Trust climate in Armenia’s business environment should be improved: economist

The political contradictions between Russian and Georgia have become secondary due to business interests, economist Vardan Bostanjyan told Aysor.am, referring to the 2018 data, according to which the volume of Russian investments in Georgia exceeds 60 million USD which is incomparably more as compared with Russia’s investments in Armenia.

The economist said that the economic policy between two different countries is agreed with political approaches and obviously, the political disputes have certain impact on economic relations as well, but in case of Russia and Georgia the situation is quite another.

“In some issues the political disputes do not play a key role and are being overcome. If Russia makes investments in Georgia, it means it is beneficial for the both parties,” Bostanjyan said.

As to how it may be explained that Russia makes lesser investments in the ally country Armenia and what the Armenian authorities should do to correct the situation, the economist said the climate of trust in the business environment must be improved.

“There are still many risks for implementation of investments in Armenia. Such actions demand big system of guarantees, firm legal grounds, institutional mechanisms. If there are no such even a brother will not make investment. It is not the matter of being offended but the investor must have guarantees of getting income in future,” the economist said.

Bostanjyan stressed that Armenia faces problems in investment field due to several reasons – small market, small resources, incomplete legal grounds.

“In conditions of change of power there are good prerequisites in our country but they should be brought into life. The investors must be convinced that it is a matter of time,” the economist concluded.

Georgia’s National Statistical Service published 2018 economic data according to which the foreign investments in the country exceed 1 billion 200 million USD. Russia’s investments exceed 60 million USD which is more as compared with Russia’s investments in Armenia and this is in conditions when Russia and Georgia do not have diplomatic relations.