Armenian Economy Minister Claims EAEU Report Was Written in Armenia and Contains Serious Errors

YEREVAN — Armenian Economy Minister Gevorg Papoyan has claimed that a recently published report outlining the potential economic consequences of Armenia’s suspension from the Eurasian Economic Union (EAEU) was prepared in Armenia and contains serious methodological errors.

“The EAEU report was written in Armenia,” Papoyan told reporters.

According to the minister, the references included in the document point to Armenian-language versions of certain websites, which he cited as evidence supporting his assertion about the report’s origins.

“It was written in Armenia, but it is an incorrect report,” Papoyan said.

The minister challenged the methodology used to calculate the potential economic losses Armenia could face if its EAEU membership were suspended.

As an example, he referred to a sharp decline in exports of computer monitors from Armenia to Russia, explaining that these shipments had largely involved re-exports rather than goods manufactured domestically.

“I stated in the National Assembly that exports of monitors from Armenia to Russia had declined by a factor of 15.2. Clearly, there had been re-export activity that no longer exists,” Papoyan explained.

He argued that the report’s authors calculated the economic impact as though the monitors had been manufactured in Armenia, including assumptions about domestic employment and value-added tax revenue.

However, Papoyan said the goods had merely been imported into Armenia and subsequently re-exported, generating relatively little domestic economic value.

“Those monitors were brought into Armenia, VAT was paid, and approximately 90 percent of that amount was later refunded. As a result, very little remained in Armenia,” he said.

The minister added that the businesses involved had earned relatively modest profits from these transactions.

“Consequently, the calculations are seriously flawed, and the work carried out for those who commissioned the report was highly irresponsible,” Papoyan declared.

Earlier, the Russian government’s press service published a joint report prepared by the governments of Russia, Belarus, Kazakhstan, and Kyrgyzstan titled On the Possible Consequences of Suspending the Application of the May 29, 2014 Treaty on the Eurasian Economic Union With Respect to the Republic of Armenia.

The report examines the potential economic consequences of suspending Armenia’s participation in the EAEU.