Armenia's New Economy Minister Advocates for Foreign Trade Diversification, Steering Away from Heavy Reliance on Russia

Armenia's newly appointed Economy Minister, Gevorg Papoyan, has called for a strategic shift towards diversifying the country's foreign trade partnerships. Papoyan emphasized the need to reduce Armenia's heavy reliance on Russia and cultivate stronger commercial ties with countries across the globe.

Speaking to reporters after attending his first cabinet meeting in his new role, Papoyan outlined his vision for economic diversification, describing it as a process that would make Armenia proportionally dependent on the world, while also making other countries reliant on Armenia. While the minister did not provide specific details on how and when this diversification would take place, he pointed to Egypt as a potential new market for Armenian goods.

Prime Minister Nikol Pashinyan's recent visit to Cairo included participation in an Armenian-Egyptian business forum, signaling Armenia's interest in expanding trade relations with Egypt. Despite the current negligible volume of trade between Armenia and Egypt, the Armenian government is exploring avenues to tap into new markets.

Armenia's trade dynamics have long been dominated by Russia, accounting for over 35% of its $20.7 billion foreign trade and more than 40% of its $8.4 billion exports last year. However, the strained relations between Russia and Armenia, coupled with Yerevan's pivot towards the West, raise concerns about the continuity of local manufacturers' access to the substantial Russian market.

The deteriorating Russian-Armenian relations have prompted some Armenian cargo firms to express concerns about potential disruptions in shipping goods to and from Russia. Reports suggest that Russian customs officials have warned these firms about the impending cessation of processing their trucks.

Despite Papoyan's optimism about diversification, skeptics believe that Armenia's immediate focus should remain on the Russian market. 

Concerns also arise regarding the potential closure of Russia's sole border crossing with Georgia for Armenian cargos. Papoyan expressed no knowledge of such developments and saw no objective reasons for Russia to block imports from Armenia. Nevertheless, past closures, such as the one in November citing food safety concerns, serve as warnings to Yerevan and show the need for strategic economic planning in the face of evolving geopolitical dynamics.