The risks connected to secondary sanctions will remain acute for Armenia in 2025. This is stated in the 2025 Annual Report on External Security Risks of the Republic of Armenia of the Foreign Intelligence Service of Armenia.

“The Republic of Armenia faces substantial challenges due to the existing sanctions against some of its trade partners, namely the Russian Federation and the Islamic Republic of Iran. The utilization of our economic potential is limited by risks of secondary sanctions, the expansion of which can entail new limitations for Armenia’s economy.

In 2025, it is unlikely that the sanctions against either Russia or Iran will be lifted or eased in a way, that will significantly impact the economy of Armenia. Therefore, the risks connected to secondary sanctions will remain acute,” the report states.

On the other hand, according to the Foreign Intelligence Service of Armenia, “in combination with other factors, the continuous imposition of sanctions against Russia and the Russian-Ukrainian conflict are increasing the likelihood of economic slowdown in Russia and creating additional risks for the economy of Armenia.”

The report adds that the risks related to energy security will persist in 2025.

“Energy dependence continues to be used as a widely-used tool of political influence both in global and regional relations, from which Armenia is not shielded. The unbalanced energy dependence creates additional risks for sustainable economic development, sovereign policy and social stability and increases the effectiveness of external political pressure used against Armenia.

Economic, logistical, technological and energy security issues in the context of regional developments will continue to be directly linked to possible political and military developments and the dynamics of relations between regional and extra-regional actors,” adds the aforesaid report.