Opinion: Can BRICS be Armenia’s salvation?

Jan 17 2024

When economist Jim O’Neill, then working at Goldman Sachs Group Inc., coined the term BRIC in 2001 to draw attention to solid growth rates in Brazil, Russia, India, and China, few may have anticipated that two decades later, this term will be the buzz word shaping the global geopolitics. In 2010, BRIC became BRICS after South Africa joined the club, but even then, many were sceptical that a grouping of such diverse countries can play a meaningful role in global politics.

However, as China transformed itself into a global economic heavyweight, and Russia – West relations hit their lowest point since the end of the Cold War as the result of the Russia – Ukraine war, scholars, experts, and politicians started to actively discuss the emergence of a new, multipolar world order, viewing BRICS as one of its pillars.

The next milestone in the development of the BRICS was the 2023 summit in South Africa, when Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates were invited to become members of the group as from January 1, 2024. Subsequently, the newly elected President of Argentina, Javier Milei, withdrew the country from its planned entry into the BRICS, but other newcomers officially became members of the organization on January 1, 2024.

Iran's membership in BRICS brought the organization to Armenia's doorstep, making Yerevan a neighbour of BRICS. Currently, Armenia is in the painstaking process of re-assessing and re-evaluating its foreign policy after the defeat in the 2020 Nagorno Karabakh war, the military takeover of the self-proclaimed Nagorno Karabakh Republic by Azerbaijan in September 2023, and the forced displacement of all Armenians from the region. Some in Armenia hoped that after finishing with Nagorno Karabakh, Azerbaijan would sign a peace agreement with Armenia based on the recognition of mutual territorial integrity within the 1991 Soviet administrative borders, and on the restoration of communications accepting the sovereignty of states over the routes passing their territories. In December 2023, some high-level Armenian officials, including the Speaker of the National Assembly, stated “that the peace with Azerbaijan was never as close as now.” 

However, this positive mood changed significantly after President Aliyev's January 10, 2024, interview with local media outlets. President Aliyev clearly stated that Azerbaijan would not withdraw from at least 200 square km of Armenian territory, which it controls as a result pf incursions into Armenia in May and November 2021, and September 2022, and demanded passport and customs-free passage to connect Azerbaijan with Nakhijevan via Armenia, otherwise vowing to continue the blockade of Armenia. He rejected the possibility of establishing the institute of guarantors for the future Armenia – Azerbaijan agreement and Armenia's offer to accept the Soviet Union Armed Forces General Staff 1975 maps as a base for future delimitation and demarcation. He demanded that either maps of 1918-1920 or the early Soviet period (1930-1940s) should be used, adding that after the 1940s, several thousand square km of Azerbaijani lands were transferred to Soviet Armenia, and the fate of these territories should be discussed during the delimitation and demarcation process. On January 13, 2024, Prime Minister Pashinyan mentioned that Aliyev’s statements were a severe blow to the peace process.

What if the Armenia – Azerbaijan peace agreement is not be signed in the foreseeable future? In that case, Armenia needs quick actions to raise its capacities and capabilities to deter potential new Azerbaijani attacks. It is a challenging task, as the military takeover of Nagorno Karabakh has put the Southern part of Armenia (Vayots Dzor and Syunik regions) in an extremely vulnerable situation. They are sandwiched between Azerbaijan proper and Nakhijevan Autonomous Republic, while the narrowest part dividing the two is around 25 km, and the widest part is only 42 km. Deterring Azerbaijan, which has the full support of Turkey, cannot be based only on military power, and it should also include the development of cooperation with external powers who have an interest in keeping Armenia within its current borders. In this context, the membership of Iran into the BRICS, and the "arrival of BRICS" to Armenia's doorstep is another opportunity for Armenia.

Within Armenia's renewed efforts to diversify its foreign and economic policy, India, UAE, and Saudi Arabia are among the top destinations. They are now members of the BRICS; all have complicated relations with Turkey, and are not interested in seeing the additional expansion of Turkish influence into the South Caucasus. The same applies to Iran, a new BRICS member, which, in the last three years, has sent multiple signals to Azerbaijan and Turkey that it would not tolerate the establishment of an extraterritorial corridor via Armenia to connect Azerbaijan with Nachcivan and Turkey. Then we have Russia, which, due to the war in Ukraine, needs Azerbaijan and Turkey for diversification of logistics, circumventing Western sanctions, and other reasons, but simultaneously, is not interested in seeing more Turkish influence in the South Caucasus and Central Asia. China is not an active player in the South Caucasus yet, but Beijing also has no interest in seeing more Turkish influence in Central Asia, including through the mechanisms of the Organization of Turkic states, and China and Russia are also BRICS members. Egypt has its problems with Turkey, stemming from Turkish support to the Muslim Brotherhood and longtime nonrecognition of President el-Sisi government. The restoration of diplomatic ties in the Summer of 2023 did not solve all problems, as was indicated by the postponement of the July 27, 2023 el-Sisi visit to Turkey. So, Russia, China, India, Iran, UAE, Saudi Arabia, and Egypt, albeit for different reasons, are not interested in seeing Turkish dominance over the South Caucasus, and they are all BRICS members.

Armenia should carefully look into ways to expand its cooperation with BRICS member states, first of all in the economic area, inviting BRICS investments into the infrastructure and other projects in Armenia. Armenia is in active discussions with Iran, India, and UAE to bring their investments into Armenia, and there is potential to have Chinese involvement through the Belt and Road Initiative. The possibility of receiving funding from the BRICS New Development Bank for various projects, which can be implemented by BRICS member companies, should be studied, too. As the first step, the Armenian government should establish an interagency task force to develop and present in Autumn 2024 a concept for Armenia – BRICS cooperation. Another step should be organizing an international expert conference in Armenia (preferably in the Syunik region) on Armenia- BRICS cooperation in June or September 2024. Meanwhile, as a preparatory action, a webinar on this topic with the participation of think tanks from Iran, India, Russia, China, UAE, Saudi Arabia, and Egypt can be organized in April or May 2024. The participation of Georgian Think tanks in the webinar will add more value to the event.

After the loss of Nagorno Karabakh and continued policy of pressure and blackmail by Azerbaijan, Armenia faces tough years ahead. The establishment of multilateral cooperation with BRICS member countries and with the organization itself can be one of the effective ways to diversify Armenian foreign and economic policy, increase Armenian deterrence capacities and capabilities, and ensure stability and security in the South Caucasus.         

International Experts to Gather at Conference Addressing Key Armenian Issues

Jan 17 2024

By: Momen Zellmi

A pivotal two-day conference endorsed by His Holiness Catholicos Aram I is slated for January 19 and 20, 2024, at the Catholicosate of Cilicia in Antelias. The event, part of the ‘Analysis and Awareness Platform’ (AAP) initiative, plans to host experts from Armenia, Artsakh, the U.S., South America, France, Switzerland, and Lebanon to discuss several critical issues concerning Armenia and the region.

The conference will address a range of topics, including confronting Azerbaijan’s historical distortions, strategizing for the freedom of prisoners of war and kidnapped Artsakh political leaders, and rallying international support for the protection of Artsakh’s spiritual and cultural legacy. The event seeks to shed light on legal methods for the repatriation of Artsakh’s indigenous people and analyze the regional political dynamics.

Several notable experts will be gracing the conference with their presence. These include Prof. Ashod Melkonian, Prof. Rupen Safrasdian, Dr. Armen Maroukian, Dr. Vahram Palayan, Dr. Hrayr Balian, Dr. Khatchig Der Ghougasian, Tigran Yegavian, Dr. Vicken Cheterian, Dr. Nora Bayrakdarian, Mr. Shahan Kandaharian, and secretary Aharon Shekherdemian. Their collective expertise will enrich discussions and contribute to the formulation of strategies to address the issues at hand.

Amid the backdrop of the conference, Armenia is grappling with a host of other geopolitical issues. These include the plight of Armenians displaced from Nagorno-Karabakh in September 2023, the negotiation process with Azerbaijan, and the need to strengthen regional communications. The Armenian President has been in discussions with the United Nations High Commissioner for Refugees, Filippo Grandi, outlining the government’s efforts to address these problems. The President also attended the inauguration of the new Argentinian President Javier Milei, meeting with leaders of the local Armenian community.

Armenia’s focus on developing relations with the states of the Arab Gulf is highlighted by the recent meeting with the delegation from the United Arab Emirates. The country is also eyeing stronger ties with the European Union, as evidenced by the discussions surrounding the implementation of the CEPA. The Crossroads of Peace project, aimed at establishing connections between various Gulf and Sea regions via a single regional railway network, is another significant initiative by Armenia.

Azerbaijan revives demand for corridor through Armenia

eurasianet
Jan 17 2024
Ani Avetisyan Jan 17, 2024

Armenian Prime Minister Nikol Pashinyan has called Azerbaijani President Ilham Aliyev's latest remarks about border delimitation/demarcation and transit links "totally unacceptable" and a "blow" to the peace process. 

"I promise a financial reward to anyone who finds the term 'Zangezur corridor' in the November 9 agreement," Pashinyan told a group of MPs on January 13. 

It was an ironic reference to the Azerbaijani side's contention, reiterated recently by Aliyev, that the provision on opening transit links in the Russian-brokered peace accord that ended the 2020 Second Karabakh War stipulates a seamless corridor through Armenia connecting mainland Azerbaijan and the Nakhchivan exclave, without Armenian border or customs checks. 

That idea is referred to in Azerbaijan as the "Zangezur corridor" and Baku has pushed for it with varying degrees of intensity since the 2020 ceasefire. Early last year it seemed to back down on the demand in the context of the peace talks. 

In early October, shortly after Azerbaijan's lightning offensive to seize the whole of Nagorno-Karabakh, the corridor project seemed to be off the table after ground was broken on an alternate route through Iran.  (Tehran, like Armenia, is vociferously opposed to the Zangezur corridor idea.)

The issue, which has long inspired Armenian fears of an Azerbaijani invasion, is now back on the agenda, as Aliyev said in a January 10 interview that if the corridor was not opened, "Armenia will remain in an eternal deadlock. … If the route I mentioned is not opened, we will not open our border with Armenia anywhere else. So they will do themselves more harm than good."

In October last year, the Armenian prime minister introduced an initiative called "Crossroads of Peace" aimed at regional cooperation. That proposal includes linkages between mainland Azerbaijan and Nakhchivan with Armenian border and customs checks. Azerbaijan has dismissed it out of hand as "PR." (According to the 9 November 2020 agreement that ended the Second Karabakh War, the route linking mainland Azerbaijan Nakhchivan is to be monitored by Russian border troops.)

Exclaves and villages

Elsewhere in his January 10 interview, Aliyev demanded the return of enclaves and border villages that have been under Armenian control since the First Karabakh War three decades ago. 

Pashinyan seemed to back the idea of an exchange of enclaves, with a "mutually agreed map" as part of the process, but said that if Azerbaijan demanded the return of eight villages, Armenia would "raise the issue of 32." 

That was a reference to several bits of former Soviet Armenian territory that have similarly been controlled by Azerbaijan since the first war, as well as to the territory inside Armenia, estimated to total about 215 square kilometers, that Azerbaijani troops have occupied following several incursions between May 2021 and September 2022. 

Armenia and several Western states have demanded the withdrawal of Azerbaijani troops from Armenian lands. But Baku has refused, citing the lack of demarcation of the borders as justification. 

And Aliyev said explicitly he had no intention of withdrawing them in his January 10 remarks. "We are not taking a step back because that border must be defined. However, our location, which is currently disputed by Armenia, does not include any settlement."

The delimitation and demarcation of state borders between Armenia and Azerbaijan, as well as the opening of transport links, remain the most contested issues between the two countries following Azerbaijan's takeover of Karabakh in September. The border commission working on the delimitation and demarcation issues held its latest meeting late last year and the next one, according to Aliyev, is to be held this month, with the question of the border villages in the Gazakh region of Azerbaijan being on the agenda.

Although the principles of a peace deal were said to be agreed upon in November, the sides seem to have dismissed each other's draft proposals for the peace agreement. 

Additionally, the sides disagree on who should mediate the talks. Yerevan opposes Moscow's mediation, while Baku has turned down EU or US-initiated talks in recent months. 

In December, the two countries managed to issue a joint statement and agree on a prisoner exchange, but they do not have a clear plan to continue the bilateral talks.


Armenian President meets with IAEA Director General in Davos

 13:38,

YEREVAN, JANUARY 17, ARMENPRESS. President of Armenia Vahagn Khachaturyan has met with Director General of the International Atomic Energy Agency (IAEA) Raphael Grossi during the World Economic Forum in Davos.

During the meeting President Khachaturyan emphasized the importance of the long and productive cooperation between the Armenian government and the IAEA, which is of significant importance for ensuring Armenia’s energy security, Khachaturyan’s office said in a readout.

Ideas were exchanged about further development of the atomic energy, as a green energy sector, in Armenia. Grossi said that Armenia can always expect support from the IAEA.

An agreement was reached to continue close cooperation especially as part of expert consultations and comprehensive assistance provision.

President Khachaturyan meets with IMF Managing Director in Davos

 13:46,

YEREVAN, JANUARY 17, ARMENPRESS. President Vahagn Khachaturyan has met with Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva on the sidelines of the World Economic Forum in Davos.

The President highly appreciated the productive cooperation between the IMF and Armenia and expressed certainty that the partnership will continue.

Georgieva highlighted the impressive financial figures in Armenia of the recent period and emphasized that establishment of sustainable, final peace in the region will open broader possibilities and directions for economic growth.

The President of Armenia and the IMF Managing Director also discussed the present-day challenges and their impact on global economic development and progress.

Davos 2024: Armenian President, UN High Commissioner for Refugees discuss Nagorno- Karabakh

 14:08,

YEREVAN, JANUARY 17, ARMENPRESS. President of Armenia Vahagn Khachaturyan has met with United Nations High Commissioner for Refugees Filippo Grandi on the sidelines of the World Economic Forum in Davos.

Both sides praised the effective cooperation of over 30 years between Armenia and the UNHCR, Khachaturyan’s Office said in a readout.

Khachaturyan and Grandi discussed the humanitarian and social problems facing the forcibly displaced persons of Nagorno-Karabakh and the steps aimed at resolving the issues.

Grandi inquired about the social protection and accommodation conditions, as well as other humanitarian issues, of more than 100,000 forcibly displaced persons of Nagorno-Karabakh. In this context the President presented in detail the Armenian government’s rapid response programs and actions aimed at resolving both the primary and complex problems of the forcibly displaced persons.

An agreement was reached to continue close cooperation to resolve the existing issues.

Nicolas Anelka visits Armenia for new football academy project

 15:26,

YEREVAN, JANUARY 17, ARMENPRESS. Nicolas Anelka, the French professional football manager and retired player has arrived in Armenia.

At a meeting with young footballers at the Khoren Hovhannisyan Football Academy on Wednesday, Anelka announced plans to open a new football academy in Armenia.

“We want to open a new football academy here. I know that your country has big football potential. Besides our plans to open an academy, we also intend to work in textile production for children. Major football opportunities are opening here for us. I am sure that there are very good kids here, but we must work with them. Becoming a football player is their big dream, and why not, maybe we can give them that opportunity” Anelka said.

The former French footballer told the children at the academy to enjoy each training session and go out to the field with excitement.  He arrived in Armenia at the invitation of the French-Armenian Chamber of Commerce and Industry (CCI France Arménie).  

Photos by Hayk Manukyan




EBRD and Amundi-ACBA collaborate on cross-currency repo transaction

 14:00,

YEREVAN, JANUARY 17, ARMENPRESS. The European Bank for Reconstruction and Development (EBRD) and Amundi-ACBA Asset Management are joining forces to facilitate access to local currency financing and strengthen the local capital market in Armenia.

In an innovative move, the EBRD and Amundi-ACBA have executed the first cross-currency repo transaction, setting a new threshold for secure and strategic financial transactions in Armenia. The transaction was executed under the Global Master Repurchase Agreement, which the two entities signed on 21 June 2023.

This landmark transaction has allowed the EBRD to pledge high-quality liquid assets denominated in hard currency and receive local currency funds in return. This cross-currency repo agreement serves as a secure avenue for Amundi-ACBA to deploy pension fund assets, while remaining aligned with its commitment to prudent financial management.

For the EBRD, the transaction secures long-term Armenian dram funds at onshore market rates, helping to strengthen and diversify its funding sources.

The economic impact of the transaction is significant, and the EBRD is dedicated to maximising its effect. The proceeds will be strategically reinvested into the real economy, creating a positive transition impact and contributing to the Sustainable Development Goals.

Gursu Keles, EBRD Associate Director, Senior Trader, said: “The EBRD continues to invest in the local market’s financial capacity and know-how by employing simple yet innovative products in its portfolio management. Cross-currency repos will be an additional tool to expand and strengthen our funding base in Armenian dram.”

Hrayr Aslanyan, Deputy CEO at Amundi-ACBA, said: “This is another innovation we are pleased to introduce to the market, together with the EBRD. This scheme will allow us to deploy pension fund assets more effectively, contribute to developing the local capital market and, ultimately, help to finance the local economy.”

Amundi-ACBA Asset Management manages three mandatory pension funds in Armenia, with assets under management surpassing AMD 400 billion (€900 million). The company has extensive expertise in fund management and is owned by Amundi, a leading European asset manager, and ACBA Bank, one of the leading banks in Armenia.

This is the second time the EBRD has engaged with Amundi-ACBA Asset Management in Armenia. The agreement is part of the Bank’s efforts to step up its local currency lending and further develop the capital markets in Armenia. This innovative transaction secures reliable access to domestic currency liquidity, while eliminating foreign currency risks for local borrowers.

The EBRD is the leading institutional investor in Armenia, active in all sectors of the economy. Since the start of its operations in the country, the Bank has invested more than €2 billion in 210 projects in its financial, corporate, infrastructure and energy sectors, with 92 per cent of investments in the private sector.

History Museum of Armenia, National Museum of Czechia to sign memorandum of cooperation

 16:41,

YEREVAN, JANUARY 17, ARMENPRESS. The History Museum of Armenia and the Czech National Museum will sign a memorandum of cooperation. The signing ceremony will take place in early February, when the Castles and Chateaux of Czechia exhibition will be opened in Yerevan, the Director of the History Museum of Armenia Davit Poghosyan said.

The exhibition will be organized jointly with the Embassy of Czechia in Armenia and the National Museum of Czechia.

The exhibition will feature pictures of UNESCO-listed castles and chateaux in two historical regions of Czechia – Bohemia and Moravia.




Central Bank of Armenia: exchange rates and prices of precious metals – 17-01-24

 17:05,

YEREVAN, 17 JANUARY, ARMENPRESS. The Central Bank of Armenia informs “Armenpress” that today, 17 January, USD exchange rate down by 0.12 drams to 405.49 drams. EUR exchange rate down by 0.54 drams to 440.89 drams. Russian Ruble exchange rate down by 0.04 drams to 4.58 drams. GBP exchange rate up by 1.79 drams to 514.12 drams.

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

Gold price down by 161.10 drams to 26570.96 drams. Silver price down by 2.17 drams to 300.50 drams.