Russian Deputy Prime Minister Alexei Overchuk said Yerevan is seeking to minimize Russian economic presence in the South Caucasus country in hopes of aligning itself with the West. He singled out its recent demands for an end to Russian management of Armenia’s rail network and controversial seizure of the national electric utility owned by Russian-Armenian billionaire Samvel Karapetian.
“Comparing words with deeds, you come to the conclusion that our [Armenian] colleagues are very close to the point after which we will have to build our economic relations with that country in a different way,” Overchuk told the official TASS news agency in an extensive interview.
“We are interested in increasing trade with Armenia as well as with all the states of the region,” he said. “But if we are told that the presence of Russian companies in Armenia does not correspond to the interests of Armenia, then, based on the principle of reciprocity, it will be fair to ask: if Russian companies and entrepreneurs cannot be present and make money in Armenia, then why Armenian companies and entrepreneurs can be present and make money in Russia?”
The interview was published the day after Russian President Vladimir Putin publicly issued stern warnings to Prime Minister Nikol Pashinian during talks held in Moscow. In particular, Putin said that the Pashinian government’s moves to eventually join the European Union are “not compatible” with Armenia’s continued membership in the Eurasian Economic Union (EEU), a Russian-led trade bloc that gives Armenian exporters tariff-free access to Russia’s vast market.
He noted that Russia remains Armenia’s most important trading partner and supplies natural gas to the South Caucasus state at a significant discount. Pashinian responded by again saying that Armenia will eventually have to choose between the two blocs.
According to Armenian government data, Russia accounted for 35.8 percent of Armenia’s foreign trade last year, followed by China (12.3 percent) and the European Union (11.7 percent).
“Not only do we not have any problems with Russia but on the contrary, we highly value our friendly relations and do not want to harm Russia's interests in any way,” Pashinian told reporters in Yerevan on Thursday. “But on the other hand, this situation does not allow us to use our competitive advantages, and we must think together about what solution we can find.”
The Armenian premier referred to his recent calls for the termination a 30-year management contract signed with the Russian Railways (RZhD) operator in 2008. He said on February 13 that the Armenian railway should be run by another, non-Russian company because its current status discourages Turkey and Azerbaijan from using a much larger section of Armenian territory for transit purposes in the near future. The Russian Foreign Ministry dismissed Pashinian’s statement as “bizarre” and “not acceptable.”
Overchuk similarly told TASS that there are “no objective reasons” for RZhD to sell its concessionary management rights to another foreign operator. He brushed aside Yerevan’s declared rationale for such a deal, arguing that Turkey is already building a railway that will run from the eastern Turkish city of Kars to Azerbaijan’s Nakhichevan exclave bypassing Armenia.
Pashinian said he discussed the issue with Putin “in detail” on Wednesday. He did not report any agreements reached by them. He also said he is “not planning” to unilaterally scrap the management contract with RZhD.