Influence of the investment climate of the Republic of Armenia on bilateral relations with Russia and cooperation within the Eurasian Union

The article analyzes the difficult period of independent development for Armenia and Russia, the unprecedented transformation of the economic structure, and the transition from a command-and-control to a market-based form of management. The collapse of the USSR and the disintegration of the unified economic mechanism, which led to the disruption of technological chains and the collapse of the financial system, necessitated the use of new mechanisms that promote economic growth, including a favorable investment climate.

Research objective. To examine the difficulties of the Republic of Armenia’s development after the collapse of the USSR, focusing on the current problems caused by the specific geopolitical situation of the country, which has been in a military confrontation with neighboring Azerbaijan for many years, having no common border with Russia, which requires business and government to make balanced decisions that would guarantee stable growth in an extremely difficult region.

Methodology. Since foreign economic relations are an important driver of growth for the Armenian economy, studying the problems of bilateral relations with Russia, as a traditional reliable partner, is relevant in the difficult and unstable international paradigm of the "New Normal." The analysis undertaken by the author covers primarily the economic, political, and technological features of the emerging foreign economic relations, taking into account the integration processes, primarily within the Eurasian Economic Union (EAEU), which includes the two countries under consideration.

Research objective. To examine the difficulties of the Republic of Armenia’s development after the collapse of the USSR, focusing on the current problems caused by the specific geopolitical situation of the country, which has been in a military confrontation with neighboring Azerbaijan for many years, having no common border with Russia, which requires business and government to make balanced decisions that would guarantee stable growth in an extremely difficult region.

Research results. A detailed examination of the investment climate in Armenia and an analysis of the main areas of foreign economic relations, both on a bilateral basis and in the context of the emerging integration architecture, allow us to state with a high degree of certainty that the further joint economic development of the two countries has favorable prospects.

Conclusions. The study notes the impact of the unprecedented anti-Russian sanctions policy of the collective West, which, paradoxically, has opened up additional opportunities in bilateral relations, and Armenia has become one of the beneficiaries of the existing interdependences. Regional integration, represented by the Eurasian Economic Union (EAEU), international financial organizations represented by the Eurasian Development Bank (EDB), and pragmatic cooperation within the framework of the United Nations will help to respond to the challenges of our time.