GOAM OFFICIALS WORRY GEORGIA-RUSSIA BORDER

UNCLAS YEREVAN 000920 SIPDIS C O R R E C T E D COPY (CHANGED CHECKPOINT NAME IN PARAS 1 AND 2) SENSITIVE SIPDIS DEPT FOR EUR/CARC AND DRL E.O. 12958: N/A TAGS: PGOV PREL AM SUBJECT: GOAM OFFICIALS WORRY GEORGIA-RUSSIA BORDER CLOSURE WILL IMPACT ARMENIAN ECONOMY REF: TBILISI 1647 -------------- SUMMARY -------------- This cable is sensitive but unclassified. Please protect accordingly. ¶1. (U) The July 7 closing of the Kazbegi-Verkhniy Lars checkpoint (reftel) between Russia and Georgia is worrying GOAM officials. GOAM Prime Minister Andranik Margarian told reporters the closure will become a serious problem for Yerevan, particularly in the agricultural sector. End Summary. ¶2. (U) On July 7, Russia shut down the Kazbegi-Verkhniy Lars checkpoint without warning. Russian officials said the checkpoint was closed for repairs, but did not notify Georgian officials in advance about the closure, according to news reports. Armenian Prime Minister Andranik Margarian, who visited Georgia July 7- 8, told reporters that Armenian authorities expected the closure would hinder the shipment of agricultural goods to Russia, which will seriously affect the Armenian economy. ¶3. (U) According to press reports, Russia has told the GOAM that the repairs will take about a month. Margarian told reporters that he hopes the border will reopen "soon," but that in the meantime, Armenia will increase exports through the Black Sea port of Poti in an attempt to compensate for the closure of its other main export transit point. Georgian officials have said they do not believe the Russians have been forthcoming about the real reason for the border closure. The press quoted Georgian Prime Minister Zurab Noghaideli as saying the border closure creates greater problems for Armenia than for Georgia, as Georgia exports very few goods into Russia now. -------------- COMMENT -------------- ¶4. (SBU) The GOR closed the same border in September 2004 after the hostage tragedy in Beslan, and Armenian authorities were involved in the negotiations to reopen the checkpoint. Armenian goodwill towards the Russians after the most recent closure likely will be in short supply, given the volume and significance of Armenian- Russian trade. EVANS