Armenia’s foreign trade turnover has seen a dramatic decline during the first four months of 2025, as the country’s imports and exports of diamonds and precious metals plummeted following significant changes to Russian trade policies.
According to data published by the Arminfo news agency on June 9, Armenia’s overall trade volume for the first third of 2025 reached $6.3 billion, marking a 53% decrease compared to the same period in 2024. This sharp downturn is largely attributed to a precipitous drop in the trade of gems and precious metals, specifically diamonds and gold.
Armenia’s imports of gems and precious metals totaled $740 million in the first four months of 2025, compared to $863 million in exports. In contrast, during 2024, Armenia recorded $7.4 billion in imports and about $8 billion in exports of gems and precious metals. These figures accounted for roughly 50% of Armenia’s total annual trade turnover of $30.2 billion in 2024.
The downturn in Armenia’s precious metals and gemstones trade is widely attributed to recent changes in Russian tariff policies, particularly within the framework of the Eurasian Economic Union (EAEU). These shifts have had a major impact on Armenia’s role as a key transit hub for Russian commodities.
Historically, Armenia has served as a pass-through country for the import and export of raw diamonds, gold, and other precious stones, with limited domestic value-added production, such as jewelry. This role enabled Armenia to boost its overall trade figures, while providing Russia with an avenue to circumvent international sanctions by re-exporting these materials.
The change in trade dynamics has had profound effects on Armenia’s trade structure. The overwhelming bulk of Russian gems and precious metals imported by Armenia over the last few years have been re-exported to destinations such as the United Arab Emirates and Hong Kong.
The trend of gem and precious metal trade dominating Armenia’s foreign trade started in 2022, coinciding with Russia’s invasion of Ukraine. Since then, Armenia has increasingly become a key transit point in the trade of Russian precious metals, though it has yet to significantly capitalize on value-added production, such as refining or jewelry manufacturing.
Experts believe that Armenia’s diminished role in this trade, particularly following the new Russian trade regulations, will likely have broader implications for the country’s trade balance and overall economic outlook in the coming months.
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