World Country Guide

Business Profile

Economy
Armenia has recovered slowly from the massive economic crisis caused by the 1988 earthquake and the collapse of the Soviet Union but is still seriously affected by the results of the war with Azerbaijan, which include a partial economic blockade and border closures with Azerbaijan and Turkey. Other regional difficulties, such as upheavals in neighbouring Georgia, had a detrimental effect on the country’s economy and Armenian foreign trade suffered badly as a result. Many people rely on subsistence agriculture. Mineral deposits including copper, zinc, gold, marble, bauxite and molybdenum have brought some foreign revenue and investment, although this sector is relatively undeveloped. The industrial sector comprises textile and chemical industries, aluminium production and some mechanical engineering. The government embarked on a reform programme in the mid-1990s, which included privatisation, a new fiscal structure and the introduction of a new currency, the Dram, to replace the Russian Rouble. The country remains dependent on foreign aid and remittances from migrs but is steadily improving. The privatisation programme has since been extended to include major parts of the national infrastructure, such as the electricity grid. The volume of foreign investment is growing, despite concerns about widespread corruption and poor financial controls. The government has also signed important economic co-operation agreements with the Russian Federation and Iran. In the international arena, negotiations for Armenia to join the World Trade Organisation are reaching their final stages.

Business
Business is generally conducted formally, and visitors should dress smartly; appointments are necessary. Office hours: Mon-Fri 0900-1800.

Commercial Information
The following organisations can offer advice: Ministry of Trade and Economic Development (see Contact Addresses); Ministry of Foreign Affairs, 1 Republic Square, Yerevan 375010 (tel: (1) 523 531; fax (1) 543 925; e-mail: info@armeniaforeignministry.com; website: www.armeniaforeignministry.com); or Chamber of Commerce and Industry, 11 Khanjyan Street, Yerevan 375010 (tel: (1) 560 184 or 587 871 or 524 730; fax: (1) 587 871; e-mail: armcci@arminco.com; website: www.armcci.am); or Armenian Development Agency, 17 Charents Street, Yerevan 375025 (tel: (1) 570 170; fax: (1) 542 272; e-mail: info@ada.am; website: www.businessarmenia.com).