Susanna Petrosyan, Yerevan, exclusively to VK
Talk about the ruling elite of Armenia's need to choose between European integration and accession to the Customs Union has triggered many debates that have affected, among other things, the possibility of nationalization of businesses owned by Russia - to reduce Moscow's influence in Armenia. Continuation. See "Will the influence of Moscow in Yerevan be reduced? Part 1".
If we differentiate all Russian enterprises in Armenia , those that have been transferred to Russia under the contract "Property for debt" will be an exclusive case. This deal can be considered as unsuccessful, and even as a failure. Already in the early 2000s, Armenian experts pointed out that the deal will eventually be a bomb planted under Armenian-Russian relations, because the Russian side, agreeing to the deal, has not fulfilled its obligations regarding investments and the creation of new jobs. This fact was the cause of some tension in Armenian society in relation to Russia.
But why is it necessary to nationalize the company and is there any economic feasibility of nationalization? In general, the Russian enterprises in Armenia function quite effectively, pay solid taxes to the budget and provide jobs for people. The exceptions in this regard are five enterprises transferred to Russia under the contract "Property for debt." If there is a need for nationalization, it refers specifically to these objects. However, on the other hand, these five companies have already become obsolete and nationalizing them does not make sense. If they were estimated at 108 million dollars, after 12 years they are cheaper. Today these businesses operate at only 5-10% of their capacity.
The second important point to make about a decision on nationalization is the lack of a law on nationalization. Armenian experts in the mid-2000s developed such bills, but they were based on the same issue of cost-effectiveness with no political issues.
In addition, in Armenia there are no political parties - either in power or in the opposition - which would raise the issue of nationalization of enterprises. "No government of Armenia will raise this issue, either in the near future or in the medium term. Russian companies provide the proper level of economic efficiency of the former Armenian state property. Moreover, the Armenian government has no funds for nationalization. Any nationalization transaction is based not on virtual conversations but on real economic calculations and complex processes that require large financial resources,“ political commentator of the information-analytical center "Noyan Tapan" David Petrosyan says.
"The nationalization of enterprises is impossible. If we are talking about expropriation, it leads to an international scandal up to the breaking of relations between Armenia and Russia. And if the point is to buy companies, serious funding is needed. I do not think that there will be many buyers, and if it comes to the budget, it is not clear what part of the budget the government will use. We have already gone through a time of nationalization and do not want to pull the country back into socialism; this is not for the 21st century,” director of the "Caucasus" institute Alexander Iskandaryan said.
The position of the Armenian government, characterized by passivity, as in many other matters, is also amazing. Today the government still owns 20% of shares of "ArmRosgasprom" that actually gives almost no advantages to the Armenian side. However, “ArmRosgasprom” sells its shares at the local exchange, and the government could buy another 5% + one share. And then in the presence of not 20% but 25% +1 share the government would be a shareholder entitled to participate in key decisions.
Certainly, the presence of such a large number of Russian companies in Armenia, where tens of thousands of people are working, becomes a serious lever to exert political pressure on Yerevan from Moscow. But on the other hand, these companies are on Armenian land, and they must comply with Armenian legislation, which they do.
In addition, Russian companies in areas such as telecommunications and energy provide a certain level of technological development of Armenia. Therefore, speaking of nationalization of Russian enterprises actually means forfeiture and, in fact, is ungrounded and only increases the degree of tension in Armenian-Russian relations.
