"Opening the border could increase investments by 20%"

Deputy Minister of Economy Anushik Avetyan conducted inspections at the Margara Border Crossing between Turkey and Armenia. During her visit, Avetyan stated that opening the Turkish border would create rapid, practical, and positive effects on the Armenian economy.

"It will reduce dependence on Upper Lars"

Pointing out the challenges created by closed border gates for a landlocked country, Avetyan said: "The fact that two of our four borders are closed creates many problems for our businesses. As is well known, we are largely dependent on the Upper Lars border crossing (between Georgia and Russia). Opening the border with Turkey will Provide relief for businesses in many respects." The Deputy Minister stated that with the opening of the border, transportation costs would decrease, supply chains would shorten, and access to markets would expand.

"Closed borders hindered competition"

Touching upon the burden placed on Armenian producers by years of closure, Avetyan said, "Closed borders have increased logistics costs for many years, limited competition, and created major obstacles for Armenian producers in securing a place in the global market." According to Avetyan, opening the border will offer opportunities to diversify exports and enter new markets by reducing dependence on restricted routes.

Regional Investment Expectations

Referring to expert reviews, Avetyan evaluated the potential effects of opening the borders on the investment climate as follows: "According to some expert research, an increase of 20 percent in investment flows is expected not only in Armenia but in the entire region with the opening of the border. We are currently conducting a study to evaluate the effects of the border opening on the economy in more detail. Perhaps in a second stage, we will also conduct a study on the changes this situation will bring to the mutual relations and economic development among regional economies."

(Armenpress)