Armenia

Armenia prides itself on being the first nation to formally adopt Christianity (early 4th century). Despite periods of autonomy, over the centuries Armenia came under the sway of various empires including the Roman, Byzantine, Arab, Persian, and Ottoman. During World War I in the western portion of Armenia, the Ottoman Empire instituted a policy of forced resettlement coupled with other harsh practices that resulted in at least 1 million Armenian deaths - actions widely recognized as constituting genocide. The eastern area of Armenia was ceded by the Ottomans to Russia in 1828; this portion declared its independence in 1918, but was conquered by the Soviet Red Army in 1920.

Armenia remains involved in the protracted struggle with Azerbaijan over control of Nagorno-Karabakh, a primarily ethnic Armenian region that Moscow recognized in 1923 as an autonomous oblast within Soviet Azerbaijan. In the late Soviet period, a separatist movement developed that sought to end Azerbaijani control over the region. Fighting over Nagorno-Karabakh began in 1988 and escalated after Armenia and Azerbaijan attained independence from the Soviet Union in 1991.

By the time a cease-fire took effect in May 1994, separatists, with Armenian support, controlled Nagorno‑Karabakh and seven surrounding Azerbaijani territories. Following the Second Nagorno-Karabakh War that took place in September-November 2020, Armenia lost control over much of the territory it had captured a quarter century earlier. Under the terms of a cease-fire agreement signed in November 2020, Armenia returned to Azerbaijan the remaining territories it occupied and some parts of the Nagorno-Karabakh region, including the key city that Armenians call Shushi and Azerbaijanis call Shusha.

Turkey closed the common border with Armenia in 1993 in support of Azerbaijan in its conflict with Armenia over control of Nagorno-Karabakh and surrounding areas, further hampering Armenian economic growth. In 2009, Armenia and Turkey signed Protocols normalizing relations between the two countries, but neither country ratified the Protocols, and Armenia officially withdrew from the Protocols in March 2018. In 2015, Armenia joined the Eurasian Economic Union alongside Russia, Belarus, Kazakhstan, and Kyrgyzstan. In November 2017, Armenia signed a Comprehensive and Enhanced Partnership Agreement (CEPA) with the EU.

In spring 2018, former President of Armenia (2008-18) Serzh SARGSIAN of the Republican Party of Armenia (RPA) tried to extend his time in power by becoming prime minister, prompting popular protests that became known as the “Velvet Revolution” after SARGSIAN was forced to resign. The leader of the protests, Civil Contract party chief Nikol PASHINYAN, was elected by the National Assembly as the new prime minister on 8 May 2018. Pashinyan’s party prevailed in an early legislative election in December 2018, and he was reelected as prime minister.

party to:

Air Pollution, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Climate Change-Paris Agreement, Comprehensive Nuclear Test Ban, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Nuclear Test Ban, Ozone Layer Protection, Wetlands

signed, but not ratified:

Air Pollution-Heavy Metals, Air Pollution-Multi-effect Protocol, Air Pollution-Persistent Organic Pollutants

chief of state:

President Armen SARKISSIAN (since 9 April 2018)

head of government:

• Prime Minister Nikol PASHINYAN (since 10 September 2021);
• Deputy Prime Ministers Mher GRIGORYAN (since 3 August 2021) and Hambardzum MATEVOSYAN (since 25 November 2021);
• note - Prime Minister Nikol PASHINYAN resigned on 25 April 2021;
• he was reappointed by the president on 2 August 2021 and sworn in on 10 September 2021

cabinet:

Council of Ministers appointed by the prime minister

elections/appointments:

• president indirectly elected by the National Assembly in 3 rounds if needed for a single 7-year term;
• election last held on 2 March 2018;
• prime minister elected by majority vote in 2 rounds if needed by the National Assembly;
• election last held 2 August 2021

election results:

Armen SARKISSIAN elected president in first round; note - Armen SARKISSIAN ran unopposed and won the Assembly vote 90-10

note: Nikol PASHINYAN was first elected prime minister on 8 May 2018 and reelected on January 2019; in response to a political crisis that followed Armenia's defeat in the Second Nagorno-Karabakh War in late 2020, PASHINYAN called an early legislative election for June 2021;

his party won the election and PASHINYAN was elected to the prime ministership for a third time; his election was confirmed by the president on 2 August 2021, and he was sworn in on 10 September 2021

twenty-five political parties or alliances competed in the June 2021 election; the top three parties or alliances that entered parliament garnered 80% of the vote; the below parties received 1% or more of the vote:

5165 National Conservative Movement Party [Karin TONOYAN]

Alliance of Democrats [Arman BABAJANYAN]

Armenia Alliance or HD (alliance of the Armenian Revolutionary Federation and the Reborn Armenia Party) [Robert KOCHARYAN]

Armenian National Congress or ANC (bloc of independent and opposition parties) [Levon TER-PETROSSIAN]

Bright Armenia [Edmon MARUKYAN]

Civil Contract or KP [Nikol PASHINYAN]

Homeland Party [Artur VANETSYAN]

Homeland of Armenians [Artak GALSTYAN]

I Have Honor Alliance (alliance of the RPA and the Homeland Party, co-led by the two allied parties' leaders)

Liberal Party [Samvel BABAYAN]

National Democratic Party [Vahe GASPARYAN]

Prosperous Armenia or BHK [Gagik TSARUKYAN]

Republic Party [Aram SARGSYAN]

Republican Party of Armenia or RPA [Serzh SARGSIAN]

Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agro industrial complexes of the Soviet era.

Armenia has only two open trade borders - Iran and Georgia - because its borders with Azerbaijan and Turkey have been closed since 1991 and 1993, respectively, as a result of Armenia's ongoing conflict with Azerbaijan over the separatist Nagorno-Karabakh region.

Armenia joined the World Trade Organization in January 2003. The government has made some improvements in tax and customs administration in recent years, but anti-corruption measures have been largely ineffective. Armenia will need to pursue additional economic reforms and strengthen the rule of law in order to raise its economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from Turkey and Azerbaijan.

Armenia's geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made it particularly vulnerable to volatility in the global commodity markets and the economic challenges in Russia. Armenia is particularly dependent on Russian commercial and governmental support, as most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector.

Remittances from expatriates working in Russia are equivalent to about 12-14% of GDP. Armenia joined the Russia-led Eurasian Economic Union in January 2015, but has remained interested in pursuing closer ties with the EU as well, signing a Comprehensive and Enhanced Partnership Agreement with the EU in November 2017.

Armenia’s rising government debt is leading Yerevan to tighten its fiscal policies – the amount is approaching the debt to GDP ratio threshold set by national legislation.

general assessment:

• telecom market struggles to provide an effective national telecom service;
• country remains dependent on the economic health of Russian and EU economies;
• fixed-line penetration falling, driven by growth in mobile and fixed-line broadband;
• growth of 4G networks and falling prices due to growing competition;
• fixed broadband is growing but remains low by international comparisons;
• flat mobile market;
• strong growth predicted for mobile broadband market;
• government participating in a project to ensure eventual nationwide 5G network;
• government approved plans for a new data center built via public-private partnership;
• communication technologies sectors have attracted foreign investment;
• top importer of broadcast equipment from China (2020)

domestic:

• 15 per 100 fixed-line, 122 per 100 mobile-cellular;
• reliable fixed-line and mobile-cellular services are available across Yerevan and in major cities and towns;
• mobile-cellular coverage available in most rural areas (2019)

international:

• country code - 374;
• Yerevan is connected to the Caucasus Cable System fiber-optic cable through Georgia and Iran to Europe;
• additional international service is available by microwave radio relay and landline connections to the other countries of the Commonwealth of Independent States, through the Moscow international switch, and by satellite to the rest of the world;
• satellite earth stations - 3 (2019)

note: the COVID-19 pandemic continues to have a significant impact on production and supply chains globally; since 2020, some aspects of the telecom sector have experienced downturn, particularly in mobile device production;

many network operators delayed upgrades to infrastructure; progress towards 5G implementation was postponed or slowed in some countries; consumer spending on telecom services and devices was affected by large-scale job losses and the consequent restriction on disposable incomes;

the crucial nature of telecom services as a tool for work and school from home became evident, and received some support from governments

since November 2020, Russia has deployed about 2,000 peacekeeping troops to the area in and around Nagorno-Karabakh as part of a cease-fire agreement between Armenia and Azerbaijan; fighting erupted between the two countries over the Nagorno-Karabakh region in September of 2020; Nagorno-Karabakh lies within Azerbaijan but has been under control of ethnic Armenian forces (the "Nagorno-Karabakh Defense Army") backed by Armenia since a separatist war there ended in 1994;

six weeks of fighting resulted in about 6,000 deaths and ended after Armenia ceded swathes of Nagorno-Karabakh territory; tensions remained high through 2021, and both sides have accused the other of provocations since the fighting ended; Armenia has accused Azerbaijani forces of a series of border intrusions and of seizing pockets of territory

Armenia has been a member of the Collective Security Treaty Organization (CSTO) since 1994 and contributes troops to CSTO's rapid reaction force