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

According to official data, Armenia's exports to the UAE accounted for over 98% of 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 sector, 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 the first half of 2024, with nearly all the gold coming from Russia. Moscow, however, cannot directly supply the precious metal to Western buyers due to sanctions imposed after its invasion of Ukraine in 2022.

During the same period, Armenia exported nearly the same amount of gold, with about two-thirds of this volume directed to the UAE, and the rest mainly to China. This explains the nearly threefold increase in Armenian exports to China from January to October last year, which amounted to almost $1 billion.

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

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

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