New Year Shopping Spree Strengthens National Currency of Armenian

The appreciation of the Armenian national currency against the US dollar and other major foreign currencies since the beginning of December, according to analysts, is having a negative effect on the population depending on remittances and having main income sources calculated in dollars, while adding additional advantages to importers. Paradoxically, it is admittedly the result of a Catch 22 situation when the Holiday Season rush makes people exchange more, for less, as families stock for the long New Year celebration.

Some economists, however, say such factors as Central Bank inaction and control of the market by lucrative importing monopolies only make this situation worse in Armenian reality.  Read more... (759 words)

Economic Russia-Armenia Forum Gets Underway in Yerevan

The Economic Russia-Armenia Forum launched today in Yerevan holding the Second Industrial Exhibition EXPO-RUSSIA ARMENIA 2009.

The participants of SIEE, which is organized by ZARUBEZH-EXPO Company and Armenian Development Agency, are about 70 Russian and joint Armenian-Russian companies in fields of industry, research, energy, pharmaceutical sector, banking services, high technology, food, space navigation, legal assistance, etc.

The opening ceremony was attended by Armenia’s President, Serzh Sargsyan, Russian Ambassador to Armenia, Vyacheslav Kovalenko, deputy director of Russia’s agency Rossotrudnichestvo, Igor Morozov, and SIEE Organizing Committee co-chairman and president of Multi Group concern,

The exhibition has the main objective to develop business relations between Armenia and Russia. The SIEE will also hold Armenia-Russia Business Forum and meetings between Armenian and Russian manufacturers.  Read more... (184 words)

Eurasian Development Bank May Sponsor New Nuclear Power Plant in Armenia

The Russian and Kazakhstani-led Eurasian Development Bank is considering underwriting the construction of a new, $4 billion nuclear power plant in Armenia.

The bank is also mulling a similar project in Belarus, the Regnum news agency reported on August 26, citing Yevgeniy Vinokurov, head of the bank’s Economic Analysis and Consulting Department.

The power plant is meant to replace Armenia’s Soviet-era Metsamor nuclear power plant. Yerevan is under pressure from the European Union and the United States to close down the obsolete Metsamor facility.

Copyright (c) 2003 Open Society Institute. Reprinted with the permission of the Open Society Institute, 400 West 59th Street, New York, NY 10019 USA, www.EurasiaNet.org. or www.soros.org.

Source: Eurasianet – Original Article

Opposition Businessman Takes Armenian Government To Court

YEREVAN — An Armenian business conglomerate owned by an opposition party-linked businessman has asked a European court for 214 million euros ($304 million) in compensation from the Armenian government for its confiscation of one of the company’s key assets, RFE/RL’s Armenian Service reports.

The Bjni mineral water plant, which was operated by the SIL Concern, was auctioned off by the government earlier this year after SIL failed to pay 5.2 billion drams ($14 million) in fines imposed against it for alleged tax evasion.

Khachatur Sukiasian and his family, who own SIL, have taken the case to the European Court of Human Rights.

Ara Zohrabian, a lawyer for Sukiasian, said the family hopes the Strasbourg-based court will force Yerevan to compensate it for the “material and moral damage” it inflicted on SIL.  Read more... (239 words)

Armenian Economy Drops by Almost 16 Percent

Despite tens of millions of dollars in foreign aid received earlier this year, the Armenian economy from January through May of 2009 experienced a 15.7 percent decline compared with the same period last year, according to the National Statistics Service of Armenia.

Armenia’s National Bank had predicted that the economy would dip at a 12-15 percent annual rate, the Tert news service reported on August 4. The National Bank adjusted its forecasts several times throughout the year as Armenia’s recession deepened. Slow sales in construction and services are driving the downward trend.

GDP now stands at 839 billion drams, or roughly $2.27 billion, a 15.7 percent drop from the same period in 2008.  Read more... (147 words)

Hilton Garden Inn Debuts in Armenia

Hilton Garden Inn, a three star hotel and an exhibition center will cover two hectares of land and will have 202 hotel and 40 apartment rooms. The cost of the rooms will vary between $150-200 during high season, and $120-150 during off season,” said a California-based Armenian businessman Gary Bedian, the founder and president of Bedian International Company, who will be in charge of the Hilton Garden Inn construction work in Armenia.

The construction of the hotel and exhibition center will start next year and will last 3 years. The hotel will be located on the main highway to Yerevan’s Zvartnots international airport.  Read more... (195 words)