Identifier
Created
Classification
Origin
04YEREVAN2216
2004-10-06 12:47:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Yerevan
Cable title:  

RUSSIAN-GEORGIAN BORDER CLOSING "NOT

Tags:  ECON PREL PGOV AM 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS YEREVAN 002216 

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ECON PREL PGOV AM
SUBJECT: RUSSIAN-GEORGIAN BORDER CLOSING "NOT
TRAGIC" BUT COSTLY FOR ARMENIA


UNCLAS YEREVAN 002216

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ECON PREL PGOV AM
SUBJECT: RUSSIAN-GEORGIAN BORDER CLOSING "NOT
TRAGIC" BUT COSTLY FOR ARMENIA



1. (U) Sensitive But Unclassified. Please protect
accordingly.

--------------
SUMMARY
--------------


2. (SBU) As a result of the Russian-Georgian border
closure roughly one thousand trucks bound for
Armenia are stuck at the Verkhniy Lars border
crossing point between Russia and Georgia.
According to Deputy Minister of Trade Tigran
Davtyan, the situation "is not tragic--but will
create some additional costs." The closure has
created significant difficulties for the companies
that currently have large shipments halted at the
border: to reroute now will add thirty percent to
transport costs and is bureaucratically cumbersome.
Importers are rerouting new shipments though the
Ukraine, which will add about 10 percent to
transport costs for Russian goods. The GOAM has
approached the Russian government "at the highest
level" to solve the situation at recently as October
6, but to no avail. The Russian government
maintains that the closed border is an issue of
terrorism control and, while expressing sympathy for
the impact on Armenia, has offered no timeline to
reopen the border. End Summary.

-------------- --------------
GEORGIA - RUSSIA BORDER CLOSED AFTER BESLAN ATTACKS
-------------- --------------


3. (SBU) The Russian government closed the Verkhiny
Lars border crossing with Georgia immediately
following the September 1 attack at the Beslan
School. In an official visit to Armenia at the
beginning of October, Sergey Mironov, Chairman of
the Russian Federation Council, stated that the
border closure was mandated by the existing threat
of terrorism in North Ossetia and was not directed
against cargo transport to Armenia. Russian
officials have told the GOAM that Russia has a
legitimate concern that terrorists are entering
North Ossetia from Georgia.

-------------- --------------
ARMENIA TO DIVERT RUSSIAN IMPORTS THROUGH BLACK SEA
-------------- --------------


4. (SBU) The lion's share of Armenia's imports
transit Georgian territory, and nearly all imports
from Russia (15 percent of Armenia's imports) came
across the Verkhiny Lars border before September 1.
Nearly one thousand trucks bound for Armenia are
currently at the border awaiting special permission
to continue into Armenia. According to Davtyan, in
a few exceptional cases the Russian border guards
permitted some trucks to cross in the first days of
the closure, but now the border is completely
closed. Importers are beginning to reroute trucks
through the Ukraine to the Georgian seaport of Poti,
and then overland to Armenia, adding thirty percent
to transport costs for those trucks currently stuck
at the border.

--------------
CLOSURE VIEWED AS MORE OR LESS PERMANENT
--------------


5. (SBU) The GOAM notes that the Russian government
has not provided them a timeline for reopening the
border. Although Armenia and Russia are strategic
allies, the GOAM has accepted Russia's explanation
for the closure and the Ministry of Trade has told
Armenian importers to seek alternative import
routes. Although the closure is hurting those
companies that currently have goods halted at the
border, the long-term effects will be slight
additional transport costs on Armenian's imports
from Russia.
RICHTER