Government data shows that Armenian exports to the UAE accounted for over 98 percent of the trade volume, technically making the Gulf nation Armenia’s leading export market. Armenian goods and commodities accounted for a small percentage of that, however.
The Armenian government’s Statistical Committee reported in January-October 2024 more than fivefold increases in both imports and exports of gold, diamonds and various jewelry items which totaled $6.8 billion and $7.4 billion respectively. Although Armenia has gold production, diamond-cutting and jewelry industries important for the domestic economy, their annual turnover could only generate a fraction of these figures, meaning that external factors were behind the astronomical rises.
According to the committee, Russia’s exports to Armenia surged by $5.6 billion to nearly $8.3 billion in the same period. Armenian media outlets reported throughout the year sharp rises in shipments of Russian gold and, to a lesser extent, diamonds to Armenia and their subsequent re-exports, possibly after some processing, to third countries.
Citing the national customs service, the investigative publication Hetq.am said that Armenia imported about 66 tons of gold worth $4.4 billion already in the first half of 2024 and that almost all of it came from Russia. The latter cannot directly supply the precious metal to Western buyers due to sanctions imposed after its 2022 invasion of Ukraine.
Armenia shipped nearly as much gold abroad during the same period, with the UAE absorbing around two-thirds of those exports and the rest of them mostly going to China. This explains why Armenian exports to China nearly tripled in January-October to almost $1 billion.
In a recent article, Hetq.am identified more than a dozen Armenian firms involved in large-scale imports and re-exports of Russian gold. According to it, one of those firms is linked to the family of Khachatur Sukiasian, a wealthy businessman and parliamentarian representing Prime Minister Nikol Pashinian’s Civil Contract party.
The lucrative trade operations appear to have also involved Russian diamonds likewise covered by U.S. and European Union sanctions. In 2023, Armenia reportedly exported (mainly to the UAE) 4.5 million carats of diamonds worth about $590 million, a volume by far exceeding the combined annual output of Armenian diamond-cutting firms. The Armenian customs service has still not released any diamond-related data for 2024.
Armenian entrepreneurs have also taken advantage of the sanctions by re-exporting many Western-manufactured goods to Russia. This was the main driving force behind rapid economic growth registered in the country in 2022 and 2023. That growth moderated in 2024 and is projected to slow further this year.