Economics: Russia channels precious metals through Armenia to evade sanctions

The international public association for economic research, Economics, has released the final results of a study analyzing Armenia’s import-export operations, highlighting that some trade flows may be financing Russia’s war in Ukraine.

Fikret Yusifov, chairman of the organization, told a briefing that one of the main sources of funding for Russia’s military actions comes from import-export transactions routed through Armenia, as Caliber.Az correspondent reports from the scene.

“The introduction of international sanctions against Russia and the sharp rise in Armenia’s foreign trade turnover are closely connected: one is the cause, the other is the effect. According to data from the Armenian State Statistics Committee and international organizations, Armenia’s foreign trade turnover has increased 4.2 times over the past five years, from $7.1 billion to $30.2 billion. In 2021, Armenia imported goods from Russia worth just $1.8 billion. By 2024, this figure had grown 5.1 times, or by $7.4 billion, reaching $9.2 billion. Of this total, $6.9 billion, or 75%, consists of precious and semi-precious stones and precious metals,” Yusifov explained.

He emphasized that these imported precious and semi-precious stones and metals are not intended for domestic use in Armenia but are largely re-exported to third countries.

“How can a poor population in a country that suffered a heavy defeat in the 44-day war of 2020, whose economy collapsed, suddenly purchase so many jewels and precious stones abroad? With what funds? This is an absurd falsification, a disguised economic operation, the result of a deal between the two countries. Russia uses funds obtained from import-export operations through Armenia to carry out attacks on Ukraine’s civilian population. This cannot be concealed,” Yusifov added.

He further explained that Armenia exports these imported goods to other countries under the guise of domestic products. In 2020, the volume of such exports—precious and semi-precious stones and metals—was only $368.8 million. By 2024, this had risen to more than $8.4 billion, an increase of 23 times in five years.

“Thus, Armenia imports goods from Russia that are subject to sanctions, and by concealing their origin and exporting them to third countries as its own products, it openly facilitates Moscow’s evasion of international sanctions,” Yusifov concluded.

By Tamilla Hasanova