News - Armenia Considers Subsidizing Export Costs to the EU

YEREVAN, June 1. /ARKA/. Armenia is considering subsidizing transportation and customs expenses for its exports to the European Union. Announced by Armenia's Minister of Economy, Gevorg Papoyan, the plan aims to boost trade with the EU and support local producers in competing in the European market. In an interview with CivilNet, Papoyan stated that while issues of quality and production volume have been resolved, the primary focus is now on long-term subsidization of transportation costs. Papoyan explained that the proposed support includes facilitating transportation in the coming years and subsidizing customs duties to create parity with European farmers, who receive similar assistance. "This will greatly expand opportunities for Armenian farmers," he noted. Armenia's strategic economic plans involve closer ties with the EU and alignment with European standards while maintaining its membership in the Eurasian Economic Union (EAEU). This dual integration presents challenges, however. Moscow has warned that Armenia's shift towards EU standards could have direct economic consequences. Russian President Vladimir Putin cautioned that further divergence might require scaling back economic integration activities, potentially affecting Armenia's GDP by up to 14% due to increased energy costs if an EAEU exit occurs. Despite the challenges, gas supply remains secure through ongoing partnerships, as highlighted by Minister of Territorial Administration and Infrastructure David Hudatyan, who reassured that any arising risks are manageable for Armenia's economy.