Restrictions imposed by Russia on the import of certain Armenian products are affecting goods that generate trade revenues equivalent to around 1.5-2% of Armenia’s gross domestic product (GDP).

The assessment was made by Vazgen Poghosyan, head of the Monetary Policy Department at the Central Bank of Armenia, during a press conference following a meeting of the bank, The Caspian Post reports, citing TASS.

“Currently, the situation concerning goods whose exports are facing difficulties indicates that revenues from these products account for roughly 1.5-2% of GDP. At the same time, the overall volume of Armenia’s exports to Russia represents about 6% of GDP,” Poghosyan stated.

Central Bank Governor Martin Galstyan also addressed the issue, warning that if Armenia is unable to redirect the affected exports to alternative markets, the country could face deflationary pressure of approximately 0.6%.