Top 10 Most Significant Economic Events in Armenia in 2025
YEREVAN, January 12. /ARKA/. The year 2025 was a turning point for the Armenian economy, and in many ways atypical: large-scale social reforms, sensitive infrastructure and energy decisions, new geo-economic routes, and a significant adjustment in foreign trade shaped a complex and multi-layered agenda. Throughout the year, the country simultaneously launched long-term systemic reforms and responded to drastic external and internal challenges.
ARKA News Agency has compiled a list of the ten most significant events of 2025, which will have a significant impact on Armenia's economic development and set key benchmarks for the coming years.
1. TRIPP Project
The Trump Route for International Peace and Prosperity (TRIPP) project was agreed upon by the leaders of Armenia, the United States, and Azerbaijan, Nikol Pashinyan, Donald Trump, and Ilham Aliyev, and was formalized in a trilateral declaration signed in Washington on August 8, 2025.
On December 10, Pashinyan announced that the right to develop the necessary infrastructure—railways, roads, oil and gas pipelines, and fiber-optic cables—would be awarded to the Armenian-American joint venture, TRIPP Company, which would be registered in Armenia. The implementation and construction phase is scheduled to begin in 2026.
2. Revocation of Electric Networks of Armenia's License
In November, the Public Services Regulatory Commission (PSRC) of Armenia revoked ENA (owned by Samvel Karapetyan's Tashir Group)'s electricity distribution license. The commission cited violations discovered during a four-month investigation as grounds for this revocation, including falsifications, deficiencies, and other falsifications of electricity meter readings, violations in the implementation of investment programs, violations of deadlines and procedures for connecting new subscribers, and violations of construction and fire safety regulations during the construction and renovation of certain facilities.
The commission also claims that ENA provided risky credit guarantees through commercial banks to several companies affiliated with it and ineffectively managed property, real estate, and funds. ENA representatives disagree with the findings, questioning the accuracy of the sample and the results of the PSRC's research, as well as the quality of the inspections and assessments.
According to Mesrop Mesropyan, head of the Public Services Regulatory Commission (PSRC), the state will negotiate with the owner or the ESA Board of Directors regarding the transfer of ownership rights to the property. If the parties fail to reach an agreement within three months, the state may repossess the property.
3. $500 million EU investment to enhance Armenia's energy security and diversification
In November, a document on assistance to Armenia was signed in Tashkent as part of the "Caucasus Energy System" project, aimed at improving energy infrastructure, strengthening energy security and diversification, and reducing dependence on external players.
As European Commissioner for Enlargement Marta Kos stated in early December, the $500 million investment is aimed at connecting the Armenian energy system with the Georgian one, adding that work is already underway on the Armenia-Turkey connection. She stated the goal of reducing dependence on Russian energy.
4. Decline in Armenia's Foreign Trade
Since the beginning of 2025, Armenia's foreign trade has been declining. Thus, while Armenia's foreign and mutual trade turnover stood at $30.16 billion at the end of 2024, representing a 41.5% increase, it began to decline in January, falling by 54.2% in the first quarter, 45% in the first half of the year, 39.3% over the first three quarters, and, according to the latest official statistics for the 10 months, by 37.1%, reaching $16.54 billion.
World Bank analysts note that Armenia's imports and exports continued to decline in October due to the gradual cessation of re-exports: exports in October fell by 21.8% (year-on-year) after a 24.4% decline in September, while imports declined by 11.9% compared to 19.5% in September. This was primarily due to a decline in exports (by 45%) and imports (by 33%) of precious and semi-precious stones and metals.
5. The IMF approved a new three-year SBA facility for Armenia worth $175 million.
On December 4, 2025, the IMF Executive Board approved a new 36-month Stand-By Arrangement (SBA) for Armenia in the amount of SDR 128.8 million (100% of Armenia's IMF quota, or approximately $175 million). This SBA will assist the country's authorities in maintaining macroeconomic stability and advancing their structural reform program, as well as provide insurance against uncertainty.
Following the approval, an amount equivalent to SDR 18.4 million (approximately $25 million) became immediately available to Armenia. The remaining amount will be disbursed in equal tranches subject to six semi-annual reviews. The Armenian authorities stated that they intend to view this arrangement as a precautionary measure.
6. On the delivery of goods to Armenia via Azerbaijan
Rail transportation of goods to Armenia via Azerbaijan became possible thanks to agreements reached between the two countries in Washington on August 8, as well as memoranda of understanding signed between the US and Armenian governments.
This route is being used for the first time since the early 1990s, after the President of Azerbaijan announced on October 21, 2025, the lifting of all restrictions on the transit of goods to Armenia through its territory.
The first two consignments of goods to reach Armenia by rail through Georgia and Azerbaijan were a train carrying Russian grain (15 cars, arrived on November 5) and a train carrying Kazakh wheat (approximately 1,000 tons, arrived on November 7).
Next, on December 19, a train carrying 1,218 tons of gasoline from Azerbaijan arrived in Armenia, in accordance with the agreements reached between the Armenian and Azerbaijani deputy prime ministers at a meeting on November 28, 2026, in Gabala.
7. Gazprom Armenia's 150 Billion AMD Investment Program
In December, the Public Services Regulatory Commission of Armenia approved Gazprom Armenia CJSC's 150.35 billion AMD (excluding VAT) investment program for 2026–2030.
The main areas of the investment program include, in particular, the expansion of the Abovyan underground gas storage facility (20.36 billion AMD); the expansion, restoration, and reconstruction of the gas transmission system (50.36 billion AMD); other work in the gas transmission system (over 7.5 billion AMD); connecting new subscribers (almost 4.8 billion AMD), as well as work in the gas distribution system (almost 59.4 billion AMD), and providing new capacity in the Yerevan gas supply system (3.56 billion AMD).
8. Launch of the Compulsory Health Insurance System
In December, the Armenian Parliament approved the draft law on compulsory health insurance. General health insurance packages will be activated on January 1, 2026, with the payment deadline set for January 20.
The first phase of the three-year (2026-2028) compulsory health insurance reform will begin in 2026. The system will include two groups: individuals whose insurance is financed by the state—minors under 18; individuals aged 65 and older; and individuals aged 18–65 with disabilities (I, II, III); as well as families with a social insecurity score of 28 or more. During the first phase, 1.7 million Armenian residents will be included in the system. For them, 100% of the costs will be covered by the state.
In the second stage, beginning in 2027, the system will include individuals with salaries of up to 200,000 drams, and starting in 2028, other groups, including those employed in agriculture and their families, will be included.
The cost of the health insurance package will be 129,600 drams per year, paid monthly. The insurance will cover the most in-demand services, including outpatient care, clinic visits, family doctor visits, specialist consultations, and laboratory tests (a certain number per year). The list of services will be expanded and refined, covering certain surgical procedures, particularly ophthalmological (cataracts), cardiovascular, and others.
The 2026 budget allocates 127 billion drams for the implementation of the health insurance system.
9. Public Transportation Price Increase and the Introduction of a Unified Ticket System in Yerevan
At the end of January, the Yerevan Council of Elders unanimously decided to set the price of a single public transportation ticket at 150 drams until January 1, 2026, up from the previous 100 drams. Later, Mayor Tigran Avinyan stated that the tariff could be revised by no more than 10 drams per year.
Starting February 1, 2025, a fully functioning unified ticket system has been in effect in Yerevan, eliminating cash payments on buses, trolleybuses, and the metro. Several payment options are available, including the TelCell Wallet mobile app, bank cards, and permanent plastic travel cards.
On July 3, 2025, the Armenian Parliament adopted amendments to the RA Law "On Automobile Transport," introducing a system of fines for riding Yerevan public transportation without paying or using someone else's discounted ticket. Thus, a fine of 3,000 drams is imposed for invalidating a ticket or card upon boarding public transport, 10,000 drams for using public transport without paying the fare, and 15,000 drams for using someone else's discounted ticket.
10. Extension of the VAT exemption for electric vehicles
On December 17, the National Assembly of Armenia approved amendments to the Tax Code extending the VAT exemption on the import of electric vehicles for another year. The exemption will apply to individuals and legal entities (dealers) and will be applied starting in 2026 to electric vehicles manufactured between 2024 and 2026.
