EU Courts Armenia as Russia Limits Trade

Diplomat Hrachya Tashchyan argues the European Union is actively seeking to broaden Armenia’s economic partnerships as Russia restricts its imports. Since May, Russia has implemented increasing limitations on goods from Armenia, initially targeting agricultural products and expanding to all quarantine-controlled items citing phytosanitary concerns.

In response, the EU is preparing to offer Armenia duty-free access to its market of 450 million consumers for approximately 80% of its exports, potentially creating a unilateral free trade regime. While Armenia currently benefits from trade within the Russia-led Eurasian Economic Union (EAEU), Tashchyan contends that sustained economic development requires stronger institutions and diversified economic ties.

He notes Armenia’s GDP per capita is around $9,000, a level where democratic institutions become critical for continued growth, something the EAEU doesn't prioritize. Tashchyan believes leveraging existing agreements like the Comprehensive and Enhanced Partnership Agreement will best position Armenia for long-term economic health, even while maintaining its EAEU membership and advocating for its interests within the bloc.