
In a recent media conference, President Ilham Aliyev of Azerbaijan noted a striking increase in trade between Armenia and Russia. This observation comes amid ongoing international sanctions against Russia due to its actions in Ukraine, raising questions about the nature of this economic surge.
“The turnover [between Russia and Azerbaijan] is growing, albeit not like between Russia and Armenia,” President Aliyev stated. “As you know, the turnover between Russia and Armenia has grown five times in the last two years, from 1.5 billion dollars to 7.3 billion dollars. It is very interesting to us; we are wondering how Armenia was able to increase its exports so much. Well, the question, as they say, is rhetorical.”
In comparison, the trade volume between Azerbaijan and Russia increased by about 17 percent last year, reaching approximately 4.3 to 4.4 billion dollars. This contrast highlights the remarkable and unprecedented growth in Armenia’s trade with Russia during a period of heightened geopolitical tensions.
While Armenian Prime Minister Nikol Pashinyan’s relationship with Russia may appear strained on the surface, the economic data suggests otherwise. The dramatic increase in Armenian exports indicates that Armenia could be facilitating the supply of goods to Russia that are otherwise restricted by international sanctions, possibly through re-exports and other methods.
Armenia’s economic ties with Russia are further reinforced by its membership in several regional economic organizations. Armenia is part of the Eurasian Economic Union (EAEU), which facilitates free trade, economic integration, and coordinated policies among its member states, including Russia. This economic integration likely contributes to the ease with which Armenian exports to Russia have surged, bypassing some of the barriers imposed by international sanctions.
President Aliyev did not directly address the issue of sanctions but pointed out new trade dynamics. “There are many topics we are discussing and addressing, of course, with the involvement of partners from other countries as well. First of all, this is the North-South transport corridor, which is becoming more important than ever before for Russian shippers, taking into account the geopolitical situation and the fact that all segments of this project have already been created in Azerbaijan.”
He continued, “We are talking about expanding the capacity of this corridor. But there are many other topics as well. Of course, no summit meeting goes by without the discussion of issues that are particularly close to us. These include humanitarian cooperation, contacts between people, cultural cooperation, education. So this is a huge layer that we are all well aware of. So I am sure that this progressive development of our relations will be continued.”