Where the "time machine" is taking Armenia

Where the "time machine" is taking Armenia

By David Stepanyan, Yerevan. Exclusively for Vestnik Kavkaza

An aggravation of the socio-economic situation in Armenia, tougher taxes, and plans to join the Moscow-led Customs Union (CU) have brought up many questions. Serzh Sargsyan, President of Armenia and leader of the Republican Party, attempted to answer them at the 10th congress of the Yerkrapa Union.

Sadly, it must be stated that Sargsyan failed. The idea behind the hour of talks was a cliché for people “put up with it and everything will be fine.” However, some experts called Sargsyan’s speech a message for his predecessor Robert Kocharyan who has been criticizing the economic policy as a whole and Prime Minister Tigran Sargsyan specifically.

Concerning prospects of Armenia’s membership in the CU and further involvement in Eurasian integration projects, the president outlined new opportunities for the 200-million-consumer market of CU states. Sargsyan believes that Armenia took the path of uncertainty, when the country decided to make economic progress based on specific programs.

Sargsyan called the pension reform one of the main innovations “focused on prosperity of the new generation.” Admitting that 80% of Armenians (in reality 99% - author) want a compulsory system, Sargsyan assured that the reform will make a strong bond between the future of an Armenian and his/her homeland. “The government, represented by the pensions system, is forming a sort of a time machine that will give its hand to everyone in a few years,” said the president. He criticized Gagik Tsarukyan’s oppositionist Prosperous Armenia for being opposed to the strive for reforms.

Sargsyan bashed the idea of four opposition fractions to form a commission that would study gas deals signed with Russia in 2013. According to the documents, the gas price for Armenia will depend on Russian domestic prices for gas. Moscow will no longer oblige Armenia to pay the customs fee of 30% for gas. Sargsyan thinks that the 20% of ArmRosgazprom shares sold according to the deals brought no dividends. The president reminded about 80% of shares of the gas-distributing company sold during the reign of Robert Kocharyan. Moreover, Sargsyan showed sudden readiness to rescind deals with Gazprom if anyone gives $100 million for the 20% share or finds a supplier of cheaper gas.

Grant Bagratyan, an MP of the Armenian National Congress and ex-Prime Minister, asked for the authority to sell the 20% share of ArmRosGazprom. The economist urged the president to get rid of the PM’s mafia in the financial, banking and insurance sector. “You will not understand anything anyway. So, in order to get rid of the mafia, sign a resignation note and leave,” said the ex-PM.

Aram Sarkisyan, leader of the Republic Party, characterized the president’s speech as confusing and fallacious. The politician said that he did not believe a single word of the president “who came to power by giving bribes and falsifying election results.”

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