MOSCOW — Russian Economic Development Minister Maxim Reshetnikov has emphasized what he described as the significant economic benefits Armenia receives from membership in the Eurasian Economic Union and trade with Russia.
His remarks came in response to Armenian Prime Minister Nikol Pashinyan’s comments concerning the South Caucasus Railway.
Speaking to reporters after a government meeting, Pashinyan did not rule out the possibility that the management of Armenia’s railway system by a subsidiary of Russian Railways could become the subject of arbitration proceedings.
In 2008, Armenia transferred the contractual management of its railway infrastructure to South Caucasus Railway, a subsidiary of Russian Railways.
In February, Pashinyan said that a country maintaining friendly relations with both Russia and Armenia could purchase the contractual rights to manage Armenia’s railways.
“The Armenian prime minister’s statements concerning the South Caucasus Railway provide an opportunity to recall the significant benefits that Armenia’s economy receives from participating in the EAEU in general and from trade with the Russian Federation in particular,” Reshetnikov said.
He noted that Armenia has been a member of the EAEU since 2015 and that Armenian goods meeting the bloc’s standards have unrestricted access to the markets of Russia, Belarus, Kazakhstan, and Kyrgyzstan.
“During Armenia’s membership in the EAEU, from 2015 to 2025, its exports to EAEU countries increased more than thirteenfold, from $240 million to $3.2 billion,” the Russian minister said.
He added that more than 80 percent of Armenia’s traditional exports—including food products, agricultural goods, and alcoholic beverages—are shipped to EAEU member states.
“However, when these supplies are assessed in terms of their economic impact on the markets of the other member states, their importance cannot be considered significant,” Reshetnikov continued.
“Armenia’s share of Russia’s total foreign trade does not exceed 0.9 percent. For the other EAEU countries, the figure is even lower: 0.3 percent for Belarus, 0.05 percent for Kazakhstan, and 0.02 percent for Kyrgyzstan. It would not be difficult for us to replace Armenian supplies,” he said.
Reshetnikov also argued that the EAEU is not only Armenia’s primary export market but also a major supplier of resources needed by the Armenian economy, particularly natural gas.
“Within the framework of the EAEU’s common gas market, Russia supplies Armenia with gas at a price of $177.50 per 1,000 cubic meters,” he said.
“When this is compared with current European gas prices, which exceed $600 per 1,000 cubic meters, it can only be described as assistance. It is unlikely that anyone outside the Union would be able to offer Armenia comparable terms.”
He argued that Armenia should consider the existing economic situation when discussing closer integration with the European Union or seeking alternatives to EAEU membership.
“According to expert estimates, if Armenia loses full access to the EAEU market, its exports to the Union would decline by more than 60 percent,” Reshetnikov said.
“This would result from the restoration of customs and other border controls, the end of the automatic recognition of Armenian documentation for goods, and increased logistics costs.”
He also claimed that Armenia saves approximately $120 million annually because of a 30 percent reduction in customs duties on natural gas.
“This is the real alternative to Armenia’s EAEU membership resulting from the decisions that the Armenian leadership has openly discussed,” the Russian minister said.
Reshetnikov argued that the dispute concerning the South Caucasus Railway should be viewed in the same context.
“This is not a ‘free account’ for a Russian company, but an enterprise in which we have already invested more than 30 billion rubles, purchased new rolling stock, and developed infrastructure based on contractual obligations,” he said.
“If those obligations are revised unilaterally and our investor suffers losses, we will have grounds to demand compensation. The suggestion that Russia should make additional payments to Armenia under such circumstances is unfounded.”
