Russia – Armenia Bilateral Trade Increases 91% In 2024

The Deputy Prime Ministers of Russia and Armenia – Alexei Overchuk and Mher Grigorian, have highlighted the continuing rapid growth of Russian-Armenian trade during the Russian-Armenian intergovernmental commission on economic cooperation meeting in Moscow on Friday (December 20). Overchuk said “Our trade and economic relations continue to be on the rise. I can say that mutual trade between our countries is reaching new records.”

Bilateral trade nearly doubled to US$10.2 billion in the first ten months of this year said Overchuk. Armenia’s Statistical Committee reported an even higher figure: almost US$10.9 billion, up by 91% from the same period of 2023. Grigorian said “The almost twofold increase in trade is impressive. We hope that another double-digit growth will be recorded by the next commission meeting.”

An Armenian government statement quoted Grigorian as saying during the meeting: “I would like to once again reaffirm our firm commitment to fully realizing the existing potential for the consistent development of cooperation between Armenia and Russia.”

The two vice-premiers said they discussed ways of further facilitating commercial links between their countries. Overchuk spoke of “a number of issues related to improving transport links between Armenia and Russia.”

Bilateral trade has skyrocketed since the February 2022 outbreak of the war in Ukraine, with Armenian entrepreneurs taking advantage of Western sanctions against Moscow to re-export many Western-manufactured goods to Russia. Much of that travels via Georgia.

Armenia has also become a conduit for exports of Russian gold and diamonds to world markets and to the United Arab Emirates (UAE) in particular. This has been the main driving force behind the doubling of Russian-Armenian trade recorded in January-October 2024.

Armenian government data shows that Russian exports to Armenia tripled in the ten-month period to nearly US$8.3 billion. The South Caucasus country in turn reported a sixfold surge in its exports to the UAE worth about US$4.9 billion.

Russian officials regularly stress the benefits for the Armenian economy of having tariff-free access to Russia’s vast market guaranteed by its membership in the Eurasian Economic Union (EAEU).

However, there have been tensions between the two countries in other spheres, as the Armenian Prime Minister Nikol Pashinian, continues his current policy of re-orienting the country towards the West. Armenia has declined any further participation in the regional Collective Security Treaty Organization (CSTO) alliance, partially because of its own problems with neighbouring Azerbaijan. It is also seeking closer relations with the European Union, while Brussels wants Yerevan to cease its trade with Moscow. Russian officials however have warned that Armenia risks losing it EAEU trade benefits as well as discounts on the price of Russian natural gas if it does so.

Pashinian froze Armenia’s membership of the CSTO, and said its formal withdrawal from the military alliance of ex-Soviet states is only a matter of time. But he has been careful not to signal any exit from the EAEU as well.

In fact, Pashinian praised the trade bloc when he chaired a meeting of the prime ministers of its member states in Moscow last week. Armenia’s Deputy economic minister noted that Armenia’s annual exports to the other EAEU member states have increased more than tenfold ever since it joined the bloc in 2015. Russia has absorbed the bulk of those exports.