EU readies trade relief for Armenia after Russian import bans – FT

The EU is preparing emergency trade relief for Armenia to help offset Russian import restrictions, Financial Times reported citing sources.

The European Commission is drawing up so-called autonomous trade measures that would lower tariffs on Armenian food and agricultural exports, according to four people briefed on the plans.

“Now is the time for us to step up and support them, and show that we can be a dependable partner,” one of the people told the FT.  “They need friends . . . and we need to protect our neighbourhood.”

The measures, which require approval from a majority of member states and the European parliament, would cover most of the roughly 20 product categories targeted by the Russian bans, worth about €420mn a year, according to two of the people.

Brussels is concerned that Moscow could intensify its trade pressure on Armenia, they added. The proposals could be put forward within weeks, according to two other people. EU foreign ministers discussed the matter with Armenia’s chief diplomat in Luxembourg on Monday, the officials said.

EU enlargement commissioner Marta Kos is also set to travel to Armenia early next month.

“The Commission will propose autonomous trade measures to help more Armenian businesses access new market opportunities in the EU and support the country’s economy where it has been most affected,” commission spokesperson Olof Gill told the FT.

Two of the officials said that brandy, one of Armenia’s core exports, posed some issues for EU officials drawing up the support measures, given the importance of cognac production for France. There is also the difficulty of moving perishable goods from Armenia through Türkiye or Georgia.

Ahead of the parliamentary elections held on June 7, Russia imposed restrictions and bans on the import of numerous Armenian goods, which remain in effect today. The move prompted exporters to look for new markets, including in the EU. The EU has since announced support measures. European Commission President Ursula von der Leyen, following a phone call with Armenian Prime Minister Nikol Pashinyan, announced immediate financial assistance of more than €50 million, along with other support measures to facilitate trade, including steps to expand export opportunities for Armenian goods.

Russia has cited phytosanitary violations as the reason for the ban, which has been widely viewed by the EU as “economic coercion.”