Yerevan following the wobbling ruble 'closely'

Local experts and authorities say that the sanctions imposed by the US against Russia may negatively affect Armenia.

The sanctions have led to a fall in Russia’s currency, the ruble. Economists say that it is impossible for this process not to affect Armenia as well, given that Russia is one of its largest partners.

The vice speaker of the National Assembly, economist Mikael Melkumyan, said that over 600 000 Armenian citizens work in Russia, and that the unsteady ruble will hit them first and foremost.

“About 1.5 million dollars enters Armenia from Russia. However, the amount entering the country will now be less valuable. The families that live on the money sent by their relatives and/or husbands from abroad will be able to buy less now than in the past. The purchasing power of the population will fall,” said Melkumyan.

He also said that the devaluation of the ruble will result in the prices of gas, oil, weapons and other products of strategic importance to change; products exported from Armenia may not be as sellable on the Russian market because it too is losing its purchasing power.

The acting Minister of Economic Development and Investments, Suren Karayan, has stated that Armenia is watching the economic sanctions introduced against Russia ‘closely’. He also believes that the unstable Russian ruble may affect Armenia’s economy:

“This doesn’t pose many threats in the short-term, but we are following [the events] and consulting with our Russian colleagues. We will keep the situation at the centre of our attention and now we are in constant contact with our exporters who regulate their trade relations based on the Russian ruble. In case of necessity, the government will apply the necessary economic instruments to support them,” said Karayan.