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Russia warns Armenia it could end cheap fuel supplies if Yerevan continues EU course - Finance news and analysis from Global Banking & Finance Review
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Russia warns Armenia it could end cheap fuel supplies if Yerevan continues EU course

Published by Global Banking & Finance Review

Posted on May 27, 2026

4 min read

· Last updated: May 28, 2026

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Russia warns Armenia on supplies over EU bid; Trump backs PM Pashinyan

Russia’s Warning and Armenia’s EU Aspirations

By Andrew Osborn, Lucy Papachristou and Jekaterina Golubkova

Russian Threats Over Energy and Diamond Supplies

MOSCOW, May 27 (Reuters) - Russia said on Wednesday it had warned Armenia it would suspend or terminate the supply of cheap oil, gas and rough diamonds if Yerevan pressed ahead with its bid to join the European Union.

Moscow issued the warning ahead of a parliamentary election on June 7, with opinion polls giving the Civil Contract party of Prime Minister Nikol Pashinyan a comfortable lead over pro-Russian rivals.  Pashinyan has strengthened ties with the West, angering Moscow.

Official Communication from Russia

"The Russian Embassy has officially forwarded a letter...stating that if the process of accession to the EU continues, the Russian side will suspend or unilaterally terminate the Agreement on Cooperation in the Supply of Natural Gas, Petroleum Products and Rough Diamonds," Maria Zakharova, Russian Foreign Ministry spokeswoman, told the RIA news agency.

Armenia’s Position and Relations with Russia

Armenia, a landlocked nation of around 3 million, has traditionally had close ties to Russia and is a member of the Russian-led Eurasian Economic Union.

It hosts Russian military bases and relies heavily on Moscow for energy, with 82% of its gas imported from Russia last year, according to the Interfax news agency. 

Pashinyan’s Balancing Act

Pashinyan told an election rally that Armenia did not plan to leave the Eurasian Union and that membership of the body was compatible with its EU aspirations.

"For now, Armenia can be a member of the Eurasian Economic Union and proceed with reforms to achieve European standards. We are on this path," Russian news agencies quoted him as saying.

"When the time comes to make a choice, we will make a choice. We must have an alternative so that no one can say of Armenia -- who needs it, where is it heading?"

Strained Ties Since Nagorno-Karabakh

Ties with Moscow have grown increasingly rancorous since Azerbaijan retook its breakaway region of Nagorno-Karabakh in September 2023, prompting a mass exodus of ethnic Armenians despite the presence of Russian peacekeepers.

Pashinyan, who accused Russia at the time of failing to protect his country, has since sought to deepen ties with Brussels and Washington and suspended participation in a Russian-led regional defence bloc.

International Reactions and U.S. Support

U.S. Engagement with Armenia

 RUBIO VISITS YEREVAN, TRUMP VOWS SUPPORT

 U.S. Secretary of State Marco Rubio visited Yerevan on Tuesday and signed a strategic partnership agreement in a sign of warming ties, and Armenia last year adopted a law launching its EU accession process.

Trump’s Endorsement of Pashinyan

U.S. President Donald Trump said in a social media post on Wednesday that Pashinyan had his 'COMPLETE and TOTAL' support in the June 7 elections, calling him 'a great friend and Leader'.

"With Nikol's help, we will bring the United States, Armenia, the South Caucasus, and Central Asia to greater heights than ever before. Make (Armenia) Great Again," Trump wrote.

Russia’s Criticism of Armenia’s EU Tilt

Concerns Over Eurasian Economic Union Membership

Moscow, which argues that membership of the EU would be incompatible with Armenia's membership of the Eurasian Economic Union, this month accused Armenia of being drawn into what it described as the EU's "anti‑Russian orbit" and of providing Ukrainian President Volodymyr Zelenskiy with "a platform for anti-Russian remarks."

Impact on Economic Agreements

The cooperation agreement which Russia is saying it may end allows Armenia to buy oil, gas and rough diamonds free of export duties and on vastly preferential terms. 

Moscow said its letter of warning was sent by Russian Energy Minister Sergei Tsivilev to the Armenian Territorial Administration and Infrastructure Ministry.

Armenia's tilt to the EU, Tsivilev wrote, was "inconsistent with the nature of the partnership between the governments and economic entities of our countries," according to a text of the letter published by Russia's Kommersant newspaper.

The Armenian ministry told state media on Wednesday it had received no such letter from Tsivilev.

Reporting Credits

(Reporting by Reuters Writing by Andrew Osborn/Lucy Papachristou/Jekaterīna GolubkovaEditing by Keith Weir, Ron Popeski and Sanjeev Miglani)

Key Takeaways

  • Russia's warning threatens Armenia’s key energy lifeline—about 2.23 billion m³ of gas imported from Russia in 2025—and reflects Moscow’s leverage amid Yerevan’s EU tilt. (neftegaz.ru)
  • Armenia’s energy dependency extends beyond natural gas, with liquefied petroleum gas imports from Russia rising sharply to over 268,000 tons in 2025. (panarmenian.net)
  • This escalates long-standing tensions over Armenia’s balancing act between Russian-backed structures like the EAEU and its newly legislated EU integration path. (en.wikipedia.org)

References

Frequently Asked Questions

Why is Russia threatening to end cheap fuel supplies to Armenia?
Russia warned Armenia it may suspend or terminate fuel supply agreements if Armenia continues its bid to join the European Union.
How dependent is Armenia on Russian energy?
Armenia imports about 82% of its natural gas from Russia, making it heavily reliant on Russian energy.
What has Armenia done to trigger Russia's warning?
Armenia has taken steps towards EU accession, including passing a law to start the process, which has strained ties with Russia.
Who leads the Armenian government amid these tensions?
Prime Minister Nikol Pashinyan and his Civil Contract party currently lead Armenia, with a strong showing in opinion polls.
What role does the EU and the US play in Armenia's recent moves?
Armenia has strengthened relationships with the EU and US, including signing a strategic partnership agreement with the US and initiating EU accession.

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