Armenia has approved an 8.5 million US dollar subsidy package to support fruit, vegetable and flower exporters as businesses adapt to reduced access to the Russian market.

The Armenian government adopted the measure at a Cabinet meeting, allocating 3.14 billion drams ($8.631 million) in compensation for exports made in June, The Caspian Post reports via news.am.

The financial support is designed to offset costs associated with entering alternative export markets following restrictions on imports of certain Armenian products into Russia.

Under the program, exporters will receive subsidies based on the type of produce they ship. Compensation includes 770 drams ($2.12) per kilogram for strawberries, 200 drams ($0.55) for apricots, 250 drams ($0.69) for peaches, plums and nectarines, 275 drams ($0.76) for tomatoes, and 400 drams ($1.10) for peppers, among other products.

Economy Minister Gevorg Papoyan said Armenia exported 784 tons of peppers, 200 tons of tomatoes, 109 tons of strawberries, 1,400 tons of cherries and nearly 3,000 tons of apricots in June. By the first week of July, apricot exports had increased to 5,450 tons.

The country also exported 1.5 million liters of mineral water and 230,000 liters of wine during the period.

The minister said that Armenian fruit is now exported to 15 countries, vegetables to eight countries, and flowers to 25 countries, reflecting efforts to diversify export destinations.

Papoyan also noted that there is currently no oversupply of agricultural products on the domestic market.

Since May, Russia's agricultural watchdog has gradually introduced restrictions on imports of certain Armenian agricultural products. Despite those measures, Russia remains Armenia's largest export market, accounting for more than 90% of the country's agricultural exports.