Discussion on the sanctions effect on the economy and the possibilities of mitigating their negative impact

On February 27, Alexander James, Regional Sanctions Coordinator of the British Embassy in Georgia brought a UK delegation to visit the Union of Manufacturers and Businessmen of Armenia to discuss and learn about the impact of economic sanctions imposed on Russia as a result of the Russian-Ukrainian conflict on the activities of the Armenian business community, and the challenges they have created.

Expressing gratitude for the discussion, Alexander James noted that their visit to Yerevan is an excellent opportunity to discuss the impact of sanctions on the economy, find solutions to existing concerns, study the negative consequences for business and the possibilities of mitigating them, and find new avenues for cooperation.

At the request of the guests, the Vice President of UMBA Nerses Karamanukyan presented the realities and trends that have been recorded in Armenia as a result of the sanctions imposed on Russia. According to him, the impact has been both positive and negative. On the one hand, the transfer of numerous companies and highly qualified specialists from Russia to Armenia has been recorded, which in turn has led to the activation of a number of branches of the economy, significant additional financial flows, an increase in commodity turnover and foreign trade volumes. On the other hand, the scope of activities of many companies and financial institutions has been limited, leading to additional problems.

The guests introduced the activities of FCDO. They touched upon the joint initiatives and priorities that will be aimed at minimising the unintended consequences of the sanctions, diversifying export markets, sustainable economic activity, and integrating with the European economy.

Vice President of UMBA Armen Martirosyan highlighted the steps aimed at expanding European business culture in our country, the presence of leading Western companies in Armenia, similar contacts and discussions.

UMBA Representatives addressed various other questions raised by the guests.