ArmInfo.The Armenian Ministry of Economy is considering mitigation options for Armenian producers in light of sanctions against Russia. Armenian Minister of Economy Vahan Kerobyan stated this during a briefing on February 23.
"I don't want to open the brackets, but we are considering various options, including ruble hedging and a number of other instruments," he said. The minister stressed that he is following the development of the situation and is in direct contact with exporters and other business entities that may be affected. "We are concerned about the situation, but in economic terms, we will do our best so that our economic entities suffer as little as possible," Kerobyan said.
Due to Russia's recognition of the self-proclaimed republics of the DPR and LPR, the EU member states unanimously approved sanctions against Russia. "The European Union imposed sanctions against 351 State Duma deputies, as well as 27 individuals and legal entities due to the recognition of the self-proclaimed DPR and LPR, which Russian President Vladimir Putin announced the day before," said Josep Borrell, head of European diplomacy. Western sanctions will also target organizations "financing Russian operations in the Donbass, as well as banks financing people who "make decisions" in Russia (VEB and the Bank of Moscow) and representatives of the defense sector". The US has decided to restrict Russia's access to the financial and capital markets.
It should be noted that Russia is traditionally the leader in Armenia in terms of the volume of mutual trade. At the end of 2021, the share of the Russian Federation in the overall structure of external and mutual trade turnover amounted to 32.7% (instead of 31.9% a year earlier). In particular, according to the Statistical Committee, in 2021 the volume of mutual trade between the Republic of Armenia and the Russian Federation increased by 20.9%, amounting to $2.6 billion. At the same time, exports grew by 24.5% to $847.2 million, against the backdrop of an increase in imports by 19. 2% to $1.8 billion.
In terms of total foreign investment in January-September 2021, Russia also holds the lead, and both in terms of total investment - $ 975.1 million (with an annual growth of 86.1%, against a 31% decline in 2020 and 29.1% growth in 2019), and in terms of FDI - $371.1 million (with an annual growth of 41%, against a 7% decline in 2020 and a 21.4% growth in 2019).
