Armenia PM dismisses concerns over Azerbaijani fuel imports

Armenia PM dismisses concerns over Azerbaijani fuel imports
U.S. President Donald Trump holds the hands of Azerbaijan's President Ilham Aliyev and Armenia's Prime Minister Nikol Pashinyan as they shake hands, Washington, 8 August 2025.
Reuters

Armenian Prime Minister Nikol Pashinyan has rejected criticism over the import of fuel from Azerbaijan, saying such concerns are “unfounded” and arguing that the move has already benefited consumers by lowering prices.

Speaking on social media on Monday, Pashinyan addressed growing debate in Armenia following the arrival of Azerbaijani petroleum products — a development that marks another step in the two countries’ growing relationship.

Pashinyan stated such concerns are largely shaped by companies that have long dominated the petroleum market.

The prime minister said arguments suggesting that Armenia was indirectly financing Azerbaijan through fuel purchases were misplaced.

He also dismissed counterclaims from Azerbaijan that Armenian imports could be linked to military use, insisting that such narratives no longer reflect the reality of relations between the two neighbours.

“Peace has been established,” Pashinyan said, adding that fears on both sides were rooted more in past hostilities than in current circumstances.

Pashinyan pointed to a noticeable decline in fuel prices as evidence of the benefits of new imports. According to government figures, increased competition has pushed prices down by around 15% in parts of the country.

The price of AI-95 petrol, which previously sold for 510–520 drams per litre, has reportedly dropped to as low as 430 drams at some stations.

The government says these reductions have eased pressure on households and businesses already facing high costs.

First shipments in decades

Armenia received its first Azerbaijani fuel deliveries in decades in December 2025, with an initial shipment of around 1,200 tonnes transported by rail through Georgia. Over the weekend, Azerbaijan sent a new rail shipment of 979 tons of RON-92 petrol to Armenia.

Economy Minister Gevorg Papoyan has described imports as part of a broader effort to diversify supply routes and reduce reliance on a limited number of suppliers.

He has said further shipments are expected and that prices could fall further if competition continues to increase.

Despite the economic impact, the imports have proved politically sensitive. Some fuel stations have reportedly refused to sell Azerbaijani petrol, while certain domestic importers have criticised the policy.

Some claim that Armenia risks becoming economically dependent on a former adversary.

Pashinyan suggested that resistance may come from businesses seeking to protect their market position rather than from genuine national security considerations.

The fuel imports are seen by analysts as part of a wider, cautious normalisation of relations between Armenia and Azerbaijan following recent peace agreements.

Armenia says its focus remains on consumer welfare and market stability.

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