By Tomáš Baranec

October 2nd, 2015, The CACI Analyst

According to a recent survey by the U.S. National Democratic Institute, support for membership in the Russia-led Eurasian Economic Union (EEU) has doubled in Georgia since 2014, to 31 percent. Simultaneously, support for the trade agreement between Georgia and the EU fell from 80 percent before the Ukraine crisis to 68 percent in April 2015. Many commentators have linked this development with a temporal disappointment among Georgians with the country’s slow western integration following the Eastern Partnership (EaP) summit in Riga. Others stress the Russian “soft offensive” on Georgia conducted through Russian-sponsored media and NGOs. However, the underlying reasons for why increasing numbers of Georgians become receptive to demands for reorienting the country towards Russia may be deeper, less temporal and much more serious.

By Natalia Konarzewska 

September 15th, 2015, The CACI Analyst

Armenia’s economy is currently experiencing a significant decline, which is primarily caused by spillover from Russia’s recession. At the end of 2014, Armenia’s national currency, the dram, saw rapid depreciation, which boosted inflation. Falling remittances from Russia are putting additional pressure on the dram, negatively affecting the livelihood of many ordinary citizens. Additionally, export volumes to Russia, which is Armenia’s top export destination, have decreased significantly. Armenia currently has few options to boost its faltering economy due to a falling number of foreign direct investments, high national debt and a shortfall of budget revenue. Economic forecasts for Armenia remain grim and since June the country has seen a wave of protests over the price hike on electricity.

By Erik Davtyan (05/08/2015 issue of the CACI Analyst)

On July 20, the President of the European Council (EC) Donald Tusk launched his regional trip to the South Caucasus, starting with high level meetings in Yerevan, Armenia. Tusk’s first visit to Yerevan took place in 2010 when he was the Prime Minister of Poland. During the one-day visit, Tusk met with Armenia’s President Serzh Sargsyan. Tusk and Sargsyan discussed EU-Armenia relations and their current cooperation, as well as the Nagorno-Karabakh peace process. They also discussed regional issues, especially the Iranian nuclear deal which was reached on July 14. Regarding the Greek financial crisis and its relevance to the European Union, Sargsyan expressed hope that the problems will be resolved quickly and confirmed that “Armenia favors both stability in the EU, a key partner of our country, and the normal development of Armenia’s centuries-old friend, Greece.” In turn, Tusk appreciated the initiation of the process of constitutional reform in Armenia and asked the President to present the goal of the amendments.
During the joint press conference, Sargsyan stressed that “we [Armenia] are keen on broadening relations with the European Union, one of our key partners, during Mr. Tusk’s tenure, which, I am sure will contribute to the long-lasting constructive dialogue existing between us.” The EC President welcomed the progress on mobility partnership and stated that the EU fully respects Armenia’s decision not to sign the Association Agreement, including the DCFTA (Deep and Comprehensive Free Trade Agreement). Moreover, Tusk reaffirmed that the EU is ready to continue the bilateral cooperation in a myriad of spheres of mutual interest. At the same time, the EC President touched upon the possibility of a visa-free regime with Armenia as a “final goal”. Answering questions raised by journalists, Tusk declared that the main goal of his visit was to reiterate that “the EU wants to strengthen cooperation with Armenia in all areas of mutual interest,” despite Armenia’s membership to the Eurasian Economic Union (EEU).

After the successful conclusion of the first phase of negotiations, the parties stated their expectation that in the near future a new comprehensive agreement will regulate EU-Armenia relations. Tusk did not exclude the possibility of a new free trade agreement, which may open new opportunities for the bilateral economic relations. In May 2015, the economic aspect of the future format of EU-Armenia relations was also highlighted by Morten Enberg, Swedish chargé d’affaires in Armenia. Regarding the Nagorno-Karabakh conflict, the European official confirmed the EU’s support for the OSCE Minsk Group.

Tusk also met with Prime Minister Hovik Abrahamyan, as well as representatives of opposition parties. The Armenian Prime Minister mentioned that “the EU has been and remains a major partner of Armenia due to the fact that our cooperation is first and foremost underpinned by shared values. Armenia is prepared to continue cooperating with the EU in a bid to promote reforms, efficient governance, democracy, human rights, as well as to boost economic exchanges and cooperate in other fields of mutual interest.” During the meeting Tusk confirmed that the EU “will continue to provide reform-targeted financial assistance to Armenia.” During Tusk’s meeting with Armenia’s political opposition, the parties generally discussed the project of constitutional reforms. Representatives of five political parties expressed different approaches toward the project. For example, Mher Shahgeldyan, the secretary of the “Rule of Law” Faction of Armenia’s National Assembly, criticized the project and said that it would strongly increase the functions of the Prime Minister and lead to a monopolization of power. Shahgeldyan also informed Tusk that the opposition parties of the National Assembly have prepared a program on electoral reforms and submitted it to the Venice Commission.

Tusk’s regional visit to the South Caucasus relations follows the Eastern Partnership Summit in Riga on May 21-22. Summarizing all issues of the Yerevan agenda, Donald Tusk left for Tbilisi and Baku and held respective meetings with high officials of Georgia (July 21) and Azerbaijan (July 22).