Armenia and Russia cease using dollar and euro in mutual trade

Armenia and Russia have completely stopped using dollars and euros in mutual settlekents, Vagan Kerobyan, Armenia's Minister of Economy said in an interview with the Vedomosti newspaper.

According to him, Armenia's exports to Russia quadrupled in 2022 from $850 million to $2.5 billion. Such an increased largely occurred as many Western companies decided to leave the Russian market. Armenian suppliers thus had an opportunity to expand their businesses in Russia. The trade turnover between the two countries doubled to $5.3 billion.

The choice of currency for trading under the current conditions is a big problem, Kerobyan said. The Russian currency is too volatile against the dollar and the euro, which hinders the conclusion of long-term contracts, he noted. In addition, the supplies of the Armenian currency, the dram, does not make it possible to ensure the existing flow of goods.

At the same time, Armenian companies, banks and agencies risk falling under secondary sanctions. However, the financial system and customs are doing their best to avoid this, the minister said. Russia is Armenia's most important economic partner. The republic is a member of the EAEU (Eurasian Economic Union), and it will be difficult for Armenia not to have mutual trade with Russia. 

“Global development is impossible against the backdrop of isolation of some political blocs from others. We would like to become a bridge between different fragments of the world economy. We communicate a lot with both Russian and European and American colleagues, explaining our position to them,” Kerobyan added.