Mr. Erikas Petrikas has been Ambassador Extraordinary and Plenipotentiary of Lithuania to Armenia since May 2013. He is convinced that his mission in our country provides every kind of assistance to Armenia on its way to becoming a full partner of the EU. In an interview with ArmInfo, the Ambassador proudly noted that Lithuania was the first country in the world to recognize Armenia’s independence and the only country among the Baltic States to recognize the Armenian Genocide. “I cannot but recall the words of Lithuanian writer, publicist, translator and Armenia’s true friend Marytė Kontrimaitė, who has recently passed away. She said, ‘We have always been with Armenia, Erikas. Remember my words’,” the Ambassador said.
Mr. Ambassador, back in 2014 you expressed regret over the level of economic relations between Armenia and Lithuania. You particularly mentioned that the commodity turnover indices were modest but you expressed hope that those indices would improve within the following few years. How do you asses the current level of trade and economic relations between Armenia and Lithuania?
The years 2014 and 2015 were crucial in the bilateral relations. Three business forums were organized within two years. In 2015, 20 businessmen from the Lithuanian Food Exporters Association (LitMEA) and the Lithuanian Confederation of Industrialists visited Armenia. The first session of the Lithuanian-Armenian Intergovernmental Commission on Economic Cooperation was held in Vilnius on November 27, 2015, and it gave a fresh impetus to the search for opportunities of mutually beneficial cooperation. At the same time, I think the appearance of Lithuanian food products in Armenia’s supermarkets is our main achievement. According to the Department of Statistics of Lithuania, in 2015 the turnover between Lithuania and Armenia grew by 70.6% versus 2014 and amounted to almost 18.4 mln EUR. This amount is not big of course, but it is almost four times as big as in 2011 and nine times as big as in 2009. Certainly, the embargo on import of Lithuanian products to Russia accelerated the search for new markets and opportunities to enter the Armenian market. At the same time, I can say that such products are only an insignificant part of the Lithuanian commodity export to Armenia.
We were also surprised at the successful holding of the first trilateral Armenia-Lithuania-Iran business forum. I did not think Iranian companies working in Armenia would show so much interest. Taking into consideration the contacts between Armenian businessmen and Iran, we appreciate such initiatives, as we are interested in cooperating with the Iranian market and such experience is valuable for us. But this is only the beginning and we are very positive about joint projects in the future.
Mr. Ambassador, it is not a secret that the Russian market holds the major share of Armenian export. So, when the Russian ruble devaluated, the local entrepreneurs and exporters started to talk about the need to search for new sales markets. Meanwhile, experts say that there are certain problems with Armenian brand recognition in the EU. Is that true?
When the Armenian “ArArAt” brandy appeared on the Lithuanian market, there was no need for advertisement, because “ArArAt” was quite a known brand in Soviet times. The representative of Pernod Ricard in Lithuania is very much satisfied with the sales of the Armenian brandy, which keep growing. At the same time, we all realize that Armenian products are not limited to “ArArAt”. Armenian mineral waters which I like very much are not recognized in Lithuania, because since Soviet times people remember Georgian “Borjomi”, which is available everywhere. So, Armenian partners should intensify their efforts in Vilnius towards popularization of Armenian products and promotion of the “Armenian brand” on the Lithuanian market.
How do you assess the export potential of the Armenian products on the Lithuanian market?
Taking into account the physical and financial potential of the Armenian community in Lithuania, I think the current exports of Armenian goods to Lithuania are insufficient. In Jan-Feb 2016, Lithuanian imports to Armenia totaled 3.9 mln EUR (41.1% more than in 2014), while Armenian exports to Lithuania amounted to 0.3 mln EUR (down 4.5%). I am convinced that not only the Armenian brandy or wine – that constitute 4/5 of Armenian exports to Lithuania – can enjoy good demand, but also the mineral waters, juices, tinned vegetables, basturma (beef jerky) and other kinds of local food products Armenia is so famous for.
What do you think are the key problems hampering active economic cooperation of the two countries? What prospects does that economic cooperation have?
Certainly, the biggest obstacle that hampers expansion of economic cooperation is the logistics difficulties. The shipment costs of some products result in 4-fold growth in the goods prime cost. But I think such difficulties can be removed. In this light, the example of the Klaipėdos Mėsinė company is illustrative. Due to the heavy logistics, the company has been supplying its products from the Georgian warehouses for 20 months. It is good that it is already possible to buy in Yerevan Lithuanian butter, meat products, hard cheese, which disappear from the local shops very quickly, but at the same time it is bad that we fail to use the whole potential due to the logistics difficulties.
The lack of direct air service between our countries is a huge obstacle to expansion of partnership. The matter does not concern only the difficulties with the delivery of local products. The lack of direct Yerevan-Vilnius fights affects tourism as well. Unfortunately, there are no local air carriers in Lithuania. I would like to recall that the launch of low-cost flights in Kutaisi has given a big impetus from Lithuania to tourism development in neighboring Georgia. Lots of people travel to Georgia. I think it is also a good idea to show Armenia to the travelers who arrive in Georgia. It is necessary to introduce single tours and create opportunities for fast and comfortable passenger operations from Georgia. Armenia has a big tourism potential. It is only necessary to create the relevant infrastructure. Sometimes, foreigners complain that the through-route signposts are missing. Very often there are no signposts in the suburbs. It would be good to translate more information into other languages. I think efforts should be exerted to create a series of stories about Armenia, its culture, places of interest, tourism infrastructure, etc. It is no secret for instance that Europe has insufficient information or lacks any data at all about the ski resorts and new tourism facilities of Armenia.
I am glad to say that an Intergovernmental Commission on Economic Cooperation was set up during my term in the ambassador’s office and it took a decision to launch cooperation in 14 sectors. Following the first meeting in Vilnius, there are specific steps on bilateral agreements in social insurance, sports, agriculture, and readmission. A group of experts will visit Armenia in June 2016 to exchange experience in cattle breeding, ecologically-friendly agriculture, aquaculture and fish industry. Six Armenian farmers, in turn, will pay a visit to Lithuania in July.
Mr. Ambassador, what can you say about mutual investment programs?
Despite the positive trend of the Lithuanian-Armenian foreign trade cooperation, the investment capacities are being used inefficiently. I am glad to say that in 2011 the Lithuanian company Acme Computer Components Ltd (ACC) entered the Armenian market through “Maxtronic” CJSC (Armenia), which became the property of the company (ACC Distribution (Lithuania) belongs to ACME Group – editor’s note). ACC features nearly 650 items and about 200 suppliers, including ASUS, Dell, LG, BenQ, Sony, Philips, D-Link, etc., and it is considered to be the most rapidly developing company of the Baltic countries. The company supplies computers, netbooks, notebooks, computer hardware and software, multimedia devices to over 2,500 customers. “Maxtronic” CJSC employs 10 people. Over the fives years of its activities, the company has gained a foothold on the market and keeps strengthening its positions. Armenia has quite favorable conditions for foreign investments and we hope that the number of Lithuanian-Armenian joint ventures will be growing.
I should say that the Lithuanian Embassy in Armenia is open to Lithuania’s all proposals to find partners in various sectors of Armenian economy. We immediately respond to such initiatives and very often we learn the results from other sources. The most important thing is that the cooperation is growing.
The Foreign Ministry of Lithuania hailed the resumption of Armenia-EU talks on the new framework agreement on cooperation. What are the expectations from the new phase of negotiations and what European prospects do you think Armenia has?
Lithuania is one of the 28 countries of the European Union and certainly it supports the launch of negotiations with Armenia, trying to assist that cooperation. The new framework agreement is aimed at replacing the Association Agreement that Yerevan and Brussels agreed on but failed to initial two years ago. This will be a legally binding document which will lie in the basis of Armenia-EU cooperation. I am very positive about Armenia’s European future, because extension of relations with the EU is a priority and future for Armenia. I think the potential of cooperation with the EU is huge and it is necessary to bring the matter to a conclusion. I am sure one should not lose time, because last time, before the Vilnius Summit in 2013, Armenia demonstrated that having launched the Association Agreement later than the other countries, Armenia was able to catch up with them and even to outstrip them. This also demonstrates the country’s well-preparedness and good capacity for future cooperation. The current situation in the world prompts that there is no time to kick the can down the road, because we think that it is the most convenient moment for Armenia to use that new agreement with the EU, which will be “adjusted to the country” instead of being a copy of other agreements.
I’d like to note that this year we mark the 25th anniversary of establishment of diplomatic relations between our countries (the Armenia-Lithuania diplomatic relations were established on 21 November 1991 – editor’s note). We decided to celebrate this date and we will hold a joint Street Musicians Day in Yerevan on May 21. Starting from 4 pm, all those wishing to play in the center of Yerevan, even the amateur musicians will play in the streets of Yerevan (the registration on the Lithuanian Embassy’s website opened on May 9). The Day will be accomplished with a gala concert at 8 pm in Aznavour Square with participation of Armenian stars and two musicians from Lithuania. The event will include a direct Vilnius-Yerevan video conference, which will also involve other cities of Europe. I am very happy to say that this year – in commemoration of the 25th anniversary of our diplomatic relations – Armenia will join these festivities, which are already 10 years old. I want to thank the Mayor of the Armenian capital, the Ministry of Foreign Affairs, the Ministry of Culture, which supported our proposal to hold a joint event.
P.S. One of the well-known scientists once said: “An evil man can pretend to be kind, a narrow-fisted man can pretend to be generous, but it is impossible to pretend to be refined”. This aphorism is exactly about my interlocutor, who is sincerely trying to show his warm attitude towards Armenia and its people.
And this is what Ambassador Erikas Petrikas told me at the end of our conversation. In 1928, sheltering himself beneath the diplomatic passport of his father – Lithuania’s ambassador to Russia, art historian Jurgis Baltrušaitis, Jr. was able to infiltrate into the territory of Old Jugha Cemetery and to take unique black and while photographs (he is also an author of two books about Armenian architecture of 1929-36). For many years everyone thought the photographs had been lost. In 1986, however, the Calouste Gulbenkian Foundation in Lisbon, with the support of Prof. Dickran Kouymjian, published a booklet in the English language with the illustrative photos by Jurgis Baltrušaitis, Jr. “A fixed idea came into my head – to publish that book in the Armenian language as well. In December 2015, we published that book with the help of my friends Armen Ghazaryan and Carlos Costa Ramos, in cooperation with Rector of the National University of Architecture and Construction of Armenia Gagik Galstyan,” Ambassador Petrikas said.