Armenian exporters will face risks when moving from the Russian to the European market

Armenian exporters will face serious risks when turning from the Russian sales market to the European one. This was stated by Nikolai Silaev, a leading researcher at the Center for Caucasus Problems and Regional Security at MGIMO. His words are quoted by “Reedus”.

Earlier, the Council of Europe approved the European Commission's proposal to temporarily simplify trade relations with Armenia for a period of two years. Relaxations in the form of temporary abolition of import duties will affect 99 percent of Armenian fruit and vegetable products and 91 percent of drinks. The main condition for such a measure was to ensure unhindered access of European goods to the territory of the post-Soviet country.

Duties are a significant, but still not a key barrier to trade between third countries and the EU, Silaev noted. There are, in particular, difficulties associated with logistics, the analyst explained. This factor may lead to increased costs for Armenian exporters. “It takes longer to transport Armenian goods to the European Union than to Russia,” the expert explained.

Another obstacle, Silaev added, may be insufficiently developed infrastructure. It's not just about roads and warehouses. “We need to work out the mechanisms for concluding transactions, making payments and methods of supply agreements,” he explained. Another problem is high competition in the European food market, Silaev noted. Armenian products, little known to EU residents, may face low demand.

Cooling in relations between Russia and Armenia began to be recorded against the backdrop of changes in the foreign policy of the post-Soviet republic. Prime Minister of Armenia Nikol Pashinyan has repeatedly stated his desire to focus on European integration.