The government already allocated a similar amount of financial aid to them in early June after Moscow blocked imports of Armenian fruits, vegetables, fish, flowers, mineral water and some alcoholic beverages on supposedly sanitary grounds. It set specific amounts of compensation for each of those items exported to countries other than Russia.

Deputy Economy Minister Arman Khojoyan spoke of “obvious progress recorded in the process of diversifying export markets” during a weekly cabinet meeting in Yerevan. Khojoyan listed the physical volumes of the affected products which he said were exported to some two dozen countries last month. But he did not compare them with corresponding export data for the same period of last year.

According to official statistics, Armenia’s overall exports tumbled by more than 20 percent year on year in June. Russia has long been their single largest destination. Russian officials put at over $700 million the annual amount of Armenian imports covered by the sanctions.

Fresh Line, an export-oriented company that has greenhouses and orchards and also buys produce from farmers, was among the recipients of the first subsidies. Its founder, Gevorg Ghukasian, plans to also take advantage of the government’s second aid package.

“We have exported apricots, plums, pepper, tomatoes and a small amount of cherries,” Ghukasian told RFE/RL’s Armenian Service. “The subsidies are critical for this process.”

The government has in turn received 52 million euros ($60 million) in financial aid from the European Union to cope with consequences of the Russian embargo. Visiting Yerevan last month, European Commission President Ursula von der Leyen promised that the EU will open its tightly protected and regulated market to Armenian agricultural products.

The Russian sanctions followed two European summits in Yerevan during which Prime Minister Nikol Pashinian reaffirmed his administration’s intention to seek Armenia’s eventual accession to the EU. Russia says these aspirations are no longer compatible with the South Caucasus nation’s membership in a Russian-led trade bloc essential for the Armenian economy.

While repeatedly urging Moscow to lift the sanctions, Pashinian has described them as an “opportunity” to diversify Armenian exports. He again urged local agribusiness firms and farmers on Thursday to use it.

Many of them are skeptical about prospects for redirecting their exports to the EU. They argue that they cannot quickly switch to the EU market due to a lack of established business contacts, much higher transport costs and the bloc’s stringent food safety standards.

Fresh Line’s Ghukasian cited the same problems. He said that only one of his company’s new export markers, Poland, is an EU member state.

“We still have a long way to go to gain a foothold there,” said the businessman.

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