Armenia and Russia have shifted away from using dollars and euros in some settlements. This note comes from Vagan Kerobyan, Armenia’s Minister of Economy, who discussed the matter in a conference with Vedomosti.
Kerobyan explained that picking a currency for trade is a critical decision in today’s landscape. He pointed to the volatility of the Russian ruble against the dollar and the euro as a key obstacle to locking in long-term contracts. He also noted that the scale of the current money supply in rubles does not support predictable, stable flows of goods. In essence, the currency question is about reducing risk and ensuring reliable trade relationships in an uncertain macro environment.
The minister highlighted a notable shift in Armenia’s trade with Russia. Last year, deliveries from Armenia to Russia climbed close to fourfold, reaching about $2.5 billion. He attributed much of this rise to Western companies retreating from the Russian market, which opened room for Armenian suppliers to step in, fill gaps, and grow their business footprint. This development illustrates how shifts in global trade chains can create new opportunities for neighboring economies that maintain strong bilateral links.
Kerobyan added that Armenian companies, banks, and government agencies could potentially face secondary sanctions from Western countries. Yet Russia remains a crucial trading partner for Armenia, and every effort is made to minimize adverse impacts on this relationship. The broader point, he suggested, is that global economic growth depends on the ability of different blocs to connect and collaborate. Armenia could act as a bridge between diverse parts of the world economy, facilitating continued exchange and dialogue even amid political strains.
In related regional news, mid-August reports from RIA Novosti, citing the regional government press service, noted that the Lithuanian bank Siauliai decided to stop processing transactions with Russia in rubles. The announcement did not affect the railway crossings to Russia’s Kaliningrad region because invoices for services there had already been issued in foreign currencies. This development underscores how currency choices and sanctions regimes continue to shape cross-border logistics and payment flows across the Eurasian corridor. (RIA Novosti)