Economist: Armenia to benefit from dedollarization in EEU when making settlements for energy resources

ArmInfo. Armenian Prime Minister Hovik Abrahamyan's offer to the Eurasian Economic Union (EEU) countries to switch to ruble (RUR) settlements when trading strategic goods is beneficial for the country if the matter concerns settlements for energy resources.  However, the given initiative may have a negative effect on the export, economist Mikayel Melkumyan, member of the Prosperous Armenia Party (PAP) faction, said at a press conference in Yerevan on September 11.  

"We will no doubt benefit from the RUR settlements for energy resources. Otherwise, we will suffer losses when making USD settlements. However, there are certain risks regarding agricultural and other goods and these risks should be discussed with experts and businessmen," he said. The economist stressed the need to start the AMD depreciation process to increase export. "Since early 2015, import to Armenia has dropped by $669 mln. This figure is expected to reach $1.1-1.2 billion by late 2015. So, the demand for USD is gradually dropping and favorable conditions are being created for production and export of goods," he said.

Melkumyan also noted that in order to develop economy the Government should undertake serious PR moves and non-standard solutions. "We should demonstrate that Armenia is a safe country for investments by applying such mechanisms as the Law "On Industrial Policy" or the 5-year state program on industrial development. Under the program, businessmen are exempted from taxes. They also receive loans and enjoy subsidized interest. In addition, the risks of the State Export Insurance Agency will decline," he said.

To note, Armenian Prime Minister Hovik Abrahamyan offers the Eurasian Economic Union (EEU) countries to switch to RUR settlements when trading strategic goods without being bound by USD. The Armenian Prime Minister came out with this initiative during the Sept 8 meeting of the heads of the EEU member states' governments in Grodno, Belarus. "The EEU should take measures to intensify the mutual settlements in national currencies and to reduce dollarization. It is also necessary to exchange experience on coordinated macroeconomic policy. In this light, the idea of mutual trade in strategic goods in Russian rubles without being bound by USD is of much importance," said Abrahamyan," said Abrahamyan.