Armenian Economy Minister says Armenia ‘not replacing’ Eurasian Economic Union with EU

Armenian Economy Minister Gevorg Papoyan has said Yerevan was not ‘thinking about replacing the Eurasian Economic Union’, despite the governement stating they planned to join the EU.

Papoyan’s comment came at a press conference on Monday, where he was asked to comment on recent statements from Russian officials about the incompatibility of the EU and the Eurasian Union (EAEU).

‘The EU accession process is a parallel agenda. Our task is not to discuss those agendas, but to increase the resilience and competitiveness of our economy,’ Papoyan said.

‘Under no circumstances do we think of replacing the EAEU with something,’ Papoyan responded to a question on whether the government foresees any economic risks to joining the EU.

‘We want to be independent, and independence is when you depend on everyone, not on one, and everyone depends on you to some extent’, he said, adding that there was ‘no need to replace’ the Eurasian Union.

‘We need to maintain, enlarge, and increase these volumes in the EAEU. Enlarge and increase them with others as well,’ Papoyan said, noting that Armenia’s number one trading partner was currently the United Arab Emirates, followed by Russia, China, and the EU.

Asked if Papoyan’s statement signalled that Armenia was reconsidering applying for EU membership, or whether it was impossible for it do so, Economy Ministry spokesperson Lilit Shaboyan told  OC Media the issue was beyond her ministry’s scope.

However, Shaboyan said that Papoyan’s statement about not ‘replacing the EAEU’ fell within the framework of Armenia’s policy of ‘diversification’.

‘[The minister] meant that within the framework of diversification, we are not going to cooperate with any other country at the expense of another, but are expanding cooperation with all possible countries’.

Joining the EU would require Armenia to leave the Eurasian Union.

The EU and Eurasian Union mandate members follow their own set of internal rules and standards, which are not compatible with each other. Both organisations also include a customs union — a free trade zone with unified trade tariffs on outside imports.

‘A ticket for the Titanic’

Papoyan’s comments followed the Armenian government’s approval of a draft law that would commence Armenia’s process of joining the EU.

Armenian government backs EU membership bill in move mocked by Russia

The Armenian Government approved a draft law proclaiming the start of the process of Armenia’s accession to the EU.

OC MediaArshaluys Barseghyan

The move drew a swift reaction from Russia, with Russian Deputy Prime Minister Alexei Overchuk saying on the same day that Armenia’s accession to the EU was ‘incompatible’ with its EAEU membership, which, according to Overchuk, puts Armenia ‘before a choice’.

He also hinted at the problems Armenia could face in case of curtailing ties with the Eurasian Union, such as the rise of energy prices and the decline of exports.

According to CivilNet, during the first 11 months of 2024, trade turnover with the EAEU increased by 68.3%, reaching $11.9 billion, which accounts for more than 42% of the country’s total foreign trade turnover. At the same time, trade with the EU decreased by 14.1%, amounting to $2.1 billion or 7.5% of the total volume.

Overchuk called membership in the EAEU a ‘privilege’ and suggested that joining the EU could be ‘compared to buying a ticket for the Titanic’, considering the ‘economic and social problems that the EU is facing’.

On Tuesday, Russian Foreign Minister Sergey Lavrov said that choosing to launch the accession process to any bloc was a ‘sovereign decision’ of the Armenian leadership.

‘But weighing all the pros and cons is probably also the responsibility of the Armenian government, the leadership, those who are involved in the economic block’, he said.