Interview with Gagik Tsarukyan
– The opening of Armenian-Iranian Business and Development Center has
recently taken place, which, as far as we know, is Iran’s largest suchlike center
abroad. What message is it to our region?
– I will not exaggerate if I say that an important historical event has occurred. And this is just the
beginning, and, still, development programs are to be implemented. The launch of this large
Armenian-Iranian business center will undoubtedly open a new page not only in the relations of
these two friendly countries, but also in overall regional cooperation. It creates serious prospects
for regional development, opens a way for creation of new ties, mutually beneficial deals and the
development of our economies. This center can become an interesting gateway to the Eurasian
Economic Union. The scope is really huge, the prospects are serious. But it will demand hard
work. Not only Armenia and Iran, but also many other friendly and partner states will
undoubtedly make much of the opportunities of this business center. This can become a link
between different countries and business communities, be a model of business cooperation in the
region, which is to be expanded and developed. I am glad that I have contributed to the
formation of the business center of our friendly country in my homeland.
– It is obvious that in the South Caucasus a new “architecture” is in the
process of formation, where the economic factor is extremely important. Do
you think Armenia has an opportunity to promote its interests?
– Yes, sure, the historical processes, both geopolitical and economic, are taking place in our
region. They can either be favorable for Armenia or generate serious risks. First of all, the
regional situation is seriously influenced by our neighboring countries -Iran, Russia, Georgia,
Turkey, Azerbaijan, as well as the Collective West – the European Union and the United States.
The role of China and India cannot be ignored as well. It is apparent that each country in the
region has its own interests, and Armenia should also put its own interests, combining them with
the interests of others. The question here is to what extent the combination of these interests will
benefit our country providing, first of all, peace, and then taking advantage of the opportunities
to use logistics and other infrastructure and, of course, making favorable conditions for economic
development. Obviously, we shouldn't spoil our relationship with anyone, let alone make them
hostile. Often, at first glance, the immediate risks are not visible, but they can suddenly cause
unexpected, serious and irreversible problems for Armenia.
It is apparent, that we need allies in this great historical process, as we do not have enough
resources by ourselves. But if we can correctly formulate our interests, we will definitely have
allies whose interests will coincide with ours. Rapid changes are taking place in the region: Iran
has become a member of the BRICS, Azerbaijan and Turkey have applied for membership, and
our main trading partner Russia is one of the key players in the BRICS. This is a question that
needs to be thought over. What do we think of that? It's not the issue of desires, likes or dislikes,
but it is the issue of serious calculations. In general, our country should only take steps that
require only competent, cold calculations.
– In the new Caucasian architecture, the key issue is of new infrastructures
and roads. Is it only related to risks or opportunities for us?
-Armenia is a landlocked country, it has also been blocked on both sides by Turkey and
Azerbaijan for more than 30 years, we do not have a railway with Iran. The most vital and
important roads are those passing through Georgia to the Black Sea and Lars, the latter being
either closed for almost half of the year, or heavily crowded, besides, the Black Sea ports are not
fully used. This means that, regardless of today's, yesterday's or tomorrow's government, we
must seriously think about new viable roads and other infrastructures. After all, times are
changing, the world is changing, and our approaches must also be modified, of course, not to the
detriment of our national interests. Armenia should take advantage and integrate into the
transport schemes offered by various major countries. Peaceful competition is sometimes almost
as difficult and risky as wars. Peaceful competition requires literacy: you must be able to
correctly calculate beneficial options not for a one- day period, but for the period of fifty to
hundreds of years. This requires diplomacy in order to properly combine your interests with
those of influential, large states in order to have the opportunity to implement your plans. It is
obvious that the base of integration is peaceful coexistence.
I would also like to mention the gas pipelines entering our country: from the north, they come
from Russia, and from the south – from Iran. Armenia annually consumes about 2.3-2.5 billion
cubic meters of gas, of which 1.9-2 billion is received from Russia, and the rest is taken from
Iran. For 10 years now, we have not been able to complete the construction of our capacity
increasing high-voltage power transmission lines and increase gas imports from Iran by 3-3.5
times. Who is to blame that even this issue is not being resolved? And if gas imports from Russia
to Armenia stop, God forbid, what will happen? The new roads and infrastructure do not belong
to any authorities of the time or to any other government, they belong to our people and our
state, we need to make decisions and make the right decisions.
– What risks do you see in domestic economic life, in business?
– There are disturbing problems, which are mainly related to the ongoing administration and
some legal regulations. If we take such an area that has been spinning up in recent years as the
construction, e.g. the construction of apartment buildings, starting from the so-called
architectural and design assignment, construction permits to the receipt of completion acts, the
situation is as follows: the payment of the state duty only is tens and hundreds of millions of
drams, and in case of delay – tenfold amounts. Now, does it give anything useful to an
entrepreneur? Of course not. Instead, it increases the cost of living of a citizen, increases real
estate prices. There are risks of bankruptcy of constructors, which also affects the sector of our
people who bought apartments, which remained unfinished. I see serious problems in the
construction sector.
Of course, it is a well-known fact that many people from Russia and some other countries came
to Armenia 2 years ago, and most of them later left for another country. Why? We need to
analyze and assess the situation. This is an important matter. Re-export and import to Russia and
vice versa process have brought us sufficient advantages, but one day it will end. This year, in
the first half of 2024, we have a serious shortfall in the revenues to the state budget. What is
needed to be done – to pursue a reasonable, realistic, liberal economic policy, and not arbitrarily
subject some business entities to pressure for some minor non-payment or misconduct. It will not
do good. It is not a coincidence that the capital is flowing out of Armenia.
We must do everything so that investments flow to our Homeland, new jobs should be created,
we must love and respect each other, and not rejoice at the bad situation of our neighbor.
Government officials should also love and respect entrepreneurs and those who work with them,
because they replenish the country's treasury.
Everyone should pay taxes. it is a clear rule of the game. But I see a risk that in the conditions of
some economic difficulties, the SRC may have the temptation to put pressure on businesses with
harsh administrative methods. This is a tried and tested method that never leads to anything
good. Capital will flee, business will have serious problems, and this will have a direct impact on
the lives of hundreds of thousands of people, with all its unpredictable consequences.
– You constantly mention the need for profitable options, calculated and
competent projects. Do we have such developed projects, economic packages
and visions that have undergone precise professional expertise?
– My answer to the question is the following: I know that we have enough professional potential
to develop complex calculations and strategic projects. And I know that we are obliged to have
our correctly calculated projects in the new situation created in our region today, for which we
need to negotiate, struggle and gain allies. In the near future I will probably initiate such a
discussion, where there will be no empty talk or an atmosphere of insulting and blaming each
other, but a discussion with serious professional and serious figures, which may have a
continuation in the form of working groups, where real work will be done for our country. The
country should be brought out of this situation by smart people.