Author: Emil Lazarian

Lithuanian President Gitanas Nauseda on Tuesday accepted the resignation of the country’s government following a reshuffle of the ruling coalition and asked the resigned cabinet to continue serving in a caretaker capacity until a new cabinet is formed, his office reported.

The outgoing cabinet held its final meeting earlier Tuesday, unanimously approving a resolution to resign, and Prime Minister Inga Ruginiene said at the meeting that the government had much to be proud of despite facing numerous challenges.

Prime Minister Benjamin Netanyahu said Israel needs to be “free” from military dependence on the United States and develop its own weapons-production capabilities, adding that this is needed to support the ongoing fight with “Iran and its proxies”, The Times of Israel reported.

Speaking during a meeting with reserve combat officers, Netanyahu said: “I greatly appreciate the support we have received — and that I have secured over the years — from our American friends. But today I say: We need our own independent weapons-production system. We must manufacture our own armaments.

“We are now confronting Iran and its proxies. We have struck them hard. It is not over yet, but it depends on our strength. Where we will be in 30 years depends on our strength. That is why what we are doing now is building even greater strength,” the premier said, adding that he wants Israel “to have an independent armaments capability.”

Netanyahu has vowed for months to end US military aid to Israel over the next decade, but today’s remarks come at a particularly tense moment, amid increasing concern in Jerusalem over the US placing limitations on its freedom of action as Washington continues to advance an agreement with Tehran that Israel largely opposes, according to The Times of Israel.

“We need to free ourselves from dependence, continue building more and more strength, incorporate more and more technology, and train more and more generations of commanders like you — because ultimately that is what will determine our position,” Netanyahu added.

US Vice President JD Vance remarked in a press conference last week that in recent months, “two-thirds of the defensive weapons that have protected [Israel]” were US-made and funded by American tax dollars.

US and Israeli officials say that recently begun talks on a new 10-year US-Israel security cooperation framework seek to “gradually transition” the framework “from aid to a completely reciprocal partnership.”

Restrictions on the presence of Armenian products in the Russian market have prompted Armenia to intensify efforts aimed at diversifying its trade and economic ties. For now, these efforts are reflected in modest steps toward Europe and are accompanied in the public sphere by discussions contrasting the markets of the European Union and the Eurasian Economic Union (EAEU), as well as debates over prioritizing one over the other. Amid this debate, however, the importance and necessity of expanding into accessible southern and eastern markets appears to be overlooked, despite the fact that such prospects could become increasingly realistic against the backdrop of a potential normalization of relations between Iran and the United States. In an effort to broaden the geographical scope of discussions on this pressing issue, Armenpress spoke with Tatevik Vardanyan, expert at the Amberd Research Center of the Armenian State University of Economics and Candidate of Economic Sciences.

– Should the diversification of Armenia’s trade and economic ties be limited to the EAEU and the EU, or should the country simultaneously deepen relations with major markets such as China and India, a process that could be facilitated by a possible resolution of the situation surrounding Iran and the restoration of normal operations along southern maritime routes?

 – Diversification of external economic relations is an important prerequisite for sustainable economic development in any country. For small and open economies such as Armenia’s, dependence on one or two markets is always risky. Therefore, Armenia’s external economic policy should be based not on an “either-or” approach but on a “both-and” principle. In other words, it is necessary to simultaneously develop relations with both traditional partners and promising new markets. Undoubtedly, new economic prospects and opportunities will emerge for Armenia if Iran, following the easing of sanctions and security-related restrictions, is able to integrate into the global economy as quickly and fully as possible. In such circumstances, Iran should be viewed not only as a market of approximately 93 million people but also as a strategic transit hub capable of connecting Armenia with the Persian Gulf, the Indian Ocean and the countries of South Asia. This, in turn, would help reduce logistics costs, shorten transportation times and increase the competitiveness of Armenian products in international markets. In this context, the markets of China and India become particularly important. According to forecasts by leading international organizations, the bulk of global economic growth in the coming decades will be generated in Asia. China remains the world’s second-largest economy and a major centre of global manufacturing, while India is one of the fastest-growing major economies. In both countries, the middle class is expanding rapidly, increasing demand for high-quality food products, beverages, healthcare, education and other services. At the same time, it is important not to overestimate the significance of market size alone. China and India are highly competitive markets where Armenia cannot compete in terms of production volume or low prices. Armenia’s advantage should be based on product quality, niche production, the Armenian country brand and high value-added goods. In other words, Armenia’s goal should not simply be to export more, but to export products that are more competitive and carry greater value. At the same time, the search for new markets should not come at the expense of traditional partners. The European Union is of strategic importance because it is a highly solvent market with demand for high value-added products and services. Therefore, Armenia’s export strategy should be based not on geopolitical choice but on economic pragmatism, simultaneously strengthening its presence in both the EAEU and the EU while gradually expanding cooperation with India, China and other rapidly developing Asian markets. Only such a multifaceted approach can enhance the competitiveness of Armenia’s economy and ensure resilience against external shocks.

– What is the current structure and statistical picture of Armenia’s trade and economic relations with India and China, both before and during the recent Iran–U.S. conflict? 

– Armenia’s economic relations with China and India are currently at different stages of development, something that is clearly reflected in official statistics. In recent years, China has become one of Armenia’s most important trading partners. While Armenia’s exports to China stood at approximately USD 290 million in 2020, they had reached USD 1.1 billion by 2024, increasing nearly 3.8-fold. During the same period, imports from China rose from USD 674 million to USD 1.73 billion. As a result, bilateral trade turnover amounted to approximately USD 2.8 billion in 2024. However, when analysing these figures, it is important to pay attention to the structure behind the volumes. The increase in Armenian exports to China has largely been driven by higher exports of mining products and precious metals, while imports are dominated by machinery, equipment, electronics and industrial goods. In other words, trade volumes are growing, but the structure of exports has not yet become sufficiently diversified. This trend has continued in 2026. During January–April, China’s share in Armenia’s foreign trade turnover increased from 12.2% to 14.5%, while bilateral trade grew by 19.4% to reach USD 914.5 million. This indicates the continuing rise of China’s importance in Armenia’s foreign trade structure. The picture is different in Armenia’s trade relations with India. Although political and economic cooperation between the two countries has intensified in recent years, trade volumes remain relatively modest. In 2024, Armenia’s exports to India amounted to USD 36.4 million, while imports from India reached USD 233.5 million, bringing total trade turnover to approximately USD 270 million. Looking at the dynamics of the past five years, exports from Armenia to India have fluctuated significantly. They exceeded USD 126 million in 2021 but subsequently declined. At the same time, imports nearly tripled over the same period, rising from USD 85 million to USD 233 million. This means that imports continue to dominate Armenia’s economic relations with India, while export potential has yet to be fully realized. Therefore, it can be concluded that in the case of China, Armenia’s main challenge is not trade volume but the structure of exports, whereas in the case of India, the challenge lies in making more effective use of existing economic potential. Improvements in both directions could make a significant contribution to diversifying the geography and structure of Armenia’s exports. As for the impact of the recent Iran–U.S. crisis on these relations, official statistics do not yet fully reflect it. Foreign trade indicators typically become clearer over time. However, if tensions persist and disrupt cargo transportation through Iran, logistics costs are likely to rise, transportation times may lengthen and insurance risks could increase. This would be particularly evident in Armenian-Indian trade and economic relations, as Armenia’s shortest land route to the Indian Ocean passes through Iranian territory. Conversely, if a stable security environment emerges in the region, Armenia will gain additional opportunities not only to expand economic ties with India but also with the wider regions of South and Southeast Asia.

– To put it figuratively, could Armenian pears find demand in Japan? More broadly, how do you assess the prospects for bringing Armenian agricultural and other products to the Japanese market? 

– The short answer is yes. However, success will depend not so much on the quality of the product itself as on our ability to adapt it to the requirements of the Japanese market. Japan is one of the world’s most demanding, but also one of its most solvent markets. Japanese consumers place high demands not only on product quality, but also on food safety, packaging, traceability and the reliability of supply chains. Therefore, having a good product alone is not enough to succeed in that market; it is also necessary to build trust. Armenia has a range of products that could be attractive to Japanese consumers. This includes not only fresh fruit, but, above all, processed agricultural products such as dried fruits, honey, natural juices, preserves, wine, brandy, mineral water, herbal teas and other natural products. These goods have longer shelf lives, are easier to transport and are more competitive in distant markets. However, entering the Japanese market requires addressing a number of practical challenges. These include obtaining international certification, complying with phytosanitary requirements, developing cold-chain logistics and establishing long-term partnerships with Japanese importers and distributors. Without these prerequisites, even high-quality products will struggle to reach consumers. At the same time, it is important that Armenian products be presented in Japan not merely as food products, but as goods that embody cultural and national identity. Origin, history and branding carry significant value in the Japanese market, and this is precisely where Armenia has a competitive advantage. Therefore, if we are able to combine high product quality, compliance with international standards and an effective export system, Armenian products can successfully establish themselves even in one of the world’s most demanding markets. The question is not whether Japanese consumers will be interested in Armenian products, but how effectively we can present those products and ensure their sustainable presence in that market.

– Continuing eastward, how would you assess the prospects of Armenian products entering the Korean market, including not only South Korea? 

– South Korea and North Korea cannot be viewed within the same economic framework. While South Korea is one of the world’s leading technological and industrial economies, the Democratic People’s Republic of Korea remains a closed economy operating under strict international sanctions and limited external economic ties. Consequently, the economic significance of these two directions for Armenia is fundamentally different. South Korea could be of interest to Armenia not only as an export market, but also as an investment and technology partner. The Korean market has stable demand for high-quality and safe food products, meaning that Armenian wine, brandy, dried fruits, honey, mineral water, organic agricultural products and other processed goods could find consumers there. However, success in this market also requires compliance with Korean quality and technical standards, international certification, developed logistics and a reliable network of partners. At the same time, South Korea can play an important role in the modernization of Armenia’s economy. The country is a global leader in high technologies, industrial production, agricultural technologies and logistics solutions. Cooperation in these areas could contribute not only to export growth, but also to improvements in production efficiency, processing capabilities and technological development in Armenia. The situation with North Korea is entirely different. International sanctions, limited foreign trade, difficulties in conducting financial transactions and significant political risks effectively rule out the country as a promising market for Armenian products. At this stage, practical opportunities for economic cooperation remain extremely limited, and therefore North Korea cannot be regarded as a priority destination from the perspective of Armenia’s export policy. Thus, while South Korea could become an important partner for Armenia in exports of high-value-added products, investment and technological cooperation, North Korea, under current geopolitical conditions, can hardly be considered a realistic market. Armenia’s external economic policy should focus on countries with strong purchasing power, predictable economic environments and genuine long-term cooperation opportunities.

 – Can you identify other promising destinations and markets for Armenian exports? 

– I believe that the future of Armenia’s exports depends not so much on finding new markets as on securing a competitive presence within those markets. It is already evident that an export model based on one or two markets cannot ensure sustainable long-term development. Therefore, our priority should be to expand the geography of exports while preserving traditional markets and simultaneously entering new economies with high purchasing power. Naturally, the Eurasian Economic Union and the European Union will continue to be Armenia’s principal partners. However, in the coming years greater attention should also be paid to the markets of South and East Asia, as well as the Gulf countries. In these regions, the middle class is expanding, purchasing power is increasing and demand for high-quality imported products is growing, creating new opportunities for Armenian producers. At the same time, discussions about exports should not be limited to goods alone. Armenia’s competitiveness can also be significantly enhanced through the export of services. Information technologies, engineering, education and healthcare services, tourism and creative industries are sectors in which Armenia can expand its presence in international markets. However, in my view, Armenia’s principal challenge is not a lack of markets but rather the structure of its exports, which remains largely concentrated in a limited range of products and raw materials. Sustainable long-term results can only be achieved if Armenia develops its processing industries, introduces new technologies, improves product quality and establishes a recognizable “Made in Armenia” brand in international markets. Another important priority is the development of the entire export infrastructure. This is not only about production. Armenia also needs efficient logistics systems, modern warehousing facilities, international certification mechanisms, export financing and insurance instruments, as well as a more active role for economic diplomacy. Together, these elements create the environment that enables producers to maintain a sustainable presence in foreign markets. Ultimately, I believe Armenia’s export strategy should be built on three principles: diversification of markets, development of high value-added products and continuous improvement of international competitiveness. If Armenia succeeds in combining these three directions, it will not only expand the geography of its exports, but also strengthen the resilience of its economy and enhance its long-term growth potential.

Yerevan is preparing a major overhaul of its public transport system, with plans to transition toward a fully electric fleet in the coming years.

Yerevan Mayor Tigran Avinyan, speaking at a City Council meeting on Tuesday, said that after the replacement of “Higer” brand buses, no other type of transport will be purchased for Yerevan’s public transport system except electric transport.

He said that new trolleybuses have a special place in the new public transport reform strategy. The city plans to acquire more than 20 additional trolleybuses.

The only remaining old rolling stock in the public transport system are the purple “Higer” buses, which will also soon be replaced.

Avinyan added that the purchase of electric buses is also being planned, and at the moment one of the issues under discussion by the government’s Investment Committee concerns electric buses.

“There are two proposals: the first is to purchase 250 electric buses of 18 meters in length. The second is, based on a new analysis, to buy 12-meter electric buses instead of 18-meter ones, but we will finalize all analyses later.

We will replace the ‘Higer’ buses, but not with non-electric transport. However, after that, Yerevan will not purchase any other type of public transport except electric vehicles. Our strategy is that, in the future, Yerevan should fully transition to electric transport,” the mayor said.

The Yerevan City Council, during the meeting, also approved a decision under the 2026 “Transport System Modernization” program to transfer 45 newly purchased Yutong ZK6128BEVG trolleybuses to the “Yerevan Electric Transport” CJSC without payment.

In procedural terms, this means the vehicles—valued at 4.326 billion AMD—are being formally donated by the municipality to the operating public transport company responsible for running the city’s trolleybus network.

European Commission President Ursula von der Leyen is preparing to travel to Armenia next week, POLITICO reported citing three people familiar with the plans.

The EU delegation, which will also include Enlargement Commissioner Marta Kos, will visit Armenia in a high-profile show of support for Prime Minister Nikol Pashinyan after his Civil Contract party’s decisive victory in the June 7 parliamentary election, according to POLITICO.

Commissioner Marta Kos announced earlier this month that she would travel to Armenia on July 5, but the new report says the trip led by President Ursula von der Leyen will likely take place on July 1.

The July 1 visit, the plans for which have not yet been finalized, comes as Pashinyan seeks to “cement Armenia’s shift away from Moscow” and deepen ties with the European Union following a vote widely viewed as a referendum on the country’s “geopolitical future”, the newspaper reported.

“We have seen the country under intense and consistent pressure from Russia; a visit would send a strong signal of support, following on from the concrete support already delivered,” said one EU official working on the prospective trip, granted anonymity by POLITICO to speak frankly, as were the other people with knowledge of the planned trip.

They added it would send the message that “Europe is here for you.”

The trip has other repercussions for Brussels, as the College of Commissioners meeting scheduled for July 1 has been canceled, according to two of the officials. As a result, several legislative proposals that had been due for adoption have been delayed or otherwise affected. Among them are the Commission’s Public Procurement Act, a planned overhaul of EU tendering rules, as well as initiatives on the defense single market, innovation and livestock farming, as POLITICO first reported. The Commission has not yet announced a new date for these files.

Next week’s trip will be von der Leyen’s second to Armenia in less than two months. The Commission president was in Yerevan in May for the European Political Community summit, which Armenia hosted, before taking part in the inaugural EU-Armenia summit.

Last week, the EU disbursed €34 million to help offset the impact of new Russian restrictions on Armenian exports and support efforts to diversify trade toward European markets. 

The Investigative Committee of Armenia has completed the preliminary investigation into criminal proceedings concerning an alleged attempt by three individuals to illegally sell a particularly large quantity of narcotics.

According to a statement issued by the Investigative Committee, extensive measures carried out during the preliminary investigation by officers of the Investigative Committee and the Ministry of Internal Affairs’ police revealed that Armenian citizens S.H., N.M. and S.H. had allegedly agreed in advance in December 2025 to acquire for the purpose of sale approximately 5.5 kilograms of marijuana that had been smuggled into Armenia.

According to the investigation, a foreign national transported the narcotics across the border via the Araks River and concealed them in Armenia. Following an arrangement reached with S.H. and N.M., information on the location of the hidden narcotics was provided to one of them. However, the Armenian citizen was identified and detained by police officers while attempting to retrieve the drugs.

Public criminal prosecution has been initiated against S.H., N.M. and S.H. under Article 44-393, Part 3, Clause 2 of the Criminal Code, concerning the attempted illegal sale of narcotic drugs in a particularly large quantity.

House arrest has been imposed on the three individuals as a preventive measure.

The criminal case against the three defendants has been forwarded to the supervising prosecutor with an indictment for approval and subsequent referral to court for consideration.

Notice: A person charged with a crime is presumed innocent until proven guilty in accordance with the procedure established by the Criminal Procedure Code and by a court verdict that has entered into legal force.

Under an agreement signed yesterday between Telecom Armenia and AzerTelecom, the Armenian company will provide transit internet services on a commercial basis in the Nakhichevan-Azerbaijan direction. The arrangement is purely a business transaction and does not pose any national security risks.

Alexander Yesayan, co-founder and chairman of the board of Team Telecom Armenia, made the remarks while addressing public concerns in Armenia regarding the agreement.

– Which part of Azerbaijan is expected to receive internet traffic under the agreement, and what volume or capacity of traffic does it involve?

– We will provide traffic transit in the Nakhichevan-Azerbaijan direction. In other words, Team Telecom Armenia will sell internet traffic to Azerbaijan. It should be noted that international communication routes function as complementary pathways. In modern telecommunications networks, traffic can be transmitted through different routes depending on technical and operational conditions.

New connections expand available options and increase network flexibility. To provide transit services, networks must have physical interconnection at the level of equipment and cables.

This is not an internet service but a data transit service carried out on a point-to-point basis using DWDM technology. The Azerbaijani side will gain access to a cable with a capacity of 100 gigabits per second, not to any data.

– Does the agreement involve any national security risks?

– The internet operates in such a way that all nodes around the world are interconnected. This cooperation does not envisage any exchange of data between countries; it is simply an internet transit agreement.

Since the sale of internet traffic will mainly be carried out from Telecom Armenia, the potential risks are actually higher for the other side. Security requirements are always a priority in the design and operation of telecommunications infrastructure. The purpose of establishing new routes is to enhance network resilience and reduce dependence on individual directions, thereby ensuring a more diversified and stable infrastructure.

– Can it be said that this is purely a business transaction in which the Armenian side’s interest is exclusively financial?

– Yes, it is a business transaction and the agreement is based on commercial principles. At the same time, greater international bandwidth and additional routes contribute to improved service reliability, network stability and the quality of international connectivity.

– Can the agreement be viewed within the logic of TRIPP?

– No. This cooperation is exclusively an arrangement between two private companies and has no connection either with TRIPP or with any other interstate project.

Through this project, we are strengthening Armenia’s role as a transit country for internet traffic in the region by also selling traffic to Azerbaijan.

This is solely a telecommunications and infrastructure project aimed at increasing network stability, expanding international connectivity routes and creating additional opportunities for the development of Armenia’s digital economy.

We are already the largest provider of transit internet connectivity from Armenia to international destinations. With this project, we become one of the three largest providers of transit internet traffic in the Caucasus and the Middle East.

Within the framework of the agreement, we are simply expanding alternative opportunities to connect to global internet network hubs, while also beginning to provide services to Azerbaijan.

Telecom Armenia and AzerTelecom have signed a bilateral agreement providing for the transit and delivery of internet traffic through the territories of the two countries on a commercial basis.

Under the agreement, Telecom Armenia, as a leading transit operator in the region, is expanding both the number of countries and the geographical scope of its international internet traffic services by providing transit to Azerbaijan through its own infrastructure.

The agreement is intended to contribute to the diversification of regional connectivity routes, enhance the reliability of telecommunications networks and promote cooperation in the telecommunications sector.

Armenian Deputy Foreign Minister Vahan Kostanyan participated in the high-level launch event of the Connectivity Agenda Platform initiated by the European Union.

According to Armenia’s Foreign Ministry, the event also brought together delegations from Türkiye, Ukraine, Moldova, Kazakhstan, Turkmenistan, Tajikistan, Uzbekistan and Kyrgyzstan, as well as representatives of international financial institutions and the European Commission.

The ministry said the platform was established to strengthen the connectivity agenda among the countries of the South Caucasus, the Black Sea region, Türkiye and Central Asia, and to advance interregional connectivity within the framework of the EU’s Global Gateway strategy.

As part of the conference, Kostanyan participated as a speaker in a panel discussion titled “Future Prospects of the Trans-Caspian Transport Corridor in the Black Sea and South Caucasus Regions: Towards 2030”.

The panel also featured Moldova’s deputy prime minister, Türkiye’s minister of transport and infrastructure, Ukraine’s minister for communities and territorial development, a vice president of the World Bank, as well as the European Commission’s deputy director-general for mobility and transport and director for the Eastern Neighbourhood and Türkiye.

In his remarks, Kostanyan stressed the importance of developing regional connectivity and promoting dialogue with neighboring countries in that context, noting that initiatives in this area could help fully realize the potential of the South Caucasus as an important link between Europe and Asia.

In this regard, he also highlighted the importance of advancing Armenia-EU partnership, particularly in the fields of transport, energy and digital connectivity.

Addressing the development of regional communications, the deputy foreign minister presented the Armenian government’s Crossroads of Peace initiative. He emphasized that inclusive connectivity contributes to regional cooperation, economic development and confidence-building.

At the conclusion of the conference, letters of intent were signed between Armenia and the European Commission, as well as separately between Armenia and the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), concerning feasibility studies for three Armenian border crossing points and two northern highways.