ARMENIAN CEMENT “FLOWS” TO GEORGIA
whereas Georgia has penetrated into the Azeri markets with its cement and completely captured them
Today Michael Baghdasarov, president of “Mika Limited” told a press conference and briefed the journalists what factors the increase of cement price by 70-80 percent over the past two years is determined by.
“A1+” Company asked the businessman whether the increase is not caused by anti-competitive relations of two producers.
Reminder; NA deputy Gagik Tsarukyan owns one of the cement plants-“AraratCement” and the other plant belongs to Michail Baghdasarov.
The businessman claims that according to the data he possesses the price of the cement is comparatively lower in Armenia among the South Caucasian countries. The price of cement is 35000 AMD per a ton, in Armenian, in Georgia it is 140 USD, in Azerbaijan – 180 USD and in Iran – 220 USD.
That’s why, the price of one sack of cement went up from 1300 AMD to 2200 AMD in Armenia in 2005 – 2006.
Michail Baghdasarov says that the cars clogged in the Meghri Customs Office have created a great traffic jam, and there is a large demand of cement in Georgia which leads to abrupt increase of cement price at the market.
In Mr. Baghdasarov’s words, Azerbaijan is unable to meet the interior demand of cement either; the country doesn’t export cement from Russia any more as the price of cement has gone up in Russia too. That is why Azerbaijan has to export cement from its neighbouring country - Georgia.
This means that Azerbaijan gets cement from Georgia with the help of Armenia. “Armenia is a democratic country and we don’t care which country purchases the cement sent to Georgia. If Azerbaijan buys cement from Georgia we can assume that the high quality of Armenian cement is guaranteed.”
Michail Baghdasarov complained of the frequent fluctuations of the currency and mainly the revaluation of the Armenian dram. As an Armenian, he is proud that our currency is gradually becoming stable. But he thinks that the dram appreciation is occurring rather quickly. “The Central Bank has chosen a suitable time for the dram revaluation,” added Michail Baghdasarov.
Today, Michail Baghdasarov and Gagik Abrahamyan, president of Armenian Goldsmiths’ Association, were invited to “Mirror” club to talk on a number of economic and political issues.
Michail Baghdasarov assured the journalists that he is not going to participate in the political life of the country. Reminder: many years ago on the eve of Parliamentary elections Mr. Baghdasarov supported “Armenian Women” Organisation but he couldn’t enter the Parliament and decided to stay aside from the inner political procedures.
“Michail Baghdasarov got disappointed,” was Gagik Abrahamyan’s remark on this score. By the way, the latter told us a few interesting news.
I SHALL RUN FOR THE 2007 PARLIAMENTARY ELECTIONS
Gagik Abrahamyan, brother of Ara Abrahamyan, president of the “Armenian Union in Russia,” will participate in the forthcoming Parliamentary elections. He hasn’t decided yet whether he will run for the elections by proportional or majoritarian system.
“I was a deputy of the Supreme Council and National Assembly for eight years. And now I assume that I have much work to do in the RA NA,” said Mr. Abrahamyan. He wasn’t disappointed by the fact that he supported Ramkavar Azatakan Party during the previous elections and wasn’t discouraged that he wasn’t able to enter the Parliament.
As for the dram revaluation, Mr. Abrahamyan maintains that in case the currency rate is higher, the Armenian manufacturers will suffer great losses. The current appreciation of the dram has already reduced the manufacturers’ profits.
In this respect Mr. Abrahamyan suggested conducting fixed dram policy. By the way, the Central Bank has already taken the proposal into consideration.