AGP Executive Report

EU Connectivity Push: EU Commission President Ursula von der Leyen announced a “Peace through Connectivity Package” worth up to €200m in grants (plus up to €2bn in investment potential) to strengthen transport, energy and digital links across the South Caucasus, with an extra €20m for peace-fostering support in Armenia and Azerbaijan. Energy Partnership Signals: Von der Leyen also praised Azerbaijan as a reliable energy partner and welcomed proposals including an electricity cable to Armenia, tying renewables to regional stability. Armenia Infrastructure Funding: Yerevan will receive $650m for an Ajapnyak metro station, metro modernization, and electric buses. Water & Environment: Armenia approved the Lake Sevan Basin Wastewater Management project to modernize treatment facilities in three stages. Fuel Market Move: UAE’s Emarat opened its first branded service station in Yerevan, with plans for a wider network via MegaTrade. Mobile Policy Clarification: The government said IMEI registration is meant to curb illegal imports and protect consumers, storing only the IMEI code (not personal data). Energy Transition Score: Luys Foundation reports Armenia slipped to 65th in the 2026 Energy Transition Index, citing weaker finance/investment and innovation. Gas Tariffs: Residential gas tariffs will stay unchanged, with the PSRC decision effective Aug. 1.

Energy & Geopolitics: Armenia’s regulator says household gas tariffs will stay unchanged, even as Russia tightens pressure on trade; PM Pashinyan also spoke with Mishustin on cooperation. EU Connectivity & Regional Trade: EU Commission chief von der Leyen is in the South Caucasus, with a €200m connectivity package and €20m for peace programs in Armenia and Azerbaijan—aiming to boost transport, energy and digital links. Export Push (Food & Agriculture): Armenia is moving to approve a new procedure for registering fish producers for EU export, while apricots are already landing in the EU as Yerevan seeks new buyers beyond Russia. Urban Development & Investment: A major UAE construction holding is eyeing large-scale projects in Yerevan, including Noragyugh redevelopment and new public-space plans. Tech & Consumer Policy: Armenia plans IMEI registration from Jan 1, 2027, with government insisting it won’t collect personal data; experts and analysts are urging clearer legal grounds. Finance & Banking: Freedom Holding secured Turkish regulatory approval to acquire Turkish Bank, and IDBank showcased fintech tools like QR payments and “buy now, pay later” at a business forum. Health & Industry Regulation: Armenia is strengthening medicine quality and safety controls, and is also advancing universal health insurance governance with new board appointments.

Medicines Oversight: Armenia’s parliament committee approved amendments to the “On Medicines” law to tighten drug circulation rules, clarify certificates for good manufacturing/distribution practices, and align parts of the framework with the Eurasian Economic Union. Universal Health Insurance: Armenia’s universal compulsory health insurance is progressing smoothly, with about 1.7 million beneficiaries; coverage is set to expand from Jan. 1, 2027 to civil-law workers, taxi drivers and registered employees, and then to all citizens by 2028. SME Financing & Skills: Armeconombank and the IRIS Business Incubator wrapped up the IRIS RECONOMY Accelerator for 27 agri and tourism entrepreneurs, pairing training with a revolving fund and mentoring focused on digital/green transformation and AI use. Green Hydrogen Push: The government discussed green hydrogen prospects and set up a hydrogen working group to shape the legal framework and production scenarios. Armenia-EU Business Dialogue: PM Pashinyan met EU ambassadors on reforms, rule of law, energy resilience and economic cooperation, while AmCham Armenia announced it will host the 2027 4th Regional Economic Summit in Yerevan. Tech & AI Infrastructure: Legrand delivered an AI data center infrastructure at Yerevan State University to support national AI and high-performance computing. Mobile Phone IMEI Plan: Armenia approved steps toward unified IMEI registration from Jan. 1, 2027, aiming to curb the black market, though experts warn about personal data risks. Energy & Power Sector: ENA nationalization is again in focus, with authorities expected to decide mid-July on declaring Electric Networks of Armenia a project of overriding public interest. Agri Exports: Armenia sent its first fresh fruit shipment to the UAE as producers seek new markets amid Russia’s restrictions. Wine Recognition: Alexandrea Winery’s Pinot Noir 2024 won gold at the Concours Mondial de Bruxelles 2026.

Energy & Infrastructure: Legrand delivered digital infrastructure for a new AI data center at Yerevan State University, boosting Armenia’s high-performance computing capacity. Urban Development: Yerevan Mayor Tigran Avinyan presented the Noragyugh redevelopment plan and other public-space projects to international investors. Health Coverage: Armenia’s universal health insurance system is expanding step-by-step, with taxi drivers and civil-law workers set to join from 2027 and full coverage targeted for 2028. Power Sector Politics: ENA nationalization is back in focus as the Strong Armenia leader urges the public not to take July statements seriously, ahead of a mid-July decision. Agriculture Exports: Economy Minister Gevorg Papoyan says Russia’s export curbs are pushing diversification; separate updates highlight support for flower exports and compensation for flower producers to reach new European buyers. Green Transition: A pilot “green” hydrogen project is planned after feasibility work and regulatory discussions. Tech & Education: Ucom and CIPR AeroSpace launch “Space 1.0” for 15 schools to teach space engineering hands-on. Regional Trade: Armenia is set to export apricots to Singapore, marking a new route as Russia-related restrictions reshape markets. EU Cooperation: PM Pashinyan met EU ambassadors, discussing reforms, rule of law, energy resilience, and economic cooperation.

Energy & Industry Links: A U.S. Charge d’Affaires visited ContourGlobal’s Goris office to discuss energy security and cooperation, with the company operating Armenia’s Vorotan hydropower cascade (Hydropower). Infrastructure Build-Out: Armenia and Iran formally kicked off the 7.2 km Kajaran Tunnel on the North–South corridor, with modern safety and control systems and about 4 km of access roads (Transport & Construction). Energy Transition: Prime Minister Pashinyan reviewed proposals for developing green hydrogen, including legal frameworks and feasibility studies (Green Energy). Power Sector Governance: The government will decide in mid-July on recognizing Electric Networks of Armenia (ENA) as a public interest priority, paving the way for valuation and compensation (Electricity & Regulation). Agri-Exports & Trade: Armenia’s annual trade with Iraq is about $400m, with talks on a draft bilateral transport agreement and logistics cooperation (Logistics & Trade). Food & Wine Standards: Armenia will develop ESG implementation guidelines for winemaking as wine output rose 20.6% in Jan–Apr (Wine & ESG). Mobile Market Control: Armenia approved draft amendments to introduce IMEI code control for cell phones to curb counterfeit devices and improve security (Telecom Regulation). Mining Safety Milestone: Zangezur Copper Molybdenum Combine marked 75 years of accident-free blasting operations (Mining).

Energy Transition: Armenia reviewed green hydrogen development, with a working group and feasibility studies feeding into a long-term decarbonization strategy. Power Sector Reform: The government will decide in mid-July on recognizing Electric Networks of Armenia (ENA) as a public interest priority, paving the way for valuation and compensation as the nationalization process moves ahead. Infrastructure & Transport: Armenia and Iran officially kicked off construction of the 7.2 km Kajaran Tunnel on the North–South corridor, with modern safety systems and access roads; the project is set to cut the route by about 14 km and improve travel times. Border Trade Facilitation: Armenia and Iran discussed modernization of border crossing capacity, including a second bridge, a new terminal, and customs throughput upgrades. Electricity Interconnection: Armenia and Iran agreed to jointly oversee a 400 kV power line project to boost electricity supplies. Urban Mobility: Yerevan completed the tender process for the Noragavit overpass (1.3 billion drams total), with up to 400 million drams needed to start construction in 2026. Banking: Ardshinbank was named Armenia’s best bank in four categories at the Global Banking & Finance Review Awards 2026. STEM & Tech Education: Ucom and CIPR AeroSpace launched “Cosmos 1.0,” rolling out space-technology kits in 15 schools across Armenia. Export Pressure: An economist warned that Russia’s import restrictions have jeopardized about $594m of Armenian-made goods, exposing heavy dependence on the Russian market. Standards & Market Access: A guide explained what the EAC conformity mark means for electronics and other products sold across EAEU member states, highlighting compliance and consumer safety.

Iran-Armenia Infrastructure Talks: PM Nikol Pashinyan met Iranian VP Seyed Hamid Pourmohammadi to push a second Armenia-Iran bridge, a new border terminal, customs cooperation, and energy and road projects, with both sides also discussing ways to reopen regional transport links and expand work in agriculture, mining, and infrastructure. North-South Highway Boost: Armenia held a launch ceremony for the Kajaran Tunnel contract on the Kajaran–Agarak road section, aimed at shortening the route by about 14 km, cutting travel time by roughly 40 minutes, and improving winter access and safety as part of the North-South corridor. Power Sector Governance: Armenia’s government initiated a draft law to recognize 100% state ownership of Samvel Karapetyan’s Electric Networks of Armenia (ENA) as a public priority, citing grid stability and uninterrupted power supply for critical infrastructure. Tech & Semiconductors: Microchip’s Armenia office received a U.S. export license for advanced FPGA development, a signal for higher-value local engineering work tied to the Armenia–U.S. semiconductor and AI cooperation. Agri-Exports Under Pressure: Russia’s Rosselkhoznadzor temporarily suspended fish imports from Armenia, adding new restrictions after sanitary concerns, while Armenia’s floriculture push toward Europe continues via talks with Dutch partners and Royal FloraHolland. AI Partnership: Armenia and the U.S. signed an AI Opportunity Partnership statement under #PaxSilicaSummit, focusing on pro-innovation regulation, AI cooperation across supply chains, and private-sector investment including data centers and computing capacity.

Armenia–Iran Infrastructure Push: PM Nikol Pashinyan met Iranian VP Seyed Hamid Pourmohammadi to advance a second Armenia–Iran bridge, a new terminal, customs cooperation, and energy collaboration, alongside joint road work and plans to reopen regional transport links. EU Peace Support: EU Special Representative Magdalena Grono said the EU will keep backing the Armenia–Azerbaijan peace process after talks in Baku, with peace and connectivity high on upcoming EU contacts. Power Grid Governance: Armenia launched a draft law to recognize 100% of Electric Networks of Armenia (ENA) shares as a public priority, aiming to protect uninterrupted electricity supply and grid stability. Tech & Semiconductors: Microchip’s Armenia office received a U.S. export license for advanced FPGA development, boosting local high-value chip design capacity. Export Pressure on Food: Russia’s Rosselkhoznadzor temporarily suspended fish imports from Armenia, adding to the strain on Armenian producers already facing market access limits. AI Partnership: Armenia and the U.S. signed an AI Opportunity Partnership statement focused on pro-innovation regulation, AI cooperation across supply chains, and private investment.

Semiconductors & AI: Microchip Technology’s Armenia office received a U.S. export license for advanced FPGA development, a boost for local chip-design capacity and Armenia’s role in the semiconductor supply chain. Power & Utilities: Armenia has started a draft law to classify 100% of Electric Networks of Armenia (ENA) shares as a public priority, aiming to protect uninterrupted grid operations. Tech & Finance: Converse Bank and the Asian Development Bank signed up to $15m to expand MSME financing in Armenia, with at least 20% earmarked for women-led businesses and support for renewable energy and efficiency. Trade & Logistics: Armenia-Iran talks focused on border infrastructure (a second bridge and new terminal), customs cooperation, energy collaboration, and reopening regional transport links. Agriculture & Exports: Rosselkhoznadzor suspended fish imports from Armenia, adding pressure as Russia tightens access for Armenian agricultural products. EU Market Push: Armenian officials discussed exporting flowers to Europe with Dutch partners, including Royal FloraHolland, as Armenia seeks new sales channels beyond Russia. Connectivity: Armenia is weighing railway restoration toward Turkey based on transit, security, and economic impact. AI Partnership: Armenia and the U.S. signed an AI Opportunity Partnership statement to expand pro-innovation regulation and AI supply-chain cooperation.

Semiconductors & AI Skills: Microchip’s Armenia office received a U.S. export license to develop advanced FPGA technologies, a boost for local chip design and validation and a step up for Armenia’s high-tech supply-chain role. Armenia-Iran Trade & Infrastructure: PM Nikol Pashinyan met Iran’s VP Seyed Hamid Pourmohammadi to advance a second Armenia-Iran bridge, a new terminal, customs cooperation, energy coordination, and joint road, agriculture, and mining projects. Power Sector Governance: Armenia launched a draft law to recognize 100% of Electric Networks of Armenia (ENA) shares as a public priority, aiming to protect uninterrupted power supply and grid stability. Food & Export Pressure: Russia’s Rosselkhoznadzor temporarily suspended certification for Armenian fish products, tightening the squeeze on fish farms already hit by broader Russian import bans. EU Market Access for Farmers: EU Commission President Ursula von der Leyen is set to visit Armenia and Azerbaijan in early July, with Armenian farm exports a key agenda item. MSME Financing for Sustainability: Converse Bank and the ADB signed up to $15m to expand MSME lending, including renewable energy and energy-efficiency projects, with at least 20% for women-led businesses. Agriculture Logistics Linkages: Armenia and Dutch partners discussed exporting Armenian flowers to Europe, including long-term cooperation with Royal FloraHolland and logistics/brokerage pathways. AI Partnership with the U.S.: Armenia and the U.S. signed an AI Opportunity Partnership statement under #PaxSilicaSummit, focusing on pro-innovation regulation, AI supply-chain cooperation, and private investment.

EU Market Access Push for Armenian Farms: EU Commission President Ursula von der Leyen is set to visit Armenia and Azerbaijan in early July, with “peace, transport connectivity and economic integration” on the agenda and a focus on facilitating access for Armenian agricultural products to EU markets. Flower Export Drive: Armenian officials met Dutch counterparts in The Hague to expand long-term cooperation for exporting Armenian flowers to Europe, including tours of Royal FloraHolland and major Dutch greenhouse operators. US–Armenia AI Partnership: Armenia and the United States signed an AI Opportunity Partnership statement at the Donald Trump U.S. Institute of Peace, targeting pro-innovation regulation, AI cooperation across supply chains, and private-sector investment including data centers. Power Sector Governance: Armenia has initiated a draft law to recognize 100% of Electric Networks of Armenia (ENA) shares as a public priority, aiming to secure uninterrupted power supply and grid stability. SME Financing Boost: Converse Bank and the ADB signed up to $15m to expand MSME financing in Armenia, with at least 20% earmarked for women-led businesses and support for renewable energy and efficiency. Russia Hits Fish Exports: Russia’s Rosselkhoznadzor halted all fish imports from Armenia after expanding bans tied to sanitary checks, threatening a market that has absorbed nearly all Armenian fish exports. Infrastructure & Transit Planning: Armenia says any Turkey-rail restoration should be judged by transit, security, and economic impact for Armenia, not just who funds it.

SME Financing Boost: Converse Bank and the Asian Development Bank signed a up to $15m deal to expand lending for Armenia’s micro, small and medium enterprises, including women-led businesses, with a push toward renewable energy and energy efficiency. EU Market Access for Agriculture: Ahead of EU Commission President Ursula von der Leyen’s early-July visit, Armenia is pressing for better access for fruits, vegetables and flowers, including support for exporters facing Russian restrictions and transit routes via Turkey. US-Armenia AI Partnership: Armenia and the United States signed an AI cooperation joint statement at the Trump Institute of Peace, focusing on pro-innovation rules, supply-chain cooperation (energy, critical minerals, semiconductors) and private investment. Fish Export Shock: Russia has halted all fish imports from Armenia after expanding restrictions tied to health and safety certification issues at Armenian processors. Phone IMEI Database Concerns: Armenia approved amendments to create an IMEI registration and monitoring system, drawing criticism that it could enable broad state control over users and devices. Connectivity Planning: The EU, EIB and Armenia launched advisory support under EPIC for preparing key road links to border checkpoints, aiming to strengthen trade routes beyond Russia.

Farm Support: Armenia will extend a one-year grace period on loan principal and interest for farmers with intensive orchards who were hit by restrictions on exporting produce to Russia, with conditions tied to sales monitoring and certificates. Agriculture Exports Under Pressure: Flower growers dispute the government’s optimistic forecasts after Russian import curbs tightened again, threatening shipments and pushing some goods back at the border. Macroeconomic Momentum: Armenia’s economic activity grew 8% in Jan–May 2026 (industrial +12.2%, construction +24.1%, energy +7.7%), while foreign trade still trends down. EU Market Push: PM Pashinyan says EU access for Armenian products, including agriculture, is a top agenda item ahead of von der Leyen’s visit. EDB Financing Plan: The Eurasian Development Bank targets $13.5bn for member-state projects in 2027–2031, with Armenia strategy work for 2027–2031 underway. Digital Payments: IdramNet and ArcaQR become interoperable, letting Idram users pay via ArcaQR codes. AI Infrastructure: Forbes highlights Armenia’s AI data center progress in Gagarin, tied to long-running NVIDIA cooperation. Construction & Industry: Armenia starts UEFA-standard stadium design work in Getahovit (Ijevan community) for a 10,000-seat venue. Standards Warning: Pashinyan calls for tougher quality standards to protect Armenia’s credibility and export prospects.

EU Market Access: PM Nikol Pashinyan says European Commission chief Ursula von der Leyen’s upcoming Yerevan visit will focus on simplifying access for Armenian products, especially agriculture, after Russia’s import bans. Agri-Exports Pivot: Foreign Minister Ararat Mirzoyan reports growing interest in new destinations (EU, Central Asia, Arab states, Iraq, and even Turkey via pilot shipments) as logistics challenges are managed. Trade Numbers: Armenia’s economic activity index rose 8% in Jan–May 2026; industrial output up 12.2%, construction up 24.1%, while consumer prices climbed 4.5%. Energy Output: Electricity generation increased 7.7% in Jan–May 2026. AI & Industry Tech: Forbes highlights the Firebird AI data center in Gagarin as years of work toward turning Armenia’s power, engineering, and computing into export-ready capability. Digital Payments: IdramNet and ArcaQR are now interoperable, enabling ArcaQR scans via Idram&IDBank. Telecom Regulation: Armenia plans a unified IMEI registration/control system to curb counterfeit devices and protect cybersecurity. Housing & Social Infrastructure: Government updates displaced families’ housing rules and extends grace periods for intensive gardening loan repayments. Memorial Renovation: Second-stage renovation starts at Tsitsernakaberd, with Temple of Eternity pylons and museum works scheduled to finish this year.

EU Connectivity Push: The European Commission, EIB and Armenia signed an MoU to fund advisory work for road corridors Akhurik–Kayan and Margara–Kayan under the EPIC initiative, aiming to strengthen Armenia’s role as a transport and logistics hub. Armenia–EU Trade Talks: Economy Minister Gevorg Papoyan met EU mission heads to expand export opportunities and long-term partnerships, citing strong EU trade growth in Jan–Apr 2026. Armenia–Iran Logistics: A working group in Yerevan discussed boosting throughput at the Armenian-Iranian border, including tolls, logistics infrastructure and checkpoint operations, as trade turnover with Iran rose in early 2026. Fuel Shock Watch: Russia is reportedly negotiating with Kazakhstan for ~50,000 tons of AI-92 gasoline after refinery outages cut output, while Russia considers tighter diesel export rules—an issue for Armenia’s supply planning. Food Safety: Armenia suspended DILI LLC’s Dilijan dairy workshop after E. coli and hygiene non-compliance were found in cheeses and yoghurts. Consumer Rules: New CEPA-aligned regulations introduce a 14-day cancellation right for remote/offline purchases from July 1. Tech & Skills: OpenAI’s ChatGPT Edu tool is set to roll out in Armenia with ~50,000 free subscriptions, while the EU is also looking at Synopsys Armenia’s chip design training model. Energy Project: A 5 MW solar plant in Lanjar (Ararat) has been operating for a year, with electricity sold on the liberalized market. Trade Balance: The World Bank reports Armenia’s exports fell and imports rose in Jan–Apr 2026, widening the trade deficit to 5.4% of GDP.

EU Connectivity Push: The European Commission, EIB and Armenia’s infrastructure ministry signed MOUs in Brussels to fund advisory work for two strategic road corridors—Akhurik-Kayan and Margara-Kayan—linking the Azerbaijani and Turkish borders to Armenia’s road network under the EPIC initiative. Border & Logistics: Armenia also held talks with Iran on boosting border capacity, focusing on road tolls, logistics infrastructure and border crossing operations. Middle Corridor Momentum: Armenia expects open communications with Türkiye and Azerbaijan by 2030, with EU-backed upgrades to border checkpoints and highways to raise future transit volumes. Trade Pressure: A World Bank update says exports fell 3.3% and imports rose 2.5% in Jan–Apr 2026, widening the trade deficit to 5.4% of GDP; mining and finished food helped, but precious stones dragged. Banking Resilience: Armenia’s central bank says banks built buffers of about $490–515m to cover real estate and construction risks. Energy Project: A 5 MW solar plant in Lanjar (Ararat) has been operating for a year, with electricity sold on the liberalized market, supported by Acba Leasing. Digital Connectivity Deal: Telecom Armenia and AzerTelecom agreed to route internet traffic through each other’s networks to reach Nakhichevan via Armenian infrastructure. AI in Education: OpenAI met Armenia’s education minister on rolling out the ChatGPT Edu platform, alongside AI literacy programs and new university plans.