Armenian exports meet EU standards, economy minister says amid Russian trade ban and diversification push

Armenia’s Ministry of Economy has developed a relief program designed to help Armenian producers expand exports to the European Union, as the country seeks to diversify its trade markets amid recent Russian restrictions on several Armenian goods, which have affected multiple businesses and farmers.

Minister of Economy Gevorg Papoyan told reporters that the proposal has been submitted to the Cabinet for consideration.

Papoyan emphasized that Armenian exportable fruits and vegetables have a GlobalG.A.P. certificate, which is one of the highest-level certifications.

He said the initiative includes subsidies for transportation and export costs to make Armenian agricultural products more competitive in European markets.

“It is very realistic, because our exportable fruits and vegetables have a GlobalG.A.P. certificate, which is one of the highest-level certifications,” he said when asked by reporters how realistic Armenian exports to the EU would be.

“So that means this is what is sold in European supermarkets. But there are other costs here, for example transportation costs. Let me give an example: we produce strawberries using the same technologies, methods, and in the same greenhouses as in Europe.

The difference is this: a French producer, for instance, buys seedlings from a Dutch farmer, transports them 200 kilometers, plants them, then transports the strawberries another 200 kilometers and sells them. In that case, the cost may be a maximum of $500.

In our case, we have to pay $8,000 just to bring the seedlings here, and then another $8,000 to transport the strawberries to Europe, and on top of that there is an 8.8–14% customs duty.

At one point, people used to say that we joined the EAEU because our fruits and vegetables only go to Russia. That is no longer the case. The standards in the EAEU are now the highest, and the same is true in the EU, and our products meet those highest standards.

The remaining issue now is transportation. We have submitted a compensation program to the government today, and we will subsidize our agricultural exporters so they can offer competitive prices in the European market,” Minister Papoyan said.

He emphasized that the government plans to spend significant funds under this support program to ensure that businesses do not suffer losses.

“We will provide support with very large amounts. We have calculated compensation costs for each product category. For example, for flowers it will be $5.5 million by the end of the year, $3.5 million for tomatoes, and $3.5 million for peppers,” the minister said.

In response to a question about which EU countries Armenian exporters will be able to ship goods to, Papoyan said: “All European countries, from Greece to Germany.”

Referring to Russia’s restrictions on imports of various Armenian goods, the Minister of Economy of Armenia said that his deputy had met with Russian counterparts in Astana.

According to Papoyan, the atmosphere is very positive and everyone wants to find solutions to the issues.

The minister expressed confidence that after the parliamentary elections scheduled in Armenia on June 7, the Armenian side will be able to resolve all these issues very quickly.

Russia has expanded its ban on imports of Armenian products, extending restrictions to additional fruit varieties, citing alleged phytosanitary violations. Russia has previously banned imports of Jermuk mineral water from Armenia, as well as certain flowers and alcoholic beverages. In addition, imports of tomatoes, cucumbers, peppers, and strawberries from Armenia have been restricted. Most businesses engaged in fish farming have also been barred from exporting products to Russia.