The Economy Cannot Be 'Apolitical': Davit Ananyan on Importing Gasoline from Azerbaijan

The public outcry surrounding the first batch of gasoline imported from Azerbaijan to Armenia naturally includes both emotional and political components. However, if we attempt to approach the subject from the perspective of a cool-headed economic analysis, the picture becomes much deeper and more concerning than it may seem at first glance. This was stated by the former head of the State Revenue Committee, Davit Ananyan, on his Facebook page.

“Let us start with the obvious. Countries that do not produce vital goods for their economy, such as energy resources, are objectively compelled to import them. In this sense, the diversification of import sources is not inherently negative. Moreover, within a narrow economic logic, it can be seen as a tool for risk reduction.”

“However, this is where simple economic explanations end, and real economic analysis begins. Any import, regardless of the type of product, macroeconomically signifies one thing: the gross domestic product (GDP) of the exporting country is financed by the gross domestic consumption of the importing country. In other words, when Armenia imports Azerbaijani gasoline, the money paid by the Armenian consumer, transformed into foreign currency, directly participates in the formation of Azerbaijan's GDP.”

This is neither a moral assessment nor a rhetorical trick. This is a classic macroeconomic fact.

“Opponents may argue that this is merely an economic decision made by private business to maximize profit. And this argument would be acceptable if the state did not have a constitutional obligation to implement an economic policy. Herein lies the real depth of the problem. In modern states, private business does not operate in a political vacuum. It functions within an environment shaped by state policy that includes values, institutional frameworks, and incentive systems. One of the key components of that environment is state policy encouraging corporate responsible business.”

“In our understanding, corporate responsible business is that which, with the strategic goal of forming national capital, engages in export-directed or import-replacing activities and fundamentally does not finance the economies of countries with which Armenia has no diplomatic relations or which are hostile or openly antagonistic states. This is not idealism. This is economic rationality based on national interest.”

“The fact that there is currently no discussion at the state level regarding which countries' imports should be encouraged and which should be restricted or not encouraged indicates not 'free market' but opportunistic economic behavior. More precisely, it indicates a lack of economic policy.”

“When the state does not define the framework of its national economic interests, the market begins to operate on its own, guided by short-term profits. And short-term profit never builds security, sovereignty, or long-term development.”

“In this sense, importing Azerbaijani gasoline is not just a transaction. It is a symptom. A symptom that Armenia's economy continues to operate without political intent (or, more terrifyingly, with deliberate political guidance), without a national capital strategy and without accountability to the larger context in which the state exists. The economy cannot be 'apolitical.' And when it is presented as such, the country becomes one with an economy that has effectively renounced politics,” he wrote.