This statement was made during a meeting with Armenian Prime Minister Nikol Pashinyan. According to Putin, in the first half of 2024, the trade turnover between the two countries increased 2.5 times, surpassing $8.3 billion. If this growth continues, the annual trade volume could indeed reach record levels, highlighting the deep strategic ties between Moscow and Yerevan.
Despite public statements about a crisis in relations, economic ties between Russia and Armenia have not only been maintained but have strengthened significantly. For instance, in 2021, the trade turnover was $2.6 billion, and by 2022, it had increased by 91.7%, reaching $5 billion. In 2023, the figure rose further to $7.4 billion, and a new record is expected for 2024.
Russia continues to play a key role in Armenia’s economy, making Yerevan heavily dependent on trade and economic relations with Moscow. In 2023, Russia accounted for the largest share of Armenian exports, totaling $3.38 billion, a significant increase from $794 million in 2021. This growth underscores Armenia’s increasing economic dependence on Russia, especially amid sanctions and the current geopolitical situation.
A major factor in the growth of Armenian exports has been the significant increase in the supply of sanctioned goods and dual-use products. With its limited industrial capacity, Armenia would hardly be able to ensure such a sharp increase in export volumes on its own. Much of the trade involves re-exporting and purchasing foreign goods, including products that Russia is unable to obtain directly due to sanctions.
| № | Product Name | Export 2021 (USD) | Export 2023 (USD) | Export Growth |
|---|---|---|---|---|
| 1 | Electrical equipment for wired telephony or telegraphy | 58 thousand | 499.80 million | 8600 times |
| 2 | Television receivers | 14.5 thousand | 250.21 million | 17,000 times |
| 3 | Electromechanical tools and parts | 34.3 thousand | 31.66 million | 922 times |
| 4 | Microphones, speakers, headphones | 32.8 thousand | 24.6 million | 750 times |
| 5 | Electronic integrated circuits and microchips | 1.72 thousand | 15.49 million | 9,000 times |
| 6 | Electrical devices for switching or protecting electrical circuits | 1.84 million | 15.12 million | 8 times |
| 7 | Switch parts, circuit breakers, relays | 87 thousand | 5.82 million | 67 times |
| 8 | Transmitting devices for radiotelephony, television, wireless phones | 120 thousand | 4.77 million | 40 times |
| 9 | Electrical machines and apparatus with individual functions | 137 thousand | 4.46 million | 32 times |
| 10 | Electric starters for internal combustion engines | 474 thousand | 2.55 million | 5 times |
| 11 | Video recording or playback equipment | 896 thousand | 1.98 million | 2.21 times |
| 12 | Sound recording media | 10.5 thousand | 1.94 million | 184 times |
| 13 | Electric motors and generators (excluding sets) | 351 thousand | 1.88 million | 5.36 times |
| 14 | Radar equipment, radionavigation equipment | 48.8 thousand | 718 thousand | 14.7 times |
| 15 | Cars and vehicles for passenger transport | 3.47 million | 379 million | 109 times |
| 16 | Spare parts and accessories for cars | 9.62 million | 17 million | 1.7 times |
| 17 | Trucks | 167 thousand | 12.1 million | 72 times |
| 18 | Tractors | 82.6 thousand | 11.6 million | 140 times |
| 19 | Trailers and semi-trailers | 95.3 thousand | 10.3 million | 107 times |
| 20 | Diamonds, processed or unprocessed | 67.6 million | 234 million | 46 times |
| 21 | Jewelry and precious metal products | 902 thousand | 49.7 million | 55 times |
| 22 | Gemstones (excluding diamonds) | 7.79 million | 30.1 million | 3.8 times |
| 23 | Data processing machines | 1.37 million | 86.1 million | 62 times |
| 24 | Air conditioners | 197 thousand | 31.4 million | 60 times |
| 25 | Washing machines | 2.09 million (2022) | 25.9 million | 12 times |
| 26 | Refrigerators, freezers, heat pumps | 214 thousand | 11.5 million | 53 times |
| 27 | Valves and similar fittings for pipes, tanks, etc. | 616 thousand | 11 million | 53 times |
| 28 | Dishwashers | 32.4 thousand | 3.75 million | 116 times |
| 29 | Internal combustion engine parts | 1.22 million | 4.02 million | 3.3 times |
| 30 | Forklifts | 16.7 thousand | 2.2 million | 132 times |
| 31 | Bulldozers, graders, scrapers | 5.5 thousand | 3.62 million | 658 times |
| 32 | Ball or roller bearings | 175 thousand | 1.96 million | 11 times |
| 33 | Internal combustion engines (compression ignition) | 25.9 thousand | 1.86 million | 72 times |
| 34 | Internal combustion engines (spark ignition) | 49 USD | 1.42 million | 28,000 times |
| 35 | Non-electric machine parts | 2.31 thousand | 1.37 million | 593.5 times |
| 36 | Gaskets and similar sheet metal connections | 362 thousand | 1.37 million | 3.8 times |
| 37 | Other engines and motors | 71.6 thousand | 1.6 million | 22 times |
| 38 | Rubber or plastic processing equipment | 68 thousand | 1.3 million | 19 times |
| 39 | Optical fibers and cables | 45.4 thousand | 15.8 million | 347.5 times |
| 40 | Instruments and apparatus for physical and chemical analysis | 195 thousand | 8.37 million | 50 times |
| 41 | Oscilloscopes, spectrum analyzers | 511 thousand | 4.69 million | 9 times |
| 42 | Surveying, hydrographic, oceanographic equipment | 111 thousand | 1.97 million | 17.8 times |
| 43 | Hydrometers, thermometers, pyrometers, barometers | 20.3 thousand | 1.8 million | 89 times |
| 44 | Aluminum plates, sheets, and strips thicker than 2 mm | 106 thousand | 2.87 million | 27 times |
| 45 | Aluminum foil less than 2 mm thick | 64.7 thousand | 2.49 million | 38.5 times |
| 46 | Aluminum structures and parts | 125 thousand | 1.8 million | 14.4 times |
| 47 | Ferroalloys | 12.1 million | 72.95 million | 6 times |
Conclusion
It is clear that Armenia’s economy, with its limited industrial potential, is not capable of independently driving such a sharp increase in trade turnover. Thus, the rapid growth of trade in recent years has largely been achieved through various re-export schemes and the resale of foreign goods and equipment, including dual-use products.
Nurad Mammadov, Advisor at the Center for Analysis of International Relations
Translated from aircenter.az
