Wednesday, March 27 2019 21:58

ArmInfo.Chairman of the Republican Union of Employers of Armenia Gagik Makaryan believes that the reduction in Armenia's foreign trade turnover is mainly due to  problems in the mining sector. He expressed this opinion on March 27  at a press conference. In particular, as Makaryan noted, in the total  volume of exports from Armenia, the mining sector accounts for about  45%.

That is, as the expert explained, if the total figure reaches $  2.1 billion, then about $ 1 billion falls on the mining industry. "As  a result, if we began to restrict the activities of the mining  sector, in connection with the activities of the Alaverdi Copper  Plant, the Teghout and Amulsar deposits, this naturally causes  concern, as it may lead, including to a deficit of currency in the  country necessary for importers as well as ordinary citizens, "he  explained.

In this context, Gagik Makaryan calls for caution in dealing with  export issues that were caused by environmental protection  approaches. "Of course, we should not sacrifice the environment, but  on the other hand, the protection of nature should not damage the  economy," said Makaryan. At the same time, according to Makaryan,  some reduction in foreign trade turnover may be due to the economic  situation in Russia, which, together with the EU, occupies a leading  position in Armenia's foreign trade turnover.  "Sanctions against  Russia affect the Armenian economy, both in the form of a reduction  in commodity turnover, and a decrease in the volume of remittances of  labor migrants from the Russian Federation to the RA," Makaryan said.

Certain restrictions on foreign trade are associated with  increase  of prices, which leads to a decrease in foreign trade turnover. At  the same time, according to the expert, inflation is caused both by a  change in international prices and by certain conditions of business  legalization in Armenia. "Withdrawal of the" shadow economy reduces  business incomes and in order to preserve the former scale,  entrepreneurs go to price increases," he said. According to Makaryan,  one should not discount the low purchasing power of the population  due to the high level of poverty, and high prices for services and  energy carriers. The situation with Iran, which occupies an important  place in the foreign trade turnover of Armenia, also has a negative  impact on the volumes of Armenia's foreign trade turnover. "Iran  continues to remain under the onslaught of sanctions pressure," he  recalled. According to the National Statistics Committee, the foreign  trade turnover of Armenia in January-February 2019 amounted to $  1,011.9 million (a decline of 7.7% year-on- year). In  January-February 2019, exports from Armenia decreased by 11.6% to $  337.9 million, and imports - by 5.6% ($ 674 million).