Fitch warns Russia tensions pose risks to Armenia's economy

Fitch Ratings has warned that growing diplomatic tensions between Armenia and Russia could pose risks to the Armenian economy, despite affirming the country's long-term foreign-currency issuer default rating at "BB-" with a Positive Outlook.

In its latest assessment, the international credit rating agency said Armenia's strained relations with Russia, its largest trading partner, could have economic consequences because of the country's significant reliance on Russian energy imports.

Fitch said potential restrictions on imports from Russia and the possible loss of preferential natural gas supplies represent key emerging risks for the Armenian economy.

The agency also forecast that Armenia's real gross domestic product (GDP) growth would slow to 5.2% in 2026, down from 7.1% in 2025.

By Sabina Mammadli