BAKU, Azerbaijan, July 24. A few days ago, the Armenian service of Radio Liberty published an analysis of Armenia's economic growth over the past year, revealing that the significant increase was driven solely by the re-export of European goods to Russia.
In response to this analysis, the French online publication La Gazette du Caucase rightly questions where France stands on this issue. On one hand, Paris is firmly against the re-export of goods to Russia, but on the other, it appears to be turning a blind eye when it involves its "friends".
This situation has led to another problem - a decline in tax revenues. According to the latest data, the Armenian State Revenue Committee collected $300 million less than projected in the state budget for 2024.
"As a result, the Armenian government's tax revenues are significantly below the target set for the first half of this year, plunging the country into a deepening economic crisis. This is because the country produces little, and the policies pursued by nationalist extremists have isolated it from its neighbors, with whom economic exchange has ceased to exist," the article reads.
The authors rightly conclude that normalizing relations with Azerbaijan seems to be Armenia's only way out of the economic crisis.
Four years after the end of the Second Karabakh War, Armenia is still not participating in significant regional economic projects. It is not France that drives Armenia's economic growth, but rather Russia. The Armenian authorities need to understand that a peace agreement with Baku is the best solution for economic recovery. This would open up opportunities to connect to major regional projects – transit, energy, and many others. It is important to remember that all of these are linked to Azerbaijan. But the question remains – will Paris allow it?