Centrum Stosunków Międzynarodowych - 08 September 2016: Armenian PM Hovik Abrahamyan resigned after the July events in Yerevan

Prime Minister of Armenia Hovik Abrahamyan resigned on September 8. "We need a new approach, new start. That's why I've decided to resign and let the president form a new government," Abrahamyan said. His words are connected to the events, what took place in Armenia earlier this week. Armenian President Serzh Sarksyan has accepted Abrahamyan's resignation and he is in charge of appointing a new PM after consultations with parliament. The resignation comes shortly after that President said radical reforms in political and social life were needed, last week. He said it was necessary to form "a government of national accord" to provide a broader distribution and division of political responsibility.

The Republican Party of Armenia Vice President Armen Ashotyan told reporters the party has chosen the 53-year-old Karen Karapetyan as new Prime Minister candidate "considering Karapetyan's activity, his awareness of the economic issues, area of electric power and political issues, as well as his management skills and a number of traits." According to Ashotyan, the Government will be formed within the period stipulated by the Constitution.

In 2015, Armenia's economic growth started slowing to 3 percent from 3.5 percent in 2014 below the government's growth forecast of 4.1 percent and government's expectations of 2.2 percent growth in 2016. The government has also faced new escalation of violence in Azerbaijan's breakaway Nagorno-Karabakh region. Two months later a group of 30 armed men seized the police station and took hostages in the Armenian capital Yerevan. Attackers surrendered to the authorities after two weeks but the incident led to mass protests in the capital demanding the release of a jailed opposition politician and the resignation of the government and the president.

In presenting his country's development plan at the RPA Council session, candidate Karen Karapetyan referred to two stages: the first stage will consist of a series of fast changes and successes in order to inspire confidence towards the plan while, according to him, the second stage will be the vision of Armenia's long-term development.

Karen Karapetyan held as head of national gas distributing company ArmRosGazprom and later he served as Yerevan mayor. Afterwards, he was appointed as the first vice-president of Gazprombank in Moscow. He is currently deputy CEO of Gazprom's GAZP.MM Mezhregiongaz unit. Experts say the new government is likely to be temporary and the final configuration will emerge only after 2017 parliamentary election and the end of Sarksyan's second term in 2018, when the full transition from the semi-presidential form of government to a parliamentary republic will be completed.