Herman Gref: Armenia is offered great opportunities within Eurasian Union

ArmInfo. The Armenian government has made a right and the only possible smart move by entering the Eurasian Economic Union (EEU), Herman Gref, CEO of Sberbank of Russia,expressed this opinion at the Armenian-Russian Forum on Interregional cooperation on October 14. He noted that Armenia's small economy is not attractive if it remains isolated. ''Within the EEU it becomes significantly more attractive of course in case it is open, and connected to other large economies, and this is the only way to attract investors'', Gref noted.

According to the CEO of Sberbank in order to reach success the Armenian government should be the among all other  governments of the EEU's countries, as if convenient access to Eurasian Union's market is ensured from this country and ideal conditions are created for making business the investors will choose Armenia. He stressed that the level of governmental management plays

key role in this issue. He noted that modern, young, openly thinking people should work in the government, who will be able to create such a system of governance that will be the ''nimblest'' among the EEU countries. Gref emphasized that Armenia has all the necessary conditions, including climate ones, hospitality, quality and potential of the workforce for such a transformation. In this context he considered the steps in educational field as successful. ''I have visited Armenia aiming to study the experience of establishing private schools such as ''Ayb''. In this light Herman Gref is filled with admiration for activities of famous philanthropist, former head of ''Troika Dialog'' Ruben Vardanyan, who has laid the foundation for development of wonderful private campus in Dilijan resort town. 

The banker also considered the Armenian central Bank as very dynamic regulator. All these factors create favorable conditions for creating unique business environment in Armenia.  ''Qualified workforce, good, rapid regulation and no bureaucracy, highly paid state managers, who want to ensure access to EEU markets: I think Armenia's future is based on these factors'', the CEO of Sberbank Russia noted.

Answering to the question ''Where is Armenia's future?'' Herman Gref pointed at Singapore's example. According to him the then head of Singapore Lee Kuan Yew was given a country in worse condition than Armenia today and managed to make it one of the most prosperous countries of the world. He stressed that Armenia needs its Lee Kuan Yew and a good team. ''I think that Armenia is a country of opportunities and its base may be used for start, on which new type of economy should be built'', he noted.

Meanwhile, in his speech Herman Gref paid special attention to the problem of choosing model of economic development in current crisis conditions. He noted that the resource-based economy is subject to shocks more. Moreover, he expressed an opinion that demand and supply of petroleum products on the world market are balanced and that he does not agree with forecasts on possible growth of prices on petroleum to $100 and higher.

According to the CEO of Sberbank though Russia remains economic driver within the EEU the country's economic growth will be between 1-1.5% in upcoming 3 years, which is not sufficient for recovery of Russia and the CIS counties' economies. In this light he noted that China, which dictates climate of world economy, also experiences certain difficulties. World currency market also remains non stable.

The CEO of Sberbank considers that for this reason reforms should be based on non-resource type of economy. ''High reallocations can be made in resource-based economy to prevent it from possible fluctuations of goods prices. However, it is better to build the second type of economy based on labor. This economy is more adaptable. It is significantly more dynamic and always adapts rapidly'', Gref said. In this light he stressed that the following main factors should be ensured: technologies, quality of state governance and quality of human resources. The business should undergo transformation maintaining the  main regimes-profitability, constant support of system of business models correction, cost saving, increasing opportunities of supplying new types of goods and services on lower prices and ability to support innovations.