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Armenia hopes it can resolve 'problematic issues' with Russia, PM Pashinyan says - Finance news and analysis from Global Banking & Finance Review
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Armenia hopes it can resolve 'problematic issues' with Russia, PM Pashinyan says

Published by Global Banking & Finance Review

Posted on July 6, 2026

2 min read

· Last updated: July 6, 2026

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Armenia Seeks to Resolve Trade and Political Issues with Russia, PM Says

Armenia's Diplomatic and Economic Relations with Russia

Recent Trade Restrictions and Political Tensions

MOSCOW, July 6 (Reuters) - Armenian Prime Minister Nikol Pashinyan said on Monday that he hoped the South Caucasus country could mend its relationship with Russia and resolve certain "problematic issues" which have arisen recently.

Moscow imposed wide-ranging trade restrictions on Armenia in the lead-up to an election last month, temporarily banning imports of many Armenian goods, including fresh produce, flowers, fish and alcoholic products.

Prime Minister Pashinyan's Visit to Russia

Joint News Conference and Key Statements

Pashinyan made the comments in a joint news conference with Russian Prime Minister Mikhail Mishustin in the Urals city of Yekaterinburg, in his first visit to Russia since winning re-election in a parliamentary vote in June.

Pashinyan said he saw the meeting, held as part of an international industrial exhibition, as "a good opportunity, as they say, to synchronise our watches."

"A number of problematic issues have arisen recently, and, of course, I hope that we will discuss and resolve these matters," he was quoted as saying by the Armenpress state news agency.

Shifting Alliances and Economic Dependencies

Armenia's Pro-Western Shift

Pashinyan has steered Armenia, a treaty ally of Russia's, in a pro-Western direction in recent years, drawing the ire of Moscow, which threatened to suspend Yerevan from the Moscow-led Eurasian Economic Union if the country continued to seek European Union membership.

Pashinyan's Civil Contract party was re-elected last month after defeating several pro-Russian opposition parties.

Commitment to Russian Relations and Economic Ties

Statements on Bilateral Cooperation

"We are committed to the further development of our relations with the Russian Federation. And, of course, we are keen to participate in the Eurasian Economic Union," Pashinyan told Mishustin.

Armenia is heavily dependent on Russia for energy supplies, and Russia accounted for about 35% of Armenia's foreign trade last year.

European Union Support and Market Access

The EU has disbursed €52 million in economic support to Armenia in the month since the election, and has liberalised some export rules for Armenian goods heading to EU markets.

(Reporting by Reuters, Writing by Lucy Papachristou; Editing by Andrew Osborn and William Maclean)

Key Takeaways

  • Pashinyan seeks to mend ties with Russia, addressing recent trade restrictions imposed during the election campaign.
  • Russia remains Armenia’s dominant trade partner—accounting for over 35% of external trade in 2025—and key energy supplier, especially for gas and oil.
  • The EU has stepped in with a €52 million support package, tariff-free access for ~80% of Armenian exports, and broader connectivity and development aid to diversify Armenia’s economic partnerships.

Frequently Asked Questions

Why did Russia impose trade restrictions on Armenia?
Russia imposed trade restrictions on Armenia ahead of the recent election, temporarily banning imports of several Armenian goods such as produce, flowers, fish, and alcoholic products.
What is Armenia’s relationship with the Eurasian Economic Union?
Armenia is a treaty ally of Russia and a participant in the Eurasian Economic Union, though recent pro-Western moves have drawn criticism from Moscow.
How dependent is Armenia’s economy on Russia?
Russia accounted for about 35% of Armenia's foreign trade last year and is a major energy supplier to Armenia.
How has the European Union supported Armenia recently?
The EU has disbursed €52 million in economic support and liberalized export rules for Armenian goods heading to EU markets.
What did PM Pashinyan say about resolving issues with Russia?
PM Pashinyan expressed hope to discuss and resolve recent 'problematic issues' with Russia to further develop bilateral relations.

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