Russian restrictions expose Armenia’s dependence on single export market, economist warns
Recent restrictions imposed by Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) on the import of products subject to quarantine control from Armenia have highlighted the country’s heavy dependence on the Russian market and raised new concerns about the feasibility of Armenia’s export diversification strategy, AzerNEWS reports.
According to Armenian media reports, economist Suren Parsyan said the restrictions have affected some of Armenia’s key export sectors, including fruits, vegetables, and flowers.
Parsyan noted that Armenia remains highly dependent on Russia for agricultural exports. According to his estimates, around 90 percent of Armenian fruit exports and approximately 98 percent of vegetable exports are destined for the Russian market.
“The main market for Armenian vegetables, fruits, fish products, alcoholic beverages, and flowers is more than 90 percent the Russian Federation,” he stated.
The economist argued that while the Armenian government has increasingly emphasized access to European markets, the primary challenge is not customs tariffs but compliance with European standards and regulations.
“Armenian products must comply with European standards and regulations, which are quite strict,” Parsyan said.
The impact of the Russian restrictions has been particularly visible in Armenia’s flower industry. Following limitations on Armenian flower exports, producers have reported a sharp decline in domestic prices and sales.
According to News.am, flower growers and traders at the wholesale flower market near Hrazdan Stadium say that products originally intended for export are now being redirected to the domestic market, creating oversupply and driving down prices.
“Previously, a bunch of sunflowers was sold for 2,000 drams, but now they can barely buy the same bunch for 200 drams. Everyone is trying to sell the flowers as quickly as possible before they spoil,” one producer said.
Farmers also reported that significant quantities of flowers are being discarded due to the lack of alternative export channels and the perishable nature of the products.
Although Armenian authorities have pledged support for the sector and promised to explore alternative export destinations, many producers claim they have yet to receive concrete information about assistance mechanisms.
According to Armenia’s Ministry of Economy, approximately 961,000 flowers have been exported to various foreign markets, including destinations in Europe and the Middle East, since the beginning of June.
The developments come amid broader discussions regarding Armenia’s geopolitical and economic orientation.
Russian Foreign Ministry spokeswoman Maria Zakharova stated on June 22 that Russia, Belarus, Kazakhstan, and Kyrgyzstan expect Armenia to clarify its position regarding future relations with the Eurasian Economic Union (EAEU) and its aspirations for closer integration with the European Union.
Zakharova recalled that the leaders of the four EAEU member states emphasized in their May 29 joint statement the importance of holding a national referendum in Armenia regarding membership in supranational organizations, describing it as the constitutional mechanism for making such decisions.
She added that the governments of Russia, Belarus, Kazakhstan, and Kyrgyzstan are expected to prepare a joint report on the issue ahead of the Supreme Eurasian Economic Council meeting scheduled for December.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!
