Armenia remains dependent on Russia despite tilt towards West
By News.Az
In recent years, the geopolitical situation in Armenia has continued to attract the interest of the global community. The meeting between Russian President Vladimir Putin and Armenian Prime Minister Nikol Pashinyan in the Kremlin on 8 May 2024 marked another significant moment in the history of bilateral relations. The declared main topic of the negotiations — economic issues — shows that the two countries are interdependent, especially in the context of economic sanctions and regional security.
Putin, citing statistics, pointed to a record rise in the trade turnover between Armenia and Russia, which reached $7.3 billion in 2023. This is 14 times more than in 2015, which demonstrates a significant deepening of economic ties within the Eurasian Economic Union (EAEU). This situation makes Armenia one of Russia's key economic partners in the region, despite the lack of a common border with other EAEU countries.
Since the start of the war in Ukraine, Armenia appears to have been playing the role of a transit hub for Russian goods subject to Western sanctions. During this period, exports from Armenia to Russia significantly increased, including the resale of goods from countries such as the UAE, China, and Europe. This has allowed Armenia to achieve a positive trade balance with Russia, which was previously unattainable.
It is no surprise that on the same day as Pashinyan was in Moscow, the Armenian Ministry of Foreign Affairs announced the cessation of funding for the Collective Security Treaty Organization (CSTO). This statement, made at a critical moment, could be seen as an attempt by Yerevan to balance the need to maintain good relations with Russia and the desire to improve its relations with the West.
Paradoxically, despite an annual economic growth of 12.7%, energy consumption in Armenia is decreasing, indicating the country's unusual methods of economic adaptation to new realities. It is important to note that a significant part of Armenia's economic success is linked to the re-export of goods to Russia, which allows it to circumvent Western sanctions.
In addition to economic dependence, Armenia plays an important role in military-technical cooperation with Russia. The import of electronic equipment from Armenia, necessary for the production of missiles used by Russia in military conflicts, especially in Ukraine, underscores the strategic importance of Armenia to Russia in circumventing international restrictions.
The relationship between Armenia and Russia remains complex and multifaceted, combining economic interdependence and strategic partnership. Armenia's economic success, achieved through re-export and circumvention of sanctions, along with political manoeuvres aimed at rapprochement with the West, positions the country as a key player in the post-Soviet area. At the same time, ongoing military-technical cooperation with Russia highlights the complexity and contradictions of this alliance.
In recent years, the geopolitical situation in Armenia has continued to attract the interest of the global community. The meeting between Russian President Vladimir Putin and Armenian Prime Minister Nikol Pashinyan in the Kremlin on 8 May 2024 marked another significant moment in the history of bilateral relations. The declared main topic of the negotiations — economic issues — shows that the two countries are interdependent, especially in the context of economic sanctions and regional security.
Putin, citing statistics, pointed to a record rise in the trade turnover between Armenia and Russia, which reached $7.3 billion in 2023. This is 14 times more than in 2015, which demonstrates a significant deepening of economic ties within the Eurasian Economic Union (EAEU). This situation makes Armenia one of Russia's key economic partners in the region, despite the lack of a common border with other EAEU countries.
Since the start of the war in Ukraine, Armenia appears to have been playing the role of a transit hub for Russian goods subject to Western sanctions. During this period, exports from Armenia to Russia significantly increased, including the resale of goods from countries such as the UAE, China, and Europe. This has allowed Armenia to achieve a positive trade balance with Russia, which was previously unattainable.
It is no surprise that on the same day as Pashinyan was in Moscow, the Armenian Ministry of Foreign Affairs announced the cessation of funding for the Collective Security Treaty Organization (CSTO). This statement, made at a critical moment, could be seen as an attempt by Yerevan to balance the need to maintain good relations with Russia and the desire to improve its relations with the West.
Paradoxically, despite an annual economic growth of 12.7%, energy consumption in Armenia is decreasing, indicating the country's unusual methods of economic adaptation to new realities. It is important to note that a significant part of Armenia's economic success is linked to the re-export of goods to Russia, which allows it to circumvent Western sanctions.
In addition to economic dependence, Armenia plays an important role in military-technical cooperation with Russia. The import of electronic equipment from Armenia, necessary for the production of missiles used by Russia in military conflicts, especially in Ukraine, underscores the strategic importance of Armenia to Russia in circumventing international restrictions.
The relationship between Armenia and Russia remains complex and multifaceted, combining economic interdependence and strategic partnership. Armenia's economic success, achieved through re-export and circumvention of sanctions, along with political manoeuvres aimed at rapprochement with the West, positions the country as a key player in the post-Soviet area. At the same time, ongoing military-technical cooperation with Russia highlights the complexity and contradictions of this alliance.
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