Economic decline in Russia could affect Armenia`s economy 

ArmInfo.According to different estimates, Russia could see a 6% to 10% economic decline this year, which cannot but affect Armenia as Russia is Armenia's major trade  partner, Meri Hovsepyan, an expert at the Amberd research center told  reporters. 

A 1% economic decline could cause a 0.7% economic decline in Armenia. 

"In case such a pessimistic scenario unfolds, Armenia's economy will  show a decline of 4% to 6%," Ms Hovsepyan said. 

The unprecedented sanctions against Russia have affected almost all  the fields. About 150 large transnational corporations announced  their leaving Russia or suspending their activities. It will cause  soaring unemployment frozen investments amounting to billi8ons of  dollars 

Karlen Khachatryan, Head of Chair of Management and Business, Faculty  of Economics and Management, Yerevan State University, said that it  will inevitably cause a reduction in money transfers to Armenia, with  Russia's share being 40%. 

"Many people in Armenia are living thanks to money transfers. The  economic problems in Russia, job losses will affect money transfers  and, therefore, domestic consumption, with other ensuing negative  consequences," Mr Khachatryan said.   

In 2021, money transfers to Armenia from Russia totaled $865.6mln,  with transfers from Armenia to Russia totaling $401.8mln. Thus, the  net inflow totaled $463.8mln. 

In 2021, Russia's share in Armenia's foreign trade totaled 32.7%. The  mutual trade totaled $2.6bln, with exports totaling $847.2mln and  imports, $1.8bln. 

Russia remained the leader in terms of foreign investments in Armenia  in 2021 ($975.1mln), with its direct investments totaling $371.1mln.