Economic Gain, Political Dividends for Armenia with Opened Roadway
Mar 10th, 2010 | Category: Economy
YEREVAN (ArmeniaNow.com), March 9–The only motorway gateway on the Russo-Georgian border, Upper Lars, resumed work on March 1, after staying closed for more than three years. The border crossing was closed in 2006 by the decision of the Russian side that cited repairs as the formal reason. In September, with $2.5 million financial assistance from the United States, Georgia completed the construction of a modern border point Kazbegi.
Citizens of Russia and Georgia will be able to cross the state frontier only by visas received in the embassies of Switzerland in Moscow and Tbilisi, respectively. For citizens of the former Soviet republics that form the Commonwealth of Independent States (CIS), including Armenia, it is enough to have a passport for foreign travels. This circumstance led many to speculate that the opening of the border crossing was more favorable for Armenia than for Georgia.
The opening of the land border point was welcomed both in Moscow and Tbilisi, as well as in the West. On March 3, Miguel Angel Moratinos, the Minister of Foreign Affairs and Cooperation of Spain, the country that currently holds the European Union’s rotating presidency, visited Upper Lars and described the opening of the border crossing as a “positive phenomenon.” And credit was given to Armenia as a mediator in the process, which brought the country political dividends.
Negotiations between Georgia and Russia were conducted in the presence of the Swiss side. However, the opening of the Upper Lars crossing within a short period of time was done at the request of the Armenian authorities, acknowledged Georgia’s Deputy Foreign Minister Nino Kalandadze on March 1. The opening of the border crossing testifies to yet another achievement of Armenia’s pro-active foreign policy, writes Miacum.ru. One can state that the Russian-Georgian agreement became possible due to the personal contribution and efforts of Armenian President Serge Sarkisian, the newspaper adds. The president paid a two-day private visit to Georgia on the eve of the crossing’s opening.
“Armenia, of course, has learned to do without the Upper Lars crossing. But, no doubt, the opening of this border crossing will make cargo shipments less expensive,” political analyst Alexander Iskandaryan said.
Chairman of the Union of Manufacturers and Businessmen of Armenia (UMBA) Arsen Ghazaryan underlined the importance of speedy transit, in particular when perishables such as agricultural produce are concerned. Exports of Armenia’s agricultural sector will start in late spring and will include vegetables and fruits, including such perishables as apricots, peaches and grapes.
“These types of goods are transported in special refrigerators and the sooner they get to the place of destination the better their quality will be preserved,” he explained.
According to Ghazaryan, the opening of the border crossing will lead to the reduction of tariffs for cargo shipment by 20-25 percent.
“While so far a vehicle could make one trip to Russia during a month because part of the distance was a ferry line, a vehicle will now reach Russia within two weeks [using the land border],” said the UMBA chairman.