Intelligence report: Armenia’s economy at risk due to sanctions on Russia, Iran

Armenia faces significant economic challenges in 2025 due to sanctions imposed on key trading partners, Russia and Iran, according to an annual report published by the Armenian Foreign Intelligence Service (SVR).

According to Armenian media, cited by Caliber.Az, the report highlights that the risks of secondary sanctions — penalties that could be imposed on Armenia for conducting business with sanctioned entities — will remain a pressing concern.

 The SVR noted that these sanctions limit the utilisation of Armenia's economic potential.

"One of the important economic challenges for the Republic of Armenia is the sanctions imposed on some of its trading partners, in particular the Russian Federation and the Islamic Republic of Iran," the report states. "The risks associated with secondary sanctions will remain relevant for Armenia in 2025 as well."

The SVR analysts predict that the likelihood of these sanctions being cancelled or eased in 2025 is low, further compounding the challenges faced by Armenia.

Additionally, the ongoing conflict in Ukraine continues to create broader economic uncertainties for the country. The report stresses that the instability stemming from the war adds another layer of risk to Armenia's economic outlook.

By Tamilla Hasanova