World Bank warns of broad impact from Russian trade curbs on Armenia

Russian restrictions on Armenian agricultural imports risk weighing on Armenia’s broader economy, affecting growth, inflation and social conditions if they persist, the World Bank said in its July Armenia Monthly Economic Update.

Citing the report, MassisPost said the bank warned that prolonged or expanded curbs—if not offset by mitigating measures—could have consequences extending well beyond foreign trade.

The restrictions come amid worsening relations between Moscow and Yerevan. Russia has limited imports of a range of Armenian goods, including alcohol, flowers, mineral water, fish, stone fruits and grapes.

Economic data already point to an impact. Armenia’s exports to Russia fell 15% year-on-year in May, while total exports declined by 3.7% in the January–May period. The country’s trade deficit is projected to reach around 7% of gross domestic product.

Armenian authorities have said they will support affected exporters through compensation schemes and subsidies, and are seeking to diversify export markets. However, officials in Yerevan have stressed that they do not intend to redirect exports from Russia to Europe.

The government has also proposed compensating exporters for shipments barred from entering the Russian market.

Following the introduction of the restrictions, European Commission President Ursula von der Leyen said the European Union was ready to support Armenia under conditions of “economic pressure,” including through financial assistance exceeding €50 billion.

By Tamilla Hasanova