs committees review every major foreign arms sale. They regularly ask questions or raise concerns over human rights or diplomatic issues that can delay or stop such deals.

Following the transfer of the formal notification by the State Department, the Congress has 15 days to object to the sale, after which it is considered final.

U.S. officials do not expect the Congress to block either sale, despite criticism of Turkey by some members.

 11:09,

YEREVAN, JANUARY 26, ARMENPRESS. The top 1000 corporate taxpayers in Armenia paid a total of over 1,7 trillion drams in taxes in 2023, according to the State Revenue Committee.

The figure includes 1 trillion 308 billion 983 million drams to the tax authority and 401 billion 594 million drams to the customs authority.

The top 5 corporate taxpayers are the Zangezur Copper-Molybdenum Combine, Grand Tobacco, Gazprom Armenia, Mobile Center Art and Pretty Way.

 21:20,

YEREVAN, JANUARY 25, ARMENPRESS. Growth in economic activity accelerated to 11.2 percent (yoy, in real terms) in November 2023, compared to 6.2 percent (yoy) in October 2023 (Figure 1).

The data is presented in the World Bank's monthly summary of Armenia's economic development.

Growth in industry increased from 0.6 percent in October to 24 percent in November, driven by 33 percent real growth in manufacturing output. This in turn was driven mostly by 13.7 times higher jewelry production (yoy) in November, which, by value, exceeded food production, traditionally the largest manufacturing group. High manufacturing growth in November was partly offset by challenges in mining sector production, affected by the temporary closure of the Sotk mine located on the Armenia-Azerbaijan border. Trade growth also rose, from 26 percent (yoy) in October to 32 percent (yoy) in November, fueled by cash transfers provided by the Government to displaced people from Nagorno Karabakh (NK). Construction growth slowed but remained in double digits at 11.4 percent (yoy) in November. At 2.4 percent (yoy), services (excluding trade) had the least growth; however, this was due to a high base growth of 31 percent in November. Economic activity index growth remained at 9.4 percent (yoy) over January-November 2023 and continued to exceed expectations.

Unemployment rose slightly in Q3 2023 (yoy) and labor force participation also increased. Unemployment was at 12 percent in Q3 2023, up from 11.6 percent in Q3 2022, due to a 2 percent increase in the labor force (net employed and unemployed). Labor force participation increased to 61.7 percent in Q3 2023 from 60.9 percent in Q3 2022.

Net money transfers in November 2023 were down 82 percent from November 2022 and 68 percent compared to October 2023. Money transfer inflows contracted 21 percent (yoy) and outflows increased 26 percent (yoy). The contraction in inflows was mainly due to 29 percent fewer inflows from Russia (Figure 2). The main destinations for increased outflows were Monaco and the USA.

Prices registered 0.6 percent deflation in December 2023 (yoy). This brought average inflation down to 2 percent in 2023, a sharp fall from 8.6 percent in 2022. In response, in its December 12, 2023, meeting, the CBA Board cut the policy rate 25 basis points, to 9.25 percent. A 5 percent (yoy) fall in food prices was the main factor in deflation in December. However, prices of other commodity groups rose, with the highest increase recorded for alcohol and cigarettes, up 

8.4 percent (yoy), reflecting increased excise tax on these products (Figure 3).

Export growth was exceptionally high, driven by a significant increase in gold and jewelry exports. Export of goods grew 86 percent (yoy) in November 2023, driven by a 7-fold increase in exports of precious and semi-precious stones. This increased the share of this group in total exports, up from 18 percent in November 2022 to 66 percent in November 2023. Within the group, exports of unwrought or semi- manufactured gold grew 12-fold (yoy), and jewelry and parts 17-fold (yoy). Textiles and footwear also grew 36 percent and 29 percent, respectively, while exports of other commodity groups mostly contracted. Imports of goods grew 25 percent (yoy), also driven by semi-manufactured gold imports. Cumulatively over January-November 2023, exports and imports grew 45 percent and 41 percent, respectively.

The AMD continued to depreciate gradually against the USD. As of January 9, 2024, the AMD/USD exchange rate stood at AMD 405.6, or 0.6 percent weaker compared to December 2023, and 2.7 percent weaker year-on-year (Figure 4). At year-end 2023, international reserves stood at USD 3.6 billion, equal to 3 months of import cover and USD 510 million lower compared to year-end 2022 reserves (Figure 5). This is partly due to the early buy-back of USD 188 million out of a USD 500 million Eurobond due March 2025, as well as to some delays in project-linked loans.

The budget recorded an AMD 44 billion deficit in November 2023. This brought the cumulative budget deficit through November to AMD 63 billion, or 0.7 percent of annual projected GDP.  Tax revenue growth was modest at 5 percent (yoy) in November, driven by growth in income and excise taxes (up 15 percent and 16 percent, respectively), while VAT and profit tax collection declined 5.5 percent and 22 percent, respectively. Expenditure contracted 11 percent, driven by flat current expenditure and 29 percent lower capital expenditure, related to reduced spending on defense. However, social transfers and subsidies grew 4 percent (yoy) and 51 percent (yoy), respectively, reflecting cash transfers and other assistance to displaced NK people.

The financial system continued to grow in November 2023 and financial stability indicators remained sound. Loans and deposits grew 2.3 percent and 1.5 percent (mom), respectively. The capital adequacy ratio remained unchanged at 20.1 percent, and the ratio of non-performing loans to total loans remained below 3 percent. The return on assets, an indicator of the banking system’s profitability, stood at 3.3 percent.

 19:36,

YEREVAN, JANUARY 24, ARMENPRESS. Russia and Finland terminated an agreement on facilitating cross-border cooperation on Wednesday, RIA Novosti reported.

It quoted the Russian embassy in Finland as saying this was “due to the targeted actions taken by the Finnish side in 2022-2023 to sever multifaceted ties with Russia.”

In October, the Russian Foreign Ministry handed a note to the Finnish Ambassador to Russia, Antti Helantera, notifying their neighbor they were terminating the agreement between Moscow and Helsinki on promoting cross-border cooperation. The agreement had been signed in Helsinki on April 13th, 2012. The termination was agreed to by both sides.

The Finnish government closed all its eastern border crossings with Russia to passenger traffic in mid‑December, 2023. The border closure, originally valid until January 14, 2024, has been extended until Feb 11th.

Russia opposed Finland’s decision, saying that this action violated the rights and interests of both Finns and Russians.

Finland shares a 1,340 kilometer border with Russia. After being admitted to NATO last April, its border became a common border with a member of NATO.

 17:39,

YEREVAN, 23 JANUARY, ARMENPRESS. The Central Bank of Armenia informs “Armenpress” that today, 23 January, USD exchange rate down by 0.03 drams to 405.12 drams. EUR exchange rate down by 0.68 drams to 440.37 drams. Russian Ruble exchange rate down by 0.02 drams to 4.60 drams. GBP exchange rate up by 0.21 drams to 515.03 drams.

The Central Bank has set the following prices for precious metals.

Gold price down by 92.48 drams to 26331.16 drams. Silver price down by 7.84 drams to 289.15 drams.

 20:36,

YEREVAN, JANUARY 19, ARMENPRESS. The new office of the Honorary Consulate of Italy has been opened in Gyumri.

The opening ceremony was attended by the Ambassador Extraordinary and Plenipotentiary of Italy to the Republic of Armenia Alfonso Di Rizzo, Deputy Governor of the region of Shirak Anna Martikyan, officials of the governor's office, Italy's Honorary Consul in Gyumri Massimiliano Floriani, the Honorary Consul of Germany in Gyumri Alexan Ter-Minasyan, intellectuals and guests, the Office of the Governor of Shirak said.

On behalf of the governor of Shirak Mushegh Muradyan, the deputy governor Anna Martikyan welcomed the attendees and wished the consulate effective work, emphasizing the need to deepen decentralized cooperation between the two friendly countries. Subsequently, the deputy governor and staff officials attended the 'Gran Duo Italiano' concert organized by the embassy.

 11:46,

YEREVAN, JANUARY 18, ARMENPRESS. Lydian Armenia, the operator of the Amulsar gold mine in Armenia’s south, has donated 12,5% of its shares to the Armenian government.

In 2023, the Armenian government, the Eurasian Development Bank and Lydian Armenia signed a MoU to explore the opportunities of continuing the exploitation of the mine. Lydian Armenia said it would ensure at least 250,000,000 dollars in investments. In addition, Lydian Armenia said it would pay an extra 7 million dollars in financial support annually to local communities near the mine in addition to the allocations for environmental protection projects envisaged under environmental taxes. The donation of the 12,5% shares to the government is also part of the MoU.

Amulsar gold mine’s adjacent communities are Jermuk, Sisian and Vayk.

The decision on approving the donation was made at the Cabinet meeting on January 18.

Armenian Prime Minister Nikol Pashinyan said the government has received answers to all questions regarding the Amulsar mine, and thus authorities have considered greenlighting the resumption of the project. 

“We faced problems related to the Amulsar mine all the time in the past six years. And certainly, we had multiple concerns, and the government has been very consistent in receiving answers to these concerns. We deemed the continuation of the project possible when we received answers to all the questions. And it is commendable that, following one example, the investors wanted the people, in person of the government, to have participation and have shares in that project. And in this case, 12,5% will pass to the Armenian government, meaning, to the people of Armenia,” Pashinyan said.

“We hope that the Amulsar mine will become a platform for introducing new standards in mining,” the Armenian PM said, adding that the project will contribute to economic growth.

 12:59,

YEREVAN, JANUARY 18, ARMENPRESS. The Armenian government plans to open a new city park and a recreational area in Yerevan in what Prime Minister Nikol Pashinyan described Thursday as an “environmental megaproject.”

The projects concern the Gardens of Dalma, the oldest and biggest garden in the city located in between downtown Yerevan and adjacent districts of Ajapnyak and Malatia-Sebastia, and the Hrazdan Gorge.

The government wants to transform the Gardens of Dalma into a big city park. “We have two projects, and we’ve had discussions about this and I have given instructions. One of them is the transformation of the Gardens of Dalma into a big city park with as minimal interference as possible,” Prime Minister Nikol Pashinyan said at the Cabinet meeting.

“And the other project, which would become an environmental megaproject if connected with each other, is the project on transforming the Hrazdan Gorge into a recreational area,” Pashinyan added.

The Prime Minister said he supports Yerevan Mayor Tigran Avinyan’s policy of displaying restraint against investment projects in the Hrazdan Gorge in order to preserve the area for a recreational area.

“The Gardens of Dalma are next to Hrazdan Gorge and it’s reasonable for the recreational area to start from the Hrazdan river mouth up to the Korea Gorge,” Pashinyan said.

Exploratory works are now underway in 250 hectares of the Gardens of Dalma. The project involves the leading park-designing company of the UAE. The entire 250 hectares will be designed as a city park.