Interview of the Head of Industry Department of Armenia’s Ministry of Economy Hayk Mirzoyan to Mediamax Agency and Banks.am portal

- In November, 2008, Armenian government approved a concept for setting up a free economic zone in the territory, adjacent to “Zvartnots” Airport. At which stage are the works on implementing the concept?

- At the given stage, works are in process for realizing the concept. Negotiations are held with the concessionaire of “Zvartnots” Airport concerning setting up the free zone. Simultaneously, the Ministry of Economy of Armenia carries out works on organizing cooperation with a number of international structures and free economic zones.

In particular, we cooperate with “Singapore Free Port” Company, which is specialized in sale of diamonds, wines and artwork. This company provides us consultations as to issues of setting up exchange and organizing activity.

There are works in process to invite a consultant from Dutch “Flora Holland” Company, aiming at implementing practice in setting up exchange of flowers in “Zvartnots” center of agricultural production.

An agreement is reached with European Bank for Reconstruction and Development (EBRD) on realizing research to work out a business plan and financing.

- According to the concept, one of the privileges of the free economic zone will be facilitation of banking and customs procedures. Are there corresponding legislative changes in process of elaboration? 

- At the moment, the legal field of relatively free economic zones is regulated by various laws and government decrees, the provisions of which however are not definite and may become a reason for wrong interpretation.

There is the need to approve a regulating law on “Free economic zones”, and if necessary, make amendments and changes in the Customs Code.

Today, the draft law on free economic zones is at the stage of elaboration.

- Concessionaire of “Zvartnots” Airport Eduardo Eurnekian has expressed readiness to participate in implementation of the concept. What participation is meant by this?

- Recently, Armenian Minister of Economy held a meeting with Eduardo Eurnekian, during which they reached an agreement, according to which the concessionaire of “Zvartnots” will take upon itself the process of organizing and managing the free economic zone.

- Are local and foreign producers of agricultural production interested in setting up a free economic zone in Armenia?

- The idea of setting up a free economic zone in Armenia was born exactly as a result of negotiations with local producers of agricultural products. Besides, during the visit of the Minister of Commerce of United Arab Emirates (UAE) to Yerevan, a tentative agreement on establishing partnership relations between the free economic zones of UAE and Armenia was reached.

One of the goals for setting up a free economic zone in Armenia is organization of export of Armenian limited fruits to stores of large foreign trade networks. Since, there are clear-cut requirements established concerning fresh fruits, the only opportunity for organizing quick export of such products is the free economic zone.

- How will the functioning of the free economic zone be organized?

- Local and foreign companies on packing and export will be involved in the work. They will export agricultural production under Armenian brand. A corresponding logistics network will be also set up, which will carry out works with farmers, realize reception of products and provide consultations to farmers concerning the technologies for fruits and vegetables cultivation, meeting international standards. There will be auctions realized among various participants of the free economic zone on purchasing the products, and after branding, the Armenian agricultural goods will be exported to the market of Russia and various Eastern counties. There will also be a laboratory for quality control, meeting the European standards, functioning in the free economic zone.

- What is the planned timeframe for concluding works on setting up the free economic zone?

- We try to conclude the preliminary works as soon as possible; I believe that by the end of the year the free economic zone will already start functioning. This project will allow stimulating export, assisting farmers in issues of production sales, as well as mitigate the influence of the global economic crisis.