In 2024, significant changes occurred in Armenia's foreign economic relations, reflecting the diversification of the country's economy and a reduction in dependency on Russia, according to Armenian Minister of Economy Gevorg Papoyan.
Minister Papoyan reported a substantial shift in Armenia’s export relationships. In an interview with Public Television, he revealed that the United Arab Emirates (UAE) has become Armenia’s leading trading partner, accounting for 46% of the country’s exports this year. This marks a significant change in the structure of Armenia’s foreign trade.
However, the minister did not disclose detailed information about the structure of exports to the UAE. According to statistical data, since late 2023, Armenia has been actively exporting gold and precious stones to the UAE, primarily as part of re-exports. Russian gold was being transported to the UAE through Armenia, which led to a sharp statistical increase in the processing of precious stones and metals within the country.
According to the World Bank, the share of jewelry products reached a record 72.3% of Armenia's total exports.
Nevertheless, Armenian Finance Minister Vahe Hovhannisyan stated that the flow of gold from Russia has ceased passing through Armenia as of approximately July this year. He noted that the reason for this change is "administrative."
As a result, Russia, which traditionally held a leading position in Armenian exports, has now fallen to second place, accounting for 18% of exports. It is followed by Hong Kong (17%) and China (9%).
Additionally, the Armenian Minister of Economy highlighted a slight reduction in Armenia's dependency on Russian natural gas.
According to the minister, the share of gas imports from Russia has decreased to 2.1%, equivalent to just 130 million cubic meters. He attributed this reduction to the active development of alternative energy sources, particularly solar energy.
BMG reminds that Armenia has been heavily reliant on Russian gas supplies. According to Gazprom, which dominates Armenia's gas market as both supplier and distributor, Armenia imported about 2.6 billion cubic meters of natural gas from Russia in 2022. This figure slightly decreased in 2023, amounting to approximately 2.4 billion cubic meters. The price of Russian gas for Armenia is $165 per thousand cubic meters.
Armenia also imports natural gas from Iran under a "gas-for-electricity" scheme. As of 2023, the volume of gas supplies from Iran was around 365 million cubic meters annually.
