Yerevan approves $8.5 million in subsidies to offset Russian market losses

The Armenian government has approved 3.14 billion drams ($8.5 million) in subsidies for exporters of fruits, vegetables, and flowers to help offset losses stemming from restricted access to the Russian market.

The decision was adopted at a Cabinet meeting on July 9, Caliber.Az reports, citing Armenian media.

Since June, the government has been compensating exporters for costs associated with entering alternative markets following restrictions imposed on imports of Armenian goods into Russia.

Under the subsidy scheme, exporters will receive 770 drams ($2.10) per kilogram of strawberries, 200 drams (54 cents) for apricots, 250 drams (68 cents) for peaches, plums, and nectarines, 275 drams (74 cents) for tomatoes, and 400 drams ($1.10) for peppers, with additional compensation rates applying to other agricultural products.

Economy Minister Gevorg Papoyan told the Cabinet that Armenia exported 784 tons of peppers, 200 tons of tomatoes, 109 tons of strawberries, 1,400 tons of sweet cherries, and nearly 3,000 tons of apricots in June. By the end of the first week of July, apricot exports had increased to 5,450 tons.

Papoyan also said Armenia exported 1.5 million litres of mineral water and 230,000 litres of wine during the month.

According to the minister, Armenian fruit is currently exported to 15 countries, vegetables to eight countries, and flowers to 25 countries, reflecting efforts to diversify export destinations.

He also stressed that the domestic market is not experiencing an oversupply of agricultural products.

Since May, Russia's Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) has gradually introduced restrictions on imports of agricultural products from Armenia.

Despite those measures, Russia remains the dominant destination for Armenian agricultural exports, accounting for more than 90% of the country's overseas shipments of agricultural produce.

By Vafa Guliyeva