Armenian government data shows the total value of those exports rising to almost $533 million in January-November 2023 from $217 million in the same period a year earlier.
This growth was particular rapid in the first half of the year when used cars became the country’s number one export item. It appears to have somewhat slowed in the following months after the Russian government imposed higher duties on imports of such vehicles.
The sanctions include serious restrictions on trade with Russia. Also, Western automakers pulled out of the Russian market following the outbreak of the war in Ukraine in February 2022, pushing up the prices of new cars and forcing many Russians to switch to cheaper used models. Car traders from other nations, including Armenia, rushed to capitalize on the market opportunity.
According to Armenia’s State Revenue Committee (SRC), the number of cars imported to the South Caucasus country jumped nearly six-fold to almost 45,300 in 2022. The SRC has been struggling to cope with long lines of cars formed outside its s main customs terminal processing imported vehicles.
They include not only used cars but also brand new ones. The SRC reported sharp rises in taxes collected from local dealers of carmakers such as Mercedes-Benz and Toyota in the first-half of 2023. Both Mercedes-Benz and Toyota stopped directly supplying their cars to Russia after the Russian invasion of Ukraine.
Armenia has also been re-exporting consumer electronics and other Western-manufactured goods to Russia. This is the main reason why its exports to Russia tripled in 2022.
The re-exports prompted concern from EU and especially U.S. officials about a year ago. They pressed the Armenian authorities to comply with the Western sanctions. The authorities introduced in May mandatory government licenses for shipments of microchips, transformers, video cameras, antennas and other electronic equipment to Russia.
According to the Armenian government’s Statistical Committee, exports to Russia rose by 50 percent to $3.2 billion in January-November 2023.
Armenia’s overall exports reached a new record high of almost $7 billion. This includes $2.1 billion worth of what the Statistical Committee describes as precious stones and metals and jewelry items. Rough diamonds imported from Russia and re-exported to other countries, notably the United Arab Emirates, are believed to account for a large part of that figure.