Azernews.Az

By Jamila Babayeva

The last decision of Armenian authorities to prefer the three-member Russia-led Eurasian Economic Union to World Trade Organization (WTO) revealed their weak skills in math.

Armenia is on its way to join the EEU, the members of which are Russia, Belarus and Kazakhstan. It prefers trading with the block to WTO with 200 member states.

The authorities' decision will further deteriorate Armenia's trade relations with other countries.

Armenia's entry to the EEU may create serious obstacles in its trade relations with the WTO states, not to mention the catastrophic slowdown recorded over the last few months.

The post-Soviet country will have to start talks with the WTO on compensation if it joins the union successfully and signs the agreement, Russia's Deputy PM Igor Shuvalov said recently.

This membership will make Armenia eligible to join the common customs duties functioning in the territory of Russia, Belarus and Kazakhstan. "This will definitely differ from its obligations under the WTO, and push Armenia to launch talks with partners," he noted.

It is still unknown whether Armenia is going to suspend talks with WTO members or not.

Armenia's decision to join EEU will give an impetus to flow-out of the businessmen from the country, local media reported.

The country will face hurdles in transportation of its goods to and from Russia via Georgia, Armenia's northern neighbor.

Some experts suggest that Georgia's signing of the Association Agreement with the European Union (EU) on June 27 will hinder its trade relations with Armenia.

Armenia's President Serzh Sargsyan believes that Georgia's Association Agreement with the EU will encourage the Armenian businessmen to involve in the European market and make investments in Georgia.

Tbilisi's Association Agreement with the EU will further boost business emigration from Armenia to Georgia as an attractive investment hub for Armenian businessmen, media reports said.

"The Armenian business started to migrate to Georgia long ago, and many Armenian enterprises have been registered in Georgia," the reports urge.

The migration of the businessmen from Armenia is also regarded as a quite good opportunity for the authorities.

"The authorities, however, seem to be satisfied with this situation, as the less skilled and intelligent businessmen stay in the county, the better conditions appears for the criminal-oligarchic business," media report said.

The agreement on Armenia's accession to the Eurasian Union is expected to be ready by July 1. The exact date of the signing of the document is still unknown. Local experts doubt that Armenia will join the union soon, as there are some obstacles on the country's way to the organization.

The authorities see the country's economic survival in the membership of the EEU. This comes as Armenia seems to gain more losses than the benefits in this deal.