Papoyan: еxport curbs drive economic diversification

PanARMENIAN.Net - Armenian Economy Minister Gevorg Papoyan said the export restrictions imposed by Russia were the kind of challenge needed to encourage diversification of the country's economy.

Speaking to reporters after a meeting of the Civil Contract party board, Papoyan said tomatoes continue to be exported, while a significant share is also being sold on the domestic market, Sputnik Armenia reported.

"Yes, there have been some changes in the market. For example, tomato prices are now several times lower than they were last year. Naturally, this creates problems for producers, while it is good news for consumers," he said.

According to the minister, as export destinations become more diversified, such problems will be reduced to a minimum.

"As a result of all this, Armenia and its economy will emerge stronger. Something like this had to happen for our economy to diversify. Otherwise, persuasion and requests alone would not have changed anything," Papoyan said.

He added that there is currently no information indicating that any businesses have shut down. On the contrary, the competent authorities have continued providing various forms of support to businesses.

Responding to a journalist's question about whether the European Union's €35 million assistance package was intended to generate anti-Russian sentiment in Armenia, the minister dismissed the suggestion.

"Come on, when have you ever seen us trying to generate anti-Russian sentiment?" he said.

On May 15, Russia's Rosselkhoznadzor announced plans to inspect several Armenian companies over suspected imports of counterfeit fish products. On May 22, it announced restrictions on flower imports and imposed limits on fresh tomatoes, cucumbers, peppers, herbs and strawberries imported from Armenia. From June 2, restrictions were extended to stone fruits, including cherries, sweet cherries, apricots, plums, peaches, nectarines and grapes. Prime Minister Nikol Pashinyan later said the first shipments of greenhouse roses and vegetables barred from entering Russia would instead be exported to other countries.

On June 26, Russia expanded restrictions on fish product imports from Armenia by temporarily suspending certification for products from two additional Armenian companies.