The most visible  example of this are Georgian references to Armenia as a major beneficiary of restoring the railway connection through Abkhazia (closed since the early 1990s)—even as this idea serves as a convenient pretext for the Ivanishvili government to find ways to enhance relations with Russia. Georgia and Armenia have been in different political camps since the early 1990s. With the recent change of government in Georgia, which has led to a reduction of tension between Russia and Georgia, Yerevan and Tbilisi are in a better position to improve their relations. ultimately led to the 2008 war, and a break in diplomatic relations with attempt to minimise its risks and stabilise the balance of power in the region. reforms as they moved closer to Brussels, including socio-economic development, Eastern Partnership between the EU and six post-Soviet states – Armenia, PONARS Eurasia is an international network of scholars advancing new approaches to research on security, politics, economics, and society in Russia and Eurasia. key issue for Armenia is that its transport communications and energy supplies technology to preserve the balance of power, and avoid a renewal of armed hostilities. This pipeline supplies 2 billion cubic meters of natural gas annually. Georgia’s trading turnover with Turkey reached $940m (£566m), 17% of its total the country’s foreign policy has been characterised by pragmatism and the prevailing Mediterranean; the Kars-Akhalkalaki-Tbilisi-Baku railway from Turkey to EU backed up its Neighbourhood Policy with considerable financial and technical The proposal was naturally welcomed and approved by the new Armenian government. Armenia and Georgia: A New Pivotal Relationship in the South Caucasus? [2] For more, see Sergey Minasyan, “Armenia and Georgia: Problems and Prospects,” Central Asia and the Caucasus, 13 (2), 2012. the ever-expanding one of Baku-Tbilisi-Ankara. Armenia could really only join the Customs Union by way of Georgia (as even if Azerbaijan were to join, a remote possibility for now, its border with Armenia remains closed). it has always had a good working relationship with the EU, Council of Europe, Even though Armenia and Georgia are not each other’s number one trade and economic partner, nevertheless, there are indicators to suggest that there is economic interdependence between the countries. Additionally, Georgia is one of the few partners Armenia has with which it has a surplus in its foreign trade turnover. Armenia and Georgia are economically interdependent. conflict over Nagorno-Karabakh, and the blockade of Armenia by Azerbaijan and Nonetheless, the overall softening of the Georgian-Russian political atmosphere has had a positive impact on many levels, including on the situation in Javakheti. [4] Most recently, Russia has actively sought to prevent Armenia’s European integration and forced Yerevan to declare its intention to join the Eurasian Customs Union. and economic dependence on, Russia, decided to broaden its options by exploring The Ongoing Importance of the European Integration Aspirations of Georgia and Armenia. And that stands true even taking into account that a Russian military base exists in Armenia,” Jarayan noted. The Armenian government has also criticized Shevardnadze for raising transit prices, for failing to dispatch to Armenia supplies stockpiled in Georgia's western ports, and for his 70 Stephen F. Jones Georgian-Armenian Relations in 1918-20 and 1991-94 71 government's inattention to the pilfering of goods destined for Arme¬ nian refugees. states’ territorial integrity. The director of Tbilisi State University’s Analytics and Forecasting Center, Vakhtang Jarayan, explains the difference in numbers thus: “For example, a car is being sent to Armenia from Germany. good progress in the talks that would have led to an Association Agreement with This road is often closed down due to bad weather conditions; traffic becomes heavy near the border, forcing drivers to have to wait for days to cross the border. the EU started focusing its attention on its relations with its neighbours; and The decisive factor was Yerevan’s need for Russian arms and military technology. In this situation, Yerevan, despite its continuing cooperation with, In This means the import and export of goods are registered as soon as said goods cross Georgian economic territory. Georgia, Armenia is an important source of investment, and increasingly of tourism. At the end of that month, Georgia and Armenia completed their negotiations with the EU on an Association Agreement and DCFTA and announced that they were ready to initiate the agreements. Russia is trying in such a way to prevent Armenia’s initializing of the Association Agreement/DCFTA it has already agreed upon with Brussels. Agreements between the EU and both Georgia and Armenia began in 2010, with an A decade or so ago, In 2016, water levels rose in the Terek River in the Darial gorge which destroyed 800 meters of the strategic road connecting Georgia and Russia. involvement in the Nagorno-Karabakh Kvirikashvili had told reporters during an interview that Lars was also important for Georgians who had to transport their cargo. Under Saakashvili, Javakheti was under the strict control of police and security services. The Georgian Rustavi 2 TV station prepared an extensive piece that specifically showed former Georgian Prime Minister and founder of the Georgian Dream party, Bidzina Ivanishvili, announcing in 2013 that cargo transportation from Russia to Armenia through the railroad in Abkhazia that was not under Georgian control would possibly be reopened. In September of this year, a delegation headed by Georgian Prime Minister Mamuka Bakhtadze visited Armenia. Association and Free Trade Agreements with the European Union, in defiance of The opportunity to really implement more a balanced foreign policy could arise after Georgia’s presidential election in October. According to the expert, putting politics aside, the project is not economically favorable for Georgia. their Armenian colleagues on its frontiers with Iran and Turkey. And if the numbers published by the United National Movement are true, this would mean that Georgia would not be able buy the same amount of gas it received in previous years as a transit country with the amount of money it would receive now as a transit country. http://ec.europa.eu/commission_2010-2014/fule/headlines/news/2013/09/20130906_en.htm. Instead, he made a political statement regarding Armenia’s readiness to join the Customs Union. between the enlarged EU and its neighbours. During the years of the Armenian-Azeribaijan The issue of Georgia’s Armenian-populated Javakheti region plays an important role in their bilateral relations. After the war, Armenia was able to use Georgian territory as a means to reach the Russian market, however, during the main military actions of the war, cargo transportation to Russia had completely stopped. The only land road connecting Armenia to Russia is through the Lars checkpoint in Georgia. democratisation, anti-corruption measures, public sector reform, and a cleaner environment. Armenia and Georgia are also coming closer together through their efforts to … As a result, during a meeting of Armenian President Serzh Sargsyan and Russian President Vladimir Putin in Moscow at the start of September, Sargsyan was forced to disassociate himself from any plans to initiate an Association Agreement. This, on top of worsening relations with Russia over Abkhazia and South Ossetia, led to an announcement by the new government that These Such a decision would have dire consequences for Georgia.”. The USSR’s former republics had to not only rebuild themselves as viable states, but also consider their international relations. Yerevan, Armenia. Armenia-Georgia: Political Will and Deepening Economic Relations. Permissions & Citation Guidelines | PONARS Eurasia © 2019 All rights reserved, Dmitry Gorenburg | CNA; Davis Center at Harvard | Eurasian Security | All posts, Shairbek Juraev | OSCE Academy in Bishkek | Central Asia | All posts, Andrey Makarychev | University of Tartu | EU-Russia Neighborhood | All posts, Sufian Zhemukhov | George Washington University | Caucasus | All posts. The so-called ‘Rose According to the methodology used by Armenia’s Statistical Committee, banknotes, monetary gold, transit of foreign cargo through the country, foreign goods sent or imported for expos and fairs are not included as indicators. which created a new legal basis for further cooperation between Georgia and the The position of the two states on the settlement of regional ethnic conflicts also differs. In general, the states’ economies are similar in structure and thus poorly integrated. Deepening already existing relations between Armenia and Georgia will only benefit the two countries, however, the potential for economic cooperation is not being realized to its fullest. Armenians about whether their country’s decision to throw in its lot with the The settlement of nearly 100,000 ethnic Armenians in this administrative-territorial region bordering Armenia has created mutual concerns and phobias. More than 70 percent of Armenia’s cargo transportation goes through Georgia, including the gas pipeline from Russia to Armenia. article, Putin had already floated the idea of a Eurasian Economic Union (EEU); and many people believed that this association, Armenian society is aware of this, and it is also clear for Brussels. According to Jarayan, if the Georgian government decided to construct the railroad due to certain circumstances, then there would be a lot of pressure by their people.“The opening of the railroad was discussed back then by Saakashvili and later by Ivanishvili. After the breakup of While Armenia has enjoyed positive relations with Iran since independence in 1991, before the nuclear deal, there was little room for energy cooperation between the countries. return to the presidency, however, saw a change in Moscow’s priorities, the EU Free Trade Area. During his first official visit to Yerevan in January 2013, Georgian Prime Minister Ivanishvili bluntly mentioned the benefits of Armenia’s balanced foreign policy, noting that “Armenia is a good example for Georgia [in this respect]. The announcement made by then Minister of Energy Kakha Kaladze is noteworthy: “Gazprom proposed to transition to a direct payment method. the two countries have signed treaties on friendly cooperation. (c) RIA Novosti/Alexei Kudenko. These negotiations proved fruitless. This means that more goods are exported from Armenia to Georgia than is being imported from Georgia to Armenia. In the 1990s, the economic blockade of Armenia made Georgia the most important eco - nomic partner of Armenia. Trade with Armenia, its sixth largest trading partner, Armenia exports mainly ores/minerals and copper concentrates, cigarettes, glass containers, ethyl alcohol and alcoholic beverages. It will mean the gradual establishment of a European economic and political space directly on Armenia’s borders. of both countries were been in dispute with the elites in the various Union republics in an attempt to First of all, 10 million tons of goods do not exist in our region. viable independent states, but also consider their international relations and All On June 30, 2016 during the Armenian government session, then Minister of Transportation and Communication Gagik Beglaryan, announced that there was a need for an alternative road. This has been mostly due to the rising price of Russian gas and the announcement of a scandalous Russian arms deal between Moscow and Baku.

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