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No Changes Expected In the Field of Economic Competition in Armenia

Artak Shaboyan was reappointed as the director of the State Commission on Defending Economic Competition, however, that will not change anything because nothing happens in that sector, writes Haykakan Zhamanak daily reporter Hayk Gevorgyan. He writes, that Shaboyan does his best to defend Armenia's economy from any kind of competition whatsoever.

The journalist brought an example of the sugar market where competition is entirely eliminated; sugar is imported to Armenia only by Republican Party faction MP, oligarch Samvel Aleksanyan, while the latter’s monopoly is protected by President Serzh Sargsyan. 

Gevorgyan notes that 1 kilogram of sugar in neighboring Georgia’s supermarkets costs 1 lari 15 tetri (260 AMD), while in Armenia it costs 395 AMD.

“Sugar is the criteria with which we can measure whether there really is economic competition in Armenia or not. If sugar in neighboring countries is 50% cheaper, but no one “thinks of” taking a truck full of that cheap sugar, driving for 200 kilometers, selling it here and makingmillions, then there is no economic competition in Armenia; and Artak Shaboyan could be reappointed the director of the State Commission on Defending Economic Competition not for 5 years, but 500,” notes Gevorgyan.

As another example of defending the monopoly, the article notes that during EEU membership the Armenian government did not even try to negotiate to receive preferential custom duties for imports of sugar, and now all those importing sugar from non-EEU countries have to pay an 80% custom duty.

 “All, except for Samvel Aleksanyan, who pays and will pay 0%, who supposedly imports raw sugar, which is free from any tax duties,” writes Gevorgyan.