Exports to Europe: Logistics is ready, cost and certification remain the main barriers

Armenia's logistics industry is currently undergoing a period of significant change. Geopolitical processes, the restructuring of traditional trade routes, and the need to enter new export markets are presenting Armenian businesses with new challenges. Developing export potential requires modern logistics solutions, new infrastructure, and efficient transport services. Economix spoke with Artak Margaryan, founder and CEO of Prime Logistic Services, about the challenges the industry faces today, what solutions professional market participants are already finding, and how logistics is changing under new conditions.

The export structure has remained virtually unchanged

Speaking about the geography of Armenian exports, Margaryan notes that official statistics for 2025 have not yet been published, but the overall picture has remained practically unchanged compared to the previous year. According to 2024 data, about 35% of export revenue came from Russia and other EAEU countries. The share of the European direction was about 5–7%, while shipments to China and Hong Kong accounted for about 20–25%. According to preliminary estimates, in 2025 exports to EAEU countries will remain at about 35%, while the share of Europe has grown slightly — to about 8–10%.

At the same time, the expert emphasizes that the Russian and European markets cannot be directly compared, as they involve completely different categories of goods. He explains that Russia mainly receives food products, alcoholic beverages, and other consumer goods, while Europe primarily imports ores, metals, and entirely different products.

Therefore, according to Margaryan, when discussing export diversification, it is important to understand that this does not mean simply increasing volumes of existing shipments. He notes that one cannot simply double the supply of canned goods to Europe, as this market effectively has to be developed from scratch by many Armenian producers, which is an entirely different task.

Logistics is ready, the main problem is producers

Margaryan emphasizes that from the perspective of logistics companies, there are no serious obstacles to organizing shipments. He states that as a logistics company, they can arrange delivery without any problems and that transport is not a concern for them, adding that the main difficulties lie with the exporters themselves.

According to him, entering the European market requires more than just finding a transport route. The producer must ensure that their products fully comply with EU requirements. Margaryan warns that goods must not be allowed to reach the EU border only to be destroyed due to missing certificates, laboratory test results, or non-compliance with European standards.

This problem is particularly acute for fruit and vegetable exports. According to him, Armenia currently lacks a laboratory capable of conducting the full range of tests required for European certification.

He noted that they had recently discussed this issue with the Ministry of Economy, adding that there is currently no laboratory that can fully conduct all necessary tests, for example, for exporting apricots to the EU. He further noted that even after such a laboratory is established, its test results would need to be recognized by the European side.

According to Margaryan, the ministry assures them that work is underway to create the relevant infrastructure, but implementation timelines remain unknown.

Small farms may struggle with EU requirements

Additionally, there is another serious problem — most suppliers of fruit and vegetable products to Russia are small farms.

Margaryan concludes that to meet European requirements, large investments, new technologies, and a complete overhaul of production systems are needed. He is more than confident that a significant portion of small farms will not be able to bring their orchards up to European certification standards on their own, as this requires substantial financial resources, serious effort, and a willingness by producers to completely restructure their cultivation technologies.

Logistics is ready for increased shipments

According to Margaryan, if Armenian producers can bring their products into compliance with European requirements, the logistics industry can ensure uninterrupted supply.

He notes that there are no serious problems in any part of the logistics chain, adding that they already export products to Europe — just in different product categories. He says all mechanisms are already working, and the main question is how quickly producers can bring their product quality up to European standards.

The main problem is not timing but cost

At the same time, the expert notes that for businesses, one of the key factors is not so much delivery time as price.

Margaryan notes that exporting to Europe costs almost twice as much as shipments to, for example, Moscow.

Regarding timelines, he says the difference between the Russian and European routes is not that significant. He explains that even with queues at the Upper Lars checkpoint, deliveries to Moscow take about 10–12 days, while shipments to Germany take about two weeks, so the difference is not critical and is quite manageable.

Therefore, the main factor reducing the competitiveness of the European route remains transport costs, especially when it comes to perishable goods.

Restrictions for Armenian carriers persist

Regarding the European route, there are currently two main delivery routes. The first is ferry lines between Georgia and Bulgaria, and Georgia and Romania. The second is the overland route through Turkey.

However, Margaryan notes that this is where one of the key restrictions remains.

He explains that Armenian trucks still cannot use the Turkish route to access Europe, so carriers either have to use third-country transport — Georgian, Turkish, Bulgarian, and others — or use ferry services.

At the same time, the ferry crossing operates only a few times a week, which inevitably increases waiting times and transport costs.

Margaryan concludes that obstacles arise specifically for Armenian carriers. As a logistics company, they can use either their own or third-party transport, but restrictions remain when working with Armenian vehicles. If they choose the ferry, it means additional costs, since it does not run daily and makes shipping even more expensive.