Armenia's Controversial Dry Port Project Hinges on Foreign Investment

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Armenia is building a dry port to reduce its dependence on Russia and establish itself as a trade hub, but the project faces challenges like financing and regional instability.

Armenian officials are hoping to mitigate the chill in Yerevan’s relations with Russia by creating a dry port that plugs the country into emerging international trade corridors. The government plan seeks to transform Armenia into a “transit, transport and export-focused manufacturing hub,” according to a readout from a meeting of the country’s investment committee published earlier this year.

Officials acknowledge the project can proceed only if “large foreign investors” are brought in who can help the project meet a high sticker price of $100 million. The construction timeline also raises questions. The dry port will need five to seven years to become fully operational, according to the government. A lot can happen in the intervening time that can alter the dry port’s viability.

 

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