Armenia Reaffirms Commitment to the Eurasian Economic Union, Regional Integration Faces New Challenges

The diplomatic rhetoric at the Eurasian Economic Union summit in St. Petersburg reflects the Caucasus region's balancing act amidst geopolitical turmoil.

On December 21, 2025, Armenian Prime Minister Nikol Pashinyan addressed the expanded meeting of the Supreme Council of the Eurasian Economic Union in St. Petersburg, reaffirming the Republic of Armenia's commitment to mutually beneficial cooperation within the framework of the Eurasian Economic Union to promote economic stability and sustainable development in the region. Pashinyan thanked Azerbaijani President Ilham Aliyev for deciding to open a route for goods to travel through Azerbaijani territory to Armenia, calling it "one of the first major achievements in establishing peace and stability in the region."

01. Evolution of Armenia's Union Stance

Armenia's relationship with the Eurasian Economic Union has experienced a period of fluctuation. In August 2025, Pashinyan publicly stated that he had not ruled out the possibility of Armenia withdrawing from the Russian-led Eurasian Economic Union, emphasizing that "simultaneous accession to the EU and the Eurasian Economic Union is impossible." At the time, Pashinyan stated, "When we reach the point of final choice and inevitability, we will make the appropriate decision." This statement sparked speculation that Armenia might be turning to the West.

However, just four months later, Pashinyan's stance at the St. Petersburg conference changed dramatically. He not only refrained from mentioning the possibility of withdrawal but also reiterated Armenia's commitment to the Union, emphasizing that "the Republic of Armenia is committed to mutually beneficial cooperation within the framework of the Eurasian Economic Union."

Armenian President Vahag Khachaturian also reflected this policy shift in an interview in September 2025, stating, "Our relationship with Russia is now completely different—a partnership. Russia's attitude towards Armenia is no longer like that of an older brother or younger brother, but a pure partnership."

02 The Integration Process of the Eurasian Economic Union

The Eurasian Economic Union (EAEU) is a regional international economic organization established on January 1, 2015, by Russia, Belarus, and Kazakhstan under the Treaty on the Eurasian Economic Union. It was later expanded to include Armenia (January 2, 2015) and Kyrgyzstan (August 12, 2015).

The Union aims to create a unified economic space for the free movement of goods, services, capital, and labor by eliminating trade barriers and coordinating economic policies, with a plan to achieve full factor mobility by 2025.

In his speech, Pashinyan emphasized the crucial role of the service sector in economic growth, noting that "the operation of a single service market improves the quality and competitiveness of suppliers, simplifies processes, and creates a more favorable business environment."

Digitalization is another priority for the Union. Pashinyan stated, "Without the application of digital technologies, sustainable development is impossible, and digital technologies are the solid foundation for areas such as e-commerce." This aligns with the "digital agenda" promoted by the Union in recent years.

03 Challenges and Differences Within the Union

Significant divisions exist within the Eurasian Economic Union (EAEU). In late 2024, Nikita Pashinyan announced that the Armenian delegation would not attend the EAEU meeting in Minsk, and would participate remotely at most.

This decision stemmed from a conflict between Pashinyan and Belarusian President Alexander Lukashenko. Pashinyan publicly stated, "As long as Lukashenko is president, I will never visit that country again."

The core of the dispute lies in the Nagorno-Karabakh conflict. Pashinyan accused Belarus of supporting Azerbaijan's victory in the Nagorno-Karabakh war, as publicly stated by Belarusian leader Alexander Lukashenko.

Relations between Armenia and the Collective Security Treaty Organization (CSTO) have also become strained. Armenia has effectively terminated its participation in the CSTO, although the decision has not been formally announced.

Armenia has also refused to pay its CSTO dues for 2025, further demonstrating its distance from the Russian-led security structure.

04 Digital Integration and Cross-border Cooperation

The Eurasian Economic Union (EAEU) is actively advancing its digitalization process. At the 2025 Digital Almaty Forum, EAEU Chairman Bakhtyzhan Sagintayev stated that the EAEU is committed to implementing the "Digital Union" concept, aiming to promote deeper cooperation among member states through technological means.

Currently, the EAEU's integrated information system is successfully operational, laying a solid technological foundation for building a "Digital Union." The EAEU has approved 77 general processes, of which 42 have been successfully implemented, and another 24 are about to be launched.

Regarding the digitalization of cross-border transport, Eurasian Economic Commission Chairman Sagintayev stated: "Belarus, Kazakhstan, and the Russian Federation have switched to digital transport documents. Progress has been made in cooperation with China in this area."

In March 2025, the EAEU established a pilot working group for Electronic International Transport Documents (e-CMR), marking a crucial step towards the legally binding electronic document transfer in the road transport sector.

In his speech, Pashinyan specifically mentioned that "the development of the labeling system, and the necessary digital integration of member states' fiscal systems, will help improve tax administration efficiency and reduce shadow taxation."

05 Tourism Cooperation and New Drivers of Economic Development

Tourism has become an important sector driving economic growth for the Eurasian Economic Union (EAEU). Pashinyan pointed out in his speech that "tourism has a significant multiplier effect on the economies of EAEU member states. The tourism development concept adopted today will inject new impetus into promoting tourism exchanges among member states."

In 2024, EAEU member states jointly developed and launched a tourism route map for the Eurasian region to promote tourism market development. The route map, compiled based on suggestions from member states, covers 419 tourist attractions, 38 tourist routes, and transportation information.

Due to its advantageous geographical location, Kazakhstan has become an important hub in the route map, with over 50% of the recommended routes passing through Kazakhstan. These routes include transnational routes from Bishkek and Tokmok in Kyrgyzstan to Almaty in Kazakhstan, then through Moscow in Russia and Minsk in Belarus, finally reaching Yerevan in Armenia.

The Eurasian Economic Union (EAEU) is at a crucial stage of development. As the Union continues to advance its integration process, particularly in areas such as digitalization and tourism cooperation, its economic potential is expected to be further unleashed.

However, geopolitical factors remain a major challenge for the Union. Armenia's changing stance indicates that the future of the EAEU will depend on its ability to maintain the effectiveness of economic cooperation amidst political divisions.