Armenia could boost trade with the UAE thanks to gold imports from Russia.

According to official data, Armenia's export to the UAE accounted for over 98% of the total trade volume, but only a small portion of this volume consists of Armenian goods.

The Statistical Committee of Armenia reported that from January to October 2024, the import and export of gold, diamonds, and various jewelry items increased more than fivefold, reaching $6.8 billion and $7.4 billion, respectively. Although Armenia has a developed gold mining, diamond cutting, and jewelry industry, their annual turnover constitutes only a small fraction of these figures, as stated in the publication.

Russian exports to Armenia during the same period rose by $5.6 billion, reaching nearly $8.3 billion.

Armenian media wrote that Armenia imported approximately 66 tons of gold worth $4.4 billion in just the first half of 2024, with almost all the gold coming from Russia. Moscow, however, is unable to supply the precious metal directly to Western buyers due to sanctions imposed after its invasion of Ukraine in 2022.

During the same period, Armenia exported nearly as much gold, with about two-thirds of this volume directed towards the UAE, and the remainder primarily to China. This explains the nearly threefold increase in Armenian exports to China from January to October of the previous year, which totaled nearly $1 billion.

Profitable trading operations apparently also included Russian diamonds, which are subject to US and EU sanctions. In 2023, Armenia exported diamonds predominantly to the UAE worth around $590 million, significantly exceeding the total annual production volume of Armenian diamond processing enterprises.

The Armenian Customs Service has not yet published data on diamond exports for 2024.

Armenian entrepreneurs have also taken advantage of the sanctions by organizing the re-export of many Western-produced goods to Russia. This has been a key factor in the rapid economic growth recorded in the country in 2022 and 2023. In 2024, growth has slowed and is expected to continue to decline this year.