Discover how Armenian lawmaker Sisak Gabrielyan is advocating for restrictions on Russian dairy imports. Will this move reshape trade relations? Find out more.
Imagine you’re an Armenian citizen, strolling down aisles of your local grocery store, noticing the decreased presence of national dairy products on the shelves. Sisak Gabrielyan, a member of the Armenian Parliament hailing from the ruling Civil Contract party, has certainly noticed this and voiced his concerns. Earlier in April, he urged his fellow lawmakers to consider banning Russian dairy imports, in a tit-for-tat response to similar restrictions placed by Russia last year.
“Russia does not allow the supply of our dairy products, but we import their products. Every day when we go to the store, we see that Armenian [dairy] products have a lower presence [on the shelves],” Gabrielyan lamented.
The Russian veterinary body, Rosselkhoznadzor, requested Armenia to reduce its dairy exports in April 2023, citing issues with veterinary control. According to the organization, the Armenian veterinary system lacked the stringent control measures necessary to ensure the appropriate safety of products intended for consumers on the Russian market. One of the primary reasons for this concern revolved around the use of Iranian raw materials by Armenian dairy processing companies, while dairy imports from Iran face similar restrictions in Russia.
Trade Dispute
Local political analysts are attributing such recent trade disputes, including the dairy export ban, to deteriorating political relations between Russia and one of its key trade partners in the Caucasus region. Armenia-Russia relations have taken a noticeable downturn since September 2022 due to the intensifying Nagorno-Karabakh conflict with Azerbaijan.
Economic Impact
Meanwhile, the Armenian government has been keeping count of the costs. The Russian ban allegedly shaves off between 1.2 and 1.5 billion drams (US$3 million to US$3.8 million) from Armenia’s revenue per month. In the first quarter of 2023 alone, Armenia managed to export approximately 2,000 tonnes of dairy products to Russia.
Armenian news outlet Panorama, citing a source in the Agriculture Ministry, claimed that Armenian businesses are also hurting from a plunge in domestic market prices for dairy products. However, it’s important to note that views from the Russian side tell a different story.
Konstantin Sinetskiy, General Director of the Russian Southern Dairy Union, confidently asserted that the potential Armenian ban would not leave a dent on Russian dairy exports.
In an interview with local news outlet NSN, Sinetskiy highlighted that “the Armenian share in Russian dairy exports is minimal and can be easily compensated for by the anticipated growth in other directions this year.”
