2024-07-29 22:34:50
Author: Elchin Alioglu, Trend
The USA has been providing large-scale financial support to Armenia since its independence. These aids are mainly implemented through USAID (United States Agency for International Development). From 1992 to 2021, the United States has provided more than 3 billion dollars in aid to Armenia. Only a small part of this aid was directed to the areas of “strengthening democracy, human rights, economic reforms and education”.
Even now, the United States provides financial assistance through various programs under the guise of “Strengthening Relations with Armenia”. The United States Agency for International Development (USAID) is the main organization of these aids. Although USAID emphasized that it “operates in the fields of economic development, democratic governance and humanitarian aid” in Armenia, it focused its attention on Karabakh Armenians who voluntarily left Azerbaijan and went to Armenia.
The former leadership of the ex-separatist-terrorist junta in Khankendi became active after USAID’s aid promises and especially after the head of this organization, Samantha Power, went to Yerevan and held “fragile” meetings there.
It goes without saying that separatist Armenians from Karabakh start organizing in Armenia, establish various “community institutions” and “funds”, prepare to create a movement, rent offices and buildings in the center of Yerevan, and even buy two buildings. The Armenian authorities do not provide the necessary resources – the United States, the European Union and France provide the Karabakh Armenians with financial resources.
Let’s take a look at the range, volume and the programs that are officially veiled by the West, allocated to Armenia.
“Economic development”: The program states: “USAID supports the development of small and medium-sized businesses in Armenia, reforms the agricultural sector, and finances energy efficiency projects.”
“Democratic governance”: The abstract reads: “USAID implements programs to strengthen civil society, increase transparency, and support legal reforms.”
“Humanitarian aid”: “USAID provides humanitarian assistance during natural disasters and to improve social well-being,” is the official goal.
“Millennium Challenge Corporation” (MCC): It is written in the presentation of the program: “MCC implements projects aimed at the improvement of irrigation systems and the development of agriculture in Armenia.”
France’s financial aid to Armenia
France has historical and cultural ties with Armenia, and these ties are strengthened through financial aid. France’s financial aid to Armenia is mainly implemented through the French Development Agency (AFD).
France provides financial support to Armenia through bilateral aid programs. Taking into account the humanitarian situation caused by the Nagorno-Karabakh conflict in 2020, France provided humanitarian aid to Armenia. This aid consisted of food, medicine and other humanitarian aid. Also, the French government allocates funds to various projects to support the social and economic development of Armenia.
French Development Agency (AFD) programs:
“Infrastructure projects”: “AFD finances major infrastructure projects in the water supply, transport and energy sectors”.
“Economic development and social support”: “AFD supports the development of small and medium enterprises, the development of the tourism sector and social protection programs”.
“France-Armenia University” (UFAR): “France contributes to the development of higher education in Armenia and provides financial support to educational programs through UFAR”.
Financial aid of the European Union to Armenia
The European Union provides large-scale financial assistance within the framework of cooperation with Armenia. These aids are mainly implemented within the European Neighborhood Policy (ENP) and Eastern Partnership (EaP) programs.
“European Neighborhood Policy” (ENP): “Within the framework of the ENP, the EU provides financial support for economic reforms, legal reforms and strengthening of civil society in Armenia.”
“Eastern Partnership” (EaP): “EaP aims to strengthen the democratic development, economic integration and energy security of Armenia and other Eastern partner countries”.
“European Investment Bank” (EIB) and European Bank for Reconstruction and Development (EBRD): “EIB and EBRD provide loans and grants for modernization of energy sector, improvement of irrigation systems and development of transport infrastructures in Armenia”.
EU support programs
The EU is one of the main international partners providing large-scale financial support to Armenia. The EU supports Armenia’s reform programs within the framework of the “CEPA” (Comprehensive and Enhanced Partnership Agreement) agreement signed in 2017. As part of this agreement, the EU allocates financial assistance to Armenia for economic, social and legal reforms. In June 2021, the EU announced that it will provide financial support to Armenia in the amount of 2.6 billion euros over the next five years. This support is officially focused on areas such as “energy, transport, education and public services”.
“Twinning” program: “The EU provides technical assistance to adapt Armenia’s public administration systems to European standards.”
“Erasmus+”: “Within the framework of this program, students and academic staff of Armenia study in European universities and exchange experience.”
Is money effective against Russia?
As we have already written, the large amount of funds allocated to Armenia by the USA, France and the European Union is officially “aimed at various economic, cultural, humanitarian, etc. purposes”. In reality, the goal of the West is to minimize Armenia’s dependence on Russia and ultimately eliminate it altogether.
At the same time, in order to maximally weaken Russia’s geopolitical positions in the South Caucasus region, and push Russia out of the region, Armenia is currently playing the role of an “ideal tool” for the West.
Of course, the following question arises: is Western money effective against Russia?
The answer is simple: no. To understand the situation, let’s take a look at one of the hidden aspects of Russian-Armenian relations.
Russia actively uses a number of countries, including Armenia, as a transit point in order to avoid 12 (!) package sanctions imposed by the West due to military operations in Ukraine.
To be more precise, Armenia is currently one of the most “cost-effective” places for Russia to sell diamond and diamond-encrusted jewelry, as well as natural and synthetic diamonds, to European Union countries.
It is for this reason that the European Union intends to implement a complete ban on Russian diamonds processed and polished in other countries from September 1 of this year.
Through Armenia, Russia sells diamonds and diamonds, as well as gold, to the world markets, along with the European Union.
According to official statistics, Armenia exported 1.8 billion dollars worth of gold and 589 million dollars worth of diamonds produced in Russia last year. These numbers can be considered a record for the Armenian economy.
In the first three months of 2024, gold worth $2.5 billion and diamonds worth $185 million were transferred from Russia to Armenia. “Diamond processing” in Armenia has also increased very rapidly, by 31 percent.
It has come to the point that Armenia exported 4.5 million carats of diamonds: a small country does not have and cannot have diamonds of this volume.
Since November of last year, Russia has exported 4 billion dollars worth of gold to the world markets through Armenia.
The process of transporting gold, diamonds and diamonds from Russia to Armenia, and from there to the United Arab Emirates and China continues rapidly. As a result of the re-export of gold, diamonds and diamonds to Dubai and Hong Kong, an anomalous increase in Armenia’s exports to the UAE and China has been observed since the beginning of last year.
The first place among Armenian companies that export Russian diamonds and diamonds to the world market “ADM Diamonds LLC” holds The company is owned by deputy Khachatur Sukiasyan, a member of the ruling “Civil Agreement” Party in Armenia.
Another company is owned by Vithalbhaem Ramani, a Russian citizen living in Armenia “VDA Diamonds LLC“dir.
The third company belongs to the relatives of Anna Hakopyan, the wife of Prime Minister of Armenia Nikol Pashinyan “Dimex Capital”is.
… Thus, only by playing the role of re-exporter-intermediary in the export of gold, diamonds and diamonds to the world markets of Russia, Armenia earns hundreds of millions of dollars annually.
Taking into account that Armenia occupies a significant place among the locations of Moscow’s export operations related to products, goods and resources, as well as the operations to obtain goods, products and technologies prohibited by Western sanctions, the annual volume of revenues obtained by the official Yerevan from Russia is 2-2, It is 4 billion dollars.
The West does not give this amount to Armenia every year and does not intend to do so.
The United States, France and the European Union currently spend most of their financial aid to Armenia under the name of “support in eliminating the deficit in the state budget of Armenia”.
The process is a poorly disguised game, because the West’s message to the Armenians is simple: “You can easily spend a large amount of money on the purchase of arms, ammunition and military equipment from the budget, and we will eliminate the deficit.”
The officials of Washington, Paris and Brussels declare that the aid allocated to Armenia is not aimed at the supply of military equipment and weapons.
Can be.
Support of small and medium entrepreneurship, humanitarian and social programs, education, healthcare, etc. are included in the Armenian state budget. easily spends the funds it intended for remilitarization, and the created “void” is filled through “non-military financial aid” provided by the West.
However, the rapid arming of Armenians will have completely opposite results to the plans of the West.
The sooner the Washington-Paris-Brussels trio realizes this, the better.