Total capitalization of 1,280 enterprises in Armenia with Russian capital jumps over $3bln: EDB

YEREVAN, February 12. /ARKA/. There are nearly 1,280 enterprises in Armenia holding the share of Russian capital.

Total capitalization of these enterprises is over $3 billion, the Eurasian Development Bank said in a report.

According to the report, the enterprises with Russian capital account for 27.6% of all companies holding foreign stock in Armenia.

Most of such enterprises operate in the mining sector or service provision.

“Moreover, it is important to note, that most of foreign investments, for example from Europe and the US, are of portfolio nature, whereas those from Russia are direct,” the report states.
The EDB singled out such major Russian projects as the construction of a new nuclear power block at Armenian Nuclear Plant by Atomstroyexport, foundation of telemedicine system by National Telemedicine Agency, uranium ore deposits development by Atomredmetzoloto, completion of construction of the 5th  block of Hrazdan TPP and launch of a single property and technological complex by Power Machines and Gazprom, establishment of the fund for venture investments “RBK”.

Since 2009 Sytronix company has been working on establishing free economic zone on the territories of RAO Mars and Yerevan Yerevan Research Institute of Mathematical Machines enterprises. The cost of the infrastructure of free economic zone is estimated at $10 million.
Russian investments are also directed to production of non-ferrous metals. Rusal opened Rusal Armenal CJSC in Armenia in 2000. As to the fuel sphere, Russia-run Gazprom invested $126 million in ArmRosgazprom in 2002.  Russia also invests in railway transport of Armenia: in 2008 Russian Railways signed a concessionary agreement with South Caucasus Railways CJSC.
Russian investments are also made in the spheres of education, telecommunications, banks, insurance and agriculture.

“Today Russia is first in investing in Armenia (44.1%) and  in FDI (57.2%),” the report said.
According to the National Statistical Service of Armenia, foreign investments in the real economy of Armenia dropped by 35.2% to $391.1 million in January-September 2012 from a year earlier . Total investments of Russia in Armenia increased by 28.9% over 9 months in 2012 to $82.1 million. FDI of Russia in real economy stood at $53.6 million ( 20.1% up).
EDB researched models and tools for mutually beneficial partnership  between the customs union and neighbor states, such as Armenian, Moldova and Tajikistan. Recommendations are made for each of these states. —0-

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