According government statistics, Armenia’s trade with the other members of the Russian-led Eurasian Economic Union (EEU) soared by 41 percent, to $5.7 billion, in the first ten months of this year. Russia accounted for over 95 percent of that figure and 35 percent of the South Caucasus nation’s overall commercial exchange, compared with the European Union’s 15 percent share in it.
Russian-Armenian trade has increased dramatically since the EU and other Western powers imposed sweeping sanctions on Moscow over its invasion of Ukraine. Armenian entrepreneurs have taken advantage of the sanctions, re-exporting Western-manufactured cars, consumer electronics and other goods to Russia. This explains why Armenian exports to Russia tripled in 2022 and nearly doubled to $2.6 billion in January-September 2023.
Meeting with members of the Armenian parliament committee on regional and Eurasian integration, Kerobian said that the upward trend will continue in the years to come.
“The government is taking steps to diversify external economic activity,” he told the lawmakers. “In particular, by stepping up commercial exchange in no less important directions.”
The minister did not shed light on those steps or specify the countries with which the government hopes to deepen commercial ties.
Armenia’s trade with Russia has been soaring despite a deepening rift between the two longtime allies. Citing food safety concerns, a Russian government agency blocked the import of many food products from Armenia for more than a week last month. The Rosselkhoznadzor agricultural watchdog alleged a sharp increase in the presence of “harmful quarantined organisms” in them.
Observers believe that Moscow thus underlined its strong economic leverage against Armenia to warn Prime Minister Nikol Pashinian against further reorienting the country towards the West.
Russia has long been the main export market for Armenian agricultural products, prepared foodstuffs and alcoholic drinks. Their exports totaled roughly $960 million in January-October 2023.