The Russian-Ukrainian conflict and its repercussion have had a significant impact on supply chains around the world. Sanctions on Russia and closed borders force to look for new routes to move goods and people.
The whole "charm" of these changes was also felt by Armenia’s exporters and importers, who use the road through Georgia to Russia, whereby the flow of cars has also increased sharply.
The overload of vehicles at the Upper Lars checkpoint on the Russian-Georgian border has also dealt a serious blow to the import of bird feed, especially during the last 10 days. And without it, the import was slow, and trucks were idle for 10-15 days.
Now, as chairman Sergey Stepanyan of the Union of Poultry Breeders of Armenia told Armenian News-NEWS.am, the Russian side says that the corn quota for Armenia within the EEU has been exhausted, and therefore the production of chicken meat in Armenia is decreasing because farmers are unable to buy fodder, whereas there is no respective domestic fodder.
Before the start of the Russian-Ukrainian conflict, corn was imported to Armenia from Ukraine as well. In addition, half of the imported frozen poultry meat also came from Ukraine.
In the case of wheat, there are no problems with the quota, but there are difficulties with the speed of cargo transportation and the import of goods. The only way is through the Upper Lars checkpoint. Here, the Russian government recently decided to open a second customs clearance zone, which, according to the Armenian Ministry of Economy, should increase the service capacity of this checkpoint by 30 percent. But now there is a quota problem.
The sharp fluctuation of the exchange rate is a separate issue.
In addition, natural gas costs are very high and also have a big impact.