Armenian Republican Party Members More Optimistic about Russian Economic Recovery than Russian Experts: 168 Zham

Armenian experts and government officials are more optimistic about Russia’s economic recovery than Russians are, writes 168 Zham paper turning to the backdrop of western sanctions on Russia’s economic crisis.

The paper cites Russian Academy of Sciences academician, economic expert Abel Aghabekyan, who stated that Russia’s socio-economic situation is in quite a serious situation, which is characterized by stagnation, recession, and stagflation. The academician noted, that those three factors combined, will last for at least 3 years, including 2013, when the process of stagnation began.

In regards to Armenian officials, for example, Republican Party faction MP Gagik Melikyan recently stated that the current situation in Russia is a temporary one.

“We expect that sanctions against Russia will diminish in the future, and will positively influence Russia’s economic growth. I’m convinced that during the coming year there will be positive steps toward that direction,” says Melikyan.

Another Republican Party MP, Parliamentary Standing Committee on Financial-Credit and Budgetary Affairs Chairman Gagik Minasyan spoke on Public Television (H1), assuring that the sanctions could be helpful for Russia. According to Minasyan, the sanctions could stimulate Russia to focus on its domestic resources, and in a short time-frame ensure technological progress and economic growth, which would result in an increase of remittances from Russia to Armenia.

Attempts have been made by Russia to facilitate the lifting of sanctions by the United States and the European Union, but with no avail. The sanctions were imposed by the Western states in order to punish Russia for its involvement in Ukraine. The sanctions target certain government individuals and the Russian banking, defense, and energy sectors. Russia is recently lifting previous bans on certain products, ex: Chinese Pork etc, in order to supplement recently sanctioned products.

Armenia recently entered into the Russian-led Eurasian Economic Union on October 10 after a year negotiations. The majority of Russian imports to Armenia are in the form of remittances and energy (gas). When Russia's economy fell during the 2008 international crisis, remittances from Russia to Armenia fell approximately by 250%, significantly more than any other developed country sending remittances to Armenia.