Armenia’s export growth to Russia, which was initially rapid due to Western sanctions against Moscow, seems to have considerably slowed down in the fourth quarter of last year. Taking advantage of the sanctions imposed after the Russian invasion of Ukraine, Armenia engaged in re-exporting items such as second-hand cars and consumer electronics from Western countries to Russia. As a result, its exports to Russia tripled in 2022 and doubled from January to August 2023.

The latest full-year data released by the Armenian government's Statistical Committee indicates that exports rose by less than 39 percent, reaching $3.4 billion in 2023. This suggests that the previously lucrative re-exports experienced stagnation in the latter part of the year, particularly in the fall and December. The slowdown could be attributed to various factors, including the recent implementation of a new Russian tax on imports of used and old cars.

In early 2023, concerns arose among European and particularly US officials regarding the re-exports facilitated by Armenia. These officials urged Armenian authorities to adhere to Western sanctions. As a response, the authorities implemented mandatory government licenses in May for the export of microchips, transformers, video cameras, antennas, and other electronic equipment to Russia.

Despite these measures, overall Russian-Armenian trade witnessed a significant increase of over 43 percent, reaching $7.3 billion. This growth trajectory was observed even before the war in Ukraine, largely attributed to Armenia’s accession to the Russian-led Eurasian Economic Union in 2014.

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