Armenia: Exports Hit by Russia — Georgia Crisis
RFE/RL reports that once again — and as I mentioned earlier — Armenian businesses are already starting to feel the consequences of the newly imposed Russian blockade of Georgia. The move follows the arrest but later release of four Russian military officers accused of spying in Georgia.
Armenian companies trading with Russia said on Tuesday that they are already incurring losses as a result of Moscow’s decision to impose a transport blockade on Georgia in retaliation for the arrest of its Tbilisi-based military officers accused of espionage.
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The extraordinary move, criticized by the European Union, further complicated Moscow’s already tense relationship with the pro-Western administration of Georgian President Mikhail Saakashvili. It could also seriously hamper Armenian exports to and imports from Russia. Those account for a considerable part of Armenia’s external trade.
Prime Minister Andranik Markarian downplayed the blockade’s effects on Armenia, arguing that the Russians had already closed their main land border crossing with Georgia in June and that Armenian companies can continue to ship cargos to Russia via Ukraine. However, the owners of some of those companies were far less sanguine, saying that they are already counting the possible cost of the Russian blockade.
Ashot Baghdasarian, chief executive of the Kilikia beer and soft drinks company, said a batch of its products bound for Russia was left stranded in a Georgian Black Sea port following the suspension of a regular Georgian-Russian ferry service. Kilikia is also unable to import Russian raw materials used for the packaging of its natural juices, he said.
“I have information that our cargos were stopped at the border yesterday,” Baghdasarian told RFE/RL. “This is a very big problem for businessmen.” The businessman, who is also a parliament deputy from the governing Republican Party (HHK), urged the Armenian government to help sort out the problem.
Meanwhile, RFE/RL’s Press Review carries a poignant editorial from the local Aravot newspaper.
“They punish the Georgians, but it is we who will suffer,” “Aravot” says in an editorial on Russia’s decision to suspend all transport links with Georgia. The paper describes the move as a desperate act of frustration with the international community’s refusal to side with Russia in the dispute. “But this is only the tip of the iceberg, and it is clear that Moscow, which feels deeply hurt, will not content itself with these standard sanctions,” it writes. “It is now difficult to evaluate the impact of those sanctions. But the fact is that Armenia too will definitely suffer from them. And while the Georgians know what they are suffering for, our situation can only be described as tragically absurd.”
Still, it’s early days. With some companies and businesses reporting problems and losses encountered by the Russian blockade of Georgia, I can only wonder how devastating this will be for Armenia if it continues for weeks or months rather than days.
Comment by Onnik — October 4, 2006 @ 1:14 am
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