The Armenian government is launching a two-year program to support exporters targeting EU countries and the United Kingdom, aiming to diversify external trade flows. The decision comes amid a growing trade imbalance with Russia.
At a Cabinet meeting on January 23, Minister of Economy Gevorg Papoyan introduced the new state support program for exporters to Europe. The program will focus on manufacturers in the processing industry, excluding the tobacco sector, oil refining, metallurgy, and jewelry production.
The choice of the European direction was justified by the market’s scale, with a population of approximately 450 million. However, current statistics indicate a 14.1% decrease in trade with the EU, dropping to $2.1 billion between January and November 2024. Germany ($444 million), Italy ($382 million), and the Netherlands ($167 million) remain Armenia’s largest European trade partners.
Meanwhile, trade turnover with Russia grew by 71.6% in the first 11 months of 2024, reaching $11.6 billion. This growth, however, is primarily driven by a 2.5-fold increase in imports to $8.6 billion, while exports to Russia declined by 10.1% to $2.95 billion. Russia’s share in Armenia’s foreign trade rose from 38.6% to 42.2%.
