Executive Director of the Center for Analysis of Economic Reforms and Communication (CAERC), Vusal Gasimli, has addressed companies operating illegally in Armenia and in the Azerbaijani territories under its occupation. Gasimli stated that investments made in Armenia and in the occupied territories serve to sustain the occupation of 20 percent of Azerbaijan’s territory, the killing of civilians, and the destruction of civilian infrastructure: “Financing the militarist economy established by Armenia contradicts business ethics and international law. High external debt, deficits in the balance of payments and the consolidated budget, a ‘rock-bottom’ credit rating, slowing economic growth, as well as ongoing disputes between the government and foreign investors should all serve as warning signals for businessmen considering investment in Armenia. The Fitch Ratings forecasts that Armenia’s economy will contract by 6.2 percent by the end of 2020, while the ratio of total public debt to GDP will rise to 63.9 percent and reach 65.6 percent by the end of 2021.”

According to Gasimli, Armenia’s lack of direct access to the sea, its remoteness from key markets, exclusion from transport and logistics projects due to its aggressive policies, and border restrictions have turned the country into a dead-end destination for investment: “Over the past six years, Armenia has attracted only USD 1.6 billion in foreign direct investment, the lowest figure in the region. This is because Armenia lacks the efficiency, resources, strategic assets, and skilled labor force sought by investors. In particular, a net migration rate of -5.6, depopulation, declining birth rates, and an increasing average age have pushed Armenia into a demographic crisis and labor shortages. In a mono-ethnic state that pursues racist policies and elevates fascism to the level of state ideology, it is also difficult for foreign investors to live and work.”

Gasimli’s appeal emphasizes that settlement activities, extraction of natural resources, and economic operations conducted without the consent of the Azerbaijani authorities in territories internationally recognized as part of the Republic of Azerbaijan—under UN Security Council Resolutions 822, 853, 874, and 884 on the Nagorno-Karabakh conflict—entail legal liability: “Despite international pressure, Armenia’s operation of the Metsamor Nuclear Power Plant, pollution of the Araz River, use of the Sarsang Reservoir as an ecological weapon, and destruction of nature in the occupied territories constitute clear environmental damage. Investments in a state that poses environmental threats effectively ignore global calls to combat climate change. Therefore, we urge every investor to think seriously before investing in Armenia.”