Tuesday, August 6 2019 14:30

ArmInfo. Available statistics from the Interstate Bank of the CIS indicate that the  Russian ruble at the end of 2018 is of key importance for mutual  trade and is the main currency in Armenia's foreign trade with the  EAEU countries.

The share of the Russian ruble in the total turnover, taking into account both export and import trade operations of Armenia with the EAEU countries and Tajikistan, increased at the end  of 2018 compared to 2017 and amounted to 47.6% (47.3%). This is  stated in the report

, prepared by the Center for Integration Studies of  the Directorate for Analytical Work of the EDB.

 

Meanwhile, experts of the Bank note that, despite some improvement,  Armenia in this indicator is significantly inferior to the average  value for the entire EAEU space, which, according to the results of  2018, amounted to 71.2%, according to the CIS Interstate Bank. At the  end of 2018, Armenian exporters readily accepted payments in Russian  rubles. Nevertheless, the share of the ruble in revenues for Armenian  exports to the EAEU and Tajikistan decreased compared to the previous  year and amounted to 57.5% at the end of the year (65.5% in 2017).  The preferences of Armenian exporters shifted somewhat in favor of  the US dollar, and, accordingly, its share increased to 33.6% (24.1%  in 2017).

The Russian ruble is also of strategic importance when importing  goods from the EAEU and Tajikistan to Armenia, but its share in  import payments is slightly lower than in export operations, and  amounts to 36.9%. A more active use of the US dollar is explained by  the fact that the partners of Armenia within the EAEU (including from  the Russian Federation) are more oriented towards paying for the  supply of goods and services in US dollars.

This primarily concerns Russian suppliers of gas and oil products,  setting contract prices in US dollars, citing the prevailing  international practice of pricing and the high volatility of the  ruble compared to hard currencies. Nevertheless, the data of the  Interstate Bank of the CIS indicate that this share in 2018 increased  by 4.1 percentage points. compared with 2017 (32.8%).

Against the background of a decrease in the share of the Russian  ruble in export deliveries, it was the increase in the share of the  Russian ruble in import operations that contributed to the overall  increase in the use of the Russian ruble in mutual trade between  Armenia, the EAEU countries and Tajikistan.  Summing up the  foregoing, the Bank's experts conclude that the transition to the use  of the Russian ruble (the vice-premier of Armenia M.? Grigoryan  officially announced the possibility of this) in mutual trade between  the Russian Federation and the Republic of Armenia is quite  realistic. For this, a mutual settlement mechanism should be formed  that takes into account the interests of all participants in foreign  economic activity and is backed up by real trade operations. As for  other EDB countries, the mutual trade of Armenia with them is at an  insignificant level, and the feasibility of such a transition does  not seem realistic yet.