Russian President Vladimir Putin on Friday warned Armenia of severe economic consequences should it move closer to the European Union, just days ahead of parliamentary elections in the South Caucasus republic.
Yerevan, which is heavily dependent on Russia for gass supplies, would lease at least 14% of its gross domestic product if gas prices were raised following a withdrawal from the Eurasian Economic Union (EAEU), Putin said on the sidelines of a summit in Kazakhstan.
“Of course, there will no longer be concessions such as those we see today,” he said.
Parliamentary elections are scheduled for 7 June in Armenia. Prime Minister Nikol Pashinyan hopes to continue his term in office, but is under domestic political pressure following the defeat in the war against neighbouring Azerbaijan over the disputed region of Nagorno-Karabakh.
Armenia is seeking to join the European Union, and relations with Moscow are increasingly strained.
Putin also called for an early referendum on whether the Armenian population wishes to remain in the EAEU or join the EU, piling pressure on the Armenian leadership.
The EAEU includes Russia, Armenia, Kazakhstan, Kyrgyzstan and Belarus.
Putin also drew a comparison with Ukraine, arguing that the crisis began with Kiev’s steps towards EU accession. Russia has been waging a war against Ukraine for more than four years.
The Kremlin leader emphasized that, as a member of the EAEU, Armenia has access to a large market that would be forced to cease economic cooperation should the country switch to EU standards.
Just a few days ago, it emerged that Moscow had threatened Yerevan with the termination of a favourable supply contract for gas, oil products and rough diamonds. Russia has also already halted imports of flowers and foodstuffs due to alleged quality defects.
