Armenia

Australia Entering Armenia

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More Sheep Farms in Armenia

It seems like anything goes in these days of global investment opportunities. Indeed, in a recent news report from Arka, the Armenian Development Agency (ADA) will be privy to a new investment program by a (yet to be named) Australian company. By next month, this will enable the set-up of sheep-breeding farms there, with a capacity of 5,000 sheep. This will take place in conjunction with regional administrations in Armenia and a “territory for building the farms will be defined.” The main goal of this program will be the “farming of genetically traditional semi-stiff-haired types of sheep in Armenia.”

Australia: Armenia’s Auxiliary

So what does Australia have to offer Armenia? According to the ADA’s General Director, Robert Harutyunyan, the Australian company is going to “introduce a standard plan of a sheep-breeding farm in the investment package,” and that later on, there will be a defining of territories for farms through the regions.” ADA’s main aim is to finally eliminate “old soviet standards,” and thereafter develop “new sheep-breeding farms in accordance with international standards.”

Additional Armenian Investment Opportunities

But that is not all. At the moment there are also a few other potential investors hailing from CIS and Arab countries that are looking into these projects with interest and are seeing Armenia as a good place. Plus it seems sheep farming is on the rise since figures for last year showed that “customs cost of 135 thousand sheep increased by 56% making about $14 million compared with 2009.” In addition, according to Harutyunyan, a cheese company in Armenia is looking into expanding its export volumes this fall, following its successful 5 ton export to Russia a few months ago.

Indeed, “if supply exceeds demand here in Armenia, greater volumes may be sent outside.” Forecasts suggest that such supply may indeed “exceed demand by 10 to 20 percent.” Russians like Armenian cheese, and according to another related Arka article, “the Armenian Cheese company was set to export 120 to 140 tons of cheese in Sept-Oct 2010 to Russia and 80 tons to the United States. However, nothing like that happened, since cheese prices jumped in Armenia, and it was decided to refrain from exporting cheese and postpone these plans for 2011.”

Armenian Investment is Working

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Increased Investment Opportunities for Armenia

Good news for Armenian investments. According to the country’s parliament chairman, Hovik Abrahamian, attempts are being made to push for investments in the transport and energy sectors throughout the BSEC countries.* As well, the greater cohesion between BSEC member countries, the better for all, especially since this is the current goal of the National Assembly of Armenia. This is bound to lead to an increase in investment opportunities for the country.

Armenia Develops Iranian Energy Cooperation

When Armenia attempts to work with Iran, according to Armen Movisyan (the former country’s Energy Minister), around 80 percent of cooperation between the two countries comes from the energy sector, at an estimated volume of $450 million. If a third transmission is built and a hydroelectric power plant on Araks River, this will further connect the two countries which could also ultimately lead to the goal of establishing a “North – South” transport corridor.

Armenia and Energy Security

According to Sevak Sarukhanyan (Armenia’s Deputy Director of Noravank Foundation), “energy security is the most important issue for Armenia, as the country was probably the first state in CIS and the post-Soviet area to be hit by a severe energy crisis.” The two factors that basically led to this crisis were the closing of the Metasmor nuclear power plant in the late 1980s and the shifting of the country’s energy production to thermal power plants utilizing natural gas and fuel oil.

So it does seem today that there is much work to be done in terms of political and economic cohesion between Armenia and other BSEC countries, as well as Iran. At the end of the day – political affiliations and aspirations aside – most countries want the best for their citizens and that usually means working with neighboring countries to acquiesce the best investments.

*Established in 1992, the BSEC comprises Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine with Austria, Germany, Egypt, Israel, Italy, Poland, Slovakia, Tunisia, France, the Confederation of European Energy Charter and the International Black Sea having observer status.