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Is Armenia facing a gas crisis?

Russia warns Armenia of halting gas and diamond supplies if it moves closer to EU. Armenia's economy at risk.

Isabella Martinez
ByIsabella Martinez- Senior Editor
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Russia has warned that it may suspend or cancel the duty-free supply of gas, oil products and rough diamonds if Armenia continues its rapprochement with the European Union.

Energy Minister Sergey Tsivilev sent a letter to Armenia's Ministry of Territorial Administration and Infrastructure, according to Kommersant.

Moscow believes Armenia's EU integration threatens the foundation of bilateral trade and investment cooperation.

The 2013 agreement provides for preferential supply of gas, fuel and diamonds without export duties. These supplies are critical for Armenia's economy.

Analysts say that if the regime is abolished, Armenia cannot quickly switch to alternative sources, leading to a sharp price increase.

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