On May 25, 2026, Russian President Vladimir Putin conveyed that Armenia risks losing its significant advantages, including low-priced gas, if it continues to pursue closer integration with the European Union. During a meeting with Armenian Prime Minister Nikol Pashinyan, Putin stated that Armenia cannot maintain its status within both the Russia-led Eurasian Economic Union (EAEU) and the EU.

Currently, Armenia benefits from Russian gas at a drastically reduced price of $177.50 per 1,000 cubic meters, a stark contrast to the $600 price in European markets. This has prompted concerns among Armenian officials about the economic implications of distancing from Moscow. Deputy Prime Minister Alexei Overchuk echoed these sentiments by suggesting that future economic relations will have to be restructured if Armenia continues on this path.

Despite these threats, Armenian officials, including Pashinyan, have dismissed the idea of increased gas prices, asserting the long-standing contractual agreements that support their current pricing. Pashinyan emphasized that the existing agreements with Russia are mutually beneficial and firmly in place.

Armenian analysts are divided on the potential fallout. Some argue that Armenia has little option but to seek alternatives, including possibly importing gas from other neighbors like Kazakhstan if Russia takes drastic measures against them. The government insists that its position will not be compromised, as it retains the right to prioritize its national interests.

The situation is an intricate mix of geopolitics, national interests, and energy dependency, revealing Armenia's vulnerable position formed by its balancing act between Russia and the EU. Should Armenia make significant pivots away from Russian influence, the repercussions may reverberate well beyond gas prices.