This last month saw a parliamentary election in Armenia which many observers – including our organisation – labelled as “historic”. Voters renewed their Prime Minister’s mandate to continue a political agenda that is, in many ways, a redefinition of what Armenia stands for and who it stands with. This entails a political break with some important parts of its past. Yet history is not relinquished easily.

Just days after the election, Moscow reaffirmed its pressure on Yerevan that it must “clarify” its strategic orientation, particularly regarding its membership in the Eurasian Economic Union and the CSTO. While Russia increasingly appears to many Armenians as part of the country’s past rather than its future, neither the government nor most of society are eager to reduce their homelands partnerships to a geopolitical binary.

Instead, some of the most consequential alternatives are emerging closer to home. Recent energy and transport initiatives have further strengthened links between Azerbaijan, Georgia Turkey and Western markets, highlighting the growing importance of regional connectivity. Beyond their economic significance, such partnerships may also help create a historic new for Armenia and its pan-Caucasian neighbours – conditions to diversify their dependencies and expand their strategic options.

This edition of our newsletter also marks a historic moment for our office. After two years in Georgia and Armenia, we bid farewell to Florian Binder, who was primarily responsible for curating and producing this newsletter. We are pleased that he will remain with KAS, taking on a strategic role in Berlin dealing with the Foundation’s publications. We thank him for his excellent work and wish him every success in his new position.

Armenian exporters are being pushed to find new markets after Russia imposed near-daily restrictions on Armenian goods in the run-up to and aftermath of the 7 June elections. Moscow has targeted products including fruits, vegetables, flowers, brandy, Jermuk mineral water, fish, nuts, and dried goods, while also limiting transit to other Eurasian Economic Union markets and reportedly threatening preferential supplies of gas, petroleum products, and diamonds.

Yerevan has responded with direct subsidies and compensation schemes for exporters, including per-kilogram support for strawberries, tomatoes, peppers, and flowers, while working to redirect goods to European markets. Brussels has framed the pressure as Russian “economic coercion” and announced more than €50 million in support, underscoring the EU’s growing role in helping Armenia reduce dependence on the Russian market.

Marco Rubio visits Armenia - Strategic Partnership Signed

Less than two weeks before Armenia’s 7 June parliamentary elections, U.S. Secretary of State Marco Rubio made a brief visit to Yerevan on 26 May, signalling strong U.S. support for Armenia’s westward foreign policy shift. Rubio and Foreign Minister Ararat Mirzoyan signed a Charter on Comprehensive and Strategic Partnership, which Yerevan described as elevating bilateral relations to a new level and opening an “unprecedented” phase in Armenia-U.S. ties.

The two sides also signed a memorandum on critical minerals, aimed at securing reliable access to resources central to new technologies and economic independence, as well as a framework document on the Trump Route through southern Armenia. The visit came as Moscow intensified pressure on Yerevan through trade restrictions and threats over energy supplies, underscoring the growing geopolitical stakes around Armenia’s election and foreign policy direction.

Georgia moves against Crypto Mining in Svaneti

Authorities say years of unchecked electricity use in Svaneti have culminated in a major enforcement push, with police announcing on 4 June that they had seized 148 crypto-mining devices in Mestia. The state argues miners have exploited the region’s informal free-electricity arrangement, driving Mestia’s consumption to 133 million kWh and overloading power lines serving residents, businesses, and tourism.

Deputy Prime Minister Mamuka Mdinaradze said on 1 June that meters would be installed while electricity remains free up to a set limit, and Prime Minister Irakli Kobakhidze claimed more than ₾20 million worth of power was being illegally consumed. Separately, Georgia joined U.S. and Polish authorities in a major crypto-laundering operation, arresting two foreign nationals on 10 June over a scheme allegedly involving several hundred million dollars.

GD and Trump Administration disagree on improving ties
Washington has made clear that any improvement in ties with Georgia depends not only on renewed dialogue, but on a change in Georgian Dream’s behaviour. At a 3 June U.S. House hearing, Secretary of State Marco Rubio said Tbilisi had been told what would be required to improve relations, while expressing hope for a shift in both the bilateral relationship and Georgia’s political trajectory. Prime Minister Irakli Kobakhidze rejected that framing a day later, insisting Georgia had not asked for “remedial” guidance and presenting the country as a sovereign partner ready only for discussions based on fairness.

The gap widened further, when the U.S. House passed a bill requiring reports on Russian and Chinese influence in Georgia and a five-year strategy reassessing Washington’s partnership with Tbilisi.

Russia and EU court Azerbaijan for Closer Partnership

Azerbaijan is drawing renewed attention from both Moscow and Brussels, as Russia signals openness to closer EAEU ties while the EU resumes negotiations on a new bilateral agreement.

On 4 June, Russian Deputy Foreign Minister Mikhail Galuzin said Moscow was ready to support Azerbaijan’s rapprochement with the Eurasian Economic Union and involve Russian businesses in projects in Nagorno-Karabakh and surrounding territories now under Baku’s control. President Vladimir Putin also praised Russia-Azerbaijan relations as “very good” and highlighted economic, political, and humanitarian cooperation. Meanwhile, the EU and Azerbaijan resumed talks in Baku on 2–3 June on a new agreement covering political dialogue, connectivity, energy, trade, transport, green energy, and digital cooperation through 2030.

Azerbaijan abducts Journalist, imposes travel bans

Two months after Georgia deported him despite European Court protections, Azerbaijani journalist Afgan Sadigov was seized by masked men in Jalilabad on 8 June and reportedly taken to the Prosecutor General’s Office in Baku. His wife described the incident as a kidnapping, saying several men in plain clothes forced him into a car without explanation.

The detention appears linked to the same case Azerbaijan had dropped shortly before his deportation from Georgia, which Sadigov’s lawyers say points to a coordinated attempt by Tbilisi and Baku to bypass international safeguards. Sadigov had already been barred from leaving Azerbaijan on 26 May.

During Iran War: Israel sent troops to Azerbaijan
Azerbaijan has been drawn into the fallout from the Iran war after CNN reported that Israel deployed elite military and intelligence units to southern Azerbaijan during the US–Israel attacks on Iran earlier in 2026. According to the report, Israeli commandos and Mossad personnel operated near Iran’s northern border, including around 100 kilometres from Tabriz, to support intelligence-gathering and drone operations, though Baku strongly denied that its territory was used against any third country.

The allegations place new scrutiny on Azerbaijan’s long-standing strategic partnership with Israel, built around Azerbaijani oil exports and Israeli arms and security cooperation. They also underline Baku’s increasingly delicate balancing act as it tries to benefit from close ties with Israel while avoiding an open rupture with neighbouring Iran.