Armenia calls for restrictions on Russian dairy imports

“Russia does not allow the supply of our dairy products, but we import their products. Every day when we go to the store, we see that Armenian [dairy] products have a lower presence [on the shelves],” Gabrielyan said.

The Russian veterinary body Rosselhoznadzor asked the Armenian side to curtail dairy exports in April 2023, citing veterinary concerns. According to Rosselhoznadzor, the Armenian veterinary system lacked the control necessary to ensure the appropriate safety of products delivered to the Russian market. Among other reasons, the Russian side voiced concerns over the use of Iranian raw materials at the Armenian dairy processing companies, while dairy imports from Iran are also subject to restriction in Russia.

Trade dispute

Local political analysts believe the recent trade disputes, including the dairy export ban, stem from crumbling political relations between Russia and one of its trade partners in the Caucasus region. Armenia-Russia relations have been visibly worsening since September 2022 over the escalation of the Nagorno-Karabakh conflict with Azerbaijan.

Economic impact

The Armenian government calculated that the Russian ban costs Armenia between 1.2 and 1.5 billion drams (US$3 million to US$3.8 million) per month. During the first quarter of 2023, Armenia exported around 2,000 tonnes of dairy products to Russia.

Armenian news outlet Panorama, citing a source in the Agricultural Ministry, noted that in addition to direct losses, Armenian businesses suffer due to a drop in prices for dairy products on the domestic market.

Konstantin Sinetskiy, general director of the Russian Southern Dairy Union, says that the potential Armenian ban will not impact Russian dairy exports.

In an interview with local news outlet NSN, Konstantin Sinetskiy pointed out that the Armenian share in Russian dairy exports is minimal and can be easily compensated for by the anticipated growth in other directions this year.