Politics
Armenia bets on Turkey trade to break free of Russia
Yerevan is reopening a border sealed for three decades, gambling that trade with Turkey and Europe can finally loosen Moscow's hold.
![This picture taken on January 9, 2022 shows a general view of Kars city, eastern Turkey, near the Turkish-Armenian border. [Ozan Kose/AFP]](/gc6/images/2026/07/06/56873-afp__20220112__9vz3y3__v1__highres__turkeyarmeniapoliticseconomy-370_237.webp)
By Olha Hembik |
For three decades, the border between Armenia and Turkey stood as a wall. This summer, it becomes a door.
Yerevan is making a bet. Opening the gates, officials hope, will pull Armenia toward Europe and loosen Moscow's grip after 30 years. The two governments plan a ceremonial ribbon-cutting to mark the moment.
The neighbors severed diplomatic ties in 1991. In 1993, during the First Nagorno-Karabakh War, Ankara shut its land border with Yerevan to back Azerbaijan. The lock held for nearly 30 years.
That is changing fast. In April, Armenian Deputy Foreign Minister Vahan Kostanyan said Yerevan was politically and technically ready to open the border, and that the next move belonged to Turkey. The Turkish daily Yeni Şafak first reported the opening as imminent, citing a surge in diplomatic contacts.
![Closed gates of the border where several trucks carrying humanitarian aid passed from Armenia into Turkey at the village of Margara, Armenia on March 21, 2025. [Anthony Pizzoferrato/Middle East Images/AFP]](/gc6/images/2026/07/06/56874-afp__20250321__mei-armenia-ap-aptbrts-20250321-013__v1__highres__armeniasendshumanit-370_237.webp)
As relations normalize, the two countries will lift their direct trade ban, establish diplomatic ties and exchange ambassadors. This summer, the Alican crossing in Turkey's Iğdır province will open for mutual traffic, and Armenia has finished its preparations. Officials are also readying the Akyaka checkpoint in Turkey's Kars province.
New routes, new markets
In May 2026, Turkey lifted a nearly 30-year ban on direct trade with Armenia. Turkish Foreign Ministry spokesman Öncü Keçeli said Ankara was ready to trade directly with Yerevan.
The shift could remake commerce across the region.
"Opening the borders with Turkey also unlocks prospects for trade with the West, plus it offers an opportunity to utilize transit corridors," Stanislav Zhelykhovsky, an international relations expert, told Kontur. Turkey, he said, could become Armenia's bridge to Europe.
The numbers could climb sharply. Johnny Melikyan, an expert at the Orbeli Analytical Center, predicts annual trade will reach $1 billion, up from the current $250 million to $300 million.
"The trade volume that previously moved through Georgia will shift to this route," Melikyan said.
That detour has been costly. Armenian Foreign Minister Ararat Mirzoyan said goods bound for Armenia long traveled overland into Georgia, where customs officials re-registered them as Georgian exports.
"This creates additional financial expenses, which affect the cost of goods once they arrive in Armenia," Mirzoyan said. "From now on, anyone importing from Turkey can bring goods directly into Armenia -- directly in a customs sense."
Rail is moving too. On May 24, 2026, Prime Minister Nikol Pashinyan announced on Telegram that the Akhalkalaki-Kars railway had opened for exports and imports, calling it "a major event for the country's economic life." The line anchors the Baku-Tbilisi-Kars corridor, which carries freight among Georgia, Azerbaijan, Turkey and the European Union (EU).
Breaking the energy leash
The pivot also reaches Azerbaijan. Armenia can now deepen ties with a country it fought for more than 30 years, opening another market, Zhelykhovsky said. The republic leans heavily on Russian hydrocarbons, and Moscow uses that dependence as leverage. New routes, the expert said, offer a way to break that energy grip.
Moscow is pushing back. In late May, Russia restricted imports and sales of Armenian flowers and alcohol, a familiar signal of displeasure. The Russian Foreign Ministry has dangled possible suspensions of gas, petroleum and diamond supply deals. Russia claims a break could cost Armenia up to 25% of its economy.
Independent estimates run smaller. Vladimir Sedalishchev, a leading researcher at the International Trade Studies Laboratory of Russia's Presidential Academy of National Economy and Public Administration, said a pivot to the EU and a cut in Russian trade would trim about 3.7% of Armenia's gross domestic product, or roughly $900 million.
The Kremlin also warns that Armenian firms will struggle to win back the Russian market later. So far, the threats have not bitten. Industrial production rose 13% year over year in the first four months, according to Trading Economics.
A pull toward Europe
For some Armenians, the choice is also cultural.
"It has become clear to the Armenian elites that an alliance with Moscow can provide neither security nor development. Russia is rapidly losing its influence in the South Caucasus," Oksana Tunyk-Fryz, artistic director of the Chernihiv Academic Music and Drama Theater and a civic activist, told Kontur.
Armenia belongs to Europe "culturally and mentally," she said, even if not geographically. "A difficult but real peace with Azerbaijan and the normalization of relations with Turkey have led Armenia to reassess its place in the world."
Others frame it as breaking a spell.
Moscow "has spent thirty years telling Armenia the same old fairy tale: without Russia, you are doomed, your economy will collapse, and your neighbors will eat you alive," Yerevan-based blogger Suren Vardanyan told Kontur in the "Caucasian Knot" Facebook group.
Reality proved otherwise, he said. "But it turns out that countries are perfectly capable of negotiating with their neighbors, trading, and growing their economies on their own." In his words, "life exists outside the Kremlin's orbit."
Zhelykhovsky sees a wider shift. Russia fights hard for the South Caucasus because of its location and Moscow's economic stakes in the Middle East and Asia, he said. Now its old clients are drifting.
"They are looking for their own path of development," he said. Armenia's example, the expert predicts, could nudge Georgia further west and prompt Central Asian states to diversify their economies and lean less on Russia.
He warned the stakes are real: "The Russian Federation is an aggressive country that, while maintaining economic and trade relations with its neighbors, is ready to use military force to achieve its goals."