Foreign Minister Tuomioja signed agreement on promotion and protection of investments between Finland and Armenia
Press Release 226/2004
5 October 2004
Foreign Minister Erkki Tuomioja signed a new agreement between Finland and Armenia on the promotion and protection of investments today at a festive event held in Yerevan. The agreement was signed on behalf of Armenia by Vartan Oskanian, Minister for Foreign Affairs. The agreement was negotiated on the initiative of Armenia.
Finland strives by means of bilateral agreements on the promotion and protection of investments to ensure the operational preconditions for Finnish businesses in the target country. The agreements are intended to shield investments against the possibility of arbitrary treatment, to guarantee Finnish investments impartial treatment with regard to both domestic and foreign investments, and to increase the stability and predictability of the investment environment.
Alongside protection of investments, the objectives include efforts to promote development of the target country’s own economy, to increase respect for international norms in working life, and to further enhancement of social conditions and environmental protection.
There are now 48 agreements on promotion and protection of investments in force between Finland and other nations. Among the countries of the Commonwealth of Independent States (CIS), agreements have been concluded so far with Azerbaijan, Kazakhstan, Kyrgyzia, Moldova and Uzbekistan. Negotiations continue on renewing the agreement with Russia.
In recent years Armenia has striven to increase the country’s appeal as a site for foreign investments. The country has been actively negotiating new agreements on the promotion and protection of investments and has already concluded about 30 agreements; more than 20 agreements are still under negotiation.
Foreign investments have increased markedly in Armenia since 1994. In 2003 foreign investments totalling an estimated USD 156 million were made in Armenia; this figure represented a 9 per cent rise on the year before. During the present year, the value of direct investments from abroad is expected to reach USD 187 million, which would be approximately 6 per cent of the Armenian gross national product. Foreign capital has been invested in more than 2,000 companies in Armenia.
The largest countries of origin for foreign investments in Armenia are Greece, Russia, the USA, Canada and France, all of which have a large Armenian community. The energy, transport and telecommunications sectors account for the lion’s share of investments.
Mention of Finland and Armenia entering into an agreement on the promotion and protection of investments was made when Armenian Foreign Minister Vartan Oskanian visited Finland in October 2000. Negotiations to this end were launched in Yerevan in June 2002.
Trade between Finland and Armenia has been slight. Finland’s exports to Armenia in 2003 came to EUR 2.3 million, and declined a little on the previous year. There were no imports from Armenia to Finland at all. Finland’s share of Armenia’s imports is a mere 0.3 per cent.
Additional information:
Jukka Nystén, Head of Unit, Department for External Economic Relations, Ministry for Foreign Affairs, tel. +358 9 1605 5071, e-mail: [email protected].