On March 18, Gevorg Papoyan, the Minister of Economy of Armenia, stated that the continuation of the US and Israeli operation against Iran could have long-term negative consequences for Armenia’s economy. Speaking at a session of the Standing Committee on Economic Affairs of the National Assembly, he emphasized that certain economic risks are already visible.

Papoyan noted that inflationary pressures are emerging, particularly due to rising prices for some goods. He explained that Armenia depends on raw materials imported from Iran for the production of various products, warning that disruptions in these supplies could further intensify inflation. “Losses certainly remain – we see inflationary risks in the form of rising prices for some goods,” he stated, adding that reliance on Iranian inputs creates additional vulnerabilities.

He also highlighted the considerable trade turnover between Armenia and Iran, stressing that a prolonged conflict could result in sustained negative effects on the country’s economic stability. At the same time, Papoyan emphasized that statements from senior political figures offer some optimism regarding a possible resolution. “It seems there will be hope that the conflict will ultimately end in the near future… in that case, I think we should no longer have great negative expectations,” he added.

Papoyan stated that Armenian and Azerbaijani businesses are currently engaged in negotiations over the supply of a specific product from Armenia to Azerbaijan. He noted that discussions between the two sides are ongoing, but did not disclose further details about the product under consideration.

https://caucasuswatch.de/en/news/papoyan-warns-of-armenias-economic-risks-from-us-and-israeli-operations-against-iran.html