6 September 2024
The US Agency for International Development (USAID) has more than doubled its five-year aid package to Armenia, from $120 million to $250 million.
The Armenian government approved the amendment of the development cooperation grant agreement on Thursday.
The move comes as Armenia seeks closer ties with the West as its relations with Russia continue to plummet.
According to the agreement, the additional money will go to improving governance, civil participation in democracy, and improving the sustainable management of natural resources.
It also includes support for ‘increasing the competitiveness of targeted sectors’ in Armenia. Armenia’s economic reliance on Russia represents a potential obstacle to its attempts to integrate more with the West, especially the government’s stated aim of joining the EU. In 2023, Armenia exported goods worth $3.5 billion to Russia, 41% of the country’s total exports.
The agreement does not envisage additional financial obligations for the Armenian state budget.
The 5-year Development Objectives Grant Agreement was signed in June 2022, with the US initially allocating $120 million with the aim of ‘strengthening democratic values and ensuring economic stability’.
Earlier this year, USAID Administrator Samantha Power announced $11.9 million in new funding commitments for digital transformation, food security, communications, and risk mitigation in Armenia. This came on top of the over $65 million the US government announced in April following a trilateral US–EU–Armenia meeting in Brussels.
