Armenia not considering EEU exit, finance minister says

By Elen Muradyan

Armenia's government is not considering a scenario in which the country would leave the Eurasian Economic Union (EEU), Finance Minister Vahe Hovhannisyan told CivilNet on Friday, adding that the economic risks posed by Russia's recent restrictions on Armenian agricultural exports are manageable.

The minister said the government had conducted a comprehensive review of Armenia's export volumes to Russia and other EEU countries, modeling a range of scenarios and their economic impact.  

Hovhannisyan said the actual volume of Armenian exports affected by Russia’s recent extensive trade restrictions is smaller than earlier predictions suggested. He cited an assessment by Central Bank Governor Martin Galstyan, who said last month that the exposed trade accounts for close to 2% of GDP, while the Finance Ministry's own calculations put the figure at about 1.8 percent.

"This is something we can manage, and we will manage it by putting in place support programs," Hovhannisyan said. "We will help our businesses avoid short-term problems, and in the medium term we will help them access other markets."

The minister said the possible loss of access to the Russian market does not mean permanent loss of revenue for Armenian exporters.

"If we say this concerns 1.8 % of GDP, that doesn't mean we've lost that 1.8%, because we will sell it elsewhere, until political-level issues or product quality issues are resolved," he said.

Trade tensions with Moscow

Russia began imposing economic pressure on Armenia during and after the campaign for the June 7 parliamentary election, restricting the imports of Armenian goods. In late April, Russia's consumer protection agency, Rospotrebnadzor, cited quality concerns to restrict imports of Jermuk mineral water. The restrictions later expanded to Armenian flowers, alcoholic beverages, food products, and other goods. Analysts have linked the timing of the measures to the parliamentary vote, saying Moscow sought to influence Armenian voters toward pro-Russian candidates, aiming to present the ruling government as responsible for the trade disruptions.

Also on Friday, Armenia’s Prime Minister Nikol Pashinyan spoke by phone with Russian Prime Minister Mikhail Mishustin. According to an official readout, the two discussed bilateral trade and economic cooperation, but no specific details were disclosed.

Russia remains Armenia's largest trading partner. According to Armenia's Statistical Committee, Russia accounted for 36.3% of Armenian exports in the first quarter of 2026, compared with 14.1% for the European Union. 

Moscow's frustration with Yerevan intensified after Armenia hosted the European Political Community Summit in May, attended by Ukrainian President Volodymyr Zelensky. During his speech in Yerevan, Zelensky threatened to attack Moscow’s Victory Day parade with drones, which caused strong diplomatic pushback from the Kremlin toward Yerevan.

Armenia adopted a non-binding law in March 2025 that declared the country’s intention to seek European Union membership. Russia has since then repeatedly referenced the step as it pressed Yerevan on its EEU commitments. On May 29, the EEU's four other member states urged Armenia to hold a referendum on whether to pursue EU membership or remain in the Russian-led bloc. Pashinyan has since then responded to the demands saying holding such a referendum would make no sense before Armenia formally applies for membership.