EU drafts emergency trade support package for Armenia to counter Russian import bans

The European Union is preparing emergency trade measures to support the Armenian economy following a series of import restrictions imposed by Russia.

The European Commission is working on a trade support program for Armenia to offset the impact of the Russian-imposed restrictions, according to a Financial Times report citing sources familiar with the matter.

Under the planned measures, tariffs on Armenian exports to the EU would be reduced. The framework, which covers approximately 20 product categories, is estimated to have an annual volume of around €420 million.

Sources indicated that the proposal could be formally presented in the coming weeks.

“The European Commission will propose autonomous trade measures to help more Armenian businesses access new market opportunities in the EU and to support the most affected sectors of the country’s economy,” European Commission Spokesperson Olof Gill said.

However, sources noted that the plan could encounter certain obstacles. Specifically, the export of Armenian brandy may trigger disputes with French producers.

Furthermore, Armenia’s landlocked geography complicates the transportation of perishable goods to European markets.

In late May, Russia banned the import of floral products from Armenia. The Russian Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) also halted the import and domestic distribution of all batches of Jermuk mineral water, citing exceedances of permitted levels of ions, chlorides, and sulfates.

The Russian restrictions also targeted brandies and wines from three Armenian producers, which Moscow alleged failed to meet mandatory standards. Additionally, limits were placed on imports of fresh tomatoes, cucumbers, greens, and strawberries.

Armenia’s Food Safety Inspection Body subsequently announced that it was conducting investigations to determine the causes of the restrictions and resolve the issue.

Following these developments, Prime Minister Nikol Pashinyan stated that the government was prepared to compensate affected farmers for their losses.

In early June, temporary restrictions on the import of stone fruits and grapes from Armenia came into effect. Cherries, sour cherries, apricots, plums, peaches, and nectarines were included in the ban.

A temporary ban on certification procedures for live fish destined for export to Russia was also put into effect.

Armenian Economy Minister Gevorg Papoyan announced on June 11 that Yerevan had applied to the Eurasian Economic Commission (EEC) regarding the barriers encountered in exporting goods to Russia.

Armenia remains a member of the Eurasian Economic Union (EEU) while simultaneously pursuing closer integration with the European Union.

Following the imposition of the Russian restrictions, European Commission President Ursula von der Leyen announced that the EU was preparing support for Yerevan in response to “economic pressure,” which includes financial assistance exceeding €50 million.