Government of Armenia allocates AMD 4.5 billion to compensate exporters for August
At its session on September 24, the Government of Armenia allocated AMD 4.521 billion to the Ministry of Economy to meet obligations that arose in August under two export support programmes. The funds are being reallocated from the government debt servicing programme through the government’s reserve fund.
According to the rationale, two programmes were adopted to diversify export markets. The programme supporting exports of certain greenhouse products (No. 1) was approved by Decision No. 800-L of June 4, 2026. The programme supporting exports of fresh fruit and certain foods and beverages, and their procurement for processing (No. 2), was approved by Decision No. 839-L of June 11.
Programme No. 1 receives AMD 2.065 billion (about $5.7 million). According to the Food Safety Inspection Body, in August Armenia exported 2,481 tonnes of tomatoes, 460 tonnes of cherry tomatoes, 1,580 tonnes of peppers, 624 tonnes of Palermo peppers, 124 tonnes of strawberries and 3.18 million flowers. Of the flowers, 0.84 million went to EU member states, the UK or Switzerland.
Programme No. 2 receives AMD 2.456 billion (about $6.8 million). Of this, AMD 1.796 billion is for export compensation and AMD 660.1 million is for subsidising the procurement of figs from Syunik Province and peaches nationwide for processing. In August, exports included 390 tonnes of apples, 322 tonnes of plums, 159 tonnes of cherries, 2,203 tonnes of peaches and nectarines, 120 tonnes of grapes, and 94 tonnes of figs, raspberries, blackberries and cornelian cherries. No apricots were exported in August.
According to the State Revenue Committee, August exports also included 154 thousand litres of bottled grape wine, 359 thousand litres of fruit and berry wine, and 1,004 thousand litres (in terms of 100% alcohol) of Armenian brandy or cognac. Armenia exported 894 thousand litres of bottled natural mineral water, of which 594 thousand went to the EU, the UK, Switzerland, the US, Canada or the Gulf Cooperation Council countries. Exports also included 45 tonnes of tomato paste, 152 tonnes of dried fruit or vegetables, 79.2 tonnes of trout and 44 tonnes of sturgeon.
From August 18 to September 1, about 5,200 tonnes of peaches and 81 tonnes of figs were procured for processing.
According to the rationale, the August budget was calculated taking into account unspent funds or outstanding obligations from the June–July budget. The funds are earmarked for the third quarter.
Exports under the support programmes
| Product | Unit | August | June–August |
|---|---|---|---|
| Tomatoes | tonnes | 2,481 | 3,939 |
| Cherry tomatoes | tonnes | 460 | 827 |
| Peppers | tonnes | 1,580 | 4,689 |
| Strawberries | tonnes | 124 | 433 |
| Flowers | mln units | 3.18 | 10.35 |
| of which to the EU, UK, Switzerland | mln units | 0.84 | 1.34 |
| Plums | tonnes | 322 | 753 |
| Cherries | tonnes | 159 | 3,276 |
| Peaches and nectarines | tonnes | 2,203 | 3,848 |
| Bottled grape wine | thous. l | 154 | 754 |
| Bottled fruit and berry wine | thous. l | 359 | 649 |
| Dried fruit or vegetables | tonnes | 152 | 158 |
| Trout | tonnes | 79.2 | 81.2 |
| Sturgeon | tonnes | 44 | 66.5 |
Source: rationale for the draft government decision (Food Safety Inspection Body and State Revenue Committee data).
Commenting on the decision, Deputy Prime Minister Mher Grigoryan, who chaired the session, stressed the need for research to make the support more effective: “Starting today, we must begin thinking about institutional rather than ad hoc support for business, so that support programmes are better targeted. This is not about savings but about setting the right targets, so that uncompetitive products are not mechanically produced and exported at the expense of subsidies, and instead we have products on which no one would impose restrictions.”
Minister of Economy Gevorg Papoyan said this is exactly what is planned, and that the government needs to move towards longer-term, strategic solutions.
