تجارت با ارمنستان

We aim to shift your attention to the Armenian market and present a new approach for exporting your products.

The main goal of this trip is to enhance commercial cooperation and explore the export market for some of Iran’s competitive products to this country.

However, while sharing useful information about international trade, it is also valuable to mention some practical points regarding the geographical, economic, political, cultural, and social aspects of the Republic of Armenia.

Geographically, Armenia is Iran’s northern neighbor, and our only active shared border is the village of Norduz in the Free Zone of Aras. The time difference between Iran and Armenia is about half an hour, with Armenia being half an hour ahead, almost aligning with the time zone of Urmia

Due to their ancient historical ties, the people of Armenia have always had friendly and close relations with Iranians and continue to welcome their presence in the country. In fact, one of our business partners in Armenia humorously says, “In the not-so-distant future, Armenia will become one of Iran’s provinces.”

At first glance, given the small population of this country, the Armenian market may not seem particularly attractive to traders and economic actors when compared to global markets. However, what can compensate for this gap is Armenia’s membership in the Eurasian Economic Union, which provides customs exemptions and special privileges for member states. This undoubtedly makes it strategically important for Iranian traders who are interested in working in the Eurasian region.

In recent years, Armenia has experienced significant economic growth, which has improved trade and economic relations with Iran. Since 2018, the Islamic Republic of Iran has been a member of this union and has also been selected as an observer member of the Eurasian Economic Union. Armenia, as one of the five main member countries of the union, has been a member since 2015. It is also worth noting that 10 other countries, in addition to Iran, have become observer members and have expressed interest in full membership. These countries range from Tunisia in North Africa to Moldova in Eastern Europe, as well as India, China, and Mongolia. If these countries join, the scope of the union would become transregional.

For more information regarding the Eurasian Economic Union and the preferential tariffs between Iran and the member countries of this union, you can benefit from the articles available on the ZinoTejarat platform.

During our meetings and sessions on this trip, we had the opportunity to meet with the Ambassador Extraordinary and Plenipotentiary of the Islamic Republic of Iran, Dr. Zahoori. He is one of the few ambassadors who truly believes in economic diplomacy, and we hope that, with a paternal perspective, he will provide opportunities to increase business interactions between Iran, Armenia, and the countries of the Eurasian Economic Union.

Among the aspects that caught our attention during this trip were the order, mandatory rule of law, the hard work done by women, the freedom of the hijab, and the fact that most of the municipal cleaners were elderly women. This is something for the Westerners who claim to support women’s rights in our country to reflect on.

Another noteworthy point was the lifestyle remnants of the former communist and Soviet society. For instance, one can point to the LADA cars, which for many years were the only vehicles available to the people of the former Soviet Union, all the same shape and color. However, policymakers, fearing the wrath of the masses, eventually gave in and allowed some freedom by introducing different colors and models of these cars. This reminded us of the fact that unfortunately, the outdated mindset of state-run economies, liberal economies, monopolistic economies, and anti-private sector economies is a wrong approach, one that is unfortunately also visible in our country, particularly in sectors such as the automotive industry

It is also worth noting that the police cars of the Republic of Armenia are mostly Hyundai and Samand models, which was notable for us as Iranians. However, it was neither convincing nor pride-inducing, as we firmly believe that the intelligence and knowledge of Iranians enable them to build the best equipment and machinery, even under the harshest sanctions.

During our business activities, we came across numerous abandoned factories that had once been the source of income for thousands of workers in the former Soviet Union. According to one of our fellow travelers, the policy of the former Soviet rulers—excessive interdependence of these factories within the USSR—was the reason behind their collapse, ensuring that none of these countries could stand independently or break away from the union on their own.

We also had a meeting with the owner of a strong startup and an online store in Armenia, which can be considered a reliable business partner.

In Armenia, several online taxi services are active, with GG and Yandex being the most well-known. By installing their apps and simply entering your phone number, you can easily use affordable ride-hailing services. Additionally, the metro is operational in Yerevan, and new minibuses have been recently purchased to operate on public transport lines. It’s worth mentioning that the price of gasoline in Armenia is about $1 per liter, which is approximately 8 times higher than in Iran. The price of LPG and CNG is about 300 dram, or roughly 15,000 tomans. Therefore, renting a car for tourists is not very cost-effective.

In general, the price of goods in Armenia is higher than in Iran due to the exchange rate difference between the dollar and the rial. However, the prices are not much different from other countries. Several large, modern shopping malls, such as Dalma, Carrefour, SAS, Yerevan City, and Yerevan Mall, have been built in Yerevan, where you can find famous global brands and shop from them. It is also important to note that the value-added tax (VAT) in Armenia is 20%, which is significantly higher than in Iran. This tax is also applied to goods imported from the Eurasian Economic Union to Armenia.

As with any journey, this one, with all its experiences and events, came to an end. However, what this trip reminded us of is that our country is full of opportunities and potential, one of which is its proximity to 15 neighboring countries, strong and high-quality production, the ability to compete with Chinese goods, a young workforce, and the small country of Armenia with a population of 3 million, which is also part of these opportunities.

On this trip, we concluded that considering Armenia’s potential and the temporary crisis situation in the country, high-quality Iranian products can establish a strong and sustainable presence in this market. Achieving this requires meeting the conditions and requirements of global markets. Undoubtedly, the trusted consultants at ZinoTejarat will be alongside you, step by step, to expedite this process.