H. Bagratyan: Accession to the Customs Union implies introduction of a new single currency or linking of the national currencies to the Russian ruble

 Accession to the Customs Union (CU) implies introduction of a new single currency or linking of the national currencies of the CU countries to the Russian ruble in future, Hrant Bagratyan, oppositionist MP, the former prime minister of Armenia told reports, Tuesday. He is sure that the Central Bank of Armenia will lose its regulatory functions, if this happens.

"With accession to the CU, many products will rise in price in the local market, as single customs duties - higher than they are now - will be applied.  For instance, cigarettes and alcohol will rise in price due to difference in the customs duties (7% in Armenia now, 15% in the CU), imported meat (nearly 10% in Armenia and 60% in the CU). We usually buy pork for 3500 per kg on the threshold of the New Year holidays, meanwhile, it will cost 6000 drams/kg at the end of the current year. The customs tax for import of cars will increase to 20%-25% from 15%. The change of the customs duties is not even discussed, as it is the essence of the CU," Bagratyan said.

In addition, introduction of the accumulative pension system and creation of pension funds rules out export of these funds (nearly $150 million) outside the CU, he said.

To recall, on September 3, 2013 in Moscow the Presidents Serzh Sargsyan and Vladimir Putin confirmed the aim of the Republic of Armenia and the Russian Federation in the direction of further development of economic integration processes in the Eurasian territory. Earlier on 21 October, President of Belarus Alexander Lukashenko told the heads of the CIS mass media outlets that there are many uncertainties in the issue of Armenia's accession to the CU.  Lukashenko believes that Armenia cannot access the Union overnight.  The country is to pass all the necessary procedures to the CU, like to the WTO, the president said.

The Customs Union has been created within the Eurasian economic space for trade and economic integration of Belarus, Kazakhstan and Russia on the initiative of Russian President Vladimir Putin in 2011. CU is one of the biggest integration unions in the world with a population of 170 mln people and GDP of $2.7 trillion.