Trade and economic cooperation

Oil products price reduction is expected in Armenia, due to the appearance of suppliers from Kazakhstan. The decries in prices should occur after the countries have mutually ratified the corresponding intergovernmental agreement on trade and economic cooperation.

“The agreement assumes that goods according to agreed names and volumes will be imported to Armenia, exempt from tax duties. That is, the Kazakh side will not levy export duties, ” Deputy Minister of Territorial Administration Vache Terteryan said in the Armenian parliament, presenting the document to the MPs for ratification.

The agreement was signed on July 16, 2020 in Nur-Sultan. The Armenian parliament has ratified this agreement, which will be valid until December 31, 2024 and will automatically last for five years, unless the parties give notice of their intention to terminate it.

According to the deputy minister, the document envisages increasing competition in the oil products market in Armenia. This should lead to a decrease in prices.

“We can confidently assert that the more equal opportunities (exemption from duties), the more suppliers there will be. And importers will have an opportunity to use alternative sources, ”Terteryan stressed.

Tereterian noted that Kazakhstan soon will also consider and ratify the document. There is also a similar document with Russia.