Armenian Prime Minister Nikol Pashinyan has admitted that government programs aimed at diversifying the country's economy over the past eight years have failed to produce the anticipated results. He identified the lack of sufficient interest from the business sector in adapting to necessary economic shifts as a primary factor behind this stagnation.
According to the Operative Information Center-OMM, Pashinyan emphasized the critical need for businesses to adapt to changing economic realities during a government meeting.
"Regardless of how much we discuss this, the business sector itself must understand that constant adaptation is necessary. Having a dominant partner in economic relations poses a direct threat to national security," Pashinyan stated.
To mitigate the challenges faced by local companies due to shifting supply chains, the Armenian government has initiated financial support for exporters. Specifically, approximately 5.365 billion drams (roughly $14.5 million) in compensation has been allocated to entrepreneurs suffering from restrictions on exports to Russia.
Arman Khojoyan, acting Deputy Minister of Economy of Armenia, provided data on the country's export performance, noting that agricultural products such as tomatoes, apricots, cherries, and flowers were exported to various countries during June and July. However, Russia remains the primary export market for Armenian agricultural goods, accounting for more than 90 percent of the total export volume.
This heavy reliance on a single market exposes Armenian companies to significant risks whenever supply chains are disrupted or regulatory changes are implemented by the importing nation. Since May, Russia's Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) has been implementing phased restrictions on plant-based products, including fruits, vegetables, and fish, entering Russia from Armenia, citing violations of phytosanitary and veterinary requirements.
The current situation has renewed urgency for the Armenian government to expand export markets and reduce the country's economic dependence on individual partners, a challenge that has persisted despite long-term policy efforts.
