Which Product Prices Will Decrease: What Have Pashinyan and Putin Agreed Upon

According to the newspaper 'Zhoghovurd', recent months have seen a rise in the prices of several goods in Armenia. During a press conference held at the government press center on April 3, Armenia’s Minister of Economy, Tigran Khachatryan, stated that his advice might not help consumers. He noted, 'If we see that the prices of certain goods are increasing, for example, lentils and chickpeas, as consumers we can choose alternative products that are available and accessible.'

It is worth mentioning that the recent price increases are not necessarily linked to the spread of the coronavirus, closed borders, or economic difficulties. These changes were anticipated long ago, dictated by the conditions of the EAEU (Eurasian Economic Union). Specifically, since January 1, 2020, tariffs on approximately 900 types of goods have been raised, including 293 categories related to transportation means.

Perhaps the prevailing situation prompted Armenian Prime Minister Nikol Pashinyan to discuss the matter with Russian President Vladimir Putin on April 6. Following this conversation, it became clear that through negotiations within the EAEU framework, it was possible to return the tariffs on 600 goods, which had been increased on January 1 of this year, back to their previous levels, with the exception of 87 categories that included high-end transportation means.

The respective decision, approved during yesterday’s cabinet meeting, has been sent to the parliament for expedited ratification and will take effect from the day of official publication. Government representatives assure that these actions will somewhat mitigate inflation.

It should be noted that the increase in tariffs from January 1 has led to inflation in the market for several products, including meat products by 15-25%, oils and butter by 15%, medicines up to 6.5%, dairy products by 15%, and grains like wheat, barley, and corn by 5%, as well as beans and rice by 6%.

Consequently, this new decision implies that the reverse phenomenon should occur, with the prices of these groups of products returning to their levels prior to January 1.

For more details, refer to today’s issue of the newspaper.