European Commission President Ursula von der Leyen announced the EU’s widespread support for Armenia during her visit to Yerevan on Thursday as part of a strategic tour of the South Caucasus, unveiling a series of rare economic measures to help the country withstand growing Russian pressure stemming from its cautious pro-West pivot.

Hailing Armenia’s “closer partnership with Europe” and that “the people of Armenia chose democracy (…) and to partner with the European Union,” von der Leyen unveiled major new financial support packages, removal of trade tariffs on most Armenian exports to the EU and pledged to help with visa liberalisation among other measures in response to what she called Russia’s “economic coercion” of the country.

Following her visit to Azerbaijan on Wednesday, von der Leyen underlined what she said was a “history-making moment” of the Armenian-Azerbaijan peace process and the new momentum for the EU’s strategic engagement with the two former rivals, stating that “while Armenia is coming closer to the EU, the South Caucasus is coming closer together.”

In a clear political message, the Commission president underscored that by voting for Pashinyan in the recent elections, “the people of Armenia spoke clearly. They chose democracy. The rule of law."

"They chose reform and peace. They chose an open, welcoming, and inclusive society. And they chose to partner with the European Union," von der Leyen added. "And together, we must now turn their aspirations into results.”

Von der Leyen further expressed the EU’s political support for Armenia by stating that "I know Armenia is still facing significant economic pressure from Russia, (…) but rest assured: when pressure mounts on our partners, the EU steps up... You can ​count on us."

New trade measures to bypass Russian restrictions

Armenia will now uniquely benefit from a new EU instrument, as it is neither an EU candidate country nor does it have a classic trade agreement, allowing it to redirect most of its products from Russian exports to EU markets, with exemption of customs duties.

Von der Leyen announced a proposal called Autonomous Trade Measures, which will liberalise almost 80% of Armenian exports to the EU’s single market of 450 million consumers by removing trade tariffs to support the Armenian economy amid Russia’s growing economic onslaught of wide-ranging trade restrictions on Armenia over the last few months.

“This measure will open the European doors to almost 99% of Armenia's fresh fruits, vegetables, and plants that used to be exported to Russia and it will open the door of the European Union Single Market to more than 90% of your exports of beverages and spirits,” von der Leyen said.

“In fact, over the past month, we have seen more and more Armenian flowers arriving on our market. I think this is a beautiful symbol of a new chapter in our economic partnership. And this is only the beginning,” the Commission president added.

In addition, von der Leyen said the EU will send Armenia an additional €18 million to support trade, as the final part of the wider €52 million package which the EU put together on the eve of Armenia’s crucial elections in June, which gave Armenian Prime Minister Nikol Pashinyan a strong pro-West mandate.

Von der Leyen said alongside Pashinyan that Armenia was "still facing significant economic pressure from Russia, nothing short of economic coercion actually."

When asked about the future of Armenia’s relations with Russia during the press conference, Pashinyan reiterated his cautious approach that “we have never sought and will never seek to create a crisis in Armenia-Russia relations."

Yet he made it clear that “we act solely in the interests of our country, we respect the interests of all our international partners, but we cannot place the interests of any partner above those of Armenia.”

Billions pledged for regional connectivity

The chief of the EU executive repeated the 27-member bloc's pledge made in Baku on Wednesday to invest €200 million in a new EU connectivity initiative called the Global Gateway package and to “mobilise up to €2 billion for strategic transport, energy, and digital projects all across the South Caucasus,” that Armenia would benefit from, now that it made its peace with Azerbaijan."

Connectivity is now another key area for the EU’s engagement in the South Caucasus, with the Middle Corridor emerging as a strategic transit route between Asia and Europe and a strong Eurasian alternative amid global supply chain disruptions in the Middle East.

The Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), is a transport network of multiple roadways, railroads and maritime routes connecting China and Southeast Asia through Kazakhstan, Azerbaijan, and Georgia, and onward to Turkey and Europe.

With the South Caucasus being an important link of the Middle Corridor and because the EU is “building bridges between people,” von der Leyen also announced €20 million for a “peace-fostering programme".

The funds are meant to help communities living along the borders, supporting local economies and improving everyday lives, “so that peace takes root in the hearts and minds of this generation – and the next," she said.

Through this announcement, von der Leyen showed support for Pashinyan’s pledge that Armenia has now closed the tragic chapter of the Karabakh wars with Azerbaijan, allowing the two former rivals to forge a peaceful future together.

Visa liberalisation and energy diversification on the table

Pashinyan announced during the visit that Armenia aims to obtain visa liberalisation with the EU by 2029, depending on the country’s pace of reforms.

Von der Leyen responded by stating that the EU is conducting an assessment mission this autumn and that Armenia is the only country in an active visa liberalisation process with the EU.

As Armenia depends on Russian energy imports, which Moscow already threatened Yerevan with, the EC president said that EU experts will go to the South Caucasus country to help diversify its energy imports for which the EU has “great experience,” citing Ukraine and Moldova as examples.

Pashinyan said Armenia will build power transmission lines with Azerbaijan and Turkey to strengthen Armenia’s energy security, in addition to restoring regional transport links.

While calling the Armenia-Azerbaijan peace process “the most consequential step this region has taken in decades,” the EC president continued to praise Armenia for “the continued normalisation of relations with Turkey.

“These decisions required political courage and leadership. And I know their rewards will be immense," von der Leyen told Pashinyan.

"Opening borders will transform Armenia's economic future and it will anchor Armenia at the heart of one of the world's most strategic crossroads. We will stand by you to turn this vision into reality,” she said.