Prime Minister Nikol Pashinyan has warned that Russia’s economic restrictions on Armenian exports could become a problem for the Eurasian Economic Union (EAEU) by preventing its market from ‘functioning properly’.

Pashinyan’s remarks came during a Eurasian Intergovernmental Council session in Cholpon-Ata, Kyrgyzstan. There, Pashinyan reaffirmed that deepening cooperation with fellow EAEU member states remains a priority for Armenia’s foreign and economic policy.

The comments come in response to a series of Russian trade restrictions on Armenian goods as part of Moscow’s economic pressure on Armenia surrounding the Armenian parliamentary elections, which took place in June, as well as Armenia’s push for warmer ties with the West and EU and repeated warnings from Russia and the EAEU about the consequences of leaving the bloc.

During the summit’s first session, which Pashinyan attended alongside with the leaders of Russia, Belarus, Kazakhstan, and Kyrgyzstan, he stated that continued restrictions on Armenian exports  prevent the market from ‘functioning properly’, and warned that it could become a problem for the whole EAEU.

Since May, Russia has restricted imports of certain Armenian berries and fresh vegetables, suspended the sale of alcoholic beverages from several Armenian producers, banned the import of Jermuk mineral water, and blocked the import of 70,000 bottles from other water and soft drink producers.

During the Cholpon-Ata meeting, Pashinyan also addressed the EAEU’s demands that Armenia hold a referendum on whether it wants to leave the Russia-led bloc in favour of joining the EU.

‘We cannot hold a referendum on an issue that does not currently exist’, Pashinyan said.

He reiterated that current relations with the EU did not conflict with Armenia’s obligations under the EAEU and added that Armenia cannot be a party to both blocs simultaneously. However, he also mentioned that since the country is not yet ready for EU membership, Armenia did not need to make a decision on the matter.

Ahead of the summit, Russian Deputy Prime Minister Aleksei Overchuk said that trade turnover between Russia and Armenia has fallen by two-thirds this year. He warned that the decline is likely to continue, following a drop in turnover from a record $12 billion in 2024 to $8 billion last year.

Overchuk also said that despite constantly hearing public statements about it, Russia has not received any formal application from Armenia to end its concession-based management of the South Caucasus Railway, adding that Moscow is ready to continue managing the concession and would prefer the issue to be resolved ‘calmly, through consultations’.

His remarks follow recent comments by Pashinyan that there is no alternative to taking back control of the Armenian railway from Russian management. Russian Railways rejected the claim, insisting that if Armenia wants to change or end the arrangement, it must first repay the investments it made.