Armenia extends export subsidies amid Russian trade restrictions

Armenia has extended its export subsidy program for greenhouse vegetables, strawberries, and flowers through August as the government seeks to support exporters affected by ongoing restrictions on shipments to Russia.

Authorities said that from June 1 to July 23, the country exported 1,526 metric tons of greenhouse peppers, 770 metric tons of tomatoes, 213.4 metric tons of strawberries, and 5.8 million cut flowers weighing 58 metric tons, Caliber.Az reports, citing Armenian media.

Flowers were shipped to 26 countries, fruit to 19 countries, and vegetables to eight countries.

The government expects exports in August to reach approximately 4,100 metric tons of vegetables, 150 metric tons of strawberries, and 5.2 million flowers. It plans to allocate 1.71 billion drams (about $4.6 million) to finance the program. Authorities have also introduced a separate subsidy for exports of the Palermo pepper variety.

At the same cabinet meeting, the government unveiled a new support program for fish farms in the Ararat and Armavir regions that breed trout (ishkhan) and sturgeon. Under the initiative, the state will reimburse 20% of feed costs, up to a maximum of 900 drams ($2.43) per kilogram, to help the industry cope with Russian restrictions on imports of Armenian products.

Eligible feed must comply with the standards of the Eurasian Economic Union (EAEU) and the European Union. The subsidy will be available only to businesses that pay both corporate profit tax and value-added tax (VAT).

Prime Minister Nikol Pashinyan also called for a review of tax revenues from fish farming enterprises, saying the taxes paid do not reflect the scale of the industry. He further stressed the need for more efficient use of groundwater resources in the Ararat Valley.

Deputy Prime Minister Tigran Khachatryan said that as existing water-use permits expire, new licenses will be issued with lower extraction limits. He added that the government is preparing long-term programs to modernise the country's fish farming sector.

By Bakhtiyar Abbasov