European Commission President Ursula von der Leyen, during a visit to Yerevan on 2 July 2026, announced a new €200 million Global Gateway package for peace through connectivity in the South Caucasus, alongside a €20 million peace-fostering programme and a proposal for Autonomous Trade Measures that would liberalise nearly 80% of Armenian exports to the EU. Speaking alongside Armenian Prime Minister Nikol Pashinyan, von der Leyen also confirmed an additional €18 million in trade diversification support, completing a €52 million package discussed in a phone call in early June.
Von der Leyen congratulated Pashinyan on his electoral victory, praising the strength of Armenia's democracy and the continued spirit of the 2018 Velvet Revolution. She highlighted the initialling of the peace agreement last year as a history-making moment and noted the ongoing normalisation of relations with Türkiye, stating that opening borders will transform Armenia's economic future. The Global Gateway package aims to mobilise up to €2 billion with financial partners for strategic transport, energy, and digital projects across the South Caucasus, potentially supporting border crossing points and road infrastructure in Armenia.
The €20 million peace-fostering programme targets communities living along borders, supporting local economies through small businesses, micro businesses, new farming techniques, and water management, while creating opportunities for dialogue. Von der Leyen acknowledged economic pressure from Russia, describing it as economic coercion, and announced that the EU is stepping up support. The Autonomous Trade Measures proposal would make almost 80% of Armenian exports tariff-free, covering nearly 99% of fresh fruits, vegetables, and plants previously exported to Russia, and over 90% of beverage and spirit exports. In mid-July, EU experts will deploy to Armenia to help producers and exporters seize opportunities from the privileged partnership.
Armenian exporters, particularly in agriculture and beverages, stand to gain significantly from tariff-free access to the EU single market of 450 million consumers, reducing dependence on the Russian market. Armenian border communities will benefit from the peace-fostering programme's local economic support and dialogue initiatives. EU taxpayers fund the €200 million and €20 million packages, with potential returns through increased trade and regional stability. Russian economic interests in Armenia face pressure as trade diversion accelerates. The measures represent a moderate shift in EU-Armenia economic integration, with no major regulatory burden on EU businesses.