Von der Leyen opens EU market access for Armenia to counter “Russian coercion”

Brussels – The proposal to remove tariffs on 80 per cent of products exported from Armenia to the European Union and to provide 18 million euros – the final tranche of the 52 million euro package announced in early June – to support trade diversification. The European Commission keep seizing the moment – also endorsed by the 7 June re-election of the centrist party of Prime Minister Nikol Pashinyan, which seeks to deepen ties with the West – to forge ever closer relations with the small South Caucasus country. The European Commission announced yesterday a 200 million euro fund for connectivity in the South Caucasus and a 20 million euro fund for peace initiatives – ranging from mine clearance to the development of local businesses. 

“On 7 June, the people of Armenia spoke clearly. They chose democracy. The rule of law. They chose reform and peace. They chose an open, welcoming, and inclusive society. And they chose to partner with the European Union. And together, we must now turn their aspirations into results,” said the President of the European Commission, Ursula von der Leyen, speaking from Yerevan, where she met with Prime Minister Pashinyan alongside the Commissioner for Enlargement, Marta Kos. “Armenia is carrying on the path of democracy, reform, peace, and a closer partnership with Europe. And I am here to tell you: you can count on us,” she stressed. 

Within this cooperation framework, von der Leyen announced “a new €200 million Global Gateway package for peace through connectivity.” This EU support is for projects in the transport, energy, and digital connectivity sectors, aimed at unlocking the economic benefits of lasting peace in the region and promoting cooperation between its peoples. “With our financial partners, we aim to mobilise up to €2 billion for strategic transport, energy, and digital projects all across the South Caucasus. In Armenia, it could support projects currently under preparation, including border crossing points and road infrastructure,” von der Leyen explained. In addition, there is a further allocation of 20 million euros for the “peace-fostering programme,” which includes investments in healthcare, mine clearance, skills development and local businesses.

 But it is on the economic and trade front that the EU is focusing its attention, aiming to free the country from Moscow’s grip. “I know Armenia is still facing significant economic pressure from Russia. Nothing short of economic coercion, actually. But rest assured: when pressure mounts on our partners, the EU steps up,” von der Leyen said. In this regard, the President explained that the country will “soon receive a further €18 million to help strengthen and diversify your trade.” These are the remaining funds from the 52 million euro support package for Armenia agreed at the beginning of June. Brussels has already disbursed 34 million euros, and the remaining 18 million euros will arrive in Yerevan shortly. These funds will be able to “contribute to the creation of an export promotion agency and boost the export capacity of Armenian businesses,” she noted.

 Secondly, the Commission will present measures on trade autonomy. “They will liberalise almost 80% of Armenian exports to the EU. That means 80% of your trade with us will now be tariff-free. With this, we can re-route products that currently still rely heavily on the Russian market and send them to the European Union Single Market of 450 million consumers,” the President explained. This is a move that will “open the European doors to almost 99% of Armenia’s fresh fruits, vegetables, and plants that used to be exported to Russia. And it will open the door of the European Union Single Market to more than 90% of your exports of beverages and spirits.” In this way, according to Brussels, the country will have the means to diversify its trade flows. And, to do so swiftly, the European Commission will send experts to Armenia by mid-July to work directly with producers and exporters. “These missions will help businesses identify new market opportunities, meet EU standards, strengthen their export capacity and gain greater access to the EU single market,” the EU executive stated. 

An assessment of all this work will take place by the end of the year, when the EU and Armenia will hold a high-level dialogue in Yerevan to jointly review the progress made on reforms under the Multisectoral Budget Support Programme for Armenia.