ARKA Armenia Weekly: Key Events of the Week: Politics, Economy, and Markets (June 8–14)
YEREVAN, June 15. /ARKA/. ARKA News Agency presents a digest of the week's key events.
SUMMARY
The key dynamic of the week was the combination of the completion of the parliamentary elections and the intensification of foreign economic challenges. The Central Election Commission confirmed the entry of three political forces into parliament. The opposition announced its intention to challenge the results and coordinate future actions.
The economic signal for the week remains mixed: the World Bank has improved its growth forecast for Armenia, while the IMF expects a slowdown to 5.25% and continued elevated inflation in the near future. Against this backdrop, exports, phytosanitary restrictions imposed by Russia, gas tariffs, and the possible nationalization of the ENA are becoming key factors for businesses and markets.
POLITICS
The Central Election Commission has summarized the parliamentary election results: the Civil Contract Party has secured 49.745% of the vote, the Strong Armenia bloc with 23.271%, and the Armenia bloc with 9.923%. Voter turnout was 58.9%, with 1,476,769 voters casting their ballots. For businesses, this marks the end of the electoral phase and the transition to the formation of a new political configuration.
Nikol Pashinyan received congratulations on his victory from, among others, US President Donald Trump, European Council President António Costa, Turkish President Recep Tayyip Erdoğan, and others.
Major opposition forces criticized the election results. Strong Armenia bloc leader Samvel Karapetyan called for Pashinyan's removal through parliamentary means or through political struggle on the streets; the Armenia bloc announced its intention to challenge the results in the Constitutional Court; and the Prosperous Armenia Party, which failed to gain seats in parliament, announced the start of consultations with political forces to develop a unified agenda and steps.
Yerevan and Baku discussed the peace agenda: Armenian Security Council Secretary Armen Grigoryan and Azerbaijani Presidential Aide Hikmet Hajiyev met in Dilijan on June 14 and agreed to continue working contacts. This is important for the markets as a signal of the continued existence of a direct channel for dialogue on regional stability.
ECONOMY AND MACROSIGNALS
The World Bank has improved its forecasts for Armenia's economic growth: 5.3% in 2026, 5.1% in 2027, and 5% in 2028. The IMF, meanwhile, expects real GDP growth to slow to approximately 5.25% in 2026 and continued elevated inflation in the near future. For investors, this confirms the sustainability of the baseline scenario, but also points to the growing significance of external risks and logistics costs.
Armenian Central Bank Governor Martin Galstyan stated that GDP growth by the end of 2025 would be 7.2%, approximately 2 percentage points higher than the government's target, while tax revenues increased by approximately 14%. This reinforces the argument for continued macroeconomic stability, but also highlights the concentration of growth in construction, trade, and services.
Armenia and the EU have moved to the technical formalization of an agreement on the export of Armenian products. Foreign Minister Ararat Mirzoyan announced that supplies can be sent by air, through Georgia, and also through Turkey. This opens up the prospect of diversifying markets and logistics routes for businesses.
As of June 12, Rosselkhoznadzor (the Federal Service for Veterinary and Phytosanitary Surveillance) restricted the import of all quarantine products produced and shipped from Armenia, as well as their transit through Russia to EAEU countries. This is a serious signal for the economy: access to key markets is increasingly dependent on standards, quality control, and traceability.
The government will expand subsidies for the export of apricots, cherries, wine, brandy, and mineral water. This supports the agricultural and processing sectors during the period of foreign trade restrictions.
BUSINESS AND CORPORATE SECTOR
Minister of Economy Gevorg Papoyan stated that there are no problems with the export of Armenian products and reported that supplies are already being made to Greece, Poland, Ukraine, Belarus, Romania, Kazakhstan, Uzbekistan, and the UAE. For businesses, this confirms the government's commitment to geographic export diversification.
The Armenian government is working on a draft resolution to initiate the process of recognizing 100% of the shares of Electric Networks of Armenia as a priority public interest, stated Romanos Petrosyan, Acting Governor of the Electric Networks of Armenia. According to him, the process should result in the full nationalization and transfer of the company under state control. For investors, this is one of the most sensitive corporate regulatory signals of the week.
The EBRD has appointed Remon Zakaria as the new Head of Representative Office in Armenia; he will assume this position on September 1, 2026. The EBRD remains focused on the private sector, capital markets, and the green transition, which are important for the country's investment agenda.
IDBank announced the issue of the fourth and fifth tranches of its 2026 bonds, worth AMD 2.5 billion and USD 5 million. Following the placement, the securities will be listed on the Armenia Securities Exchange and will have a market maker. This supports the development of the corporate debt market.
MARKETS AND FINANCE
Armenian apricots should become not just a raw material, but a global brand, stated Tigran Jrbashyan, Director of Management Consulting at Ameria. Given restrictions in traditional markets, this is important for investors as a transition from a raw material-based export model to products with a protected identity and higher added value.
Prime Minister Nikol Pashinyan stated that Armenia is considering all possible gas price increases, and these issues will be discussed bilaterally and within the Eurasian Economic Union (EAEU). This makes gas a key factor in assessing tariffs, inflation, and business costs.
Minister of Territorial Administration and Infrastructure David Khudatyan stated that there are no plans to revise the gas tariff for Armenian citizens: supplies are continuing as usual at the established rate, and the contract is valid until after the winter. This reduces short-term uncertainty for the markets, but does not eliminate medium-term risks.
The decision on the construction of a new nuclear power plant may be postponed until 2027. Minister of Territorial Administration and Infrastructure David Khudatyan noted that the project's financial parameters are important, as the construction of the new power plant could impact electricity tariffs.
WHAT DOES THIS MEAN?
The political system has entered the post-election phase, but the opposition's legal and street-level reactions could maintain political tension in the coming weeks.
Pashinyan's external support from the US, EU, and Turkey reinforces the message of continued commitment to a peaceful agenda and economic diversification.
The macroeconomic framework remains stable, but the IMF's forecast for slower growth and higher inflation indicates that the quality of growth is becoming more important than its pace.
Armenia's export model requires accelerated diversification: Russian restrictions increase the importance of the EU, Turkey, Georgia, and new markets.
Energy and infrastructure asset regulation are becoming key topics for investors, from gas to the ENA and the new nuclear power plant.
RISKS OF THE CURRENT WEEK
Markets will be monitoring the opposition's actions following the announcement of the election results and possible appeals to the Constitutional Court.
For exporters, the key risk remains Rosselkhoznadzor restrictions and phytosanitary control requirements.
Investors will assess the practical implementation of export agreements with the EU and the availability of alternative logistics routes.
The gas issue could impact expectations regarding tariffs, inflation, and production costs.
The possible nationalization of the ESA could test perceptions of regulatory predictability and investment protection.
