Russian Gold Through Armenia to the UAE: Why Has Armenia’s Foreign Trade Accelerated So Rapidly?

The Ministry of Economy of Armenia has published data on the country’s foreign trade activities for the first half of 2024, showing significant economic growth compared to the same period last year.

In the ministry’s report titled “Armenia: Economic Outlook,” a sharp increase in foreign trade is noted, although trade flows with traditional markets have somewhat weakened.

According to the report, the export volume from January to June 2024 reached a record $7.9 billion, which is 2.3 times higher than the figures for the same period in 2023. The structure of exports has undergone significant changes, with unprocessed or semi-processed gold becoming the leading export, reaching $4.1 billion and 14.7 fold increase.

Jewelry exports showed an impressive growth to $709.6 million, an 18.4-fold increase. Diamond exports rose by 55.7% to $397.3 million, while telephone equipment and devices reached $333 million, showing a 55.5% increase. Exports of copper ore and concentrate grew by 17.1% to $267.6 million. These five categories of goods accounted for 73.5% of the total export volume.

Meanwhile, there has been a substantial shift in the geography of exports: exports to “other countries” increased 5.5 times, while exports to CIS countries, particularly to Russia — Armenia’s largest market for finished goods — decreased by 19.5%, and to EU countries by 25.1%.

The main export partners were the UAE with an export volume of $3.6 billion, a 7.8-fold increase, Russia with $1.4 billion, marking a 21.1% decrease, Hong Kong with $1.32 billion, a 17.7 fold increase, and China with $714.3 million, a 3.4-fold increase. These four countries accounted for 89.7% of Armenia’s total exports.

At the same time, import volumes also showed significant growth, reaching $10.48 billion, an 86.5% increase compared to the previous year. The main imported goods were pure and semi-processed gold, reaching $5.24 billion with a 21.3 fold increase, telephone equipment with $419.7 million, a 26.8% increase, and diamonds with $399.6 million, a 56% increase.

However, imports of natural and liquefied gas decreased by 2.1% to $263.6 million, imports of passenger cars fell 2.9 times to $260.6 million, and imports of oil and petroleum products decreased by 8% to $209.7 million. These goods accounted for 64.8% of the total import volume.

There were also changes in the geography of imports: imports from CIS countries increased 4.4 times, while imports from EU countries decreased by 18.5%, and from other countries decreased by 16.2%.

The main countries from which Armenia imported goods were Russia, with an import volume of $7 billion, showing a 4.7 fold increase, China with $442.8 million and a slight decrease of 1%, Georgia with $345.7 million, a decrease of 31.4%, and Iran with $273.2 million, a decrease of 7.1%. These four countries accounted for 77.4% of Armenia’s total imports.