Russia threatens to scrap trade agreements with Armenia over EU ties

Thursday, May 28, 2026

Russia has threatened to withdraw preferential trade agreements with Armenia due to Yerevan’s efforts to deepen relations with the European Union ahead of its June 7 parliamentary elections. This move risks disrupting Armenia’s access to discounted Russian energy and goods, potentially forcing it to seek alternative suppliers and complicating its geopolitical alignment.

Russia has threatened to terminate preferential trade agreements with Armenia amid growing tensions over Yerevan’s deepening ties with the European Union, according to a report on Wednesday. The development comes just weeks before Armenia’s parliamentary elections scheduled for June 7.

The Russian Energy Ministry reportedly sent a letter to Armenia’s Infrastructure Ministry warning that the country’s pursuit of closer relations with the EU, including its declared ambition to join the bloc, endangers the continuation of Russia-Armenia trade arrangements. These agreements provide Armenia with duty-free access to Russian gas, oil products, and rough diamonds, reflecting the traditionally close economic relationship between the two former Soviet neighbors.

While the Armenian government has denied the accuracy of the letter’s content, Russian Foreign Ministry spokeswoman Maria Zakharova confirmed the document’s existence. Kremlin spokesman Dmitry Peskov indicated that the discounts Russia extends to Armenia come at Moscow’s expense and questioned whether Armenia could expect similar advantages if it were to join the EU.

Since 2013, Armenia has benefited from preferential trade agreements with Russia, relying heavily on Moscow for raw materials and especially natural gas. Prime Minister Nikol Pashinyan has signaled that Armenia could consider boosting gas imports from Iran as an alternative, though existing pipeline capacity imposes limitations.

The dispute comes amid a broader context of strained relations. In addition to the trade threats, Russia recently suspended imports of several Armenian food products, officially citing quality concerns. Meanwhile, Armenia is grappling with internal political pressure following its defeat in the 2020 Nagorno-Karabakh conflict with Azerbaijan, which led to significant displacement of ethnic Armenians from the region.

Despite these challenges, Armenia has sought to strengthen its partnership with the European Union. At a recent summit in Yerevan, the country pledged to enhance cooperation on security, defense, energy, transportation, and the digital economy. This pivot toward the EU reflects a strategic shift that Moscow views as undermining its longstanding influence in the South Caucasus.

As Armenia approaches its elections, the interplay between Moscow’s economic leverage and Yerevan’s European aspirations will likely play a significant role in shaping both domestic political dynamics and the country’s foreign policy orientation.