Home Armenian Government Allocates AMD 2 Billion to Support Exporters Amid Russian Restrictions

Armenian Government Allocates AMD 2 Billion to Support Exporters Amid Russian Restrictions

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Yerevan, June 4 – The Armenian government has approved a large-scale agricultural support program, allocating approximately 2 billion AMD (Armenian drams) to compensate greenhouse fruit, vegetable, and flower exporters. This measure is designed to help them find new markets amid ongoing restrictions imposed by Russia.

Government Subsidies for Exporters

According to the project approved during a government session, businesses exporting goods in June 2026 will receive clearly defined subsidies. The state has committed to paying 770 AMD per kilogram of strawberries, 275 AMD per kilogram of tomatoes, 400 AMD per kilogram of bell peppers, and 37 AMD per exported flower.

This decision was made after discussions with exporters, who emphasized the urgent need for financial assistance to remain competitive in new markets. The necessity for urgent redirection of trade flows stems from the sector’s heavy reliance on the Russian market and recent trade restrictions imposed by Russian regulatory bodies on Armenia.

Impact of Russian Restrictions

In 2025, the total volume of fresh fruit, vegetable, and flower exports from Armenia amounted to approximately 73 billion AMD, with over 93 percent of these exports going to the Russian Federation.

It is predicted that in June, the volumes eligible for support will include about 4,250 tons of fruits and vegetables and 10 million flowers. To benefit from state compensation, economic entities must submit a corresponding application to the Ministry of Economy, attaching transit declarations and invoices.

Russia’s temporary ban on imports of stone fruits and grapes from Armenia came into effect on June 2, as announced by Rosselkhoznadzor (Russia’s federal service for veterinary and phytosanitary surveillance). The restrictions cover cherries, sweet cherries, apricots, plums, peaches, nectarines, and fresh grapes, allegedly due to “frequent violations during deliveries.” This is not the first restrictive measure imposed by Russia against Armenian exports in recent weeks.

Earlier, Rosselkhoznadzor banned imports of fish and fish products from Armenia, with exceptions only for two enterprises that passed Russian inspections. Additionally, Russia has restricted imports of Armenian flowers, mineral water, brandy, wine, vegetables, and strawberries.

Geopolitical Context and Diplomatic Pressure

The Russian leadership had previously openly pointed to the need for Armenia to choose between Brussels and the Eurasian Economic Union (EAEU), emphasizing that rapprochement with European structures would inevitably create systemic complications for Armenia within the Eurasian space.

The situation visibly escalated at the EAEU summit in Astana at the end of May, where the union’s partners – Russia, Belarus, Kyrgyzstan, and Kazakhstan – issued a joint statement calling on Yerevan to hold a nationwide referendum in the shortest possible time to finally determine its foreign policy vector.

Moreover, the union members have initiated the preparation of a special report on the possible consequences of Armenia’s membership suspension, which is planned to be presented at the December session of the Supreme Eurasian Economic Council. Despite increasing diplomatic pressure, Nikol Pashinyan has reaffirmed Yerevan’s intention to continue planned and calm interaction within the EAEU framework until the geopolitical choice between the two economic blocs becomes completely inevitable.

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