Economy

Accession to the EU is incompatible with Armenia’s continued membership in the Eurasian Economic Union, a Russian-led trade bloc that gives it tariff-free access to Russia’s vast market, according to Russian Deputy Prime Minister Aleksei Overchuk. Armenia would also have to pay much more for Russian energy resources and food, Overchuk said. Last week, the Armenian Parliament adopted a bill calling for the government to seek accession to the EU, representing a significant shift in Armenia’s foreign policy perspective away from its long-time ally Russia.

Speaking at the 12th Global Baku Forum, the former President of the European Council, Charles Michel warned that a potential trade war could stem from events originating in the White House but Europe must remain focused on further strengthening its economy. He also highlighted that the US plays an important role in Europe's security and that more investment should be made in institutional development. The Global Baku Forum is organized by the Nizami Ganjavi International Center under the patronage of Azerbaijan President Ilham Aliyev.

Between 12 and 18 March, European Commissioner for International Partnerships Jozef Síkela will visit the five Central Asian countries to strengthen the EU-Central Asia partnership ahead of the EU-Central Asia Summit and scale up Global Gateway, the EU’s investment strategy to boost jobs and sustainable economic growth. 

Mali said it was suspending licenses for foreign artisanal gold mining companies after a series of fatal accidents in the West African country, one of Africa’s top three gold producers. Gen. Assimi Goita, president of Mali’s transitional government, ordered “the suspension of artisanal mining permits granted to foreigners,” according to a statement issued following a Council of Ministers meeting which was read out on the national television station ORTM.

Algeria, Tunisia, Austria, Germany and Italy have agreed to construct a hydrogen pipeline to bring clean fuel generated with renewable energy in North Africa to the European Union, in a move hailed as one of the bloc’s “most important renewable energy projects”. But analysis of Algeria and Tunisia’s green hydrogen strategies reveals that neither country is likely to be in a position to export the fuel in any meaningful quantity when the pipeline is due to start operating in 2030.

In a desolate makeshift camp on the fringes of Somalia's capital, tens of thousands of internally displaced people sit under the baking sun not sure if they can have access to food rations and medication following U.S. President Donald Trump’s decree to freeze most of his country's foreign aid. Trump’s decision, which will remain in force for 90 days following his executive order of January 20, threatens to collapse the humanitarian aid economy that sustains the livelihoods of some of the world’s most vulnerable people. The U.S. provides more foreign aid globally than any other country, budgeting about $60 billion in 2023, or about 1 per cent of the U.S. budget.

The past five years have marked a growing Gulf economic presence in the South Caucasus. Saudi Arabia and the United Arab Emirates have expanded their regional footprint through equity investments in Azerbaijan and Georgia’s transport and renewable energy sectors. Armenia has been a weak link in interregional chains due to conflict with Azerbaijan and its isolation from regional connectivity frameworks. Yet recently, Yerevan managed to establish profitable trade links to the Gulf, largely thanks to Western sanctions on Russia. The South Caucasus trio sees financial flows from the Gulf as necessary for successful economic diversification. For the Gulf countries, the South Caucasus provides an alternative market for strategic investments, which aligns with their long-term goals of projecting geo-economic influence and boosting trade.

The Italian Senate has adopted a resolution supporting the Armenia-Azerbaijan peace process, calling on the government of Italy to strengthen its commitment for both countries to abandon the use of force in the future and maintain peaceful, constructive and open dialogue. The resolution titled ‘On Initiatives to Support the Peace Process Between Armenia and Azerbaijan’ was adopted unanimously on the 19th of February.

Armenian passport control at the Bagratashen border checkpoint was confused and chaotic, quite unlike the experience on the other side at Sadakhlo in Georgia. Instead of the few minutes it should have taken, it took over twenty. It never had in the past. Perhaps preparations for a visit by the European Union delegation taking place just a few days later to develop a much anticipated Visa Liberalisation Action Plan (VLAP) had preoccupied them.