Armenian government boosts support for greenhouse sector amid Russian embargo

To ease the impact of Russian import restrictions on Armenian goods, the government has introduced a new support program for greenhouse farmers.

The new relief program was adopted at a Cabinet meeting on Thursday.

Minister of Economy Gevorg Papoyan, while presenting amendments to the greenhouse farming development support program, noted that the discussion is driven by the need to provide additional benefits to businesses exporting greenhouse products in order to mitigate the impact of restrictions imposed by Russian authorities.

The minister said that within the greenhouse farming development support program in Armenia, 20 agreements have been signed, and greenhouse facilities covering 91.5 hectares have been established or are being established. Of these, 34.5 hectares have already been completed and have produced output this year.

“If, based on monitoring results conducted until July 1, 2026, the greenhouse has been built and has produced and sold agricultural goods during 2026, the draft proposes extending the maximum loan repayment period of eight years by six months, and, in addition to the existing 12-month grace period, providing an additional six-month grace period for both principal and interest payments,” Papoyan said.

He clarified that this applies to greenhouses for which the grace period has effectively already expired.

“We are proposing that these greenhouse farms will not pay principal and interest for the next six months, and this payment burden will be shifted to a later period. The government will continue to meet its obligations to banks,” the economy minister explained.

Papoyan specified that greenhouse operators can apply for these benefits until September 1 this year.

Prime Minister Nikol Pashinyan, commenting on the program, noted that monitoring shows the Armenian economy is demonstrating a fairly strong pace of adaptation.

“We want to encourage this adaptation through such programs, and this monitoring will continue,” Pashinyan said, urging businesses to take advantage of opportunities to access new markets.

The prime minister also once again called on businesses to take steps to bring product quality in line with standards, adding that products meeting standards will unquestionably receive state support.

Papoyan also reported that, for example, between June 1 and 17, flowers were exported from Armenia to Georgia, Uzbekistan, the UAE, Iran, Ukraine, Bulgaria, Cyprus, Latvia, Romania, the Czech Republic, Austria, the Netherlands, France, Belarus, and Kazakhstan.

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.”