MOSCOW, October 20. /TASS/. Members of the Eurasian Intergovernmental Council from Russia, Belarus, Kazakhstan and Kyrgyzstan presented a report on potential consequences of the suspension of Armenian membership in the Eurasian Economic Union (EAEU), the press service of the Russian government said.
The report comprises information about measures taken by Armenia and aimed at joining the European Union, the review of compatibility of legal regimes in the EAEU and the EU, legal mechanisms called to prevent risks arising in consequences of the decision of Armenia to become the EU member-state, and assessments of possible implications of the EAEU membership suspension for Armenia.
TASS collected key provisions of the report.
- Russia, Belarus, Kazakhstan and Kyrgyzstan are not interested in Armenia’s withdrawal from the EAEU.
- The status of further presence of Armenia in the EAEU gives rise to questions in the light of Yerevan’s steps aimed at joining the EU.
- Russia, Belarus, Kazakhstan and Kyrgyzstan have the right to consider the suspension of Armenia’s participation in the EAEU until a referendum in Armenia on remaining in the EAEU or joining the EU.
Armenia’s preparations to join the EU
- Armenia does not inform the Eurasian Economic Commission and the EAEU member-countries on the efforts to converge its legislation with the EU law.
- Fulfillment of requirements needed to enter the EU by Armenia entails violation of obligations towards the EAEU.
Risks in customs sphere
- Implementation of "European standards" by Armenia in the customs sphere will jeopardize the customs space unity in the EAEU.
- Customs control and taxation will have to be restored if Armenian membership in the EAEU is suspended.
- Growing prices of goods on common EAEU markets and lower competitive advantages and income level of goods producers and services providers within the EAEU will be the consequence of such actions.
After-effects of the EAEU membership suspension for Armenia
- The Armenian GDP will drop by 15.6%, inflation will grow by 14.9 percentage points, and consumption will decline by 14.6%.
- Natural gas price for Armenia can grow by 69% or from $177.5 to $300 per 1,000 cubic meters. Such figure is indicative and the real price may be even higher.
- Labor migration conditions for Armenian nationals will become tougher.
- Exports of goods produced by Armenia will fall by 30-50%
- Exports from the EAEU to Armenia will decline twofold.
- The total trade turnover between Armenia and the EAEU will plummet by 55.6%.