An Armenian company supplies Russia with goods under the sanctions regime on the route Batumi – Novorossiysk

Арменска компания доставя за Русия стоки намиращи се под санкционен режим по маршрута Батуми - Новоросийск


Cargo transportation from Armenia is carried out by "Armenian Shipping Company", whose owner is David Iloyan.

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Armenia uses the Batumi-Novorosiysk sea route to bring cars and medical equipment produced by Western companies to the Russian Federation.

Armenia intensively uses the sea route between the ports of Batumi (Georgia) and Novorossiysk (Russia) to re-export to the Russian Federation goods subject to sanctions. As a result, 600 twenty-foot containers are transported on the Batumi-Novorosiysk sea route every week. All these shipments are carried out by "Armenian Shipping Company".

Thus, clothes, cars and spare parts for them, as well as medical equipment manufactured by Western companies, are transported by ships moving along the specified route. In particular, re-exported cars from Armenia are delivered to Russia from the USA.

First, the transport is delivered to the port of Poti (Georgia), then to Armenia, where the cars undergo customs registration and are stored in the city of Gyumri. This city is used as the main detention center for cars before they are re-exported through Georgia to Russia.

The operator of transport on the sea route Batumi-Novorosiysk is the logistics company "C&M International" LLC. The customer company from Armenia is "Armenian Shipping Company" and the receiving company from Russia is "Black Sea Forwarding" LLC.

Interestingly, the head of all three mentioned companies is a businessman named David Iloyan. All cargo transportation from Armenia on the Batumi-Novorosiysk sea route is carried out only by the "Armenian Shipping Company". Other Armenian companies that receive orders to transport cargo on this route eventually turn to the above-mentioned company for the delivery of products to the Russian market.

It is worth noting that the re-export of goods under the sanctions regime to Russia led to an increase in Armenia's foreign trade turnover. In this regard, for the first 7 months of 2023, the trade turnover between Armenia and Russia amounted to 3.7 billion USD, of which 2 billion USD accounted for exports from Armenia to Russia. Trade turnover between Armenia and Russia increased by 70% compared to the same period last year. Due to re-exports to Russia, Armenia's economy is expected to grow by 6-8% by the end of this year.