The flow of gold from Russia no longer goes through Armenia. The reason is administrative in nature and unrelated to Armenian-Russian relations, according to Armenian Finance Minister Vahe Hovhannisyan.
"There was an export duty in Russia that caused the gold flow to go through Armenia. Russia has lifted this export duty, and now this flow goes directly," the minister noted in an interview with Civilnet.
Thus, as the minister acknowledged, the previously existing re-export of gold through Armenia has ceased.
BMG previously reported that the sharp increase in the jewelry sector in Armenia is largely due to the re-export of gold from Russia to the United Arab Emirates and Hong Kong. Economists note that this growth is significantly driven by external factors, making it unsustainable and potentially unstable if external conditions change.
These considerations regarding the re-export of Russian gold are confirmed by official data, cited by another economist Suren Parsyan.
“Armenia exported $4 billion worth of Russian gold in a few months and became one of the countries providing revenue for the Russian budget. This economic growth is, in a way, a result of inflating a bubble,” Suren Parsyan said in an interview with BMG.
In his view, Armenia has gained this re-export opportunity by pursuing a “pro-Western foreign policy,” which, from the economist’s perspective, allows Yerevan to avoid secondary Western sanctions.
Armenia's GDP increased by 9.2% in the first quarter compared to the same period last year, exceeding $5 billion. In the first quarter of 2024, GDP per capita in Armenia was 653,721 drams ($1,685) compared to 608,356 drams ($1,560) for the same period last year.
The economic growth of Armenia in the state budget for 2024 is projected at 7%, with inflation set at 4% (±1.5%).
