Armenia Considering Importing Russian Goods Via Azerbaijan

In signs that regional relations, impacted by the Armenia-Azerbaijan conflict, are now returning to normal, Armenia is considering the possibility of importing various goods from Russia by rail through Azerbaijan, according to Nikol Pashinyan, the Armenian Prime Minister.

Armenia is landlocked, with its only regional sea access either via Azerbaijan on the Caspian or through Georgia via the Black Sea.

Pashinyan said, “Applications are currently being processed for the import of various goods from Russia through Azerbaijan. It is also necessary to understand how, in practice, goods can be exported from Armenia via the same route to Russia or Kazakhstan.” He was commenting on the import of a batch of wheat from Russia via rail transit through Azerbaijan for the first time since the 1990s.

On November 6, a shipment of around 1,000 tons of wheat sent by Russia via Azerbaijan arrived in Armenia. Russia has already announced that it will soon send another 132 train cars of wheat to Armenia through Azerbaijan.

As a member of the EAEU, Armenia engages in free trade with Russia, Belarus, Kazakhstan, and Kyrgyzstan, accessing a vast, tariff-free market. It also benefits from the EAEU’s trade agreements with countries like Vietnam and Serbia, as well as an expanded agreement with Iran, which reduces tariffs on 90% of goods traded between Iran and EAEU member states. This agreement strengthens Armenia’s position as a key transit route for Iran’s trade with the EAEU—the country is the only member of the union that shares a land border with Iran. Once construction of the key section of the North-South Highway—the 32-kilometer Kajaran–Agarak highway in Syunik, Armenia’s southernmost province bordering Iran in completed, Armenia will become part of the INSTC route connecting Russia with the Persian Gulf and will be able to contribute its own exports flows north and south.

With a population of approximately 2.97 million, Armenia’s GDP (PPP) stands at around US$64.43 billion, with a GDP (PPP) per capita of about US$21,746. The economy is projected to grow by 5.5% during 2025.

Bilateral trade between Russia and Armenia has reached record highs, increasing from US$2.6 billion in 2021 to US$5 billion in 2024. However, the Armenian Statistical Committee recorded a decline in trade with Russia of US$3.7 billion (-62.5%) during January-April 2025, according to data from June 2025. Russian Deputy Prime Minister Alexei Overchuk explained the decline in trade as a reaction by Russian businesses to Armenia’s discussions about rapprochement with the European Union (EU). Overall, this is perceived as an attempt by Yerevan to obtain more favourable concessions from Moscow, and trade has apparently rebounded in H2 2025, although some suspicions concerning Yerevan’s true intents remain.