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Challenging Times Ahead for Caucasus Despite Armenia Election Results

This Sunday marks a crucial election in Armenia, with significant implications for the nation’s geopolitical alignment—whether it will lean towards the West or continue to nurture its ties with Russia. The outcome could reshape Armenia’s international relationships and influence its future direction.

Prime Minister Nikol Pashinyan, currently at the helm, is firmly committed to strengthening Armenia’s relationship with the European Union (EU), seemingly ignoring potential repercussions. In contrast, the opposition favors maintaining strong connections with Moscow, effectively putting the prospect of EU membership on hold.

Polling data indicates that Pashinyan is currently leading, but not strongly enough to guarantee the formation of a single-party government. Regardless of the winner, the situation creates a lose-lose scenario for Armenia.

A Pashinyan victory is likely to further sour relations with Russia, leading to significant economic challenges. Conversely, a loss could trigger a chaotic aftermath, especially with Western governments already claiming Russian interference, which could result in contested election results.

Russia has made its position unmistakably clear ahead of the elections, a sentiment echoed by other international players.

Foreign Influences

Moscow has explicitly expressed its preference for the opposition and has alluded to dire economic repercussions if Pashinyan’s government continues its pivot towards the EU, distancing itself from the Eurasian Economic Union (EAEU).

This past Saturday, Russia recalled its ambassador to Armenia “for consultations,” a move the Foreign Ministry attributed to the Armenian government’s actions that allegedly jeopardize cooperation within the EAEU:

“Ambassador of the Russian Federation to the Republic of Armenia Sergey Kopyrkin has been called to Moscow for consultations in connection with steps by the Armenian leadership aimed at rapprochement with the EU that are causing damage to interaction within the EAEU.”

In recent statements, Russian Foreign Ministry spokesperson Maria Zakharova condemned Armenia for removing the term “Great Patriotic War” from governmental records. She further revealed that Armenia has been warned that agreements concerning discounted Russian oil and gas supplies could be jeopardized if the country persists in its EU alignment—an initiative supported by the Pashinyan administration.

According to Russian Deputy Prime Minister Alexei Overchuk, Armenia risks a drastic reduction in exports by 70-80 percent and escalating energy and food prices should it sever ties with the EEU.

Despite reported tensions between the Trump administration and the EU, both seem to be collaborating in their support for Armenia.

In May, the EU convened its European Political Community summit in Armenia, an action interpreted by some as a provocation aimed at Russia amidst a backdrop of waning relations:

The clarity of the mission was underscored by French President Macron’s visit to Yerevan:

The atmosphere has been energizing, reminiscent of previous displays of support:

Pashinyan’s victory is essential to U.S. and EU aspirations to expand influence into the Caucasus and potentially Central Asia, leading to concerns that any loss may not be accepted and could result in unrest.

However, a win for Pashinyan could have even graver consequences for Armenia.

Economic Challenges Ahead

Since the fall of the Soviet Union, Armenia has heavily relied on Russia for security and economic stability. While diversifying its global relationships makes sense, recent strategies by Pashinyan’s administration have jeopardized this crucial partnership.

Over recent years, the Pashinyan government has actively severed ties with Moscow, which is evident through several actions:

  • Barred the head of the Russian Society for Friendship and Cooperation from entering the country.
  • Sent humanitarian aid to Ukraine, marking the first such gesture since the war began.
  • In 2024, Armenia ratified the Rome Statute of the International Criminal Court, putting it at odds with Russia by potentially warranting the arrest of Putin if he visits Armenia—an act Moscow described as “hostile.”
  • Engaged in military exercises with the U.S. in recent years.
  • There are unconfirmed reports suggesting Armenia may supply weaponry to Ukraine.
  • Suspended its participation in the CSTO following a meeting between Pashinyan and high-ranking U.S. officials.
  • Imprisoned opposition leader and dual Russian citizen Samvel Karapetyan, nationalizing his electric company.
  • Facilitated a corridor arrangement with the U.S. that undermined potential Russian control over key trade routes.

Pashinyan remains optimistic, asserting that there is no need for Armenians to fear economic pain, claiming prosperity and EU access are on the horizon:

This seems like a precarious stance given Armenia’s heavy economic dependence on Russia:

  • Russia accounts for approximately 40% of Armenian exports.
  • Over 60% of Armenia’s natural gas is sourced from Russia, at prices significantly below European market rates.
  • Remittances from Armenians working in Russia contribute more than 7% of the country’s GDP.

Moreover, Russian entities control much of Armenia’s railway and energy infrastructures, while recent Russian reactions have been relatively muted, primarily warning Armenia rather than imposing direct sanctions.

However, such restraint from Moscow may be temporary, especially if a pro-Western government takes office.

TRIPP Disruption

The Trump Route for International Peace and Prosperity (TRIPP)—a proposed 43-kilometer corridor designed to link Azerbaijan with its Nakhchivan exclave—has sparked fears of NATO encroachment into the heart of Asia.

While proponents believe it could bolster Turkey’s influence, there are significant hurdles facing this initiative.

The foremost concern is logistical–none of these developments can take place without cooperation from both Iran and Russia.

Furthermore, regional dynamics are increasingly tilting away from the Caucasus, with China seemingly diverting its focus towards establishing more stable land routes to Iran and Europe.

Climate change is also presenting significant geographical challenges, already impacting the Caspian region.

Ultimately, while TRIPP might inject instability into the Caucasus region, it risks shattering Armenian relations with Russia, intensifying Iranian pressures, and undermining regional stability and connectivity.

This agreement may complicate Armenian-Russian relations further as the country has previously committed its railways to Russian control, making any attempted construction of the TRIPP corridor a contentious issue.

The Strength of Neighbors

Both Turkey and Azerbaijan are economically and militarily more powerful than Armenia, with Russia previously serving as a stabilizing force. As Armenia shifts its allegiance westward, it may find itself more susceptible to Azerbaijani and Turkish pressures, as Western powers may lack the will to intervene on Armenia’s behalf.

Turkey, while still importing Russian oil, is positioning itself as a military supplier to NATO, while Azerbaijan’s ties with Ukraine have been strengthening, further intensifying the prospects for conflict in the region.

Future Conflicts?

Recently, influential Russian figures have speculated about the need for military intervention in Armenia. Popular Russian media host Vladimir Solovyov’s comments illustrate this potential shift:

“We must very clearly formulate our goals and objectives. We must explain: the games are over. […] If, for our national security, it was necessary to start a special military operation on the territory of Ukraine, why can we not start a special military operation in other points of our zone of influence?”

Although Armenia is not comparable to Ukraine in terms of military strength, the increasing support from NATO could provoke stronger Russian reactions, particularly if Armenia seeks to remove Russian military presence.

For now, Moscow seems to regard the current situation as manageable, confident in the continued necessity of its military base in Armenia as a stabilizing force. However, as the election looms and regional tensions escalate, the future remains uncertain.

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