AGP Executive Report

Armenia–Oman Trade: Deputy Economy ministers met Oman’s KV Group to push Armenian fresh fruit and vegetable exports, with planned farm visits and B2B talks. EU Market Access: EU autonomous trade measures were announced to cut customs duties for most Armenian exports, with producers watching timelines for fresh produce and beverages. Food Exports to EU: Armenia approved rules for fish exporters to register in the EU TRACES system and pass inspections to keep access to the bloc. Construction & Infrastructure: Armenia will simplify permits for Category II private houses, and allocated funds for a UEFA-standard stadium in Ijevan ahead of the 2029 FIFA U-20 World Cup. Energy & Tech: Government approved buying Firebird AI high-performance computing resources for a five-year AI program, while Viva was named Armenia’s fastest mobile network by Ookla; Starlink donated 56 emergency internet terminals. Industry & Business Climate: Armenia seized the Araratcement plant tied to detained opposition leader Gagik Tsarukyan, while Capital reported record mining services revenue. Regional Logistics: TRIPP is moving from diplomacy to planning as AECOM surveyed routes and Armenia prepares ratification steps. Diplomacy & Security: Azerbaijan says “real peace” depends on constitutional changes, and Russia is awaiting agreement on “3+3” meeting schedules.

TRIPP+ Trade Corridor: Konstantin Sokolov, a Russia-born Chicago private investor, has been named chairman of the U.S. State Department’s TRIPP+ Enterprise Fund, a $201m pot aimed at backing transport, energy infrastructure and critical minerals across Armenia and the wider South Caucasus/Central Asia. AI Push: Armenia plans to buy $25m in high-performance computing resources to accelerate AI development, with GPU capacity sourced via Firebird AI under a five-year plan. Energy & Infrastructure Oversight: Armenia’s Administrative Court rejected TASHIR CAPITAL CJSC’s lawsuit challenging the government’s move tied to a 70% stake in Electric Networks of Armenia (ENA), keeping the dispute in the courts’ lane. EU Market Access: An EU trade committee backed temporary tariff relief that could cut customs duties for nearly 80% of Armenian exports to the bloc, including major agricultural items like apricots, tomatoes and fruits. Telecom Rollout: Viva launched Armenia’s first 5G+ network across Yerevan and six regions, with further expansion planned nationwide by year-end. Business Climate & Jobs: Gagik Tsarukyan says closures tied to his case are depriving workers at his enterprises of income, while protests and inspections continue around affected sites. Policy Linkages: Armenia joined the U.S. “Trade over Aid” initiative, pitching TRIPP and AI projects as examples of trade-led economic resilience.

AI & Computing Procurement: Armenia is set to buy $25 million in high-performance computing resources to scale its AI “factory” plans, with 957.9 million drams earmarked for GPU/hour capacity over five years. EU Trade Access: An EU Parliament committee backed temporary tariff relief covering nearly 80% of Armenian exports, including duty-free access for key fruits and vegetables like tomatoes, apricots, grapes and strawberries. TRIPP+ Dealmaking: A new U.S. State Department TRIPP+ Enterprise Fund (over $200m) is led by Konstantin Sokolov, a Russia-born investor tied to Armenia’s telecom sector, aiming to finance transport, energy infrastructure and critical minerals across the South Caucasus and Central Asia. Digital Infrastructure: Viva launched Armenia’s first 5G+ network in Yerevan and six regions, positioning it for AI-powered services and Industry 4.0 use cases. Customs Modernization: Armenia plans to shift from outsourced commercial research to a centralized, state-managed customs examination system to improve border security and chemical classification. Energy & Trade Risk Watch: IMF warns oil shortages tied to Strait of Hormuz disruptions will ease only gradually, with inventories nearing operational minimums. Emergency Connectivity: Starlink donated 56 terminals to Armenia to keep emergency communications running when networks fail. Industrial Disruption: The seal on the Ararat brandy/wine/vodka plant tied to Gagik Tsarukyan was lifted, but operations remain suspended amid tax inspections and worker protests.

Credit & Macroeconomy: Fitch Ratings affirmed Armenia’s sovereign rating at BB- (positive outlook), citing stable policy, growth, and improving debt and budget trends. Digital & Cybersecurity: Armenia’s Ministry of Technology and Industry and the EU’s EEAS confirmed readiness to keep working on Armenia’s digital sector and cybersecurity, with support for institutional capacity and training. Public Safety Infrastructure: The new administrative complex for the Sevan Water Rescue Squad is completed, with Interior Minister Arpine Sargsyan and the US chargé d’affaires attending the opening. Energy Regulation: Armenia’s Public Services Regulatory Commission met an IMF delegation on tariff policy and energy market development, including electricity market design and investment impacts on tariffs. EU Connectivity Projects: The EU plans to back construction of three border crossing points in Armenia, with demining flagged as the first step. Industry & Production Pressure: Workers at enterprises linked to Gagik Tsarukyan protested over factory downtime after his arrest; Araratcement’s reopening and the broader production risk were highlighted. Food & Trade: Dili Dairy Factory resumed production and returned to the market at full capacity after internal controls and testing. Environment & Compliance: Armenia’s regulator fined air-pollution violators 3.15 million drams after inspections focused on construction and bulk-material handling. Innovation & Startups: Seaside Startup Summit Armenia 2026 will run July 26–Aug 1 in Sevan, with AgriTech, WineTech, Cyber Insurance, and Mining Innovation tracks.

Energy Regulation: Armenia’s Public Services Regulatory Commission chief Mesrop Mesropyan met an IMF delegation to review tariff formation and investment-program rules across electricity, gas, water and telecoms, with focus on the electricity market model and competition. Corporate/Power Sector: Armenia’s Administrative Court rejected Tashir Capital’s bid to overturn the government’s move affecting 70% of Electric Networks of Armenia (ENA) shares, saying the claim wasn’t subject to judicial review. Trade & Development: Deputy FM Robert Abisoghomonyan said Armenia has joined the “Trade over Aid” initiative, pitching it as a way to build national capacity, attract investment, and diversify markets and transport routes. Startup & Mining Innovation: The “Seaside Startup Summit Armenia 2026” will run July 26–Aug 1 in Sevan with about 2,000 participants from 50+ countries, featuring AgriTech, WineTech, Cyber Insurance, Mining Innovation and an EV rally. Credit Outlook: Fitch affirmed Armenia’s BB- rating with a Positive Outlook, projecting 5.2% GDP growth and 4.4% inflation in 2026 while flagging lingering geopolitical risks. Food & Dairy: Dili Dairy Factory resumed production and returned to the market after internal control upgrades and lab testing. Environment Enforcement: Armenia’s air-inspection drive issued 3.15 million drams in fines over 45 atmospheric air protection violations, including dust-proofing at construction sites. EU Digital Cooperation: Armenia’s high-tech leadership met an EU delegation on digitalization, AI and cybersecurity, tied to the EU Partnership Mission to Armenia. Industrial State Role: Prime Minister Pashinyan said Araratcement will be brought under state ownership following the arrest of its owner, with new management to follow.

TRIPP Oversight: The U.S. State Department says all border security and customs functions on the TRIPP route will stay under Armenian control, with Armenian authorities making key decisions. Tax & Cement Sector: Armenia’s State Revenue Committee flagged suspected tax violations at the Araratcement plant, citing truck movements, missing invoices, and VAT not credited to the budget. Emergency Connectivity: Starlink donated 56 additional terminals/devices to Armenia for reliable high-speed internet during disasters, to be allocated to the Rescue Service. Nuclear Power Costs: Armenia’s electricity tariff from the Armenian NPP will not change after repayment deadlines were postponed under a unit-life extension loan schedule. EU Security Mission: The EU launched a new mission to help Armenia counter cyber threats and foreign information manipulation, a move Russia denounced. Agriculture Exports: Russia’s restrictions on Armenian apricots and other goods are framed as a geopolitical pressure point, with farmers caught in the fallout. Healthcare Tech: Slavmed Medical Center carried out Armenia’s first robotic remote surgery, performed by a urologist operating from Belgium. Finance Watch: Fitch affirmed Armenia’s BB- rating with a positive outlook, citing growth and reserves. Industry Disruption: Workers tied to Gagik Tsarukyan’s Multi Group protested sealed facilities, demanding a return to work.

Araratcement Crackdown: Armenia’s State Revenue Committee alleges large-scale tax violations at Araratcement, citing missing invoices from 35 trucks in one day and suspected fictitious fuel invoices, with hundreds of millions of drams in alleged damage. TRIPP Control Clarified: The U.S. State Department says TRIPP preserves Armenia’s sovereignty, with all border security and customs functions staying under Armenian control. TRIPP Oversight vs Iran: Prime Minister Pashinyan tells reporters concerns about Iran’s “Trump Route” risks should be dispelled, while Iran’s ambassador presses for a risk-management mechanism. Multi Group Protests: Workers at Multi Group companies, including Ararat Brandy-Wine-Vodka and Multi Stone, protest sealed facilities after Gagik Tsarukyan’s arrest, demanding a clear restart timeline. Healthcare Tech Milestone: Slavmed Medical Center performs Armenia’s first robotic remote surgery, with a urologist operating from Belgium. Agriculture & Retail: Summer vegetables from local farms are gaining shelf space as cooperatives prioritize fresh domestic produce and consumers favor quality and taste. Fitch Outlook: Fitch affirms Armenia’s BB- long-term foreign currency rating with a positive outlook, citing stable policy and strong growth. Emergency Connectivity: Armenia receives 56 Starlink terminals for emergency communications via the Rescue Service. WTO Fertilizer Warning: WTO flags how Strait of Hormuz disruptions can hit fertilizer trade and threaten farming and food security. Cyber Sanctions: UK and EU announce joint cyber sanctions targeting Russian state-linked networks, including the FSB’s Centre 16. Drone Industry Signal: A report highlights Armenia’s growing drone sector and interest in international partnerships.

Cybercrime & Justice: Armenian national Karen Serobovich Vardanyan pleaded guilty in the U.S. to aiding Ryuk ransomware attacks that netted over $15M in bitcoin from American firms, with sentencing ahead. EU vs. Russia Trade Pressure: A month after Armenia’s election, Russia still restricts Armenian exports, while the EU says it will liberalize access for about 80% of Armenian exports and back diversification to cushion the impact. Emergency Connectivity: Armenia received 56 Starlink satellite kits for the Rescue Service to keep communications running during disasters and crises. Food Industry Compliance: Armenia’s food safety regulator suspended Martin Star vanilla ice cream production over alleged hygiene and coliform issues; the company disputes the inspection results. Infrastructure & Logistics: Fitch says the U.S.-backed TRIPP corridor could boost Armenia’s long-term growth, while warning risks from rising diplomatic tensions with Russia. Regional Development: AECOM surveyed the TRIPP site with Armenian partners to support planned railway and related infrastructure. Business & Jobs Under Scrutiny: Reports say Tsarukyan-linked operations were raided, leaving over 10,000 workers reportedly in limbo.

Emergency Connectivity: Armenia received 56 Starlink satellite kits to strengthen emergency communications for the Rescue Service, aiming for reliable, fast links when disasters disrupt conventional networks. Food Safety & Industry Compliance: Armenia’s food safety regulator suspended Martin Star vanilla ice cream production over alleged hygiene and coliform bacteria non-compliance; the company disputes the inspection results. Trade & Supply Chains: Armenia’s trade turnover with Russia fell about $567m in Jan–May 2026, driven mainly by shrinking re-exports of precious metals and gemstones. Infrastructure & Growth Prospects: Fitch says the U.S.-backed TRIPP infrastructure push could boost Armenia’s long-term growth, while warning risks remain from unresolved peace and tensions with Russia. Regional Connectivity Debate: Iran’s ambassador urged clear mechanisms to manage concerns about U.S. presence tied to TRIPP, amid broader U.S.-Iran shipping and security tensions. Industrial Cooperation: Indonesia secured 13 industrial MoUs at INNOPROM 2026, including meetings with Armenia and other Eurasian partners on downstreaming, investment, and supply-chain links. Armenia–EU/High-Tech Spotlight: Armenia’s first remote robotic surgery at Slavmed highlights continued medical-tech capability growth. Business Uncertainty: Reports say a crackdown tied to opposition leader Gagik Tsarukyan left over 10,000 workers in limbo, with potential knock-on effects for production and jobs.

TRIPP Infrastructure Push: Fitch says the U.S.-backed Trump Route for International Peace and Prosperity could lift Armenia’s long-term growth, while warning that Russia-related diplomatic tensions and energy dependence remain risks. TRIPP Site Work: AECOM surveyed TRIPP infrastructure sites with Armenian counterparts, supporting railway and connectivity plans. Energy & Connectivity: Iran’s ambassador urged Armenia to manage risks tied to possible U.S. presence under TRIPP, calling concerns “legitimate.” Industrial Restart: Araratcement resumed production after a four-day shutdown; the Economy Ministry says it’s ready to help resolve operational issues. Inflation Watch: Armenia’s consumer prices rose 5.1% in June; food led (+8.8%) with sharp jumps in meat and eggs. Agriculture Exports Under Pressure: Russia tightened import restrictions on Armenian products, including stone fruits and other agricultural items, adding strain to exporters. Digital Resilience: Starlink donated 56 emergency connectivity equipment units to Armenia for faster, reliable internet during disasters. Skills Pipeline: Vocational college enrollment is up ~10% year-on-year, with scholarships targeting industry, agriculture, and construction. Healthcare Tech Milestone: Slavmed performed Armenia’s first remote robotic surgery, conducted from Belgium.

TRIPP Infrastructure: Fitch says the U.S.-backed Trump Route for International Peace and Prosperity could lift Armenia’s long-term growth, while warning risks remain from unresolved peace steps and rising diplomatic tensions with Russia. Energy & Security: Iran’s ambassador in Yerevan says concerns over a possible U.S. security footprint tied to TRIPP are “legitimate” and calls for a clear mechanism to manage risks. On-the-Ground Planning: The U.S. engineering firm AECOM surveyed the TRIPP site in Armenia to support rail and other infrastructure development. Industrial Cooperation: Armenia’s ties with regional industry continue as Indonesia signed 13 industrial MoUs at INNOPROM 2026, including meetings with Armenia and other Eurasian partners. Healthcare Tech: Slavmed Medical Center completed Armenia’s first remote robotic surgery, with a Belgian urologist operating from over 3,300 km away. Cement Restart: Araratcement resumed production after a four-day shutdown, with the Economy Ministry saying it stands ready to help resolve operational issues. Vocational Skills: Armenia reported about a 10% year-on-year rise in vocational college enrollment, with scholarships tied to industry, agriculture, and construction. Inflation Watch: June consumer prices rose 5.1% y/y, led by food (+8.8%), including sharp jumps in eggs and meat. EAEU Labeling: Armenia saw a 7% rise in registered producers/importers of labeled goods in 2025, alongside a 56% drop in violations.

TRIPP Infrastructure Push: U.S. engineering firm AECOM returned to Armenia to survey the TRIPP corridor site for rail and related infrastructure, aiming to boost connectivity and regional integration. Cement Industry Update: Araratcement resumed production after a four-day shutdown tied to law-enforcement actions; the Economy Ministry says it’s ready to help resolve any operational issues as the plant moves toward state ownership. Healthcare Tech Milestone: Slavmed Medical Center carried out Armenia’s first robotic remote surgery, with a urology specialist operating from Belgium via the Toumai MT-1000 system. Consumer Inflation Watch: Armenia’s June consumer prices rose 5.1% y/y, with food up 8.8% (meat +12.5%, eggs +29.9%) amid Russia’s import restrictions on some Armenian goods. EAEU Labeling Gains: Armenia saw a 7% rise in registered producers/importers of mandatory labeled goods in 2025, alongside a 56% drop in violations. High-Tech Leadership Change: Minister of High-Tech Industry Mkhitar Hayrapetyan is set to step down, while cabinet reshuffles continue.

Inflation Watch: Armenia’s consumer prices rose 5.1% in June y/y, with food up 8.8% (meat +12.5%, eggs +29.9%) as Russia tightens imports on multiple Armenian products. Cement Restart: Araratcement resumed production after a four-day shutdown tied to law-enforcement actions; the Economy Ministry says technical and legal issues are being handled so output can run continuously. Industrial Compliance: Armenia saw a 7% rise in registered producers/importers of labeled goods in 2025, alongside a 56% drop in violations under the EAEU labeling system. Healthcare Tech: Slavmed Medical Center carried out Armenia’s first robotic remote surgery, using a Belgium-based specialist and the Toumai MT-1000 system with dedicated remote-surgery infrastructure. Logistics & Connectivity: U.S. engineering firm AECOM surveyed the TRIPP corridor site in Armenia for rail and related infrastructure, supporting trade and regional integration. Workforce Pipeline: Vocational college enrollment is up about 10% y/y, with priority tracks in industry, agriculture, and construction and monthly stipends for students. Energy Security: Armenia is seeking deeper gas cooperation with Turkmenistan to diversify supply amid regional fuel and energy pressures.

Robotic Healthcare Breakthrough: Slavmed Medical Center in Yerevan carried out Armenia’s first robotic remote surgery, with a Belgian urologist operating over 3,300 km away using the Toumai MT-1000 system and dedicated remote module. Cement Output Restart: Araratcement will resume full operations tomorrow after a four-day shutdown tied to investigative actions; the deputy economy minister says only minor technical issues remain and employees had protested during the seal. Road Corridor Land Acquisition: The government approved land acquisition for 135 plots in Aragatsotn to complete the Ashtarak–Talin section of the North-South transport corridor, with compensation planned before expropriation begins. Nuclear Power Funding: Armenia’s government approved a 20.1 billion AMD budget loan for Unit 2 life extension and modernization at the Armenian Nuclear Power Plant. Agriculture Export Support: Armenia will allocate 3.1 billion AMD in compensation for agricultural exporters and urged diversification of apricot and other products to cut dependence on a single market. Payments Infrastructure Growth: Armenian Card says 12 banks joined ArcaPay and 8 joined ArcaQR, with transaction volumes rising sharply since ArcaPay’s launch. High-Tech Leadership Change: Prime Minister Pashinyan confirmed High-Tech Industry Minister Mkhitar Hayrapetyan will leave government, citing his decision not to continue. EU Connectivity Focus: EU foreign ministers will review the Black Sea strategy’s rollout, with attention on security, transport links, and South Caucasus peace prospects. Regional Economic Outlook: The ADB cut Armenia’s 2026 growth forecast to 5% due to new Russian trade restrictions, while also revising other regional countries’ outlooks. Scam Warning for Pensioners: Authorities warn of rising pension-related scam calls using “accounting error” claims to steal IDs, card details, and SMS codes.

North-South Corridor: Armenia designates 135 land plots in Aragatsotn for the Ashtarak–Talin reconstruction, with access roads and drainage/lighting upgrades; expropriation is set to start before April 1, 2027. Nuclear Energy: The government approves a 20.1bn AMD budget loan for Unit 2 life extension and modernization at the Armenian Nuclear Power Plant. Agri-Exports Support: Armenia will compensate exporters with 3.14bn AMD after June shipments, while PM Pashinyan urges apricot and other farm exports to diversify away from a single market. EU Demining Aid: Two remotely operated mine-clearing vehicles arrive for humanitarian demining and border demarcation work. Power Sector Procurement: ENA’s temporary manager reports “dead stock” in warehouses and expects new deliveries worth 12bn AMD. Digital Payments: Armenian Card says 12 banks joined ArcaPay and 8 joined ArcaQR, with transaction volumes up sharply since launch. Infrastructure & Cities: Yerevan’s Hrazdan Stadium track and field will be renovated, and Dilijan faces a temporary water supply suspension due to river turbidity. High-Tech Leadership: Pashinyan confirms High-Tech Industry Minister Mkrtich Hayrapetyan will leave the post.

Armenia’s Industrial Push: Prime Minister Nikol Pashinyan ordered a draft investment program to boost wheat production, including mapping unused land suitable for cultivation and improving the wheat value chain. Energy & Infrastructure: Iranian Ambassador Khalil Shirgholami again argued Armenia could become a regional energy transit hub, citing ongoing talks with Iran on gas, oil products, and transit, while also flagging progress on the Iran-Armenia power transmission line. GreenTech Startups: Armenia launched its first GreenTech Academy for renewable energy and efficiency startups, with a €40,000 prize fund for top projects and training for 15 teams. Trade & Exports: Armenia tightened phytosanitary export rules from July 10, limiting individuals to 5 kg and requiring standard procedures for larger shipments to improve traceability. Economy Watch: Electricity generation rose 9.7% in Jan-May to 4.38 billion kWh, and construction activity grew 24.1% in the same period. Tax Enforcement: Armenia’s State Revenue Committee is inspecting fuel stations tied to Multi Group over alleged undocumented fuel sales and missing cash register receipts. EU Support: The EU delivered demining vehicles to expand Armenia’s capacity to clear landmines and ERWs, aiming to protect civilians and reopen agricultural land.