The impact of the Republic of Armenia’s occupation policy against Azerbaijan is increasingly visible across all sectors of its economy. According to the Deputy Executive Director of the Center for Analysis of Economic Reforms and Communication (CAERC), Ramil Huseyn, and based on Armenian media sources (including Sputnik Armenia and others), the country’s viticulture sector is now also facing serious difficulties.

The continuation of military mobilization in Armenia has negatively affected the full-capacity operation of grape processing plants. As a result, wine and grape processing enterprises have significantly reduced the purchasing price of grapes.

Currently, processing companies in Armenia are buying grapes at around 90 drams per kilogram (approximately USD 0.18) or even lower. Farmers, having no alternative sales channels, are forced to accept the conditions imposed by processing plants and sell their produce below production cost. Consequently, grape producers in Armenia are going bankrupt.

It should be noted that last year the Yerevan Brandy Company purchased grapes wholesale at 140–150 drams per kilogram. This indicates that, partly due to the impact of the war, grape prices in Armenia have fallen by up to 40 percent, leaving farmers with significant losses. This also suggests that, due to reduced capacity in processing facilities, Armenia may face a decline in alcoholic beverage exports in the coming years.

For reference, in 2019, alcoholic beverages accounted for up to 11 percent of Armenia’s total exports. As can be seen, the consequences of Armenia’s aggressive war policy against Azerbaijan are increasingly undermining the country’s economy. Citizens in Armenia are already feeling the effects of war across all aspects of daily life, and this trajectory is expected to deepen, pushing the country further into economic crisis.