Bagratyan: Cooperation with Iran has potential for Armenia only within integration projects

ArmInfo. Cooperation with Iran has potential for Armenia only if integration projects are

implemented, Armenia's former Prime Minister, economist and MP Hrant Bagratyan expressed this opinion at today's press conference, noting that after the sanctions have been lifted, Iran does not see any potential in cooperation with Armenia.

"Even if Iran's market is open, they do not need us. In fact, the problem is very complex. We have done everything to reduce trade turnover with Iran; consequently, new prospects are closed for us. Transit to the North is the only real opportunity, from which Turkey has benefited and currently Azerbaijan does", Bagratyan noted, emphasizing that due to this Turkey managed to boost economic processes in the eastern part of the region. But according to Bagratyan, it will be difficult to implement North-South road corridor project due to non-efficient disposition of funds.

"Iran is interesting only from the integration point of view, at the same time we can cooperate in the field of healthcare, particularly pharmaceutics.  Establishment of Armenian-Iranian medical center may be considered, where high quality treatment will be provided so there will be no need in expensive European medical service", he stated.

According to the National Statistical Service of Armenia, foreign trade turnover between Iran and Armenia in Jan-Dec 2015 totaled 276.3 mln USD, with 5.8% year over year decline. Particularly, export of goods from Armenia to Iran declined by 8.2% to 78 mln USD, amid decline of import from Iran to Armenia by 3.9% to 198.3 mln USD.

To recall, the 556km North-South corridor will ensure an access to the Black Sea and European countries via the territory of Armenia (Meghri-Kapan-Goris-Yerevan-Ashtarak-Gyumri-Bavra) and Georgia. The USD 1 billion investment project aims to link the north (border with Georgia) to the south of Armenia (border with Iran) through the transport services meeting high international standards, as well as to ensure the country's entry into international markets. The North- South corridor will be a concrete highway. The Asian Development Bank has lent USD 500 million to Armenia.  The Eurasian Development Bank will provide another USD 150 million. Armenia has also raised EUR 60 million from the European Investment Bank. The construction of the corridor is to be completed in 2019.  According to the Armenian Government's preliminary estimations, the North-South project will allow saving 2.5 USD per 1 hour of travel time per passenger and 1 USD per 1 hour of transportation of 1 ton of cargo. The Armenian authorities expect the project to enable the country to mitigate the effects of the blockade imposed by Azerbaijan and Turkey, to become a transit country and to join the Black Sea Belt Highway. -l-