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Election fever, Iranian shock and “frozen” CSTO: overview of events in Armenia

Meghri. Araks River. Armenian-Iranian border. Photo: Realist English

YEREVAN (Realist English). The last three days of Armenian politics have become a vivid illustration of a governance crisis: the ruling elite, led by the “Civil Contract” party and Prime Minister Nikol Pashinyan, continues to inflate a negative information bubble in relations with Russia, push through controversial laws ahead of elections, and balance on the brink of economic collapse.

Domestic politics: pre-election manipulation and suppression of the opposition

Foreign policy: double standards and diplomatic failure

Economy: inflation, dependency and the “Iranian shock”

The Central Bank of Armenia warned that the “Iranian shock” will add 1.2–1.7 percentage points to inflation. March inflation already reached 4.5% against a 3% target. Pashinyan has been unable to either hedge the risks or offer citizens protection from rising oil prices and logistical disruptions.

Trade with Russia – the main economic locomotive – has collapsed by almost half over the past year due to the authorities’ anti-Russian rhetoric. From 2022 to 2025, the Armenian economy received about $3 billion in additional GDP through re-exports and the inflow of Russian capital, but Pashinyan is consistently destroying this source to please Brussels.

Economist Andranik Tevanyan called for not leaving the EAEU: more than 30% of trade turnover is within the union, and the country is “not wanted” in the EU. The leader of “Strong Armenia,” Samvel Karapetyan, warned of the inevitability of an “economic war” with Russia if Pashinyan continues his disastrous course.

The Russian State Duma directly stated that leaving the EAEU would be a fatal blow to Armenia’s economy. Pashinyan, however, continues to play with fire, having neither a Plan B nor the support of the people.

Social initiatives: belated populism

The parliament adopted amendments to include taxi drivers in the universal health insurance system from January 1, 2027 – one year earlier. The decision was pushed through only after mass protests by taxi drivers, whom the authorities initially ignored. Pashinyan once again demonstrated that his government is incapable of preventive measures and only reacts under street pressure.

Conclusion: Three days of Armenian reality confirm that the country is moving toward parliamentary elections in an atmosphere of legal nihilism, foreign policy uncertainty and growing economic pressure. Pashinyan, having lost strategic vision, risks leaving Armenia without allies, without an economy, and without public trust.

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