ArmInfo. It is first of all export diversification and boosting domestic production that can compensate Armenian businesses for their financial losses caused by the Russian rouble depreciation, Gagik Makaryan, President of the Republican Union of Employers of Armenia (RUEA), told ArmInfo.
"The losses our producers and exporters are sustaining as a result of the rouble depreciation are obvious. And some exporters have responded by suspending exports to Russia and are now waiting for more favorable conditions. This is a grave problem as our exports are paid in roubles. And it is not for the first time that our exporters have faced such a situation in Russia," he said.
The international sanctions against Russia caused a rapid depreciation of the Russian rouble. According to the latest data, the buying and selling rates are AMD 4.70/RUB 1 and 5.70/RUB 1 in Yerevan against the respective AMD 6.20/RUB 1 and AMD 6.4/RUB 1 before Russia's "special military operation in Ukraine."
Mr Makaryan believes that the RUB depreciation could also affect the prices on products imported to Armenia. In this context he points out the need for Armenian importers to take advantage of the available opportunities, in which case the situation in Armenia's domestic market can be improved greatly due to products purchased in Russia for roubles, which, in turn, will to a certain extent compensate exporters for their losses.
Mr Makaryan also spoke of more serious negative consequences of the Russian rouble depreciation. This is first of all a blow to labor migrants who transfer part of their money to their families living in Armenia, and their purchasing power will seriously be affected. The result will be new causes of widespread poverty, especially in rural areas, to say nothing of the "multiplicative effect" of money transfers on Armenia's economy and general economic activity in the country.
"In any case, it is high time for us to start serious work to diversify our sales markets. It is not for the first time that we have had rouble-related problems, and we are 'doomed' to diversification - and of not only exports, but also of our entire economy. In question is establishing local production of some goods to reduce import substitution. We need to thoroughly analyze our own sales markets and expand them in the directions we have not so far even thought of - the Arab world, China, India are some of them," Mr Makaryan said.
