There are two types of integration: political integration and economic integration. Membership in political integration is a part of the economic integration process. Former finance minister Vardan Aramyan explained that economic integration consists of six phases or levels. The first level is a common market, where businesses operate under the same rules as other countries, but have special arrangements with one country. The second level is a free market, where trade can happen without customs duties. The third level is a customs union, where countries must sacrifice their external trade policy. The fourth level is a common economic space, followed by the fifth level which involves a shared monetary unit. The final level is complete integration, similar to the model of the European Union (EU). Each country within the EU maintains its sovereignty.

Aramyan emphasized the inseparability of economic and political integration. He used the example of Scandinavian countries and Latin American countries to illustrate that economic interests play a significant role in determining integration possibilities. For example, the economic interests of Scandinavian countries align more closely with the EU, making it unlikely for them to integrate with Latin American countries. He also noted that integration into the EU requires going through the stages of economic integration.

Aramyan pointed out that integration into the Eurasian Economic Union (EAEU) does not prevent integration into the EU. He mentioned an agreement on cooperation between the EAEU and the EU as evidence of their compatibility. He further explained that despite ongoing talks about EU integration, Armenia’s external trade with the EAEU has increased in recent years. In the last four months, imports from the EAEU exceeded 46%, whereas imports from the EU decreased to around 15-16%.

The former prime minister addressed concerns about EU integration potentially severing ties with Russia. Aramyan stressed that integration into the EU does not mean abandoning relations with Russia. He highlighted the importance of visa requirements and employment opportunities in maintaining economic connections. He argued that Armenia’s construction, tourism, and services sectors are closely tied to Russia, making it crucial to consider such economic factors.

Aramyan concluded by cautioning against withdrawing from the EAEU. If Armenia were to leave the EAEU, exporters would have to pay customs duties on EAEU imports. This would negatively impact participants, as they would lose the advantages of external trade policy, potentially leading to a crisis of competition and decreased investment in Armenia.