World Bank warns of risks to Armenia's economic growth, prices, and social sphere due to Russian restrictions
17.07.2026,
18:09
While Armenia's economy continues to outperform expectations, recent political developments in relations with Russia continue to raise concerns, forcing the government to intervene to support exporters.
YEREVAN, July 17. /ARKA/. While Armenia's economy continues to outperform expectations, recent political developments in relations with Russia continue to raise concerns, forcing the government to intervene to support exporters. This is stated in the World Bank's "Armenia Monthly Economic Update – July 2026."
"Since late April, Russia has gradually expanded its ban on Armenian agricultural and food exports. If the ban continues and expands without mitigation measures, the negative impact could extend beyond trade and affect economic growth, prices, and social conditions," the study notes.
It also notes that to mitigate this potential impact, the government has introduced subsidy measures to support Armenian exporters, compensating for transportation and customs costs when shipping their goods to alternative markets, including the EU.
Restrictions on Products from Armenia to Russia
Russia has restricted the import and shipment of all quarantine products of Armenian origin, as well as their transit through Russia to other EAEU countries. Specifically, the restrictions apply to Jermuk mineral water, alcoholic beverages, vegetables, fruits, and herbs, as well as fish and fish products.
Rosselkhoznadzor explained the decision by the systematic detection of quarantine organisms in plant products and flowers from Armenia.
Amid the restrictions, Armenia expanded support for exporters in alternative markets, partially compensating for transportation costs and customs duties on shipments to the EU, UK, and Canada.
On July 2, the government extended the state export support program until July 2026, adding fresh and dried fruits and vegetables, certain food products and beverages, as well as trout and sturgeon to the list of subsidized products.
"Since late April, Russia has gradually expanded its ban on Armenian agricultural and food exports. If the ban continues and expands without mitigation measures, the negative impact could extend beyond trade and affect economic growth, prices, and social conditions," the study notes.
It also notes that to mitigate this potential impact, the government has introduced subsidy measures to support Armenian exporters, compensating for transportation and customs costs when shipping their goods to alternative markets, including the EU.
Restrictions on Products from Armenia to Russia
Russia has restricted the import and shipment of all quarantine products of Armenian origin, as well as their transit through Russia to other EAEU countries. Specifically, the restrictions apply to Jermuk mineral water, alcoholic beverages, vegetables, fruits, and herbs, as well as fish and fish products.
Rosselkhoznadzor explained the decision by the systematic detection of quarantine organisms in plant products and flowers from Armenia.
Amid the restrictions, Armenia expanded support for exporters in alternative markets, partially compensating for transportation costs and customs duties on shipments to the EU, UK, and Canada.
On July 2, the government extended the state export support program until July 2026, adding fresh and dried fruits and vegetables, certain food products and beverages, as well as trout and sturgeon to the list of subsidized products.
