Citing sanitary grounds, Russian authorities blocked multimillion-dollar imports of Armenian fresh fruits and vegetables, mineral water, flowers, fish and some alcoholic beverages in the run-up to Armenia’s June 7 parliamentary elections. The state agricultural watchdog Rosselkhoznadzor said the embargo has been extended to all other products subject to quarantine controls. It claimed to have detected dangerous pests in walnuts and dried peaches and tomatoes imported from the South Caucasus country.
“The ineffectiveness of the Armenian plant protection and quarantine service threatens the phytosanitary well-being of Russia and the EEU (Eurasian Economic Union),” it charged in a statement.
The statement came just hours after Prime Minister Nikol Pashinian’s government approved subsidies for more Armenian products exported to countries other than Russia. They now include apricots, cherries, plums, brandy, wine and mineral water.
The government said the decision will “somewhat alleviate” the impact of the Russian bans and help to diversify Armenia’s export markets. It offered on June 4 similar subsidies for exports of other fruits and vegetables as well as cut flowers.
The chief executive of Fresh Line, an Armenian company that has for years exported mulberries and other fruits to Russia, said it will make use of the scheme to sell them in the European Union and Ukraine. But Makar Petrosian, whose MAP company continues to export its brandy to Russia, reacted more cautiously.
“If the cognac subsidy is in place for one, two or six months, you won’t be able to find new markets,” Petrosian told RFE/RL’s Armenian Service. “You can only consolidate your presence in your existing [non-Russian] markets.”
Armenia - Farmers deliver grapes to a brandy distillery in Ararat province, 9Sep2013.
The EU condemned the Russian embargo last week, saying that Moscow is “weaponizing economic relations for political pressure” on Armenia. European Commission President Ursula von der Leyen also announced 50 million euros ($58 million) in urgent economic assistance to Yerevan and said the EU will open its market to “some Armenian products, in particular agri-food.”
Armenian agricultural exports to Russia have also grown rapidly over the past 10-15 years. According to Russian officials, they totaled over $700 million last year. Armenia’s overall exports to Russia reached almost $3 billion, compared with $667 million worth of goods exported to EU member states.
Speaking after Thursday’s cabinet meeting in Yerevan, Pashinian again pledged to get the Russians to lift the bans.
“With Russia, we will have a brotherly, friendly and patient discussion without engaging in disputes … and will settle all issues that need to be settled,” he told reporters.
Pashinian made similar statements during the election campaign. Some of his political allies claimed that Russia will swiftly lift the sanctions if Pashinian’s Civil Contract party wins Sunday’s elections.
However, Moscow has shown no signs of easing the economic pressure on Yerevan since the official election results gave victory to the ruling party. Senior Russian officials have said that the vote was marred by numerous irregularities. President Vladimir Putin has pointedly declined to congratulate Pashinian so far.
On Wednesday, Russian Foreign Minister Sergei Lavrov reiterated Putin’s calls for Yerevan to finally choose between seeking EU membership and remain part of the Eurasian Economic Union, which gives Armenian exporters tariff-free access to the Russian market.