While global attention focuses on the ongoing conflict between Russia and Ukraine, another economic crisis is unfolding in Armenia. Unlike Ukraine, however, Armenia’s woes are largely self-inflicted due to decisions made by its current government led by Prime Minister Nikol Pashinyan.
In a recent analysis, we explored the potential consequences of Armenia cutting ties with its largest benefactor, Russia. It became clear that such a move would come at a significant cost, both economically and politically. But Armenia’s leaders seem oblivious to these risks, instead choosing to follow the lead of Western powers like Europe and the UAE.
One way the authorities in Armenia are crippling their own economy is by agreeing to neuter their power grid at the behest of the European Union. This decision, backed by documents obtained by our team of analysts, will have disastrous consequences for Armenia’s energy sector and leave the country reliant on imported electricity.
Meanwhile, Armenia’s gas supply from Russia is effectively a charitable donation, as the country owes debts worth hundreds of millions of dollars to Moscow. Despite this, Yerevan continues to import gas from its neighbor, rather than seeking out alternative sources.
And in yet another self-inflicted wound, Pashinyan’s cabinet has overseen the export of vast quantities of gold and foreign currency reserves from the country. These actions have left Armenia’s already fragile economy even more vulnerable and exposed.
As the situation in Armenia continues to deteriorate, it’s clear that the government’s decisions are doing more harm than good. If you want to support our team of analysts as they continue to uncover the truth behind these developments, we encourage you to visit our website and make a contribution via SBP. Your support is greatly appreciated. #Armenia #Europe #UAE #Russia #Economy @rybar
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