US President Biden proposes to cut aid for Armenia by $21 million

The Biden Administration called for just $24 million in U.S. assistance to Armenia in White House Fiscal Year (FY) 2023 budget proposal – $21 million less than what Congress allocated and President approved for FY 2022 just weeks ago, reported Armenian National Committee of America (ANCA).

“We are disappointed that President Biden’s annual budget – released in wake of a government watchdog report documenting over $164,000,000 in U.S. military aid to Azerbaijan – flat-lines U.S. aid to Armenia at just over $24 million and fails to include any specific dollar amount for U.S. assistance to Artsakh,” said ANCA Executive Director Aram Hamparian. "We are counting on our Congressional allies, coalition partners, and community activists to work via the foreign assistance appropriations process to significantly increase US funding to Artsakh and Armenia."

The President's FY2023 budget contains $23,405,000 in foreign aid and $600,000 in military support to Armenia, which is similar to his FY2022 budget proposal. International Narcotics and Law Enforcement spending in Armenia is included in a distinct budget line item of $6,050,000. The final FY2022 aid package for Armenia was increased to $45 million, including an additional $2 million in US demining assistance for those affected by the 2020 Azerbaijan and Turkey-led attacks on Armenia and Artsakh, following broad-based congressional outreach by the ANCA and the Armenian American community last year.

Data on the unprecedented business activity of Russians in Armenia

Between February 24 and March 22, 938 Russian citizens registered as individual entrepreneurs in Armenia. During the same period, 268 limited liability companies were registered in Armenia, in which there is a legal or natural person who is a citizen of the Russian Federation. Most of them represent the field of information technology. Tatev Mkrtchyan, Head of the Agency of the State Register of Legal Entities of the Ministry of Justice of Armenia, shared.

“When registering, the vast majority of individual entrepreneurs and LLCs chose an IT and programming developer as a classifier of economic activity,” Mkrtchyan noted.

However, Russian citizens starting a business in Armenia face some legal issues that require legal advice. Lawyer Lilit Karapetyan presented in detail what problems Russians face and what questions they turn to local lawyers for help. “Among the main issues are the registration of a company or an individual enterprise, obtaining a residence permit, a work permit. Tax questions are also often asked,” Karapetyan listed, pointing out that there are simplified options for registering a company and starting a business in the republic. Those wishing to move their company to Armenia need only take their passport, come to the country, have their identity document translated by a notary, go to the state register, and register their company in just half an hour, she said.

Armenia hinted at fixing the price of Russian gas in roubles

Minister of Economy of Armenia Vahan Kerobyan called it a great success if it is possible to fix the price of Russian gas for Armenia in roubles.

“We now have a problem - our exporters, not trusting the rouble exchange rate, are extremely reluctant to indicate the price in roubles. If we have a fixed price for gas in roubles, then this will make it possible to provide our exporters with a fixed rouble exchange rate through reverse operations,” the head of the department said. The idea is that the Armenian exporter will be able to agree in advance with his bank that the exchange of received roubles for drams will be carried out at a pre-fixed rate, the minister explained. Kerobyan also recalled that due to the sharp fall in the rouble exchange rate earlier this month, many exporters of the republic were seriously affected.

The central banks of Armenia and Russia are working on the conclusion of trade transactions under the swap system with the calculation of transactions in roubles and drams.

In the current geopolitical and economic situation, Armenia and Russia currently have no other option for paying for gas, except for Russian roubles. This opinion was expressed by the former head of the Ministry of Finance, international adviser on public finance management Vardan Aramyan, commenting on the statement from the Deputy Prime Minister of Armenia Mher Grigoryan about the possibility of paying in Russian roubles for gas received from Russia at the Armenian border.

“Since one of the parties, represented by Russia, faced the problem of isolation from the dollar market, in order for transactions not to stop, it should gradually, where possible, introduce payments in roubles. And the first sign in this matter should have been mainly gas and oil companies mediated with the government of the Russian Federation," he flagged.

It should be reminded that the decision taken by President Vladimir Putin to transfer payments for Russian gas supplies to roubles concerns countries unfriendly to Moscow, the list of which was previously published by the Russian government. Armenia is not on this list.

Gazprom PJSC is the only gas supplier to Armenia for domestic consumption. Deliveries of blue fuel to the republic are carried out by Gazprom Armenia (a wholly owned subsidiary of the Russian gas corporation) in transit through the territory of Georgia. The price of Russian gas for Armenia at the border is currently $165 per 1,000 cubic meters.