YEREVAN (ArmeniaNow) — Russian sanctions imposed on Turkey over an incident at the Syrian-Turkish border involving a Russian military plane, will go into effect on January 1, 2016, as a result of which the former will not import frozen poultry products, fresh and frozen vegetables, salt and flowers from Turkey.
Some in Armenia want to fill that trade void with Russia. However, not everyone is sure that it will be possible. They mention different reasons.
This possibility was discussed at the level of the Armenian government on Monday. A consultation led by Prime Minister Hovik Abrahamyan on promotion of the export of the local products took place. Vache Gabrileyan, the minister for International Economic Integration and Reforms, introduced the opportunities of increasing the volume of the exports of Armenian products, highlighting the agriculture, tourism and investment sectors.
Abrahamyan urged the business sector to seize the opportunities arising from this situation and increase the amount of exports to the Russian market.
This seems to be a good chance to increase trade with Russia, as it has significantly reduced this year, which is also due to the devaluation of the Russian ruble by 20 percent. It reduces the profitability of Armenian exporters.
According to the National Statistical Service, during the first 10 months of 2015 the exports, in Armenia, decreased by 2.2 percent, and the imports dropped by 26.6 percent. It is noteworthy that the trade turnover between Armenia and Russia dropped even more. From January to October of this year that figure decreased by 14.8 percent. The volume of the exports from Armenia to Russia fell by 29.4 percent and the imports from Russia decreased by 13.1 percent.