Armenia is increasingly diversifying its foreign policy, but economic ties with Russia remain key
22.02.2026,
16:45
Armenia is increasingly pursuing a diversified foreign and security policy, but its economic ties with Russia remain key.
YEREVAN, February 22. /ARKA/. Armenia is increasingly pursuing a diversified foreign and security policy, but its economic ties with Russia remain key. This is according to the forecast of the international rating agency S&P Global Ratings, which on February 20 revised its outlook on Armenia from stable to positive, affirming its long-term and short-term sovereign credit ratings in foreign and local currencies at 'BB-/B'.
"Armenia has deepened its engagement with Western partners, hosted EU monitoring missions, and demonstrated greater commitment to the international legal framework, although economic and financial dependence on Russia remains significant," the forecast states.
It is noted that Russia still accounts for over 36% of Armenia's total exports, a third of its imports, half of its financial receipts (including remittances from labor migrants), and 60% of the country's total energy needs. These ties have actually strengthened since the conflict with Ukraine, when Armenia became a key destination for Russian individuals and entities seeking to avoid domestic political risks and the negative impact of international sanctions.
"We believe that Armenia's ability to balance political distancing from Russia while maintaining significant economic ties will be important for its medium-term economic prospects, given that Armenia remains vulnerable to potential negative changes in Russian policy," the forecast states.
It is noted that relations between Armenia and Russia have deteriorated since 2023, marking Armenia's shift away from its long-standing reliance on Moscow as its primary security bulwark. Relations sharply weakened after Russia failed to intervene during Azerbaijan's military operation in Nagorno-Karabakh in 2023, prompting Yerevan to publicly question the value of Russian security guarantees and freeze participation in Russian-led regional security structures.
"Armenia has deepened its engagement with Western partners, hosted EU monitoring missions, and demonstrated greater commitment to the international legal framework, although economic and financial dependence on Russia remains significant," the forecast states.
It is noted that Russia still accounts for over 36% of Armenia's total exports, a third of its imports, half of its financial receipts (including remittances from labor migrants), and 60% of the country's total energy needs. These ties have actually strengthened since the conflict with Ukraine, when Armenia became a key destination for Russian individuals and entities seeking to avoid domestic political risks and the negative impact of international sanctions.
"We believe that Armenia's ability to balance political distancing from Russia while maintaining significant economic ties will be important for its medium-term economic prospects, given that Armenia remains vulnerable to potential negative changes in Russian policy," the forecast states.
It is noted that relations between Armenia and Russia have deteriorated since 2023, marking Armenia's shift away from its long-standing reliance on Moscow as its primary security bulwark. Relations sharply weakened after Russia failed to intervene during Azerbaijan's military operation in Nagorno-Karabakh in 2023, prompting Yerevan to publicly question the value of Russian security guarantees and freeze participation in Russian-led regional security structures.
