Transcript of the beginning of the meeting:

Vladimir Putin: Mr Sargsyan, dear colleagues, I am very pleased to see you at our extended meeting today.

To begin, I would like to say that according to our estimates, our economic relations have been developing quite well. Bilateral trade increased by about 18% last year and by about 15% during the first six months of this year, meaning we have kept up the pace, and not a bad pace at that. 

I want to emphasise that Russian (cumulative) investments in the Armenian economy have been increasing. I just had a meeting with my counterpart from Moldova, where we have just $200 million in (cumulative) investments. The equivalent figure for Armenia is almost $3 billion ($2.8 billion). Overall, we have been working quite well.

Currently, we are working on improving our transport infrastructure. After Russian Railways was granted a concession of Armenian Railways, investments in the development of Armenian railway networks have reached about five billion roubles. I know that they have a rather effective development programme, and this programme will be executed. Russian Railways plans to be actively involved in that area. One of its affiliate companies is currently active there, and will continue working in that direction.     

As you know, on March 1 this year we opened the Verkhny Lars border crossing between Russia and Georgia. This was done, among other reasons, at the request of Armenia in order to establish a normal transportation link. We are aware of the plans to build a north-south railway and of the requests you have filed to receive funding from the Investment Fund. But first, we need to evaluate the efficiency of the project in economic terms. We are both aware of the issue and have also discussed it with the president. We will consider this project and together, we will make the necessary economic calculations.

Our relations in the field of energy are quite efficient and diversified, I would say. These include both nuclear energy and hydrocarbons. Considering the special nature of this relationship, Gazprom meets our Armenian partners halfway in many aspects of our cooperation. I believe we have already provided around 1.06 billion [cu m], and will supply an additional 1.6 billion by the end of the year. There can be no doubt that these volumes have been contracted, that they will be provided and that Armenia will be fully supplied with gas. In general, our relations have been developing. I am very pleased to see you here. Welcome!

Tigran Sagsyan: Thank you very much, Mr Putin. For my part, I would like to add that in the last two years, the economy has been emerging from the crisis and has been showing more robust economic growth, which is very promising. And Russian companies feel quite comfortable in Armenia. There are over 1,200 companies with Russian capital in Armenia, and their growth rates are quite satisfactory.

Despite the overall economic growth of 2% last year (and the industrial growth of 14%), agricultural production declined. This year, we expect a 5% growth rate with an inflation rate of about 5%. In general, economic relations between Russia and Armenia have been growing dynamically. In fact, exports of Russian companies in Armenia have been increasing, about which we are very pleased. Major Russian investment projects have been showing significant rates of return recently, which is also very important for us.  

In general, I want to emphasise that all joint projects implemented in Armenia have been successful, and there have been essentially no failures. Of course, the implementation timelines of some projects have had to be adjusted because of the crisis, but all of them are still valid. I also want to thank our Russian colleagues and you personally, Mr Putin, for the $500 million that you provided to Armenia during the crisis. These funds proved to be very useful in helping us to address the consequences of the economic downturn.   

Vladimir Putin: In 2009, correct? That was the most critical moment.

Tigran Sargsyan: Yes, exactly. We set aside $250 million for the reconstruction efforts in the area affected by the earthquake. This was in essence a substantial social programme. It stimulated growth as the funds were invested in construction projects, and at the same time it also had a significant social aspect, as it allowed people to move from barracks and trailers into new apartments.     

The remaining $250 million was invested in infrastructure projects and in financing the economy. We helped companies that experienced temporary difficulties, and that made a huge difference for them. Thank you very much for your assistance. 

Vladimir Putin: Please, let’s delve in more detail into specific areas.