EEC warns Armenia could face tough conditions in closer integration with EU

Armenia could face severe economic conditions if it moves toward deeper integration with the European Union, Alexey Vedev, director of the Macroeconomic Policy Department of the Eurasian Economic Commission (EEC), said.

“Considering the experience of the Baltic states, it is easy to assume that these would be fairly harsh economic conditions,” Vedev added, according to foreign media.

He noted that Armenia’s geographical remoteness, the high level of competition within the European economy, and unfavourable assessments of the eurozone by the International Monetary Fund and the World Bank could all affect the country’s potential transition toward an EU-oriented integration model.

“Therefore, restrictions on demand for any Armenian products would obviously emerge immediately,” Vedev stressed. “Secondly, there are expensive energy resources. Based on examples from previous years, it became clear to everyone that the Russian Federation partly subsidised Germany’s economy through relatively low prices for oil and gas. And, of course, once Germany switched to LNG from the Middle East and the United States at significantly higher prices, we immediately saw industrial stagnation.”

Vedev’s remarks come amid ongoing discussions in Armenia regarding the country’s geopolitical and economic orientation between the Eurasian Economic Union and closer cooperation with the European Union.

By Jeyhun Aghazada