EU offers Armenia tariff-free access and €18 million in aid to counter Russian trade pressure

Russian trade restrictions

In the run-up to Armenia's June 7 parliamentary election, Moscow imposed a series of import bans on Armenian goods, including fresh produce, flowers, fish, and alcoholic beverages. Russian authorities cited sanitary and phytosanitary concerns, but the move was widely seen as economic coercion aimed at punishing Yerevan for its pro-Western pivot. The restrictions hit key export sectors and came just weeks after the EU pledged a €52 million support package.

EU response

Visiting Yerevan on Thursday, European Commission President Ursula von der Leyen announced that the EU would remove tariffs on nearly 80% of Armenian exports, granting duty-free access to the bloc's 450 million consumers. She also confirmed the imminent disbursement of the remaining €18 million from the June package, bringing total EU financial aid to Armenia to €288 million.

Armenia is still facing significant economic pressure from Russia. But rest assured: when pressure mounts on our partners, the EU steps up. You can count on us.

The tariff waiver, which still requires approval from the European Parliament and the Council, would cover 99% of fresh fruit and vegetable exports and over 91% of beverage and spirits exports that previously went to Russia.

Armenia's pivot

Prime Minister Nikol Pashinyan's Civil Contract party secured 49.8% of the vote in the June election, cementing a mandate for closer ties with the EU. Russia, which maintains a military base in Armenia and accounts for 35% of its foreign trade, has warned of severe consequences. President Vladimir Putin compared Armenia's trajectory to Ukraine's, suggesting that Kyiv's EU aspirations triggered the 2022 war.

The real danger signal will be when Putin asks to renegotiate the gas price. We are not there yet.

Armenia remains heavily dependent on Russia for energy and wheat, but the EU's trade measures aim to redirect exports toward European markets. Von der Leyen noted that Armenian flowers were already reaching EU consumers in greater numbers, calling it a symbol of the new chapter.

Regional context

The EU is also backing connectivity projects across the South Caucasus. On Wednesday, von der Leyen visited Azerbaijan and pledged €200 million in grants for transport, energy, and digital links, part of a "Connectivity for Peace" initiative that could unlock up to €2 billion in public and private investment. The bloc views Armenia as a pillar of stability and welcomes progress toward normalisation with Turkey and a peace deal with Azerbaijan.