By Natalia Konarzewska

April 2, 2018, the CACI Analyst

On March 2, Armenia’s National Assembly elected Armen Sargsyan as president. This was the first presidential election in Armenia after the constitutional amendments adopted in 2015, which envisage a shift from a semi-presidential to a parliamentary system of government. The new system limits the president’s role to a ceremonial figure, while allocating more executive power to the prime minister who will be nominated in April when incumbent President Serzh Sargsyan’s (not related) term ends. The new president’s strong foreign policy credentials will expectedly advance Armenia’s interests abroad, which is especially important as the country hopes to rekindle relations with Euro-Atlantic structures.

 By Eduard Abrahamyan

January 8, 2018, the CACI Analyst

On December 6, 2017, the Armenian Parliament unanimously ratified the Armenian-Russian US$ 100 million “state export loan.” The accord, signed on October 24, allows Yerevan to borrow funds for purchasing a wide range of sophisticated arms manufactured by Russia in order to implement the “Common Defense Sector Development Plan.” This is Moscow’s second programmed military loan to Armenia, following the US$ 200 million loan agreed in 2015 which is now in the final stage of realization. The pending loan is intended to allow Yerevan to uphold its consistent procurement of military hardware since 2011 in an effort to negate Azerbaijan’s military-technical superiority. 

 By Armen Grigoryan

December 21, 2017, the CACI Analyst

The new framework agreement between Armenia and the European Union creates some opportunities to implement governance reforms and to amend the legal framework, which would improve the investment climate. The new agreement excludes free trade provisions which would contradict Armenia’s commitment to the Russia-led Eurasian Economic Union (EEU). Meanwhile, EEU membership continues to undermine the welfare of Armenian citizens, despite previous official assurances, while the lack of political will deriving from both internal and external factors may potentially limit the government’s readiness to implement reforms.

By Armen Grigoryan

September 25, 2017, the CACI Analyst

Whereas the Armenian government cautiously seeks opportunities to maintain and develop its relations with the West, the incumbent administration’s main priority is to maintain its own political and economic interests. It therefore strives to avoid internal instability or hostile reactions from Russia that could jeopardize the administration’s continued rule, as well as reforms that could endanger the oligarchic system’s grip on the economy. Despite the government’s official statements, the signing of a pivotal partnership agreement with the EU still depends on these priorities.

By Mamuka Tsereteli

February 17, 2017, the CACI Analyst

The weakening strategic position of Turkey will have a profound impact on the Black Sea-Caspian region and wider Central Asia. An assertive Russia and diminishing U.S. and Western engagement further limits Turkey's ability to play a pro-active role in the region. For regional actors in the South Caucasus, part of the solution should be to create the best possible conditions for transiting Asian cargos via Central Asia, the Caspian Sea, the South Caucasus corridor and the Black Sea to Bulgaria and Romania. This is how countries of the South Caucasus can bring new balancing powers to the region.