Russian President Vladimir Putin has warned that Armenia could face a significant economic impact if it moves away from the Eurasian Economic Union (EAEU) amid its growing interest in European Union integration.

Speaking to reporters, Putin said Armenia could lose around 14% of its GDP if energy prices rise following a withdrawal from the EAEU, The Caspian Post reports, citing TASS.

He explained that leaving the bloc would remove current preferential conditions, particularly in the energy sector.

“Of course, this will mean higher energy prices. There won't be the same preferential treatment as today, of course. According to our preliminary estimates, not even ours, but at the expert level, various experts believe that this will lead to a loss of at least 14% of Armenia's GDP. Whether this is a lot or a little is another matter, but we still need to weigh everything and see,” Putin said, commenting on how relations could change if Armenia exits the EAEU.

"If Armenia quits the Eurasian Economic Union (EAEU), its citizens will be subjected to the same conditions and requirements as migrants from other countries," he added.

Putin said Russia will apply "requirements introduced for migrants from CIS countries" to Armenian citizens.

"It means that they will need to buy a permission to work in Russia. It means that they will become eligible for compulsory medical insurance only after living in Russia for at least five years. And so on, and so forth - there are lots of conditions," Putin said when asked what will change if Armenia quits the EAEU.

Yerevan has recently stated its intention to deepen integration with the European Union. Putin noted that closer alignment with the EU would automatically mean the end of Armenia’s participation in the EAEU, along with the loss of the economic advantages it currently receives as a member state.

However, Armenian Prime Minister Nikol Pashinyan has said that the country does not plan to leave the EAEU and aims to balance its membership in the organization while pursuing closer ties with the European Union for as long as possible.