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Armenia's armament and agriculture in danger, say experts

21 November 2014 [19:53] - TODAY.AZ

/AzerNews/

By Mushvig Mehdiyev

Experts warned about the next unpleasant consequences in Armenia following the official start of its activity within the Eurasian Economic Union.

EEU integration will cause pains in the armament and agricultural fields in Armenia given the specific terms and conditions of the Russia-lead alliance, said Daniel Ionnisyan, a local expert.

Ionnisyan noted that Armenian Defense Ministry now pays no extra money to import military equipment.

"But the process will change after entering the EEU, as Armenia will be forced to pay 18-20 percent tax to the budget of the alliance. If the defense ministry decides to purchase military equipment from non-EEU country, it will have to pay 20 percent tax to the union's common budget," he said.

Armenia's journey to the EEU started when President Serzh Sargsyan in September, 2013, surprised his European partners with an unexpected decision to join the EEU. Besides confusing the European political players, a sudden change in Armenia's foreign policy direction sparked mixed reactions among residents, hindering them to hold the same position on the issue. Even the analysts and experts supported the people to slap the government's disinclination towards Europe.

Ovsep Gazaryan, an economic expert, said joining the EEU will deteriorate Armenia's agriculture, particularly the rural credits.

"Agriculture needs machinery, which is mainly imported from China and Japan. Only 20 percent of the total equipment are brought from the EEU member-states. Integrating into the union will eventually increase the prices of trucks and tractors. Moreover, price hike is also expected for several agricultural products," he noted.

Experts predicted the kind of products which will predictably hit by price hike from January 1, 2015. Prices for butter, poultry products, egg, pork, fruits and vegetables are expected to rise, challenging Armenians amid weak purchasing power.

The EEU integration has turned into a real conundrum for the Armenian government. The authorities and people are aware that joining the union will end in a tighter political and economic dependence on Russia. In the other words, it is an insidious threat to the post-Soviet country's sovereignty.

URL: http://www.today.az/news/regions/137628.html

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