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Russia reportedly threatens to end tax-free gas exports to Armenia if EU path continues

A Gazprom Armenia building. For illustrative purposes. Photo: Caucasus Watch.
A Gazprom Armenia building. For illustrative purposes. Photo: Caucasus Watch.

Russia has reportedly sent Armenia a letter warning it could cut off the tax-free supply of gas, petroleum products, and uncut diamonds if Yerevan proceeds with its EU accession efforts, the Russian pro-government media outlet Kommersant reported on Tuesday, citing a copy of the letter it had obtained. For its part, Armenia has denied it received the letter, while Armenian Foreign Minister Ararat Mirzoyan reiterated Yerevan has ‘absolutely no desire to create tensions in Armenia–Russia relations’.

The alleged letter was sent by Russian Energy Minister Sergei Tsivilyov to the Armenian Ministry of Territorial Administration and Infrastructure, which told the Armenian state-run outlet Armenpress on Wednesday that no such letter had been received.

Under a 2013 agreement, Russia began supplying gas, petroleum products, and uncut diamonds without export duties, an agreement which the alleged letter said would be ended. Moreover, Armenia would be required to pay compensation, or ‘recognise unpaid amounts as its state debt to Russia’. It is unclear if the wording meant that Armenia would have to pay export duties on all such goods it imported from Russia since 2013, likely a significant sum.

Armenia’s efforts to join the EU, which have mostly been on paper as of now, ‘do not correspond to the nature of the partnership built on the basis of respect and mutual benefit over decades between the governments and business entities of our countries and the practical actions repeatedly taken by the Russian Federation to meet the critical needs of Armenia on a preferential basis’, Tsivilyov wrote in the purported letter.

On Wednesday, Kremlin spokesperson Dmitry Peskov said he had no information about the alleged cancellation threat, and instead said it was a ‘commercial issue’ with the Russian state-owned energy company Gazprom.

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In the run-up to Armenia’s parliamentary elections on 7 June, Russia has been increasing its pressure campaign against the country, while simultaneously issuing escalating rhetorical threats about the alleged consequences of Armenia’s geopolitical shift westwards.

Meanwhile, Yerevan has repeatedly reiterated it has no intention of severing its ties with Russia, but instead seeks positive relations with both the West and Russia.

Mirzoyan echoed this sentiment in a press conference on Tuesday, saying, ‘We have absolutely no desire to create tensions in Armenia–Russia relations, in political dialogue, or in economic ties — neither bilaterally nor within multilateral platforms of cooperation such as the [Eurasian Economic Union], the [Commonwealth of Independent States] and elsewhere’.

‘All issues that have arisen or may arise — and problems emerge from time to time in any relationship — we hope and are committed to discussing in a healthy, constructive and partnership-based atmosphere in order to find solutions’.

Notwithstanding the olive branches from Yerevan, Russia has continued to make inflammatory statements to Armenia — not all of which were limited to economic issues.

On Tuesday, Secretary of Russia’s Security Council Sergei Shoigu criticised Armenia’s non-participation in the Collective Security Treaty Organisation (CSTO) and falsely claimed the internationally recognised territory of Armenia had never been attacked.

In 2021 and 2022, Azerbaijani forces attacked Armenian territory and occupied around 200 square kilometers of ground, which it still holds today.

Shoigu also falsely said that Armenia had not requested assistance from the CSTO at the time, which it was treaty-bound to provide but declined to approve.

The refusal of the body to come to Armenia’s defence led to Yerevan’s decision to freeze its participation in the CSTO.

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