By Ani Avetisyan
Armenia’s trade with the United Arab Emirates marked a milestone in 2023, increasing by around 4 times compared to the previous year. Trade with the EU and the Eurasian Economic Union countries, which include Russia, Belarus, Kazakhstan, and Kyrgyzstan, also saw exponential growth.
The turnover with the UAE reached $2.3 billion in 2023, a notable change compared to $500 million in 2021. Armenia has recently moved closer with the UAE not only through trade, but also by introducing a visa free regime between the countries. The almost simultaneous launch of low cost flights to and from Abu Dhabi has contributed to strengthening bilateral relations.
Exports to the UAE from Armenia totaled $2.2 billion, while imports to Armenia stood at $620 million.
The Armenian government has shown special interest in developing economic ties with the UAE, expecting growing investments and cooperation in different economic areas.
General trade trends
Armenia, in general, saw a steady increase in foreign trade in 2023, amounting to $20 billion. Exports increased by 27%, imports by 9% and total trade turnover by 17% compared to 2022, according to annual data published by the Armenian Statistical Committee.
Mutual trade between Armenia and the Eurasian Economic Union increased (EEU) by 42% in 2023. This increase is mainly due to Armenia’s growing trade with Russia. Armenia’s primary economic partner remained the most significant in 2023, with a trade turnover of approximately $7.3 billion.
Armenia is importing almost everything from Russia, from natural gas to machinery and cooking oil. Armenia is heavily dependent on Russia for the imports of wheat, cooking oil, natural gas, chocolate and other goods, as over 70% of those products are coming from Russia. Armenia also needs Russia for its exports, since almost the total of exports of fish, potatoes, tomatoes and a number of fruits goes to Russia.
Since Russia’s war in Ukraine, Armenia became more important for Russia as a possible partner to circumvent sanctions, as well as more economically dependent on Russia. In 2020 the numbers of exported goods rose by almost three times compared to 2021, putting Armenia on the spotlight for potentially aiding Russia in evading sanctions. Armenia’s exports of cars, mobile phones and other electronic devices to Russia increased since the war in Ukraine, helping Russia get Western-made goods through Armenia.
According to a report by The New York Times in Autumn 2022, Armenian imports of processors and microchips from the U.S. and the EU increased significantly between January and September 2022. The report stated that up to 97% of these items were re-exported to Russia.
Additionally, Armenian companies exported 53,000 smartphones to Russia in the first half of 2022, compared to only 745 in the previous year.
Facing backlash from the West, Armenia moved to tighten the regulations of re-exports of electronics to Russia in June 2023.
Armenia and China have increased their mutual trade volume as well, with the total turnover exceeding $2 billion, which is almost a 20% increase compared to 2022.
Armenia also increased its trade with the EU by about 17% to $2.6 billion, which accounts for 13 per cent of its total trade turnover. Trade with almost all EU member states increased last year, except for Bulgaria, Greece, and Spain. Germany had the highest trade turnover with around $600 million, followed by Italy with around $400 million and the Netherlands with around $200 million.
The country’s largest exports were precious and semi-precious stones and metals. Additionally, exports and imports of machinery, equipment, and mechanisms also increased significantly.
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