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BUSINESS SUPPORT PROGRAMS IN THE REPUBLIC OF ARMENIA

The Republic of Armenia has established a sophisticated framework of state support mechanisms designed to stimulate entrepreneurship, enhance agricultural productivity, promote industrial competitiveness, and develop capital markets.

Through our detailed examination of the legislative and regulatory framework, we have identified and analyzed key programs spanning multiple economic sectors, each with specific eligibility requirements, application procedures, and compensation structures.

Key Legal and Regulatory Findings:

  • Agricultural Modernization Programs: Multiple programs offer 50-75% state compensation for livestock breeding development, productivity enhancement, and infrastructure modernization, with preferential terms (0% interest rates) for disabled veterans and economic operators in border settlements

  • Export and Industrial Support: Export insurance programs provide compensation up to 20% of customs value for duties paid in importing countries; subsidized interest rates (2-3%) available for manufacturing and supply chain diversification initiatives

  • Capital Market Development: Comprehensive incentives for bond and share issuance provide up to 80% compensation for issuance, placement, listing expenses, and international rating agency costs

  • Regulatory Framework: Programs incorporate international compliance standards, with specific requirements regarding credit history verification, tax liability clearance, and bank guarantee provisions

  • Temporal Application: Most programs remain active through 2026-2029, providing medium-term certainty for business planning and investment decisions

    • The Government of the Republic of Armenia regularly develops business support programs aimed at assisting entrepreneurs in starting and growing their businesses. The government places particular emphasis on these programs, with a particular focus on the agricultural sector. Below we present some of the state support programs and their eligibility requirements.

    AGRICULTURAL SUPPORT

    Sheep and goat breeding development program for 2024-2028

    Sheep farming in the Republic of Armenia is predominantly extensive; therefore, the program's implementation will contribute to increasing sheep and goat production volumes, improving profitability, stimulating investment in the industry, and promoting the use of modern, intensive technologies. Modern sheep farming technologies are effective when applied to animal breeds adapted to intensive technologies.

    The objective of the Sheep and Goat Breeding Development Program for 2024–2028 is to facilitate the acquisition (import) of high-value breeding sheep and goats with state support, the formation of highly productive herds, the improvement of the breeding and productive qualities of domestic animal breeds, and the creation of favorable conditions for the production of highly productive crossbred animals adapted to local conditions through crossbreeding.

    Under the program, beneficiaries have the opportunity to purchase highly productive breeding small ruminants with partial cost compensation from the state.

    The maximum price of one breeding animal is set as follows:

  • Purchased within the Republic of Armenia: 300,000 AMD

  • Imported from abroad: 450,000 AMD

    • Before acquiring (importing) a pedigree small ruminant, the beneficiary must submit to the Ministry of Economy:

  • an electronic application to the address [email protected], indicating the type, breed, quantity of the pedigree animals to be acquired, the place(s) of acquisition (import) and the dates, the certificates (certificates, cards) of the pedigree small ruminant subject to acquisition, and in the case of acquiring animals within the Republic of Armenia, other documents substantiating the pedigree origin for animals bred in the republic (bonitation instruction, bonitation log)

    • 2.Information from ARCA confirming good credit history

  • A reference (statement) regarding tax liabilities

  • a bank guarantee for a period of one year in the amount of the difference between the total cost of the acquired animals and 10.8 million drams, if the beneficiary has imported more than 48 from abroad and has acquired more than 72 pedigree animals within the republic.

    • Productivity increase pilot program

    The Productivity Increase Pilot Program is a pilot initiative, the goal of which is to improve the gene pool of beef breeds bred in Aragatsotn, Gegharkunik, Shirak, Syunik and Tavush regions during 2025-2026, increase productivity and, with the support of the Government of the Republic of Armenia, compensate for about 70% of the costs of artificial insemination of 21,970 cows.

    The average cost of artificial insemination of one cow with high-quality semen of bulls of dairy and meat-producing breeds that meet modern selection standards is about 15 thousand AMD.

    The program provides for the compensation of 10 thousand AMD of the cost of insemination from the state budget, and 5 thousand AMD will be paid by the farmer.

    Program for the construction or reconstruction of "Smart" livestock buildings and their technological support for 2025-2028

    The main goal of the program for the construction or reconstruction of "smart" livestock buildings and their technological support is to improve conditions for keeping animals, as a result of which animal productivity indicators will increase.

    The program will be implemented in two components: through partial reimbursement of costs and partial subsidization of loan interest rates.

    Beneficiaries must choose one of the 3 proposed models:

  • Model 1 is designed for 20–25 animals with independent housing (free movement); the construction and technological support costs for this model are set at a maximum of 30 million drams.

  • Model 2 is designed for 40–45 animals with independent housing (free movement); the construction and technological support costs for this model are set at a maximum of 46 million drams.

  • Model 3 is designed for 95–100 animals with independent housing (free movement); the construction and technological support costs for this model are set at a maximum of 114 million drams.

    • Program for the development of cattle breeding in the Republic of Armenia for 2025-2029

    The goal of the program is to supply pedigree cattle to entrepreneurs engaged in cattle breeding in the Republic of Armenia on affordable terms, which will allow them to replenish herds with pedigree cattle with valuable production and economic characteristics instead of animals of unknown origin, unsuitable for reproduction, and low productivity, develop pedigree work, improve the productivity of local animals through interbreeding, increase milk and meat production volumes and reduce the cost of milk and meat produced, making it more competitive compared to similar imported products.

    The program will be implemented in two components: through partial subsidization of loan interest rates and partial compensation for the cost of acquiring animals.

    The estimated cost of 1 head of pedigree cattle is 1.0 million drams.

    Loan interest rate:

  • For the acquisition of pedigree cattle raised in the Republic of Armenia – 2% interest rate,

  • For the acquisition of imported cattle – 3% interest rate,

  • A 0% interest rate applies to the founder and individual entrepreneur of a legal entity who has become disabled as a result of combat duty or operations during the performance of military service duties, to economic operators operating in established border settlements, as well as to cooperatives operating in the agricultural sector.

    • Slaughterhouse support program

    The Slaughterhouse Support Program aims to stimulate livestock slaughter at slaughterhouses, create equal competitive conditions for organizations and individual entrepreneurs (hereinafter referred to as VAT payers) who are value-added tax payers (hereinafter referred to as VAT payers), and provide support in providing the population with high-quality and safe carcasses.

    Participation in the program is open to any business entity that meets the eligibility criteria defined by the program.

    Under the program, until December 30, 2027, the business entity will receive support in the amount of 75% of the positive difference between the VAT amount calculated as the taxable base for VAT-taxable transactions on the sale of carcasses obtained from the slaughter of livestock as a result of slaughterhouse activities during the reporting period and the VAT amount deductible on the purchase of livestock.

    The main goal of the program is to partially compensate farms for the cost of slaughter services purchased by farms in order to stimulate the slaughter of livestock in slaughterhouses.

    Program for the development of industrial crab farming in the Republic of Armenia for 2024-2026

    The main goal of the Program for the Development of Industrial Crab Farming in the Republic of Armenia for 2024-2026 is to contribute to the introduction of modern technologies for industrial crab farming in the republic and the promotion of local production through partial compensation of investment costs.

    The program proposes to establish 3 types of crab farming complexes.

    Small - an industrial crab farm with a total area of ​​​​460 square meters of buildings, a capacity of 6 tons, the indicative (maximum) indicator of the complex's investments and production costs is 72,000 AMD.

    Medium: industrial crab farm with a total area of ​​800 square meters of buildings, 12 tons of capacity, indicative (maximum) indicator of investments and production costs of the complex: 129,900 AMD.

    Large: industrial crab farm with a total area of ​​1000 square meters of buildings, 18 tons of capacity, indicative (maximum) indicator of investments and production costs of the complex: 183,790 AMD.

    Within the framework of the program, state support will be implemented in 2024-2026, by partially reimbursing 50% of the costs incurred for investments, but not more than 50% of the value set for each expense item.

    The program envisages the establishment of 4 small and 1 medium and one large crab farming complex each year.

    Greenhouse development assistance program in the Republic of Armenia

    The main goal of the Greenhouse Development Support Program in the Republic of Armenia is to promote the expansion of greenhouse area, production, and export volumes in the country, enhance the competitiveness of products, and increase farmers' incomes in agriculture by providing farmers with affordable, state-supported credit.

    The program will be implemented from 2023 to 2026 and will cover all regions of the Republic of Armenia.

    The program's terms and conditions include:

  • a greenhouse construction loan of up to 15.0 billion drams per beneficiary (equivalent to the construction of a greenhouse of approximately 20 hectares), with no maximum area limitation for the greenhouse constructed.

  • The area of ​​each greenhouse constructed by each beneficiary must be 1 hectare or more.

  • The interest rate on the loan is subsidized:

  • For the portion of the loan amount up to and including AMD 3 billion – by 10 percentage points,

  • For the portion of the loan amount over AMD 3 billion and up to and including AMD 9 billion – by 9 percentage points,

  • For the portion of the loan amount over AMD 9 billion and up to and including AMD 15 billion – by 8 percentage points.

  • The interest rate on the loan provided to each beneficiary is subsidized in an amount not exceeding the interest rate on the loan provided by the financial institution.

  • The maximum loan repayment term is 8 years.

  • At the beneficiary's request, the financial institution may establish a grace period for repayment of the principal and interest on the loan, but not more than 12 months.

  • By mutual agreement between the beneficiary and the financial institution, the financial institution may establish grace periods for repayment of principal and interest on the loan for up to 3 months per year.

  • The maximum greenhouse construction period is 1.5 years.

  • Up to the maximum loan amount, each beneficiary must borrow from only one financial institution.

    • Agricultural equipment leasing support program in the Republic of Armenia

    The main goal of the program is to provide agricultural enterprises with agricultural machinery on affordable terms, in particular through leasing mechanisms, in order to create favorable conditions for the effective use of agricultural land and the organization of commodity production.

    Within the framework of the program, the following agricultural machinery will be provided to enterprises:

  • tractors of various brands,

  • combines,

  • combine harvesters,

  • seed drills,

  • plows,

  • mowers,

  • potato planters, potato diggers,

  • cultivators, milling cutters,

  • sprayers,

  • tractor trailers,

  • other agricultural machinery.

    • The terms of the program are:

  • The annual leasing interest rate is 2%, and for entrepreneurs operating in the territories of border settlements receiving social assistance approved by the Resolution of the Government of the Republic of Armenia No. 1444-N of December 18, 2014, and for citizens who have become disabled as a result of combat duty or operations during the performance of military service duties, the leasing interest rate subsidy will be implemented in such an amount that the annual leasing interest rate payable by the lessee is 0%,

  • The advance payment is 20% of the purchase price of the leasing object,

  • The leasing repayment period is:

  • For combines: 7-10 years,

  • For tractors: 5-6 years,

  • For seeders, combine-harvesters: 3-6 years,

  • For other agricultural machinery: 3 years,

    • In addition, tractors and other agricultural machinery can be leased to the same lessee at the same time in this case, the repayment period can be set at 5-6 years.

    Grace periods may be set for the payment of the lease principal and interest for a period of up to 6 months per year.

    Program for Subsidizing Interest Rates on Loans Provided to the Sector for the Purpose of Procurement (Purchase) of Agricultural Raw Materials

    The main goal of the program for subsidizing interest rates on loans provided to the sector for the purpose of procurement (purchase) of agricultural raw materials is to increase the level of accessibility of credit and ensure the payment of the cost of the procured raw materials in a short period of time through subsidizing the interest rates on targeted loans provided to legal entities and individual entrepreneurs operating in the territory of the republic, which procure agricultural raw materials. Within the framework of the program, loans are provided for the following purposes:

  • purchases of fruits and vegetables and the acquisition of glass jars, lids, aseptic bags and their containers used in the production of canned fruits and vegetables,

  • purchases of grapes,

  • purchases of milk,

  • purchases of agricultural animals by slaughterhouses,

  • purchases of chinchillas.

    • Within the framework of the program:

  • The maximum interest rate on loans provided is not set. The part (amount) equivalent to 9 percentage points per annum of the loan interest rate will be subsidized, and for economic operators operating in the territories of border settlements receiving social assistance and procuring and processing agricultural raw materials in the same places, approved by the Resolution of the Government of the Republic of Armenia No. 1444-N of December 18, 2014, the part (amount) equivalent to 12 percentage points will be subsidized.

  • The amount of loans provided to each borrower carrying out cold storage and export activities for the purpose of procurement (purchase) of fruits, vegetables and grapes is calculated based on the agricultural raw material purchase contracts that were signed before October 1 of the given year.

  • The amount of loans provided for the purpose of grape procurement (purchase) is calculated based on the agricultural raw material purchase contracts concluded before August 1 of the given year, and the amount of the loan provided in 2025 is calculated based on the contracts concluded before September 1, 2025.

  • The amount of loans provided for the purpose of fruit and vegetable procurement (purchase) is calculated based on the agricultural raw material purchase contracts concluded before October 1 of the given year.

  • Each borrower carrying out processing activities may be provided with a loan of up to 4.0 billion drams each year for the purpose of grape procurement (purchase).

  • The balance of the principal amount of loans provided to each borrower carrying out processing activities for the purpose of fruit and vegetable procurement (purchase) cannot exceed 3.0 billion drams.

  • The principal balance of loans provided to each borrower engaged in processing activities for the purpose of milk procurement (purchase) may not exceed 1.0 billion drams.

  • The principal balance of loans provided to each borrower engaged in cold storage and export activities for the purpose of fruit and vegetable and grape procurement (purchase) may not exceed 3.0 billion drams.

  • Loans provided to each borrower engaged in slaughterhouse activities for the purpose of agricultural animal procurement are calculated based on the area of ​​the slaughterhouse, not more than 2.0 million drams for an area of ​​15 square meters, and not more than 5.0 million drams for a mobile slaughterhouse.

  • The principal balance of loans provided to each borrower engaged in chinchilla fur export activities for the purpose of chinchilla procurement may not exceed 50.0 million drams.

  • Loans for purchases (procurements) by the same borrower for the above-mentioned purposes are provided on the basis of separate applications, and in the case of loans provided for the above-mentioned purposes, a loan of the maximum amount specified may be provided for one of them at the borrower's choice, and the amounts of loans provided for other purposes shall not exceed 50 percent of the maximum amount of loans specified for the given purpose.

  • The model grape purchase contract provided in Form N 4 of the program is accepted as the basis for concluding contracts for the purpose of grape purchases (procurements) and cold storage and export activities.

  • The model harvest purchase contract provided in Form N 5 of the program is accepted as the basis for concluding contracts for the purpose of fruit and vegetable purchases (procurements) and cold storage and export activities.

  • The model milk purchase contract provided in Form No. 6 of the program is used as the basis for concluding contracts for milk procurement (purchases).

    • Within the framework of the program, loans for the purpose of procurement (purchase) of cattle by slaughterhouses until December 30, 2026 are provided with a repayment period of up to 1.5 years, are subsidized by 9 percentage points, and the grace period for repayment of the principal amount will be calculated no more than 6 months from the moment of granting the loan. The loan amount will be calculated based on the area of ​​the slaughterhouse, not more than 0.2 million drams per 1 sq. m. area, and for a mobile slaughterhouse - not more than 5.0 million drams. The balance of the principal amount of loans provided to each beneficiary cannot exceed 20.0 million drams, and for a mobile slaughterhouse - 5.0 million drams.

    The loans provided have a maximum:

  • 3 years of repayment and a 12-month grace period for loans provided for the purpose of grape procurement (purchase),

  • 1.5 years of repayment and a 6-month grace period for loans provided for the purpose of agricultural raw materials procurement (purchase) other than grapes.

    • PROGRAM FOR PROVIDING ASSISTANCE FOR THE PURPOSE OF EXPORT PROMOTION

    On January 23, 2025, the RA Government adopted Resolution No. 98-N “On Approving the Program for Providing Assistance for the Promotion of Exports,” according to which resident organizations of the Republic of Armenia and individual entrepreneurs registered in the Republic of Armenia are provided with assistance in the amount equivalent to the amount calculated at the customs duty rate established for that product in accordance with the legislation of the importing country in event of expert goods originating in the Republic of Armenia to a member state of the European Union, the United Kingdom of Great Britain and Northern Ireland, and Canada.

    Mandatory requirements:

    The export must be to a member state of the European Union, the United Kingdom of Great Britain and Northern Ireland, or Canada.

    The exported product must be a product (good) of the manufacturing industry (classifier of the type of economic activity: C) (except for: TGDTD C 12, TGDTD C 19, TGDTD C 24, TGDTD C 32.1), the country of origin of which is the Republic of Armenia. For the purposes of the program, products of aluminum foil production from C 24.2, C 24.42.0 and products of aluminum laminated foil production from aluminum foil as the main component, the country of origin of which is the Republic of Armenia, are also considered goods.

    Export from the Republic of Armenia must be carried out under the "Export" or "Re-export" customs procedure.

    The exporter must not have been subject to a tax authority’s decision to levy tax liabilities of one million drams or more on income controlled by the tax authority within 365 days prior to the date of submission of the application, and the exporter must not have overdue liabilities on income controlled by the tax authority as of the date preceding the date of submission of the application.

    An application must be submitted to the Ministry of Economy of the Republic of Armenia within six months after the end of the export process of the goods (the date the goods crossed the state border of the Republic of Armenia).

    Documents to be submitted:

    In order to receive compensation, the applicant submits an application to the Ministry of Economy of the Republic of Armenia, attaching the following documents:

  • export customs declaration (in the case of goods of Armenian origin imported under the "processing in the customs territory" procedure and subsequently exported under the "re-export" procedure, documents certifying the cost of the processing service for the purpose of obtaining these goods (invoice, document certifying the supply of goods to a non-resident (invoice), contract, etc.), copies of the invoice, export contract concluded between the importing and exporting parties and other documents certifying the export, copies of import declarations, confirming that the copies correspond to the original.

  • copy of the document certifying the origin of the Republic of Armenia of the exported goods, confirming that it corresponds to the original.

  • copy of the certificate certifying the state registration in the State Register of Legal Entities Agency of the Ministry of Justice of the Republic of Armenia.

  • bank account number.

  • statement.

  • other information at the request of the applicant.

    • In case of compliance of the documents, a contract is signed with the beneficiary.

    The amount of compensation provided to the beneficiaries within the framework of the program:

    The amount of assistance provided is the amount calculated in accordance with the customs duty rate established for that product by the legislation of the importing country after the export of the product, if the zero-customs duty rate is not established for the product in the importing country. Moreover, if the customs duty rate established for any product in the importing country is more than 20%, then the 20% rate is the basis for calculating the amount of assistance.

    The basis for calculating the amount of assistance provided is the customs value of the goods declaration of the exporting country (in the case of goods of Armenian origin imported under the "processing in the customs territory" procedure and subsequently exported under the "re-export" procedure, the cost of the processing service for the purpose of obtaining these goods) and the amount calculated at the rate of customs duty actually applied in the country of import. Moreover, if the amount calculated at the customs value of the goods declared in the exporting country and the amount calculated at the rate of customs duty actually applied in the country of import is greater than the amount calculated at the customs value of the goods declared in the importing country and the amount calculated at the rate of customs duty actually applied in the country of import, then the compensation shall be granted in the amount of the minimum of them.

    The program is valid for exports made until December 31, 2026 inclusive.

    STATE SUPPORT MEASURE FOR SUPPLY CHAINS DIVERSIFICATION FOR TEXTILE SECTOR ORGANIZATIONS

    The purpose of the measure is to promote the diversification of raw material imports for textile sector organizations.

    Support is provided to economic operators for the import of raw materials from China, India, Italy, Uzbekistan, South Korea, Bangladesh, Turkmenistan, Tajikistan and the Islamic Republic of Iran. in the form of interest rate subsidies on loans received from banks or credit organizations operating and licensed in the territory of the Republic of Armenia.

    Scope of beneficiaries:

    In the context of the “Targeted measure of state support aimed at ensuring diversification of supply chains for textile sector organizations” (hereinafter referred to as the measure), a beneficiary is a commercial and non-commercial organization or individual entrepreneur registered in the Republic of Armenia, at least 80% of whose turnover, calculated for each reporting period during the 365 days preceding the date of submission of the application, is derived, from the types of economic activity defined by the classifiers C(SI)13 “Manufacturing of textile products” and C(SI)14 “Manufacturing of clothing” of the Classifiers of Types of Economic Activity C(SI) “Manufacturing INDUSTRY” section, approved by the Order of the Minister of Economy of the Republic of Armenia No. 874-N of September 19, 2013.

    The economic operator has exported from the Republic of Armenia, under the “Export” customs procedure, goods originating in the Republic of Armenia from the types of economic activity defined in the C(SI)13 and C(SI)14 classifiers of the C(SI) section during the 365 days preceding the date of submission of the application, and must not have a tax authority decision on tax liabilities of one million drams or more on income controlled by the tax authority during the 365 days preceding the date of submission of the application, and must not have overdue liabilities on income controlled by the tax authority as of the day preceding the date of submission of the application.

    The beneficiary of the measure may receive support under this measure only once.

    For the purposes of the event, raw materials are considered to be “Resources” defined by Order No. 235-N of the Minister of Finance and Economy of the Republic of Armenia dated March 11, 2010.

    Applications to become a beneficiary of the measure can be submitted until November 16, 2026. The measure will run until December 30, 2026.

    STATE SUPPORT PROGRAM FOR ISSUANCE AND RATING

    The State Support Program for Issuance and Rating is aimed at injecting new impetus into the capital market of the Republic of Armenia and increasing financing flows to the real sector of the economy.

    Scope of Beneficiaries

  • Within the framework of the instrument for support for the issuance, placement and listing of bonds on the stock exchange, a beneficiary is considered a commercial organization registered and actually operating in the territory of the Republic of Armenia, which, after the entry into force of this program, has listed the bonds issued by it on the stock exchange operating in the Republic of Armenia, if these bonds are denominated in drams, have been issued with a circulation period of at least 36 months, have been placed through a public offering, and these bonds have a market maker after listing.

  • Within the framework of the instrument for assistance in the issuance, placement and listing of shares, a beneficiary is considered a commercial organization registered and actually operating in the territory of the Republic of Armenia, which, after the entry into force of this program, has issued, placed and listed the shares issued by it on a stock exchange operating in the Republic of Armenia, if the given issue of shares was placed through a public offering.

    • The program proposes to implement the following measures:

  • Support for the placement and circulation of bonds issued in drams, with a maturity of at least 36 months at the time of issuance and listed on the stock exchange after the measure enters into force, in the following amounts:

  • for the issuance, placement and listing of bonds - in the amount of 2 percent of the nominal volume of the placement, but not more than 30 million drams,

  • for the circulation of bonds - in the amount of three percent of the nominal volume of the placement for the first three years, but not more than 45 million drams for each 12 months of circulation,

  • For the issuance of shares - expenses for external audit, banking and stock exchange services related to the issuance, placement and listing on the stock exchange. Moreover, assistance for placement and listing on the stock exchange is provided to each beneficiary only once in the amount of 80% of the expenses incurred and substantiated by relevant documents.

  • Subsidy of 50% of the first year's expenses for obtaining and maintaining a rating from international rating agencies; however, in the case of listing on a stock exchange operating in the Republic of Armenia, a subsidy of up to 80% of the first year's expenses (30% in addition to the previous 50%), if the requirements stipulated in paragraph 2 of the appendix to the draft regarding bonds are met.

  • Within the framework of the instrument for reimbursement of the costs of obtaining and maintaining a rating from international rating agencies for the first 12 months, a beneficiary is a commercial organization registered and actually operating in the territory of the Republic of Armenia, which, after the entry into force of this program, has received an international rating from any of the international rating agencies "Fitch", "Moody's", "Standard & Poor's" or "Scope Ratings" that is no less than two notches lower than the sovereign rating of the state.

    • Financial organizations licensed by the Central Bank of the Republic of Armenia, persons carrying out regulated activities in the field of public services within the meaning of the Law of the Republic of Armenia "On the Public Services Regulatory Body", as well as subsoil users within the meaning of the Law of the Republic of Armenia "On the Subsoil Code of the Republic of Armenia", cannot be beneficiaries under this program, nor can beneficiaries of the program for assistance in the issuance, placement and listing of shares on the stock exchange be financial organizations licensed by the Central Bank of the Republic of Armenia.

    In order to receive assistance, the beneficiary must submit a written application electronically to the Ministry of Economy of the Republic of Armenia, attaching documents confirming the information contained in the application, as well as documents substantiating the actual expenses incurred.

    Content supplied by ELL Partnership Law Firm