Impact of Russian sanctions on Armenia's banking system will be expressed in different ways - says economist (video)
What consequences can the new array sanctions imposed by the US and EU on Russia [over Ukraine crisis] have on Armenia? Armenia’s economy, specifically the country’s banking system, is heavily dependent on Russia. Economist bagrat Asatryan says the impact of the new sanctions on our banking system will be expressed in different ways. The implementation of projects financed by Russia will be reduced significantly, in the result, the opportunities to invest in Armenia will be curtailed too. Russia's worsening economic situation will also affect the flow of direct investments and transfers. The economist says Armenian authorities should start taking preventive measures, like Russia. “Russia is making huge investments in its banking system, which suggests that these structures need protection and the state is trying to do it. No one seems to care about it in Armenia yet,” says the economist. Mr Asatryan thinks the sanctions against Russia can have serious and heavy consequences for SWIFT global payment system. He says the only solution in this case is to take a political decision. “Armenia is joining the Customs Union. Everyone knows it. But one day these sanctions may be applied against the CU member states as well. We shall not encounter any problem, if the sanctions are not implied against Armenia. However, if they are applied against Armenia-based Russian banks, the consequences will not be so heavy as we have local banks with English and French capital. ” Bagrat Asatryan thinks that Armenia will benefit only in case it maintains political neutrality and does not make pro-Russian announcements every now and then.
