The European Union will provide more than €50mn in immediate financial assistance to Armenia and help find alternative markets for Armenian exports after Russia imposed new trade restrictions on the South Caucasus nation, European Commission President Ursula von der Leyen said on June 4.

Following a phone call with Armenian Prime Minister Nikol Pashinyan, von der Leyen accused Moscow of using economic pressure against Yerevan as Armenia continues to deepen ties with the European Union.

"Russia's recent restrictions targeting Armenia are nothing short of economic coercion, and it is unacceptable," von der Leyen said in a statement.

"By extending export restrictions on Armenian products, Moscow is weaponising economic relations for political pressure. We know this playbook all too well. This is why Europe stands firmly with Armenia."

The support package will include immediate financial assistance worth more than €50mn, measures aimed at easing trade in certain Armenian products, particularly agri-food goods, and practical assistance for sectors affected by the Russian restrictions, the Commission said.

Among the measures announced is support for Armenia's flower industry after Russia recently restricted imports of Armenian flowers, citing what Armenian officials have described as questionable phytosanitary concerns. Von der Leyen said a shipment of 10,000 Armenian flowers was due to arrive in Latvia on June 5 and that further deliveries would follow.

The EU will also continue efforts to strengthen business links with Armenia and implement commitments made at a recent EU-Armenia summit in Yerevan.

"Armenia is where talent, innovation and opportunity come together. For European businesses, it's a key place to be," von der Leyen said.

The latest dispute is part of a further deterioration in relations between Moscow and its traditional ally Armenia, which has increasingly distanced itself from Russia following the loss of Nagorno-Karabakh to Azerbaijan in 2023 and what Yerevan says was the failure of Russian-led security arrangements to protect Armenian interests.

Armenian exporters have faced a series of disruptions in the Russian market, including temporary bans on exports of agricultural products. Armenian officials and analysts have accused Moscow of using trade measures to punish Yerevan for pursuing a more independent foreign policy and strengthening ties with Western partners.

The tensions have intensified as Prime Minister Pashinyan has sought to reduce Armenia's dependence on Russia politically, economically and in the security sphere. Armenia froze its participation in the Russia-led Collective Security Treaty Organization (CSTO) in 2024, while expanding cooperation with the European Union and the US.

Armenia's parliament has approved legislation launching the country's formal path towards EU membership, a largely symbolic but politically significant step. The government has also deepened cooperation with Brussels on governance reforms, economic development, connectivity projects and border management.

The EU has become one of Armenia's most important political and economic partners. Brussels launched a Resilience and Growth Plan for Armenia in 2024, and von der Leyen said EU support under the programme had already helped 7,000 businesses and contributed to the creation of more than 20,000 jobs.

Looking ahead, the Commission president said the EU remained committed to implementing an ambitious Connectivity Partnership agreed with Armenia. She welcomed the recent reopening of regional trade routes involving Turkey, including railway links through Georgia and Turkey, describing them as "an excellent step forward".

"Armenia has the potential to become a strategic hub connecting Europe, the South Caucasus and Central Asia," she said.

Von der Leyen said the EU was ready to support infrastructure projects and border crossing points as regional transport links reopen. She added that Brussels and Yerevan would establish a joint EU-Armenia task force to oversee implementation of the new initiatives and coordinate future measures.

The two sides are expected to discuss the plans further at an EU-Armenia Connectivity Platform ministerial meeting scheduled for June 23.