The EU has provided €34 million (about $40 million) in urgent financial assistance to Armenia to help offset the effects of Russian trade restrictions on its private sector.

The payment, confirmed by the European Commission on Friday, forms the first tranche of a wider assistance package announced by European Commission President Ursula von der Leyen. The package also includes trade facilitation measures and other initiatives intended to strengthen Armenia's economic resilience, News.Az reports, citing Anadolu agency.

The funds were released just two weeks after a call between von der Leyen and Armenian Prime Minister Nikol Pashinyan, with Brussels describing the move as part of a rapid delivery on previously announced commitments.

The broader support program builds on agreements reached at last month's EU-Armenia summit, according to the commission. It is designed to deepen economic cooperation, expand market access for Armenian producers and provide targeted assistance to sectors affected by trade disruptions, including agri-food products, flower production and other export-oriented industries.

Additional measures will include trade initiatives, business matchmaking events and targeted market access schemes. A joint EU-Armenia Task Force on Economic Resilience is continuing to meet regularly to oversee implementation, the EU said.

"The EU stands firmly with Armenia — a sovereign, democratic and independent country. Today's support will help address immediate economic challenges while opening new opportunities for Armenian businesses to trade with regional and European markets. This is European solidarity in action," EU commissioner for enlargement Marta Kos said in a statement.

Kos is due to travel to Armenia on July 5 to advance implementation of the package and discuss further steps to strengthen cooperation between Brussels and Yerevan, the commission said.

Armenia has been deepening ties with the EU, a shift Moscow views as a move away from Russian-led structures such as the Eurasian Economic Union (EAEU). Russia has reportedly responded by placing export restrictions on Armenia, particularly affecting agriculture, food products, flowers and beverages. EU officials have explicitly described these measures as "economic coercion."

Russia remains a key security partner for Armenia and a major economic and energy supplier to the country.

News.Az 

By Ulviyya Salmanli