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The report on the implementation process and results of the program of the Republic of Armenia (2021-2026) in 2022 was debated at the sitting of the NA Standing Committee on Regional and Eurasian Integration on March 13.

The RA Minister of Economy Vahan Kerobyan mentioned that in 2022, high economic growth was recorded, amounting to 12.6 %, which is the highest indicator since 2008. The increase in the export of goods was 77.7 %, the volume of foreign trade was around 14 billion 128 million dollars. The export volume of high-tech products was 360 million USD. From the viewpoint of cooperation with the EAEU, significant changes have been registered in a number of spheres. From February 2022 to 1 March 2023, the total number of Russian, Belarusian and Ukrainian citizens in Armenia was 113.753. According to the Minister, many Russian citizens have partially moved the center of their economic activity to Armenia. 7328 organizations and individual entrepreneurs, 2345 companies and about 5000 individual entrepreneurs received state registration in the State Register of Legal Entities in 2022 with the founders having Russian citizenship. A significant increase was also recorded in the number of tourists visiting Armenia from the EAEU countries. Vahan Kerobyan informed that in 2022 the export to the EAEU countries amounted to about 2.5 billion USD, which increased 2.8 times compared to the previous year. The import amounted to 2.7 billion USD, which increased by 49 % compared to the same period last year. Trade turnover with the Russian Federation (RF) amounted to 5 billion 33 million USD, it increased by 91.7 % compared to the previous year. Trade turnover with Belarus amounted to 185.8 million USD, with Kazakhstan - 41.9 million USD, with Kyrgyzstan - 6.5 million USD.

The Minister noted that Armenia continued its active involvement in the EAEU processes. During 2022, the mechanism of temporary zeroing of import customs duty on about 1.300 brand names of goods has had a positive impact on restraining inflation. Vahan Kerobyan also presented data on the policy implemented in the sector, the significance of the signed agreements, and the effectiveness of the funded programs.

Responding to the MP Shirak Torosyan’s question about the decrease in the index of economic freedom, Vahan Kerobyan clarified that economic freedom has decreased in all countries of the world this year, because in case of high inflation, both the monetary and fiscal policies of the countries were mostly restraining. The Minister highlighted the full provision of capital investments. He assured that reforms are being made, the legal framework is being changed in order to reduce loopholes for corruption as much as possible.

The deputy Khachatur Sukiasyan touched upon the importance of creating stable productions in Armenia and the steps taken in this direction, the economic consequences of the delay in building permits, the analyses made in the economic markets, the sectoral reforms implemented in the education system.

Mikael Tumasyan in his turn spoke about the problems of tourism, hotel and guesthouse service companies. Introducing the statistical data of tourism, the Minister of Economy Vahan Kerobyan informed that a bill regarding tourism is being developed, which will solve a number of sector problems. Financial requirements for foreign tourism operators will increase, the institution of financial guarantees will be introduced. He assured that steps are being taken to develop tourism and make the hotel industry attractive.

Within the framework of the report, the RA Minister of Finance Vahe Hovhannisyan referred to the work carried out in the sphere of finance and what needs to be done.

The Minister presented the implemented works, in which the legislative initiatives had a specific gravity.

“The list of goods exempt from value added tax (VAT) on the border has been expanded, the law on the introduction of the declaration system has been adopted, as a result of which public servants will submit a report in 2024 on their incomes for 2023. Regarding this, a list of social credit deduction possibilities will be presented soon. Amendments have been made to the Law on Fees. The taxation system of micro-enterprise has been reformed, making it more targeted,” Vahe Hovhannisyan noted.

According to the Minister of Finance, the level of budget planning has been improved, trying to link all programs and measures to the existing strategies. The system improvement process will be carried on: it is designed to propose a transition to a 3-year budget planning system.

The Ministry is working with various countries regarding the double taxation system. It is expected that Agreements will be signed soon.

The Minister did not provide any information regarding the works with the EAEU, mentioning that there are no completed works yet, they are in progress.

The RA Deputy Minister of Foreign Affairs Mnatsakan Safaryan in his turn noted that after the visits, the agreements reached with the partner countries are circulated and addressed. In particular, referring to the example of India, he informed that agreements have been reached in the fields of labor force, education, military industry. It is planned to create an Armenian-Indian trade platform, a business council. A similar platform was created last year, when more than 80 businessmen from the Iraqi Kurdistan arrived in Armenia, several forums were held.

The Committee took note of the report.