The EU is investing €200 million in support of Armenia to accelerate its economic transformation and integration with the West.

The €200 million aid package announced by EU Commissioner Kos at a press conference in Yerevan is a major step in Armenia's strategy to move toward the West and marks a profound shift in the geopolitical landscape of the Caucasus region.

At a joint press conference in Yerevan with Armenian Deputy Prime Minister Mer Grigorian, EU Commissioner for Enlargement Marta Kos announced that the EU will allocate over €200 million to support Armenia's economic growth and reform process.

This investment is part of the second phase of the EU's plan to enhance sustainable development and economic growth in Armenia, focusing on communications, sustainability initiatives, and business development.

01 Funding Scale and Allocation

The EU's financial support for Armenia goes beyond this. In addition to the €200 million announced by Kos, the EU is providing financial assistance to Armenia through various channels.

According to public reports, the EU's total investment plan will reach €250 million. These funds are incorporated into the EU's Global Gateway strategy, which aims to stimulate inclusive growth and regional connectivity.

Earlier, in April 2024, the EU announced a €270 million Resilience and Growth Plan, a 50% increase compared to its previous funding. The plan includes €200 million in grants and €70 million in grants to stimulate investment.

Senior EU officials confirmed that these funds will be allocated by 2027 to support private sector growth, institutional reforms, and strategic regional cooperation.

02 Strategic Context and Geopolitical Shifts

Armenia was once a traditional ally of Russia and a member of the Russia-led Collective Security Treaty Organization (CSTO). However, in recent years, significant cracks have emerged in the relationship between the two countries.

In 2020, a full-scale conflict erupted between Armenia and Azerbaijan over the Nagorno-Karabakh region. Russia failed to provide the expected support to Armenia, leading the Armenian government to begin turning to Western countries.

Armenian Prime Minister Pashinyan publicly criticized reliance on Russia as a strategic mistake and froze participation in the Collective Security Treaty Organization in 2024, with formal withdrawal from the organization set to begin in 2025.

At the same time, Armenia has even begun a reconciliation process with its historical enemy, Turkey, further demonstrating a significant shift in its foreign policy.

03 A New Partnership Between the EU and Armenia

In February 2025, EU Commissioner for International Relations Jutta Urpilainen presented a new partnership agenda with Armenia on behalf of the EU. Based on shared values, the agenda consists of three building blocks.

First, strengthening Armenia's economic resilience and diversification by enhancing cooperation in trade, energy, connectivity, and aviation security.

Second, the EU looks forward to strengthening its civil mission in Armenia (EUMA) and is considering possible European Peace Fund measures.

Third, "increased investment is key to strengthening economic cooperation," and the EU pledged to support Armenia's participation in the Black Sea cable and other regional connectivity projects.

04 Regional Cooperation and Security Dimension

The EU has repeatedly reiterated its support for Armenia's "Crossroads for Peace" initiative, viewing it as a key tool for promoting regional connectivity and reconciliation.

EU leaders acknowledged Armenia's efforts to promote stability in the South Caucasus region through continued peace talks with Azerbaijan and steps toward normalizing relations with Turkey.

Security cooperation has also become a key component of bilateral relations. The EU and Armenia launched the EU-Armenia Security and Defense Consultation, demonstrating their shared commitment to peace, stability, and democratic resilience.

Regarding information security, the EU also proposed cooperation with Armenia to jointly combat disinformation, cyber threats, and external interference.

05 Future Prospects and Challenges

Armenia officially launched its EU integration process in 2025: the government approved the relevant bill in January, parliament passed it in March, and the president signed it in April.

While this does not yet signify a formal application for membership, the law paves the way for consultations with the EU, the development of a roadmap, and further integration.

The EU has also expressed its willingness to include Armenia in pan-European and regional economic initiatives, including the Black Sea Strategy. The EU Commissioner for International Relations confirmed that discussions are underway to launch a visa liberalization dialogue.

Armenia has expressed strong interest in visa liberalization, and the EU has encouraged its leaders to accelerate related reforms.

European Commission President Ursula von der Leyen and European Council President Antonio Costa have publicly welcomed Armenia's ambitious reform agenda and expressed support for its sovereignty, territorial integrity, and democratic reforms.

The EU's support for Armenia is expanding. From a €200 million special grant to a €250 million strategic investment in the Global Gateway, to in-depth cooperation in security and defense, these initiatives signal Armenia's accelerated convergence with the West.

The Caucasus region is undergoing a profound geopolitical restructuring, and Armenia's choices could impact the future of the entire region.