The U.S. Embassy in Armenia said earlier in the day that James O’Brien, the sanctions coordinator at the State Department, has arrived in Yerevan to discuss with Pashinian and other Armenian officials “cooperation on U.S. sanctions” and “express appreciation for Armenia’s continued commitment to upholding U.S. sanctions.”
An Armenian government statement on Pashinian’s talks with O’Brien did not mention the issue. It said the two men spoke about the Nagorno-Karabakh conflict, Turkish-Armenian relations and “various issues of mutual interest.”
O’Brien arrived in the Armenian capital from Tbilisi where he held similar talks with Georgian leaders earlier this week.
U.S. officials pressed the Armenian government to prevent Russia from evading the sanctions through Armenian companies during a series of meetings held this spring. Pashinian said on May 22 that despite its “strategic” relations with Russia Armenia “cannot afford to be placed under Western sanctions.”
A few days later, Pashinian’s government announced that Armenian exporters will now need government permission to deliver microchips, transformers, video cameras, antennas and other electronic equipment to Russia. The Armenian Ministry of Economy, which proposed the measure, cited the need to prevent the use of such items by foreign defense industries.
The Armenian Central Bank essentially confirmed on June 7 reports that local commercial banks have frequently blocked payments for such supplies wired by Russian buyers in the past few weeks.
According to government data, Armenia’s exports to Russia almost tripled in 2022 and nearly quadrupled in January-April 2023. Goods manufactured in third countries and re-exported by Armenian firms are believed to have accounted for most of that gain. They include consumer electronics and other hi-tech goods and components which the Western powers believe could be used by the Russian defense industry.
The increased trade with and other cash flows from Russia are the main reason why the Armenian economy grew by 12 percent in 2022.