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DisclaimerIOM has carried out the gathering of information with great care. IOM provides information at its best knowledge and in all conscience. Nevertheless, IOM cannot assume to be held accountable for the correctness of the information provided. Furthermore, IOM shall not be liable for any conclusions made or any results, which are drawn from the information provided by IOM.

ARMENIA

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TABLE OF CONTENTS

TABLE OF CONTENTS 2I. GENERAL OVERVIEW 3 1. International Disputes 3II. ECONOMY 3 1. Economic Situation 3 2. The Labor Market 5 3. Requirements for Accessing the Labor Market 5 4. Unemployment Assistance 5 5. Social Benefits by the State Social Service 7 6. The Pension System 8III. BANKING SYSTEM 8 1. Micro Credit to Start a Business 9IV. HEALTH CARE 9 2. Registering for Health Insurance 9 3. Obtaining Medical Treatment 9 4. Medicines 10 5. Social Support 10V. HOUSING 10 1. Renting an Apartment or House 11 2. Buying Property 11VI. EDUCATION 11 1. Access to Primary School, High School and University 11 2. Recognition of Foreign Diplomas 11 3. Vocational Training 12VII. CUSTOMS REGULATIONS 12VIII. TRANSPORTATION 13 1. Railways 13 2. Roads 13 3. Transportation in and between Cities 14 4. Air Transport 14IX. COMMUNICATIONS 14 1. Telephone System 14 2. Internet 15 3. Media 15X. VULNARABLE CASES 15 1. Employment and Vocational Trainings 15 2. Opportunities for Vulnerable People to Set up Businesses 16 3. Health Services for Socially Vulnerable Cases 16 4. Housing Provision for Vulnerable Cases 17 5. Education for Vulnerable People 17XI. USEFUL LINKS 18

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Armenia prides itself on being the first nation to formally adopt Christianity (early 4th century). Despite periods of autonomy, over the centuries Armenia came under the sway of various empires including the Roman, Byzantine, Arab, Persian, and Ottoman. During World War I in the western portion of Armenia, Ottoman Turkey instituted a policy of forced resettlement coupled with other harsh practices that resulted in an estimated 1 million Armenian deaths. The eastern area of Armenia was ceded by the Ottomans to Russia in 1828; this portion declared its independence in 1918, but was conquered by the Soviet Red Army in 1920. Armenian leaders remain preoccupied by the long conflict with Azerbaijan over Nagorno-Karabakh, a primarily Armenian-populated region, assigned to Soviet Azerbaijan in the 1920s by Moscow. Armenia and Azerbaijan began fighting over the area in 1988; the struggle escalated after both countries attained independence from the Soviet Union in 1991. By May 1994, when a cease-fire took hold, ethnic Armenian forces held not only Nagorno-Karabakh but also a significant portion of Azerbaijan proper. The economies of both sides have been hurt by their inability to make substantial progress toward a peaceful resolution. Turkey closed the common border with Armenia in 1994 because of the Armenian separatists’ control of Nagorno-Karabakh and surrounding areas, further hampering Armenian economic growth. However, in 2009 senior Armenian leaders began pursuing rapprochement with Turkey, which could result in the border reopening.

1. International Disputes

Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and since the early 1990s, has militarily occupied 16% of Azerbaijan - Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; over 800,000 mostly ethnic Azerbaijanis were driven from the occupied lands and Armenia; about 230,000 ethnic Armenians were driven from their homes in Azerbaijan into Armenia and Nagorno-Karabakh; Azerbaijan seeks transit route through Armenia to connect to Naxcivan exclave; border with Turkey remains closed over Nagorno-Karabakh dispute; ethnic Armenian groups in Javakheti region of Georgia seek greater autonomy; Armenians continue to emigrate, primarily to Russia, seeking employment.

II. ECONOMY

1. Economic Situation

After several years of double-digit economic growth, Armenia is facing a severe economic recession with GDP declining at least 15% in 2009, despite large loans from multilateral institutions. Sharp declines in the construction sector and workers’ remittances,

I. GENERAL OVERVIEW

• Population: 2,966,802 (July 2010 est.)• Area:29,800 sq. km.• Capital:Yerevan• HeadofState:President Serzh Sargsyan (since 9 April 2008)• GDP/capita:$5,500 (2009 est.)• Religions:Armenian Apostolic 94.7%, other Christian 4%,Yezidi (monotheist with

elements of nature worship) 1.3%• Officiallanguage:Armenian• Otherlanguages:Yezidi 1%, Russian 0.9%, other 0.4% (2001 census)• EthnicGroups:Armenian 97.9%; Yezidi 1.3%; Russian, Greek, and other 0.8%• Lifeexpectancy:72.96 years• Monetaryunit:Dram (AMD)

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particularly from Russia, are the main reasons for the downturn. Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agro industrial complexes of the Soviet era. Armenia has managed to reduce poverty, cut inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Since the breakup of the Soviet Union in 1991, Armenia had made progress in implementing some economic reforms, including privatization, price reforms, and prudent fiscal policies, but geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made Armenia particularly vulnerable to the sharp deterioration in the global economy and the economic downturn in Russia. The conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh contributed to a severe economic decline in the early 1990s and Armenia’s borders with Turkey and Azerbaijan remain closed. Armenia is particularly dependent on Russian commercial and governmental support and most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector. The electricity distribution system was privatized in 2002 and bought by Russia’s RAO-UES in 2005. Construction of a pipeline to deliver natural gas from Iran to Armenia was completed in December 2008. Yerevan Thermal Power Plant renovation was completed in 2010. Armenia has some mineral deposits (copper, gold, bauxite). Pig iron, unwrought copper, and other nonferrous metals are Armenia’s highest valued exports. Armenia’s severe trade imbalance has been offset somewhat by international aid, remittances from Armenians working abroad, and foreign direct investment. Armenia joined the WTO in January 2003. The government made some improvements in tax and customs administration in recent years, but anti-corruption measures have been ineffective and the current economic downturn has led to a sharp drop in tax revenue and forced the government to accept large loan packages from Russia, the IMF, and other international financial institutions.

The government continues to promote industrial production, despite its questionable competitive edge on the world market. Industries supported by the government for investment include: machine-tool manufacture; electrical engineering; electronics; radio engineering; the production of non-ferrous metals and concentrates; extraction of precious metals and rare elements from base metal ores; non-traditional energy resources; processing; construction; production of consumer goods, such as leather footwear, knitwear, rugs, and textiles; fruit and vegetable canning; and the production of cheeses, mineral water, wines, and cognac.

Meanwhile, the private sector has developed several key industries on its own, and these have greater promise for the long term. None of them are in the heavy industry sector, and all rely on burgeoning worldwide service and high technology industries. Computer programming and software development have gained a significant foothold in the economy in the last three years, with the export of software and computer programming most prominent among them. Computer chip and component manufacture, and computer engineering and programming harness the intellectual strengths of the country and do not rely on massive energy consumption, or adverse ecological use.

The greatest economic potential for the country in the near future is tourism which is still expected to grow in the next few years.

The current situation is marked by high unemployment rates and low-living standards, especially in the country’s remote regions. Armenia’s rural population is particularly exposed to socio-economic pressures, which expose them to a higher risk of irregular migration, including people trafficking. There is some easing of this crisis but little improvement in the condition of the most vulnerable groups. In fact, there is some indication that their

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vulnerability is being made worse, at least in the short-term, by the effects of the ongoing macro-economic reforms.

Unemployment estimates are high, with many displaced people, refugees and returnees. As such, employment in the traditional sense, i.e. getting a salaried job, is unrealistic for many and there is little prospect of significant improvement in the foreseeable future. A dragging and dispiriting status quo has generated a feeling of helplessness for many people. For this reason, most poor people in the areas where poverty is more severe and widespread find work, if they do, in the informal and small business sector.

2.TheLaborMarket

Nowadays, labor relations in Armenia are regulated by the Labor Law adopted on 21 March 2005, and a number of legal and normative executive acts.

The official registered unemployment rate in Armenia is 6.8%, 17 but the unofficial rate is 30%.

The main direction of Armenia’s poverty reduction strategy includes: • the formation of a more flexible labor market; • the provision of systematic employment for the workforce; • the creation of new jobs; • and the promotion of small and medium businesses with jobs available to low income

groups, especially social groups at risk. 3.RequirementsforAccessingtheLaborMarket

The State Employment Service Agency has local district centers in all the communities of Yerevan city, and in all the regions and major cities and towns of Armenia. These centers register those seeking jobs and provide them with the available job announcements, offer information about vocational training, and give other relevant information. The State Employment Service Agency has prepared a guide for job-seekers in Armenia available at http://employment.am The State Employment Service Agency conducts job fairs six times a year.

Adult citizens of Armenia can take work in their skill or profession, using their qualifications. Foreign citizens need a permit to work in Armenia.

4.UnemploymentAssistance

You must be registered with the State Employment Service Agency and apply for unemployment assistance. Job-seekers are considered to be people aged over 16 who, irrespective of their employment, apply at the State Occupation Service Agency for a job. Those job-seekers who do not have a status of an unemployed cannot receive unemployment assistance. The status of unemployed may be granted to those unemployed job-seekers who have reached working age, have at least one year’s experience in work and apply at the State Employment Service Agency for registration.

Job-seekers and unemployed people have the right to:

• free consultation on vocational opportunities and information on vacancies; • free mediation in the selection of appropriate employment; • defense of their own interests in courts against any violations by the State Employment

Agency and its officials, as well as the activities of employers.

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Unemployed persons also have the right to:

• free of charge qualification and re-qualification; • reimbursement of expenses when a workplace is re-located, following procedures laid

down by the government; • help from the employment fund in running entrepreneurial activates and opening a

business, in line with the conditions and procedures laid down by the government.

To provide employment for disabled people, the State Employment Service Agency holds talks with employers to open special enterprises for them and organizes vocational training for them.

People with unemployed status are guaranteed payment of unemployment benefit if they have at least one year of insurance, pursuant to the procedures laid down in the law on “Occupation of the Population and Social Assistance in case of Unemployment”. People who participate in re-qualification and qualification-enhancing training, with the consent and recommendation of state employment bodies, are granted stipends during the period of training equivalent to 120 % of the unemployed basic benefit.

Monetary assistance may be given to unemployed people, when the period for which they can be paid benefits has finished, as well as to job-seekers who are not considered as unemployed and cannot receive unemployment benefits by law.

Currently, the basic unemployment benefit rate is about €14 or AMD 7,800. The government determines the basic rate of the unemployed benefit. It excludes cases, with the employer’s help, where employees have been dismissed for absenteeism or violations of work practices. People who retired voluntarily, as well as those who do not meet all the requirements of the law, are awarded 80% of the basic unemployed benefit. People who were dismissed for misconduct are given 60% of the basic unemployed benefit. Retired people, who apply to the State Employment Service Agency to find a job no later than 30 days after retirement, may be awarded unemployed basic benefit.

Unemployed benefits are awarded by the State Employment Services Agency from the first day of determining unemployed status. They are paid for up to five months. For each five years worked, the payment of benefits is extended for a month. The maximum period of payment is one year.

If an unemployed person, who is receiving benefit, finds temporary employment, the employment agency will suspend payment during the employment. The State Employment Services Agency terminates the payment of benefits for two months where an unemployed person has refused an employment offer even once. The State Employment Services Agency will end the payment of benefits if:

• an employee has refused an employment opportunity for the second time; • does not attend an interview at an employment agency to consider a job opportunity,

having been invited twice in the past; or • an employee has found employment, even temporarily, but has not informed his or her

employment agency.

Documents Required

Job-seekers and unemployed people should present the following documents for receiving unemployment benefit: • passport or another ID document;

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• social security card; • work record card; • education certificates; • statement from the State Cadastre Service Agency that the claimant neither owns or

rents private land (except his or her own accommodation); • a certificate from the State Tax Committee that a claimant has made the mandatory

social insurance payments.

In addition, disabled people, who apply to one of the employment agencies looking for a job, should also provide a certificate of disability from a regional commission of the Ministry of Labour and Social Insurance (MLSI) Medical-Social Examination Commission.

5.SocialBenefitsbytheStateSocialService

State Social Security Service of the Ministry of Labor and Social Issues of the Republic of Armenia is one of the important pillars of social security system of the Republic. Service is in charge of assignment and payment of pensions, funding of several state security (insurance) programs.

Social payments are measures compulsory paid by insurers to finance the state mandatory social insurance programs. Social payments are paid in AMD and executed by:• employers,• employees,• private entrepreneurs and notaries.

Benefit is a monetary gratis aid to citizens provided by the State upon certain conditions and situations. Benefits can be of a lump-sum type or periodical ones depended on situation and necessity.

The social insurance system in Armenia includes the following kinds of benefits:

1. Temporary unemployment benefits, which in case of paid employee is composed of different kinds of benefits:

• sickness benefit (benefits in case of temporary unemployment caused by working injuries);

• prosthetic benefit (benefits in case of temporary unemployment because of prosthesis);

• health care benefit (benefits given and necessity of treatment at a resort); • sick family member benefit (benefit given in case of temporary unemployment

of a family member because of injury or disease); • pregnancy and birth benefit.

2. Kinds of temporary unemployment benefits given to self-employed persons are the following:

• sickness benefit; • prosthetic benefit; • pregnancy and birth /delivery/ benefit; • Health-care benefit.

3. State benefits, which are the following: • family benefit; • lump-sum child-care benefit; • up to 2 years child-care benefit.

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4. Unemployment benefit; 5. Funeral grant.

The decision on paying or terminating the specific kind of benefits is adopted by respective state agency in charge of retirement payments.

6.ThePensionSystem(disabled,old-age,bread-winnerlostpensions)

People over 65 years old with at least 5 years of work are entitled to the contributory old-age pension. For women the retirement age is gradually rising. In 2007, women were eligible for the pension at the age of 61; in 2011, they will be eligible at the age of 63. People who have reached the age of 65, but do not have work experience of at least 5 years, are entitled to an old-age (social) pension.

When all the necessary documents have been supplied, the pension is awarded:

• from the date of the application; • from the date a person is recognized as disabled, provided that the application for a

pension is made within three months of that date; • from the date of death of the bread-winner, if the application for award of a pension is

made within six months after that date.

People at age 30 or above applying for disability pension should have at least 5 years as minimum period working time.

Pensions are awarded by the district social insurance centers of the MLSI.

III. BANKING SYSTEM

Since 1993, when Armenia began creating a banking system, the number of commercial banks has actually fallen. The Central Bank of Armenia conducted banking reforms aimed at improving and extending the scope of the banking system. The liquidation of pocket banks and banks engaged in risky activity improved the quality of banking assets, made banks more reliable, and generally strengthened the system. Banks have reached new levels of success, in a context of lower inflation and interest rates, economic growth, and a stable currency.

Armenian banking laws have successfully imposed strict controls on banking activity. The laws have been effective in creating favorable conditions in which to do business. The biggest problems now are the small size of the banking system and the slower pace of reform in the rest of the economy. The banking system is more developed than other sectors in Armenia, which creates problems in securing its growth. The banking system is also small because not all cash passes through it. Armenia has a large shadow economy despite intensive efforts to curb it. The Central Bank has passed several regulations that have helped increase confidence in banks and make risk management more effective. It has introduced regulations on bank confidentiality, asset classification, and on the formation of loss reserves, currency controls, accounting standards and prudential regulations.

The Central Bank has formed a credit register providing information on banks and borrowers and provides periodic information on them. Any individual or enterprise that has been included in the credit register by a bank or lending organization can receive information from the bank or the register.

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1.MicroCredittoStartaBusiness

More than 20 banks and universal credit organizations provide micro credits and loans. Information about their conditions and requirements is available online athttp://www.cba.am/CBA_SITE/customer/index.html?locale=hy.

The Ministry of Economy has a Fund, the Small and Medium-sized Entrepreneurship Development National Centre of Armenia, which provides support to help start up SMEs and to enhance their efficiency and competitiveness. Its role is to: ensure the availability of business development services to SMEs; expand their financing opportunities; promote innovation and support the introduction of new technologies; support the establishment of start-up businesses; stimulate their economic activity in the international market place; and develop more business opportunities in Armenia.

IV. HEALTH CARE

1.TheHealthSystem

There are two principal institutions responsible for the organization of health care in Armenia: the Ministry of Health (MoH) and the State Health Agency (SHA). The legal bases for both MOH and SHA are their charters. The main direction of health care reforms was defined and adopted by the Government of the Republic of Armenia in 1997.

Delivery of health care in Armenia is regulated through a variety of legal acts, such as the Constitution of the Republic of Armenia, the Law on Health Care, and the Law on the State Budget. In addition, there are several newly adopted laws and draft legal acts that are directly or indirectly related to the health care system.

All state medical institutions have been privatized since independence, and the decentralization of medical institutions is near completion. They are now responsible for their own funding and are no longer financed from the state budget.

Education in health care management and administration has been identified as one of the main requirements for the successful implementation of health care reform in Armenia. Currently there are three educational institutions in which the administration and management of the health sector are taught: the Yerevan State Medical University; the National Institute of Health; and the College of Health Sciences of the American University of Armenia.

2.RegisteringforHealthInsurance

In order to obtain voluntary medical insurance, private insurance companies in Armenia require a passport and a social insurance card. Some organizations provide their employees with an employment package, which includes health insurance.

3.ObtainingMedicalTreatment

State medical treatment is available to anyone registered at a regional polyclinic or at either a state or a private hospital for certain categories of diseases, and for certain social groups. You should apply to the MoH for free treatment. They will refer you to the relevant hospital.

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4.Medicines

The production, trade and safe distribution of medicines in Armenia is regulated by a number of laws: the Law on Medicines; the Law on Trade in Medicines; the Decision on the Distribution of Medicines for Humanitarian Aid; and the Minster’s Order #746, regulating the free distribution of medicines. Almost all categories of medicine are registered and available in Armenia.

5. Social Support

Psycho-social support in Armenia is provided by the Ministry of Labor and Social Issues (MLSI). The social protection system of Armenia currently includes the following measures. • State social assistance programmes, such as family benefits, disability, age, and other

social pensions, one-off child birth allowances, and a child allowance (up to the age of 2).

• Social assistance programmes for disabled people, veterans, and children. In particular, there are medical and social rehabilitation programmes, in-house social services for the elderly and disabled, homes, orphanages, and boarding schools.

• State social insurance programmes, consisting of old age and disability pensions, as well as allowances for temporary disabilities and pregnancy.

• Employment programmes, including unemployment benefits, retraining for the unemployed, and public (or similar) works.

• A system of privileges for certain target groups of the population that, in 1999, lived through significantly distressing conditions. It currently includes some privileges for veterans of World War II (and similar groups), established in the framework of CIS agreements. Service providers mostly fund these privileges. No new privileges are planned in the 2006-2015 period.

Some of these programmes are at present funded from the state budget: family and other benefits; pensions for military servicemen; social assistance programmes; public works; and, starting in 2003, social pensions. The State Social Insurance Fund finances state pensions, unemployment benefits, temporary disability benefits, and pregnancy allowances.

V. HOUSING

According to the United Nations Economic Commission for Europe (UNECE) report, about 40,000 (5%) of the approximately 800,000 families living in Armenia are without permanent shelter. About 40% of them live in temporary structures, in most cases metal shipping containers, so-called “domics”. Dormitories and damaged unsafe housing provide shelter to 10 % of the households living in temporary shelters. Others live in former hotels, schools and kindergartens which were converted to temporary housing. Alongside those without permanent shelter are the thousands of families requiring better housing. Altogether, it is estimated that approximately 100,000 households are either without permanent housing or need urgent assistance owing, among other things, to overcrowding.

The real estate market in Armenia has experienced dramatic growth in volume, and prices have consistently risen over the last five years. Most residential construction targets wealthy customers, and is not accessible even to the middle class. The construction boom has driven a vigorous rise in the Construction Price Index, making it extremely hard for low income groups to build or renovate their homes. Homelessness and housing poverty have grave material and psychological consequences for families and society, and have a complex relationship of cause and effect, creating a closed cycle of poverty.

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1.RentinganApartmentorHouse

The best way to find an apartment for rent is to sign up with an estate agency, or follow the property adverts in newspapers such as Gind Weekly.

Rent for one person: the capital: €50- € 350; other cities and towns: €20- € 150.

Rent for a family: the capital: €100- €680; other cities and towns: €60- € 400.

2.BuyingProperty

Property can be bought through estate agents, brokers, or directly in response to advertisements placed in newspapers.

VI. EDUCATION

There are 1,409 schools throughout the republic, including 10 elementary, 165 basic and 1,234 secondary schools. The number of students in general education is 491,477, compared with 505,101 students in 2004. The number of school-aged children in the country is falling steadily. Despite this trend in recent years, the overall numbers in basic general education has still been quite high and, in essence, enrolment does not present any serious problems. In the last few years gross and net enrolment indicators have only varied within an interval of 71%-76% in senior school.

The Government has taken steps recently to reform the administration and the substance of the education system, enhancing the efficiency and the quality of general education. It has introduced measures such as decentralizing the general education administration, increasing self-governance of educational institutions, switching to a system of financing based on the number of students, and enhancing the efficiency of the workforce. The efficiency of budgetary allocation has been improved by optimizing the use of schools and increasing the weekly workload of teachers. An Assessment and Testing Centre was established in 2004, in order to create a single assessment point in the education system, as well as to bring assessment into line with international developments.

1.AccesstoPrimarySchool,HighSchoolandUniversity

Access to primary school requires an application, a reference certifying your place of residence, and a medical reference from the regional polyclinic. Entrance to higher education institutions are by examination. Both state and private institutions charge for tuition but they have quotas for vulnerable people (e.g. orphans) and particularly gifted students who are not charged fees. The tuition fee varies from university to university and from specialty to specialty, but ranges from €350–€1,223 (or AMD 200,000–700,000) per academic year.

2.RecognitionofForeignDiplomas

The validation and recognition of foreign diplomas is the responsibility of the Committee on Higher Education Qualification. The following documents may be relevant:

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• final thesis; • diploma (original together with a certified and apostilled copy); • list of research works; • passport.

The approval and verification procedure takes around two months. A certificate of acceptance will then be issued.

3.VocationalTraining

In Armenia, vocational education is available at preliminary, middle and higher levels. The aim of preliminary vocational education is to train the students for jobs requiring only a basic or general secondary education. It is provided in upper secondary vocational schools (26), middle professional colleges (12), in technical colleges, educational centres, and in other types of professional schools. A preliminary vocational education can be provided by an individual, if he or she has the relevant license for it. The criteria are defined by the government. The professions related to services, trade, and the food industry now dominate the list of professions studied, whilst the number of students in the industrial or construction professions has fallen steeply.

The length of a preliminary professional education depends on the previous educational level of the student and on the profession chosen by him or her. It can take from one to three years.

Middle level professional education aims to give students a deeper knowledge of various professions. The length of course can vary from nearly two years to nearly five years, depending on the educational level of students and their chosen profession. Students are prepared for about a hundred different professions in the areas of the humanities, teaching, health, economics, the arts, technology, etc. Graduates are awarded the qualification of junior specialist. At present, there are 85 state and 23 private middle level professional education institutions.

Announcements of vocational training opportunities can be found at http://vet.am/index.php?option=com_content&task=blogsection&id=9&Itemid=72.

VII. CUSTOMS REGULATIONS

Armenian nationals may bring through customs goods not exceeding €262 or AMD 150,000 in value and 50 kg in weight, duty free. Goods not exceeding €87or AMD 50,000 in value and 20 kg in weight may be brought across the border by international transport duty free.

Armenian nationals may take advantage of these allowances no more than once every 180 days, unless using the border markets at Bagratashen and Meghri, in which case an Armenian citizen may take advantage of the allowance no more than once a month.

Armenian nationals may bring through customs items they wear or have in their luggage duty free. These are goods that:

• do not have a manufacturer’s packaging or labeling, and have been packed in the luggage; or

• are worn by the individual when crossing the border, (with the exception of the types of goods referred to Customs Code in subparagraph 2 of Article 105).

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Armenian nationals arriving in the Republic of Armenia for permanent residence may import goods duty free for their personal use. They may bring items through customs which are their inherited property, duty free, upon presenting to the customs authorities the relevant documents (Customs Code, Article 105). In general, one can import for free ten types of medicines for personal use or treatment.

The import of more than €5,000 should be declared.

People returning to Armenia by land should note that no customs duty will be levied on: up to 10 kg of meat; fish products; dairy products; edible vegetables; edible fruit and nuts; sunflower seeds; animals or vegetable fats and oils; and sugar or sugar confectionery. There is no customs duty on: up to 1 kg of tea, coffee or spices; 0.5 kg of caviar; 0.2 kg of chewing gum; 2 liters of beverages, spirits and vinegar; 10 cigars; 400 cigarillos and cigarettes; 5 pairs of shoes; 3 watches; or 100 birds’ eggs. The import of live fish, castor oil, and dried egg yolks is always subject to a customs duty. A customs duty will be levied, amongst other things, on the import of more than 5 kg of cocoa and cocoa preparations, waffles, or pasta.

VIII. TRANSPORTATION

Transport development is an important way to encourage the alleviation of pervasive poverty in Armenia. Mining and construction, the industrial sectors currently doing well in Armenia, depend heavily on affordable and reliable transport. Agriculture and food processing have large export potential and there is huge potential for reviving the tourism industry. Radically improved transport infrastructure and logistics services and, for tourism, upgraded facilities and hospitality services are vital for the successful development of these sectors.

1.Railways

The market share in Armenia of transport services has increased since the economy began to recover. The company “Armenian Railways” (AR), however, is in serious need of investment, including replacement of the majority of its rolling stock, rehabilitation of the main line between Yerevan and the Georgian border, renewal of its overhead power systems, and reconstruction of damaged bridges. AR also has to cope with a significantly loss-making passenger service and a weak capacity to plan the adequate maintenance of stations and other facilities, including depots and workshops.

2.Roads

Armenia has a relatively well-developed road network, serving all areas of its economy with 258 kilometers of roads per 1,000 square kilometers. Most freight and passenger transport goes by road. The road network in total is 8,888 km long with 7,079 km of paved roads (includes 1,561 km of expressways) and 1,809 km of unpaved roads. Interstate and regional roads are administered and managed by SSCC Armenia Roads, a state-run body.

In order to avert complete destruction of motor roads in the country, to reduce transportation costs, and to prevent road accidents, the Highway Rehabilitation Project was elaborated together with the World Bank, providing financing for rehabilitation of 628,2 kilometers of interstate motor roads and reconstruction of Pushkin Pass tunnel for a length of 1,8 kilometers. For assuring continuous implementation of road rehabilitation works, the Ministry of Transport and Communications elaborated and effectuated the Transport Project and the Road Construction Project financed by the Lincy Foundation. These

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three mutually supplementing programs enabled rehabilitation of the main highways and conjunctive motor roads throughout the country.

Thanks to technical assistance received in the past, SSCC Armenia Roads is now competent to contract out most of its civil works, including engineering design and contract supervision.

3.Transportationinandbetweencities

In Armenia, buses and minivans offer the most reliable transport. There is a small metro system in Yerevan, but it is quite limited and not very reliable. The Yerevan Subway works from 6.30 am to 11pm. It needs to be upgraded to accommodate the growing traffic. Trolley buses still run in Yerevan but remain very unreliable due to a lack of maintenance and sporadic disruptions in the electricity supply. Tickets are subsidized by the municipality and, therefore, cost recovery on ticket income is very low and does not allow for full depreciation or equipment renewal.

Taxis and other public transport are available in all the major cities of Armenia. The prices are all the same: Taxis cost AMD 100 (about €0.18) for each kilometer in the city; minivans (route taxies) cost 100 AMD for each person. It is important to point out that taxi meters are not often used.

Minivans also run between cities. A minivan from Yerevan to the southern city of Meghri (around 350 kilometers south from Yerevan) will cost AMD 5,000 or about €9. From Yerevan to Ijevan in the east will cost AMD 1,500 or about €3.

4. Air Transport

Civil aviation infrastructure consists of three international airports: Zvartnots (Yerevan), Erebuni, and Giumri, and nine local (non-military) airports, although most domestic airports are not operational. Air services suffer from inadequate physical infrastructure, as aged runways and landing lights can attest, and air terminals lack the modern conveniences to attract international business travelers and tourists. Aviation is allegedly one of the Armenian government’s priority areas for development. Modernization, including the replacement of practically all airport equipment, and the purchase or lease of passenger aircraft is needed. In 2002, Armenia’s government and an Argentine company, Aeropuertos Argentinos 2000, signed a contract for a 30-year concession at Zvartnots airport. The national carrier, Armavia has been privatized and granted monopoly rights until 2013. The Armenian aviation market is emerging slowly. The number of international carriers operating flights to and from Zvartnots airport and the volume of passenger traffic is steadily growing.

IX. COMMUNICATIONS

1.Telephonesystem

Telecommunications investments have made major inroads in modernizing and upgrading the outdated telecommunications network inherited from the Soviet era; now 100% privately owned and undergoing modernization and expansion; mobile-cellular services monopoly terminated in late 2004 and a second provider began operations in mid-2005.

Reliable modern fixed-line and mobile-cellular services are available across Yerevan in major cities and towns. Significant but ever-shrinking gaps remain in mobile-cellular coverage in rural areas.

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Yerevan is connected to the Trans-Asia-Europe fiber-optic cable through Iran. Additional international service is available by microwave radio relay and landline connections to the other countries of the Commonwealth of Independent States, through the Moscow international switch, and by satellite to the rest of the world; satellite earth stations - 3 (2008).

The Armenia country dialing code is +374.

2. Internet

The Armenia country internet code is “.am”. Arminco’s (the national communications company’s) fibre optic connection to the Internet enters Armenia through Georgia and then connects to the rest of the Internet via an undersea fibre-optic cable in the Black Sea. Armenia is connected to the Trans-Asia-Europe (TAE) fibre-optic cable system via Georgia, which runs along the railroad from Poti to Tbilisi and the Armenian border. At Poti, the TAE cable connects to the undersea Georgia-Russia system KAFOS which then connects to the Black Sea Fibre Optic Cable System (BSFOCS). The BSFOCS is co-owned by Beeline.

The main way to connect to the Internet is by dialing up because of the very high price of Internet access. Very few people can use other types of connection. The average price for an hour dial-up Internet access is about 48 cents, plus 20 cents for using the phone line. ADSL31 is also available and is offered by Beeline, Cornet, Arminco, and others. 3.Media

There are 2 public television networks operating alongside more than 40 privately-owned television stations that provide local to near nationwide coverage. Major Russian broadcast stations are widely available. Subscription cable TV services are available in most regions. Public Radio of Armenia is a national, state-run broadcast network that operates alongside about 20 privately-owned radio stations. Several major international broadcasters are available (2008).

X. VULNARABLE CASES

Citizens of other countries holding an appropriate residence status, people without citizenship, and people with refugee status are all entitled to allowances. The allowances in question are: family benefits; benefit for the care of children under age two; and the lump sum benefit for a child’s birth. There is further assistance, in the form of a lump sum payment, which is made to families eligible for family allowances. It includes: child’s birth benefit; benefit for a child accepted into the first grade at school; and benefit on the death of a family member. Finally, there is emergency assistance, which is payable for a quarter year to families that have found themselves in difficulties but are not eligible for family benefit.

1.Employmentandvocationaltrainings

Special enterprises have been established by employees to provide employment to disabled people, along with vocational training.

Since 2005, CHF International has been working with USAID to promote job creation for vulnerable, rural communities in Armenia. Working in close collaboration with the Government of Armenia, local organizations, and communities, the CHF program provides employment opportunities through small-scale, labor-intensive infrastructure

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projects. In cooperation with local organizations, CHF mobilizes communities to target the most-needed infrastructure improvements, such as rehabilitating potable water systems, installing village gas distribution systems and improving kindergartens, community centers and other essential infrastructure.

2.OpportunitiesforVulnerablePeopletoSetupBusinesses

IOM Yerevan has a Micro-Enterprise Development Project, which has a scheme for providing micro-loans as well as assisting people with business plan to start up businesses in Armenia. IOM Yerevan helps individuals (including asylum seekers, VoTs, refugees and displaced people) to become self-sufficient through micro credit schemes, including micro enterprise training, and credit and employment opportunities. The aim is to reduce their dependence on humanitarian aid, reduce poverty and support effective reintegration.

3.HealthServicesforSociallyVulnerableCases

In-patient medical treatment is free to all Armenians for the following diseases and conditions:• All medical treatment is free to patients who are less than 18.• Treatment of diseases and conditions requiring immediate medical intervention are

free to people aged 18 or more.

Treatment of certain diseases at medical institutions in Yerevan City is free but a co-payment is applicable to people aged 18 and older. The diseases are: - paroxysmal tachycardia (pre-infarction situation); - hypertension stroke; - hemophilia; - serum related diseases; - acute thromboses and thromboembolism; - poly-neuropathy (Giyen-Barrey) with development of paralysis; - acute renal failure; - renal colic; - acute urine retention; - frostbite of 1st, 2nd and 3rd degrees; - acute glaucoma stroke; - traumas to visual organs, disorder of eye-ball integrity; - pneumotaxis (hydro, hemo, pio, spontaneous); - sepsis; - external and internal (venous and pulse) diffuse bleeding requiring immediate

medical aid; - fresh fractions of big bones (closed and open) with displacement of pieces; - full or partial amputations of limbs, the segments thereof and different organs

(nose, ear, lips, etc.); acute diffused wounds with tissue defects; - ruptures and exfoliations of vascular aneurisms; - brain, spinal cord and spinal injuries (in the acute period); - acute hydrocephaly; - open gunshot wound with injuries to breast, abdomen, internal organs, brain and

spinal cord; burns to the external layer of the body: 1st degree – more than 50% of the body area; 2nd degree - more than 10% of the body area; 3rd and 4th de-grees - burns to 1%, and more than 1%, of the body, respectively;

- acute testicular diseases (testicle twisting, testicle supplement twisting, acute specific and non-specific epididymis, hydrated gangrene).

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The following people are exempt from co-payment:

• people in socially vulnerable groups; • people deemed to belong to a vulnerable group (after a determination by the Ministry of

Health and the Municipalities, and a medical commission), in cases where treatment is given to people in a socially vulnerable condition, though they are not formally included in a socially vulnerable group;

• pensioners.

Free outpatient medical treatment is not available in the following cases:

• an examination made with the use of complex and expensive technologies; • medical services provided to support the issue of a driving license; • compulsory medical examinations of people aged 18 or above, or procedures

(intramuscular and intravenous injections, etc.) implemented by a nurse at home according to a physician’s prescription, which the law determines should be paid for by employers, and who are not included amongst the vulnerable groups;

• preliminary medical examinations of people aged 18 and above for the purposes of obtaining a job;

• the issue of a certificate attesting the state of health of someone going abroad; • consultation and examination by another district medical service centre at the patient’s

request; • specialised stomatological medical aid (this service is free only for people included in

the socially vulnerable groups).

4.HousingProvisionforVulnerableCases

The United Methodist Committee on Relief (UMCOR), and the Hope and Help NGO run safe havens for victims of trafficking.

UMCOR14, Karapet Ulnetsu str., Yerevan tel. +37410 248 141, 282977, e-mail umcor@umcor.am; http://umcor.am/

the Hope and Help NGO37 Pushkin Str., Apt. 5, Yerevan, tel. +37410 53 48 34, e-mail info@hopehelp.am, http://hopehelp.am/

5.EducationforVulnerablePeople

There are dedicated education institutions (boarding or extended-day) for children with special educational need, which offer general and targeted educational programmes. There are 54 public boarding institutions, of which 41 are for children with physical and mental disabilities; 5 are for children deprived of parental care or for children from socially vulnerable families, and there are also 8 special schools for particularly gifted children.

Recently, more effort has been made to educate children with physical and mental disabilities in mainstream schools to help integrate them into society. It is intended to bring the special education institutions fully within the new management and financing system for education.A list of specialized educational institutions is available athttp://www.edu.am/index.php?menu1=9&menu2=137&arch=0 (in Armenian only).

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XI. USEFUL LINKS

The President of the Republic of Armeniahttp://www.president.amThe Government of the Republic of Armeniahttp://www.gov.amArmenian Customs Servicehttp://www.customs.am Ministry of Healthhttp://www.moh.am/Ministry of Labour and Social Issueshttp://www.mss.amMinistry of Education and Science www.edu.am Ministry of Economy http://www.mineconomy.am National Statistics Service www.armstat.am Central Bank www.cba.am Ministry of Transportation and Communicationwww.mtc.am Ministry of Foreign Affairs www.armeniaforeignministry.com Ministry of Territorial Administration www.mta.gov.am Migration Agencyhttp://www.dmr.am/ State Occupation Service Agency www.employment.am State Social Security Service http://www.sif.am/ Armenian Legal Information Systemhttp://www.arlis.amwww.laws.amIOM Yerevanhttp://www.iom.int/armenia/IRRICOhttp://irrico.belgium.iom.int/US Department of Statehttp://www.state.govCIA the World Factbookhttps://www.cia.govCaritas Internationalhttp://www.reintegrationcaritas.beCaritas Armeniahttp://www.caritasarm.am/CHF International http://www.chfinternational.org/armeniahttp://www.chf.am/