Armenia may become a hub and transition point for the trade between Russia, Iran and other countries of the region, Russian trade representative Andrey Babko told RIA Novosti.
“The Armenian market is quite small. It could serve as a hub or transition point for the trade with Iran, Georgia and other countries of the region. But the most important point is of course Iran,” he said.
In the representative’s words, the interest towards using the territory of Armenia for the transit is great, but there is a problem related to the difficulties of organizing transportation logistics. “It is necessary to build a railway to Iran and complete the construction of the Abkhazian section of the railway to Russia. There are also a number of political issues, whose solution the business expects,” Babko noted.
But apart from the transit per se, the expansion of trade with Armenia can also be very promising, he added.
“The import of Russian machinery products to Armenia is absolutely possible and demanded; our equipment is valued in Armenia. The program of export support implemented by Russia can boost the sale. The Russian Export Center (REC), the Russian Agency for Export Credit and Investment Insurance (EXIAR), Eximbank of Russia also take part in it. The emergence of the opportunity to open credit line attracts the sides,” Babko said.
According to him, not many consumers on the Armenian market are now ready to buy immediately on their own money, but there are some. Single units of bulldozers, tractors, combines are purchased, the representative noted.
In his words, Armenia is also interested in the Russian car industry: “The Russian cars are absolutely in demand. GAZelles are used very actively now; new GAZelle buses have been produced and used. Besides, new Nivas are supplied.
To the question on the influence of the strengthening of the Armenian dram against ruble on Russian exporters, he said that the trade between the countries is carried out in dollar: “As to the import from Russia, no issues have arisen here: many cars are imported now, since this is profitable. However, exporting the same brandy has become unprofitable, since we offer ruble costs, which have become lower as compared to the dollar.”
The Russian business, according to Babko, is present in the Armenian industry in actually all the spheres, including the trade of agricultural goods.
“Now agriculture is the sphere which we are actively dealing with. The Russian business is not very strong here, since it is necessary to resume the talks on “Rosagroleasing”. Rosselkhozbank (Russian Agricultural Bank) will also start operating in Armenia: It is still working in the country as a representation and not as an operating bank,” he said.
