Kerobyan on the Opening of the Border with Turkey

The Minister of Economy of Armenia, Vahan Kerobyan, is confident that if geopolitical circumstances align in favor of Armenia and the border with Turkey is opened, all economic operators in Armenia will feel its positive effects.

Kerobyan expressed this view in an interview with Armenpress, commenting on Turkey's recent decision to lift the ban on direct air cargo transport with Armenia and the potential impact on the Armenian economy.

“According to our information, regular air cargo transports are still not taking place. And, to be honest, considering the proximity of the countries, it is likely that there won’t be any, as overland transport through Georgia is quite affordable. Thus, air transport does not seem that attractive at first glance,” said Kerobyan.

However, the minister did not rule out that for certain types of goods, regular transports may take place. “In any case, alongside air passenger transport, cargo is also being transported, which is essentially a kind of air freight. It’s just that there are still no cargo planes, and perhaps there won’t be any. We are not particularly worried about this,” he stated.

Regarding the potential impact of the opening of the border with Turkey on the economy, Kerobyan noted, “The opening of the border with Turkey will lead to significant economic growth, as the Turkish market and the opening of communications will provide broad opportunities for accessing not only the Turkish market but also transporting goods to Middle Eastern countries. All of this should not be viewed through a local, small lens. This is a small part of a bigger picture. If geopolitical circumstances align in our favor, and we ultimately reach that moment, I am confident that all economic operators in Armenia will feel the positive effects.”

Addressing the question about potential risks for Armenian producers in the event of the border opening, he acknowledged there will naturally be risks, but the Government is making serious efforts. He cited the unprecedented support for processing industries and several other sectors as an example, enabling companies to modernize their businesses, embrace digitalization, upgrade equipment, and processes to become more productive and competitive.

“Last year's data show that we financed transactions worth 56 billion drams, resulting in the signing of 901 contracts for the acquisition of new equipment and its usage in businesses,” emphasized Kerobyan.