AGP Executive Report

Aviation & Exports: Armenia’s new Civil Aviation Committee chief plans to turn Zvartnots’ historic building into a passenger terminal and expand air-cargo capacity to help exporters reach new markets. State Assets: The government is considering a unified center to manage state property and has called for an inventory of assets. Electricity: Authorities are reviewing ENA’s privatization and share transfers; owner Tashir Capital says the government’s move to take control breaches an arbitration ruling. Banking: Armenian banks’ net profit rose 9% year-on-year to AMD 334.4 billion in January–September, down from 15% growth a year earlier, as analysts cite worsening loan quality. Investment: Armenia and Italy discussed preferential financing for green-economy, energy and infrastructure projects through Italy’s development bank. Mining: The economy minister says the Amulsar mine could contribute up to $130 million in annual taxes and 1–1.5% of GDP; environmental opposition to the project continues.

Economic outlook: The IMF sees Armenia’s economy growing 5.5% in both 2026 and 2027, with inflation easing to 3.6% next year. Mining: Economy Minister Gevorg Papoyan says Amulsar could add 1–1.5% to GDP, create up to 4,000 indirect jobs and generate as much as $130 million in annual taxes at current gold prices; environmental concerns remain contested. Energy: The government has moved to acquire all shares in Electric Networks of Armenia, while owner Tashir Capital says the decision violates an international arbitration order. Investment: PROFAL plans a further $10 million investment in Armenian glass processing, while Canadian firm Hayasa Metals plans to invest up to $20 million exploring for copper. Trade and transport: Armenia’s new civil aviation chief says expanding air-cargo capacity is a priority to help exporters reach new markets. In the first nine months of 2026, Azerbaijan reported $23.45 million in exports to Armenia; Armenia’s reported exports to Azerbaijan were about $96,500.

Regional Trade: Azerbaijan reported $23.45 million in exports to Armenia in January–September, compared with $96,460 in imports from Armenia, signalling a small but notable flow of cross-border trade. Investment Scrutiny: Reuters reports that the head of a $201 million U.S.-backed Caucasus fund holds major stakes in Armenia’s Viva telecom operator and recently acquired a major copper-molybdenum mine, prompting ethics experts to raise potential conflicts of interest. Industrial Expansion: Armenian glass processor PROFAL plans to invest another $10 million over two years, add 100 jobs and grow exports; it says 80% of current sales are domestic. Mining Reform: Armenia aims to establish a geological service and move all subsoil-use permits to a unified digital system by the end of 2027. COP17 and Business: UN biodiversity talks opened in Yerevan with reform of at least $500 billion a year in nature-harming subsidies on the agenda, alongside efforts to mobilize conservation funding.

Manufacturing: Armenian glass processor PROFAL plans to invest another $10 million over two years, add 100 jobs and grow exports; the company already sells to the US, Canada, France, the UK and Saudi Arabia. Mining: Armenia plans to establish a central geological service and digitize subsoil permits by the end of 2027. Prime Minister Nikol Pashinyan also called for fresh surveys with international partners, as the government and industry move to create a mining-sector think tank. Clean Energy: The government will subsidize interest on loans and leases for solar energy storage systems, helping operators store daytime power for later use. Regional Trade: Pashinyan and Kyrgyz President Sadyr Japarov discussed linking transport projects as regional routes reopen, with Armenia’s TRIPP project potentially connecting to Kyrgyzstan’s trade plans.

Energy: Armenia will subsidize interest on loans and leases for solar-power storage systems, helping plant owners save daytime electricity for later use. Rosatom says it has received positive signals on its proposal to build a new nuclear unit, but Armenia has not announced a final decision. Mining: Prime Minister Nikol Pashinyan called for fresh geological surveys with international partners and stronger environmental standards. The government and mining association also agreed to establish an industry think tank; a digital monitoring system is planned for 2029. Regional Trade: Armenia and Kyrgyzstan discussed expanding trade and transport links during President Sadyr Japarov’s visit, signing 10 bilateral documents.

Regional Trade: Armenia and Kyrgyzstan agreed to deepen trade and economic ties, improve transport links and explore new routes during President Sadyr Japarov’s visit to Yerevan. The countries signed 10 bilateral documents, including agreements on travel, pensions and sister-city relations. Mining Investment: At the Mining Armenia Forum, officials called for clearer rules, better technology and more reliable geological data to attract capital. Canada’s Hayasa Metals plans to invest up to $20 million exploring for copper, while a proposed digital monitoring system for mines is targeted for 2029. Prime Minister Nikol Pashinyan also said improved rail links could help mining companies export by shorter routes. Energy: The government has declared all shares of Electric Networks of Armenia subject to public-interest acquisition, a major potential shift in ownership of the country’s power distributor. Business Rules: Armenia’s ban on plastic bags and tableware is set to take effect on January 1, 2027, with no extension planned.

Business Rules: Armenia’s ban on single-use plastic bags and tableware remains scheduled for January 1, 2027, with no extension; the environment minister says businesses have been briefed on alternatives. Energy and Rail: The government has declared all shares in Electric Networks of Armenia subject to public-interest acquisition, moving toward state ownership. A joint Armenian-Russian group has three months to review the railway concession, as Yerevan weighs changes to its management. Growth: The IMF raised its 2026 GDP growth forecast for Armenia to 5.5%, from 5.3%, while expecting inflation to reach 4.6%. Mining: The sector leads Armenia in labor productivity and accounts for 29.1% of exports, an economist said. The newly operating Amulsar mine is projected to bring about $130 million a year in taxes and royalties, though environmental concerns remain. Trade: Armenian and Turkish ministers discussed prospects for direct trade and the transport of goods requiring sanitary and veterinary controls.

COP17: Leaders adopted the Yerevan Declaration, renewing commitments to protect biodiversity and restore ecosystems—issues with direct stakes for food security and long-term economic resilience. Trade: Armenian and Turkish ministers discussed direct trade and transit procedures for goods; the border remains closed, with Ankara linking its opening to an Armenia-Azerbaijan peace deal. Economic Outlook: The IMF raised its 2026 growth forecast for Armenia to 5.5% from 5.3%, while expecting inflation to reach 4.6%. Infrastructure and Energy: The government declared all shares in Electric Networks of Armenia subject to overriding public interest. A new working group with Russia will examine railway concession management and ways to make the network more competitive. Mining and Investment: Amulsar is projected to generate up to $130 million in annual tax revenue. Armenia also plans to digitize geological data and mining processes to improve transparency and help investors assess opportunities.

Energy Sector: Armenia has declared all shares in Electric Networks of Armenia subject to overriding public interest, paving the way for state acquisition. The process includes a company valuation, with completion targeted for October 2027. Railways: A joint Armenian-Russian working group has three months to address concession management and railway performance, as Yerevan weighs how to improve infrastructure and unlock regional transport links. Growth Outlook: The IMF raised its 2026 growth forecast for Armenia to 5.5%, from 5.3%, while projecting inflation of 4.6%. Mining: Amulsar could generate $120–130 million a year in taxes and royalties at current gold prices; investment in the project has topped $250 million. Trade: Russia has asked Armenia to suspend export certification for Modus Granum products pending an inspection. Armenia will also start product-labeling pilots on November 1, testing traceability across several consumer and industrial categories.

Railways: Armenia and Russian Railways have formed a working group to find ways to improve the railway’s competitiveness within three months. Prime Minister Nikol Pashinyan has argued for changing the concession’s management format and upgrading infrastructure. Electricity: The government has declared all Electric Networks of Armenia shares an overriding public interest, advancing plans to bring the utility into state ownership and appoint an international manager; compensation will be independently assessed. Economic outlook: The IMF raised its 2026 GDP growth forecast for Armenia to 5.5% from 5.3%, while projecting inflation of 4.6%. Mining: Amulsar gold mine has begun operations, with expected annual output of about 210,000 ounces and up to 1,300 direct jobs. Community investment: The government approved an additional AMD 2.071 billion for local infrastructure projects, bringing 2026 state co-financing for community subsidies to AMD 15.236 billion.

Energy: Armenia plans to acquire all Electric Networks of Armenia shares by October 2027, citing energy security; compensation will be set through a market valuation. Public Spending: The government awarded Doping Space a nearly $9 million single-source COP17 contract despite the company owing the culture ministry more than AMD 500 million. Transport: Armenia and Russian Railways agreed to form a working group on railway operations and infrastructure, including links toward Türkiye and Nakhchivan. Investment: The Amulsar gold mine has begun operations, with the government projecting $130 million in annual tax revenue. A $470 million World Trade Center Yerevan project has also launched. Trade: The EU granted Armenia temporary trade preferences to support exports, while officials plan regular air cargo shipments of agricultural products to the UAE from November. Public Finances: Armenia’s public debt is projected to reach $17.83 billion in 2027.

Railways: Armenia and Russian Railways agreed to form a working group on improving the country’s rail network, including planned links to Türkiye and Nakhchivan, as Yerevan seeks routes that can attract international business. Energy: The government is expected to declare public interest in all shares of Electric Networks of Armenia, advancing a possible state takeover. Mining: Amulsar has begun operations; the government forecasts AMD 130 million in annual tax revenue. Trade and debt: The EU’s two-year trade preferences could help Armenian exporters diversify amid Russian restrictions, while public debt is projected to reach $17.83 billion in 2027. Tourism: Dilijan’s regional forum brought investors and industry leaders together to discuss sustainable destination development and long-term value.

Public Finances: Armenia’s draft budget projects public debt will reach AMD 6.45 trillion ($17.83 billion) by the end of 2027, up from $16.03 billion in 2026, as spending continues to exceed revenue. Trade Slowdown: Trade turnover grew just 0.7% in January–August, with wholesale activity down 2.9%, despite faster growth in retail and vehicle sales. Export Opportunities: Armenian wine and spirits producers are showcasing products at Bar Convent Berlin, seeking buyers and international contacts; EU trade measures could also support exports to Germany, where shipments are rising. Investment and Tourism: The Amulsar gold mine has begun operations, with the government forecasting $130 million in annual tax revenue. A tourism forum in Dilijan brought about 250 participants together to discuss investment and long-term development, including the role of free economic zones. Technology Links: Armenia and Barcelona explored joint applied research and vocational training, with discussions covering AI and supercomputing.

Mining and Investment: Amulsar has begun operations after years of delay and protest, with the government forecasting about $130 million in annual tax revenue. The launch is renewing questions over environmental safeguards and the state’s stake in the project. Trade Routes: Armenia and China signed an agreement to streamline freight transport, while talks with Poland and Germany focused on trade and technology cooperation. Export Resilience: Russia’s restrictions on Armenian agricultural goods have cost the state about AMD 3.96 billion in export subsidies in June and July alone, underscoring the need for alternative markets. The EU has begun a €34 million support package to help Armenian businesses weather the restrictions. Major Projects: A $470 million World Trade Center Yerevan project has been officially launched. Digital Infrastructure: Viva’s 5G+ network has reached seven cities in Syunik and Vayots Dzor, extending coverage to about 80% of Armenia’s inhabited areas.

Trade & Logistics: Armenia and China signed an agreement to streamline freight permits and waive certain road-use fees, a move officials say could strengthen transit links and expand trade. Growth Outlook: The Eurasian Fund for Stabilization and Development forecasts Armenia’s economy will grow 5–6% in 2026, despite slowing global growth and rising transport and energy costs. Major Investment: The $470 million World Trade Center Yerevan project has entered implementation, with Hyatt Hotels signing a management agreement. Mining: The Amulsar gold mine has begun operations; the government expects about $130 million in annual tax revenue. Business Ties: Armenia and Belgium’s trade turnover rose 76.8% in January–August to $193.3 million, as business groups discussed new partnerships. Housing Finance: Parliament ratified a $240 million World Bank loan to support housing assistance for displaced families and develop Armenia’s mortgage market.

Currency Markets: The dram strengthened against the dollar, euro and ruble during October 5–9, while interbank dollar and ruble transactions fell and euro trading resumed. Housing Finance: Parliament approved a $240 million IBRD loan as part of a $284.4 million housing program for displaced families, including support for the mortgage market. Mining Investment: Amulsar has begun operations after years of delays. The mine is expected to produce about 210,000 ounces of gold annually; Armenia holds a 12.5% stake. Trade: The EU has granted Armenian goods temporary trade preferences, offering exporters an alternative as Russian restrictions disrupt farm sales. COP17 Costs: Parliament ratified the Yerevan conference-hosting agreement, but the government has yet to disclose the final bill; 18.5 billion drams was initially earmarked, amid opposition criticism of procurement.