Armenia’s Shifting Trade Landscape: Declines With Russia and UAE, Growth With EU and China

YEREVAN (Civilnet) — Armenia’s foreign trade turnover during the first half of this year remained nearly unchanged compared with the same period last year, totaling approximately $9.57 billion. However, the structure of the country’s trade changed significantly.

Official statistics indicate a sharp increase in trade with the European Union and China, accompanied by a noticeable decline in trade with Russia and the United Arab Emirates.

According to data published by Armenia’s Statistical Committee, exports from Armenia decreased by 6.7 percent between January and June, falling to $3.431 billion. Imports, meanwhile, increased by 4 percent to approximately $6.1 billion.

As a result, Armenia’s trade deficit widened to $2.7 billion.

Shifts by Commodity Group

The overall decline in exports was largely driven by a reduction of more than 50 percent in the export and re-export of precious and semiprecious stones and metals.

Following the outbreak of the war in Ukraine, the re-export of gold and precious stones from Russia through Armenia to Hong Kong and the United Arab Emirates increased sharply. During the past year, however, that surge has been replaced by an equally steep decline.

Exports in this category fell from more than $1.2 billion during the first half of last year to $588 million this year. By contrast, exports of mineral products increased by approximately 80.3 percent, reaching $931 million.

Significant changes were also recorded among Armenia’s principal trading partners.

Russia, traditionally Armenia’s largest trading partner, maintained its leading position. Nevertheless, bilateral trade declined by approximately 20.9 percent, falling to $2.6 billion from $3.4 billion during the first half of last year.

Imports from Russia, calculated according to the country of origin of the goods, dropped significantly by 31.4 percent. Armenian exports to Russia declined by only 4.2 percent, totaling $1.2 billion.

By contrast, Armenia substantially increased its trade with Western and Asian markets.

Trade with the European Union rose by 46.2 percent to $1.7 billion. Exports to the EU increased particularly sharply, rising by 80.2 percent to $516 million.

This growth was largely driven by considerable increases in exports to Bulgaria, which rose 6.1-fold; Poland, which increased 2.4-fold; and Belgium, which increased 2.1-fold.

A similar expansion was recorded in trade with China. Bilateral trade rose by 22.9 percent to $1.4 billion, while Armenian exports to China increased by 82.6 percent to approximately $526.5 million.

Middle East: Sharp Decline and Moderate Growth

The picture among Armenia’s Middle Eastern trading partners was sharply divided.

The steepest decline was recorded in trade with the United Arab Emirates. Although the UAE was one of Armenia’s principal trading partners last year, trade during the first half of 2026 amounted to only 27.2 percent of the previous year’s level, falling from $1.1 billion to $307 million.

Exports to the UAE plunged from $1.08 billion last year to $280 million, a decline of 74.3 percent. The reduction was primarily caused by the decrease in the re-export of gold and precious stones.

At the same time, Armenia’s economic ties with neighboring Iran maintained positive momentum. Bilateral trade increased by 8.4 percent to $371 million.

This growth was primarily driven by a 10.6 percent increase in imports from Iran, which reached $328 million. Armenian exports to Iran, however, declined by 6 percent to approximately $42.8 million.