Loss of EAEU privileges and joining anti-Russian sanctions: Shoigu

ArmInfo. Armenia's potential  withdrawal from the Eurasian Economic Union (EAEU) during the  negotiations on accessing the European Union could cause significant  damage to Yerevan's economy, said Russian Security Council Secretary  Sergei Shoigu.

"Withdrawing from the EAEU during the negotiation process of joining  the European Union will result in Armenia losing 30-40% of its GDP.  This could severely harm the country's economy, leading to decreased  production, a shrinking labor market, increased unemployment and  inflation, ultimately leading causing a significant decline in living  standards. At the same time, Yerevan should not count on generous  subsidies from the EU, given the current state of the European  economy," Shoigu told journalists, as reported by Interfax.

He said that Yerevan will have to restructure the entire system of  standards and certification to meet EU requirements. "In practice,  this means at a minimum - stagnation, and at a maximum, the  destruction of the existing industry, including metallurgy, food, and  light industry," Shoigu said.  "Armenia will need to align with the  European sanctions and military-political decisions of the European  Union, including within the framework of such instruments as the EU  common security and defense policy, as well as the European Peace  Facility," the Secretary of the Security Council of the Russian  Federation noted.

He said that in the event of joining the European Union, Yerevan will  be obliged to impose customs duties on goods from Russia and other  EAEU countries. "Naturally, there would be no talk of a customs union  and free trade with the EAEU countries. Yerevan will also have to  exit the CIS free trade zone," the Secretary of the Russian Security  Council said. <In case of possible accession to the European Union,  Armenia will not only face economic problems, but will also be forced  to join the introduction of anti- Russian sanctions, Brussels will  insist on this," Shoigu noted.  He said that the sanctions will be  directed not only against Russia and Belarus, but also against Iran.  Shoigu noted that money transfers to Armenia from Russia provide  approximately 15% of the country's GDP. "A significant share of the  cash flow comes from transfers from Armenian citizens working in  Russia. Given that many of them will have to return to their  homeland, and Europe is not eagerly awaiting their arrival, we can  confidently predict that the influx of funds from abroad into the  Armenian economy will decrease, and quite significantly," the  Secretary of the Russian Security Council said. He said that Yerevan  will need to create new jobs, "and the country does not have the  necessary investment resources for this".

According to him, in order to integrate with the EU, Armenian  citizens will have to give up the privileges provided by the single  labor market of the EAEU. "This includes employment without permits,  simplified registration, free medical care, free education and much  more," the Secretary of the Security Council of the Russian  Federation stated. He added that at the stage of pre-accession  negotiations, Yerevan will have to adapt the national legal and  regulatory system to EU standards.  "As for Russia, our losses from  Armenia's withdrawal from the EAEU will not be noticeable. The  decline in GDP will not exceed a fraction of a percent - according to  our estimates, ranging from three to four hundredths,"  Sergei Shoigu  concluded.