TODAY.AZ / Analytics

Aggressive policies hampering Armenia’s economic survival

31 May 2014 [10:10] - TODAY.AZ
By AzerNews

Despite its strong affinity with Russia, Armenia is still struggling with obstacles in its efforts to join Eurasian Economic Union.

The recent developments over Armenia's membership in the Russia-led economic unions show that the country's perspectives are deteriorating. Joining the economic unions is a survival for Armenia's almost dead economy, which has become more paralyzed, uncontrolled, and regressive every year. Armenia has neither enormous economic projects, nor foreign investment inflows to improve its population's living standards.

Now on its way to economic survival through Russia-led Eurasian Economic Union (EEU), Armenia is facing unexpected problems.

The leaders of Russia, Belarus and Kazakhstan signed a treaty on establishment of the EEU in Astana on May 29 without Armenia. Armenian President Serzh Sargsyan remained an observer of the signing ceremony, as its country had not completed all procedures to join the union. Earlier, it was reported that Armenia will be the first country to be able to join Kazakhstan, Belarus and Russia within the Customs Union.

At Astana summit, Kazakh President Nursultan Nazarbayev asked Sargsyan to stick to the UN principles concerning the officially fixed boundaries while joining the Customs Union (CU).

He said the presidents of the three countries received an appeal from the Azerbaijani side urging Armenia to accept a stipulation that the provisions of the WTO and Customs Union must be used within its borders recognized by the international law.

Azerbaijan has good economic, political, and military relations with the CU members - Russia, Belarus, and Kazakhstan - so Azerbaijan's position on Armenia's entrance to the CU is extremely important.

Sargsyan in turn offered to sign a treaty on Armenia's accession to the EEU till June 15, 2014.

Armenia's occupation of 20 percent of Azerbaijan's internationally recognized territories and its non-constructive position on the settlement of the Nagorno-Karabakh conflict still blocks the country's admission to the EEU.

Armenia occupied over 20 percent of Azerbaijan's lands, including Nagorno-Karabakh and seven adjacent regions, after laying territorial claims against its South Caucasus neighbor that caused a brutal war in the early 1990s.

Azerbaijan and Armenia signed a ceasefire agreement in 1994. The co-chairs of the OSCE Minsk Group -Russia, France, and the US- are currently holding peace negotiations.

Armenia has not yet implemented the UN Security Council's four resolutions on the liberation of the Nagorno-Karabakh and its surrounding regions.

Azerbaijan has officially said that it is against Armenia's joining to Russia-led Customs Union unless it withdraws its armed forces from Azerbaijan's occupied territories, thus restoring Azerbaijan's territorial integrity.

Economic situation in Armenia cannot improve without the resolution of the Nagorno-Karabakh conflict. Armenia's economy is in a dire situation and hundred billions of dollars is needed to upgrade the economy. Foreign investors are not interested in investing in Armenia's economy, as the country is under blockade.

Armenia's aggressive policy left the country out of all major regional economic projects, including the Baku-Tbilisi-Ceyhan oil pipeline and the Baku-Tbilisi-Kars railway.

As a response to Yerevan's aggressive policy, Turkey also closed its borders with Armenia, demanding it to withdraw its troops from occupied lands of Azerbaijan. The blockade of the country continues to deteriorate the economic situation in Armenia.

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