Experts say Armenia’s accession to CU will yield positive results

Experts say Armenia’s accession to CU will yield positive results

PanARMENIAN.Net - Representatives of the Research Center of Eurasian Bank believe that Armenia’s accession to the Russia-led Custom Union will have only positive consequences, Integration.su reports.

Experts say that the lowered tariffs for Russian gas will overtake Armenia’s gains from the Association Agreement, which was supposed to be signed with the European Union. The saved amount of USD 140 million will be comparable with the GDP growth of USD 146 million, according to the research.

After Armenia joins the CU, the country’s GDP growth is expected to be at 4%. Besides, Armenia will benefit from joining the common labor market. The agreements on labor migration will help unify labor resources of the member states, the more so because 85% of the remittances to Armenia are made by labor migrants in Russia, experts assure.

In case Armenia joins the Common Economic Space, the amount of transfers will reach USD 40 million annually, what will ensure continuous financing of the trading accounts of Armenia’s balance of payments, the center said.

Besides, according to experts, joining the Customs Union will allow Armenia break out of the transport isolation, with the construction of North-South transport corridor and restoration of the railway communication between Russia and Georgia. Among other benefits, they mention building of the new nuclear power plant and implementation of other energy projects.

Related links:
 Top stories
A relevant agreement was signed by the minister of finance Gagik Khachatryan and German ambassador to Armenia Rayner Morel.
The total cost of the final deal is over AMD 85.8 billon to be paid in two equal halves, after completion of the deal formalities.
Aleksei Miller was also scheduled to meet with government officials in Germany, which is a major customer of Gazprom’s supplies.
Access to finance is a major impediment to the growth of micro, small and medium enterprises, especially in the rural areas.
Partner news