Russia Threatens Armenia with Oil and Gas Sanctions Amid EU Alignment

Russia has signaled the possibility of imposing economic sanctions on its former traditional ally Armenia, as reported by the Russian newspaper Kommersant, which revealed threats to revoke preferential supply agreements for gas, oil, and rough diamonds with Armenia.

This Russian escalation responds to Yerevan's efforts to strengthen relations with the European Union, occurring at a sensitive time ahead of Armenia's parliamentary elections scheduled for June 7.

Kommersant cited a letter from the Russian Ministry of Energy addressed to Armenia's Ministry of Infrastructure stating that "the ongoing practical steps to enhance Armenia's interaction with the European Union, and the Armenian government's declared aspiration to join the Union, threaten the maintenance and development of the high level of trade, economic, and investment cooperation between Russia and Armenia."

The letter reportedly included a warning about the potential cancellation of existing contracts.

Although the Armenian government denied the content of the letter, Maria Zakharova, spokesperson for the Russian Foreign Ministry, confirmed the document's existence.

Kremlin spokesperson Dmitry Peskov commented that Armenia's disputes come at Russia's expense and questioned whether Armenia could expect similar benefits from its possible accession to the European Union.

The Russian threats target the core of Armenia's economic dependence, as the country benefits from a 2013 agreement granting it duty-free vital supplies and relies almost entirely on Russian gas.

This escalation marks a peak in tensions following Armenian Prime Minister Nikol Pashinyan's announcement of his intention to join the European Union and Armenia's suspension of participation in the Moscow-dominated Collective Security Treaty Organization.