Page 42 - Small Stans and Causcasus Outlook 2022

followed by revaluation reserves (mainly PPE and financial assets
revaluation reserves) with a 3% (AMD25bn) share. Four banks declared
dividends in the first nine months of 2021, amounting to AMD11.2bn
split between Inecobank (AMD7.5bn), ACBA Bank (AMD2.5bn), AEB
(AMD1.05bn) and Ardshinbank (AMD130mn).

3.1.3 Industry

According to official statistics, Armenia’s industrial output totalled
AMD1.848tn from January to October 2021. This figure represented a
1.1% increase over the same period last year. Industrial production
started the year slowly, with AMD137bn of output in January, a 10.8%
decrease from the same period last year. It then grew steadily to reach
AMD226bn in October, which represented a 3.9% increase y/y. The
most productive month in terms of year-on-year increase was April,
where AMD180bn constituted a 16.9% increase over the same period
last year.

Manufacturing is the most important sector of Armenia’s industrial
output and accounts for 61% of total production. The largest segments
within manufacturing are: food products (20%); metals (11%); tobacco
(9%); and drinks (7%). Electricity, gas, steam and air conditioning
supply accounts for 20% of total output; mining and quarrying for 18%;
and water supply, sewerage, waste management and remediation for
1%.

3.1.4 Energy & power

According to the US Department of Commerce, Armenia has sufficient
electricity-generating capacity to meet current domestic needs, but
electricity demand is projected to grow by up to 3%. Electricity in
Armenia is generated primarily by the Armenian Nuclear Power Plant
(ANPP), hydroelectric plants, and thermal plants. Solar energy
provides only a fraction of current power generation.

The ANPP, located in the town of Metsamor and with an operating
capacity of 385 megawatts (MW), meets about 40% of Armenia’s
demand for electricity. Armenia is under international pressure to
decommission this plant for safety reasons. Additional restoration work
conducted by Russia’s state nuclear company Rosatom in 2021
extended the plant’s life to 2026. According to its Strategic Programme,
the government is prioritising a further extension of the operational
lifetime of ANPP into 2036. After that, the government plans to
maintain nuclear power in the country’s energy mix.

Hydroelectric plants generally provide an additional 20% of Armenia’s
electricity demand, but the levels of generation depend on seasonality

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