Russian President Vladimir Putin told Armenian Prime Minister Nikol Pashinyan in Moscow that Armenia cannot simultaneously be part of the European Union and the Eurasian Economic Union due to incompatible customs regimes, AP reported April 1. He also signaled potential economic consequences if Yerevan continues pursuing closer EU ties.

Trade between Russia and Armenia declined sharply from about $12.4 billion in 2024 to roughly $6-6.4 billion in 2025, partly reflecting the unwinding of sanctions-driven re-export flows. Despite this drop, Russia still accounted for around 28-30% of Armenia's total goods trade, making it Armenia's largest economic partner. Armenia's trade with the European Union totaled $2.34 billion. Tensions have recently grown over Russian control of Armenia's rail network under a long-term concession, with Yerevan signaling openness to transferring it to a third party.