Germany to provide €152 million in support to Armenia by 2027
By 2027, Germany will provide Armenia with a total of 152 million euros in loans and grants. This was announced by Claudia Busch, the Ambassador Extraordinary and Plenipotentiary of Germany to Armenia.
According to the Ambassador, the financial assistance aims to promote the well-being of Armenia’s population and will be directed toward the development of several priority sectors. Specifically, the cooperation will include the promotion of a green economy, technical and vocational education and training (TVET), renewable energy and energy efficiency, community development, public administration, as well as environmental and social programs.
Busch noted that the parties have also reached an agreement on an additional 120 million euro loan, intended for the full financing of the Caucasian Transmission Network project. According to her assessment, the project plays a crucial role in Armenia’s regional energy integration.
The Ambassador also highlighted the role of the private sector in Armenia’s economy, emphasizing that it is viewed as the country’s economic foundation. Within this framework, Germany and the Central Bank of Armenia (CBA) have agreed to provide low-interest, long-term loans to small, medium, and micro-enterprises, particularly in rural communities, through the German-Armenian Fund (GAF) credit program.
It should be noted that on December 9, 2025, Yerevan and Berlin signed a joint declaration on a strategic agenda for bilateral partnership. The document was signed by RA Prime Minister Nikol Pashinyan and German Chancellor Friedrich Merz, pledging to deepen cooperation in political, economic, and cultural spheres, as well as in security and defense.
According to Stefan Meister, program head at the German Council on Foreign Relations (DGAP), the European Union (EU) is increasing its focus on reducing Russian influence in the South Caucasus.