Armenia has no proven reserves of oil or natural gas and currently imports nearly all gas from Russia. The Iran-Armenia Natural Gas Pipeline has the capacity to provide twice the country's 2008 natural gas consumption and has the potential to provide energy security for Armenia as an alternative to the Russian-dominated imports that flow through the Georgian border. Despite a lack of fossil fuels, Armenia has significant domestic electricity generation resources. The Armenian electrical energy sector has had a surplus capacity ever since emerging from a severe post-Soviet crisis in the mid-1990s thanks to the reopening of the nuclear power station at Metsamor. The Metsamor Nuclear Power Plant provides 42.9% of the country's electricity. Armenia has plans to build a new NPP in order to replace the aging Metsamor which was built in 1979. The country also has eleven hydroelectric power plants and has plans to build a geothermal power plant in Syunik. Most of the rest of Armenia's electricity is generated by the natural gas-fired thermal power plants in Yerevan (completed in 2010) and Hrazdan. 

The fuel in Armenia is provided through private companies, such as Ran-Oil LLC, Flash LLC, CPS Oil Corporation Co. LTD, Max Oil LLC. There is no government entity controlling the fuel market except for the Customs/Tax office and quality testing laboratories. Most of UN agencies and NGOs have a contract with one or two distributors. A coupon system or cash payments is common. According to the quantity, some distributors can provide tanks to the organization if requested and then deliver fuel on a regular basis. Distributors also provide fuel out of Yerevan, on some remote bases. The fuel price is higher than in other countries in South Caucasus due to the transport cost. Due to high prices many of vehicles are using propane as alternative source of fuel; these systems are installed locally by specialized personnel. Almost all public transportation such as buses, taxis and private vehicles are operated by propane. 

In case the Nuclear Power Station stops its activity, Armenia will become very much dependent on imported fuel, which will affect all the aspects of economic life: having shortages of energy, making the prices go higher, etc. 

For more information on government and fuel provider contact details, please see the following link: 4.1 Armenia Government Contact List

Information may also be found at: My Travel Cost Website which is updated monthly. 

Fuel Pricing 

Fuel price at local market is composed from the following: international price, transport cost, taxes. Taxes are paid during import clearance at the border. It is fixed amount per ton. The prices of fuel have decreased during the last 12 months: 12% for petrol and 7% for diesel.  

Seasonal Variations 

No major seasonal variation, suppliers are very well aware when there is a high need of fuel, for instance at the beginning of agricultural season and are ordering adequate quantity way in advance. 

Fuel Transportation 

Currently, Armenia is connected to foreign fuel suppliers through a single transportation corridor - the neighbouring Republic of Georgia. A single rail link and natural gas pipeline through Georgia are the only means of importing fuel to Armenia. Fuel must be shipped to Georgian ports and natural gas must transit the Georgian pipeline system to reach Armenia. Reliance on single fuel and natural gas transportation links reduces the reliability of fuel supplies to the Armenian market. 

Standards, Quality and Testing 

Quality of fuel is checked during importing process, quality is checked in accordance to former Soviet standard requirement Gost. Testing laboratory of Petroleum products of “National Institute of Standards” CJSC is accredited 2009-12-28, accreditation certificate N AST-001. Q-0035-2009, identification designation E 09. 

Testing laboratory of Petroleum products carries out testing: 

- for conformity assurance; 

- on demand of legal entity and individual; 

- on demand of governmental authorities and non-governmental organizations. 

Testing laboratory of Petroleum products is accredited according to the requirements of HST ISO/IEC 17025-2005 “General requirements for the competence of testing and calibration laboratories”.

Internal transport service providers in Armenia, are mainly small or medium size companies, who have countrywide transport capability. The majority of these companies have their own fleet of Russian manufactured Kamaz, Zil and Kraz trucks which are relatively old, however well maintained and operational. Most of trucks are equipped with 20’ DV containers and can carry 20 mt or 30 m³ cargo. Majority of these trucks are 4x4, which is an asset when driving during winter thorough mountainous roads. The maximum capacity of Zil trucks is about 5 – 6 mt, these are used for smaller consignments to rural mountainous areas. 

The average fleet size of each transporter is about 10-12 trucks; however, this number can be increased because there are big numbers of individuals owning one or two trucks and ready for hire. It is important to mention, that the major producers usually own their fleet for organizing both – import of raw materials and distribution or transportation of their production to the final destination points. Likewise, wheat flour manufacturer Modus Granum LLC owns 60-65 DAF, IVECO, MAN and other similar trucks, with capacity 30 mt each. 

The Republic of Armenia joined the TIR Convention in 1993. In order to implement the provisions of the Convention, “Association of International Road Carriers of Armenia” non-governmental organization was formed in 1999. AIRCA is a member of International Road Transport Union (IRU) and was recognized as guaranteeing organization for issuing TIR carnets. Presently, AIRCA has 51 member-organizations, which have a total of over 530 vehicles matching with international standards. However, the association is not engaged in price formation, so transportation rates basically vary due to fuel price and season. 

Transporters are charging approximately 25-30 USD/mt on average for transportation of commodities inside Armenia.  

Recently due to increasing demand for the movement of small tonnages there are a few companies who offer small (1.5 mt) truck transport solutions. 

There are at least two major companies with big trucks, such as Apaven and Spayka. Spayka is specialized in export of agricultural goods to Russia, and Apaven is moving copper concentrate from mining regions. There is an international transport company operating inside of country - Globalink Logistics LLC. Current capacity of companies is covering needs of the country. 

For more information on transport company contact details, please see the following link: 4.8 Armenia Transporter Contact List

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider. 

This aspect is being regulated by the Labour Code of the Republic of Armenia. The market situation of manual labour in Armenia has the following features:  

• there are many individual workers, that can be found through online platforms (such as www.list.am);  
• there are legal entities that offer manual labour services; 
• there are several companies (mainly big companies that are engaged in selling of construction materials) that have grouped many workers specialized in different aspects and offer their services. 

Usually there is no problem in availability of manual labour. The only issue that can be faced is the inability of the service provider to issue an invoice, therefore, generally contracting legal entities who subcontract or hire individual workers is more efficient and easier. 

Telecommunications systems are quite developed in Armenia. 

There are three mobile phone operators currently in Armenia: Viva Cell MTS, Ucom and Beeline. All three offer 2G, 3G and 4G services. All three networks are widely modern and reliable with shops located in major towns and cities where one can purchase a sim card or get assistance if needed. Most unlocked mobile phones are able to be used on roaming however network charges apply. The performance of the 3 operators is monitored by the PSRC (Public Services Regulatory Commission) and a quarterly report is posted on each service provider’s website. 

As of 2012, approximately 90% of all main lines are digitized and provide excellent quality services for the region. The remaining 10% is in modernization process. 

International system 

Yerevan is connected to the Trans-Asia-Europe fiber-optic cable via Georgia. Additional international service is available by microwave radio relay and landline connections to other countries of the Commonwealth of Independent States, the Moscow international switch and by satellite. Main backbones of Armenian networks are made by E3 or STM-1 lines via microwave units across whole country with many passive retranslations. 

Fixed line communication 

Traditionally Armenia has well-developed landline telephone services. According to official statistic data of International Telecommunications Union as for 2017 there were 505,190 fixed telephone service subscribers in Armenia (residents and businesses) or 17.24 subscribers per 100 inhabitants. Number of fixed telephone users have been significantly declined as compared with previous 10 years from 20.41 in 2006. Main reason for the decline is mobile-fixed substitution. Fixed communication is provided by Beeline, UCOM, Rostelecom and a few small companies. All these companies are private. 

Telecommunications Regulation 

Telecommunication facilities (including terminal facilities) used in the Public Switched Telecommunications Network, other Public Telecommunication Networks, Governmental and Private telecommunication networks in the Republic of Armenia shall be subject to mandatory certification. Certification of telecommunication facilities in the Republic of Armenia shall be carried out according to the law and international treaties entered into by the Republic of Armenia. All telecommunication licenses for HF, VHF, UHF communication, data, mobile and satellite services are issued by Ministry of Transport and Communication. For some transmitting equipment it is necessary to obtain import licenses/permissions which is necessary to submit during customs clearance process. These permissions are granted by Ministry of Transport and Communication and Ministry of Defense of the Republic of Armenia. 

Existing Humanitarian Telecoms Systems 

There is current communication system between UN agencies. 

Internet Service Providers (ISPs) 

Broadband internet service by fiber optic or xDSL provided basically by Beeline, UCOM, Rostelecom and several small companies. All these companies are private. The number of broadband internet users in last few years are increased. The service is available in the cities and most of the villages. Approximately 60 percent of rural towns are covered by landline broadband. Availability of service can be checked by the companies upon the request which contain postal address. The total number of internet users (including mobile users) in Armenia is almost 1,400,000 which is about 45% of population. 

Access to the internet in Armenia is ensured through four backbone networks that use fiber optic cable systems. The international internet connection is made possible by three telecommunication operators. At the network level they are interconnected with fiber optic cable systems operating in the territory of the Republic of Georgia. 

Mobile Network Operators (MNOs) 

Three mobile operators cover almost 100% of Armenia’s populated areas: Beeline, Vivacell-MTS and Ucom. The performance of the 3 operators is monitored by the PSRC (Public Services Regulatory Commission) and a quarterly report is posted on each service provider’s website. The three operators offer voice and data services (including LTE). The Republic of Armenia Central Bank approved the operators to deal with mobile money transfers for consumers (not for companies). But due to the spread banking infrastructure in Armenia (even in regions) there are only Mobidram (MTS) and UPay services which are not used widely and only provide payments to the internal system clients, commercial banks as well as you can make loans repayments or pay for utilities (gas, electricity, water etc.). The clients of these systems can make payments by mobile phones or online (using computer/tablet). There are no retailers or shops in the market who accept this type of payment. 

Armenian fixed and mobile services provider VEON Armenia (Beeline) completed a large-scale mobile network modernisation programme in 2017. It upgraded the equipment at all base transceiver stations (BTS) across the country, and multiplied the capacity and coverage of its mobile networks. VEON Armenia's 4G operational footprint increased, and is now available in 14 new cities and increased coverage in Yerevan by 30%. Overall 4G LTE data transfer rates were boosted to around 60Mbps, its 3G Beeline network covers 82% of the population, and its 2G network covers 98.6% of the population. 

For information on MNOs please visit the GSM Association website.  

Beeline GSM coverage map

Vivacell-MTS 2G coverage map

UCOM 2G coverage map

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Armenia is a net food-importer country. Top import and export destination is Russia. In general, all the products and services are available and can be purchased in Armenia. 

The market relationships in Armenia are being regulated by RA Law on Procurements. There is also a State Committee for Protection of Economic Competition of the RA, the goals of which are protection and promotion of economic competition, creation of appropriate environment for fair competition, contribution to the development of entrepreneurship and protection of consumer rights in the Republic of Armenia. 

The Observatory of Economic Complexity – MIT (OEC)

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider. 

Overview 

All the services that might be required for operations are available in Armenia and can be easily contracted. 

For more information on company contact details, please see the following link: 4.11 Armenia Additional Services Contact List

Accommodation 

The availability of accommodation / housing in the country is on a high level. There are many hotels/hostels/bed and breakfast facilities/apartments available for rent in all the regions of Armenia, varying in prices from 100 USD to 3000 USD and above per month. There can be found accommodations that meet minimum criteria regarding security for agencies. There are many ongoing constructions throughout the country (mainly in the capital city Yerevan) and the country has the capacity to house and support a large influx of demand. There are hotels in different regions of Armenia that have been assessed and with which there exist common UN Long Term Agreements. 

Electricity and Power 

Armenia has no proven reserves of oil or natural gas and currently imports nearly all gas from Russia. The Iran-Armenia Natural Gas Pipeline has the capacity to provide twice the country's 2008 natural gas consumption and has the potential to provide energy security for Armenia as an alternative to the Russian-dominated imports that flow through the Georgian border. Despite a lack of fossil fuel, Armenia has significant domestic electricity generation resources

The main source of electricity in Armenia is Hydropower, Nuclear and Thermal generation. The principal hydro electricity producers are International Energy Corporation with Sevan – Hazdan Cascade seven hydropower plants and Vorotan Cascade who have 3 power plants.

• Nuclear Power Plant (NPP) was commissioned in 1976 (first reactor) and 1980 (second reactor)
• The nuclear reactors have been upgraded and adapted to local conditions with a seismic rating of 8
• After the 1988 earthquake the Board of Ministers of USSR ordered the operation at the NPP to be halted
• The Government of Armenia restarted the NPP in 1993 to overcome the energy crisis
• The rehabilitation was undertaken with international specialists from the US, France, Russia and the IAEA
• The 2nd stage of the NPP, with a capacity of 407.5 MW was restarted in 1995 with no emergency breakages
• The restart of the NPP caused negative reactions from neighbouring countries and international organizations
• In 2003, management of NPP was given to the Russian, Inter RAO EES Co (subsidiary of RAO EES Russia)
• Today, the plant provides more than 33% of total electricity consumption
• In 2003, NPP generated about 2 billion kWh of electricity which is about 36% of the total generation in Armenia
• Once per quarter, emergency fire and anti-emergency trainings are performed in the plant
• Furthermore, once every 3 years, emergency training is conducted at an international level

The country also has eleven hydroelectric power plants and has plans to build a geothermal power plant in Syunik. Most of the rest of Armenia's electricity is generated by the natural gas-fired thermal power plants in Yerevan (completed in 2010) and Hrazdan.

The Armenian electrical energy sector has had a surplus capacity ever since emerging from a severe post-Soviet crisis in the mid-1990s thanks to the reopening of the nuclear power station at Metsamor. The Metsamor Nuclear Power Plant provides 42.9% of the country's electricity. Armenia has plans to build a new NPP in order to replace the aging Metsamor which was built in 1979.

The voltage in Armenia is 220 volts.

Financial Services 

Armenia has a strong and stable financial system with banks dominating in the system. The system is well protected due to the strict and market-friendly supervision by the Central Bank of Armenia. The banking system is the biggest part of the Armenian financial market. As of 2019, there are 17 commercial banks operating in the Republic of Armenia. They have 528 branches in Armenia, of which 237 are based in Yerevan. 

The accounting services are also available and at a high level in Armenia. There are many tax and accounting companies, as well as consulting companies. In Armenia function also branches of such international companies as KPMG Armenia CJSC, Grand Thornton Legal and Tax LLC< Ernst and Young CJSC, etc. 

HSBC Bank Armenia CJSC 

The bank was established as a closed joint stock company under the name Midland Armenia Bank J.S.C. in 1996 and was renamed HSBC Bank Armenia CJSC in 1999. The bank is a joint venture between the HSBC Group, which has 70 per cent ownership, and an overseas Armenian businessman with 30 per cent ownership. 

ArmBusiness Bank 

Clearing and Forwarding Agents 

There are clearing and forwarding agents in Armenia who provide high quality services. UN holds Long term agreements with several such companies. 

Handling Equipment 

Zepplin Armenia Ltd

District #4, Kotayk Marz, Yerkrord Artadrakan Abovyan,Armenia,              

Name: Frank Janas

Title: General Director

Web: www.zeppelin.am

Tel: +374 10 284 221

Tel: +374 10 222 240

Fax: +374 10 222 370

MLL Motors Ltd,

Building 10/1 Babayan Street,

Yerevan, Armenia   Name: Meruzhan H. Yeghiazaryan

Title: Director

Tel: +374 10 249 692

Mob: +374 91 228 840

Fax: +374 10 249 692

Postal and Courier Services 

In Armenia there exist both – Postal and Courier Service providers. HayPost CJSC is the official national postal operator of Armenia which provides postal, payment and retail services. Haypost currently operates through 900 postal offices across Armenia, from urban to the most remote rural regions. Starting 2010, "HayPost" CJSC began the provision of postbanking services in Armenia.  

There are also Courier Service providers in Armenia, such as "MAIL-EXPRESS" EXPRESS DELIVERY SERVICE, "TRANSIMPEX" Limited LLC (Official Agent of FedEx, TNT, Major Express), "DHL WORLDWIDE EXPRESS", REPRESENTATION IN ARMENIA – UMAKS, "GARANTPOST" DOOR TO DOOR MAIL DELIVERY SERVICE – CHRONOGUARANT. 

Printing and Publishing 

The market of printing and publishing service providers is much developed in Armenia. Most companies offer design and printing services at the same time to make it more convenient for the customers. The companies provide printing not only on paper, but also on other items, such as T-shirts, cups, pens, etc. Among such companies are: Asoghik LLC, Tosp LLC, Task LLC, etc. There are also publishing houses in Armenia, such as Antares Media Holding, Zangak Publishing house, etc. 

Taxi Companies 

There is a vast diversity of taxi service providers in Armenia. Among such, there are individual taxi drivers; taxi services; as well as application-based taxi services such as GG, Yandex Taxi, Uber. The taxi services accept both - cash and coupon payments, in case agreement with company exists. The application-based taxi services accept cash, as well as online payments. Taxi companies offer not only sedan cars, but also mini-vans, buses, and in some cases even trucks. 

Vehicle Rental 

There is a possibility for rental of any type of vehicle in Armenia. The cars can be rented with or without a driver. There exist representations of internationally known companies, such as Hertz (Travelex Co. LTD), SIXT (Fora LLC), J.M.S Co. Ltd, as well as local companies. 

Waste Management and Disposal Services 

Armenia is underdeveloped in its waste management and recycling activities. According to ArmStat, organizations produced 55.2 million mt of waste in 2016, which runs down to about 18.5 mt per capita in year 2016 and probably includes abundant mining waste too. According to Waste Atlas, Armenia produces 368,618 tonnes of MSW (Municipal Solid Waste) per year or 119.8 kilograms (264 lb) per capita/year. 

On May 4th, 2018 modifications of relevant legislation aimed at strengthening responsibility for proper waste management were approved. 

In recent years there have been several attempts initiated by public activists to address this problem including the "Toprak Petq Chi" (Eng - 'I don't need a plastic bag') initiative targeting single-use plastic bags. 

Waste management in Yerevan 

Municipal government of Yerevan - the capital of Armenia has made attempts to solve the problem for the city with a long-term development plan, which includes three main phases: 

• In winter 2014, an international tender was announced for garbage collection. Two companies were chosen Lebanese waste management company called Sanitek who later opened a branch in Yerevan for operations in that city and Armenian/Swedish Companies called Ecogroup and Mili Consult. 
• In summer 2016 the Armenian parliament ratified a loan agreement signed with the European Bank for Reconstruction and Development (EBRD), which is providing an €8 million loan to Armenia to finance the construction of a solid waste landfill in Yerevan that will comply with EU regulations. 
• According to the municipal government of Yerevan, the third step is aimed at introducing sorting out and recycling practices with projects that meet European Union standards and regulations. 

Landfills 

Sixty landfills exist in Armenia. No waste sorting, recycling, or reuse takes place at them. The Nubarashen landfill, located near Yerevan, (40°6′24.19″N 44°32′49.26″E), is Armenia's largest waste disposal site. It receives almost all of the solid waste produced in the city of Yerevan and its suburbs, which is about 340 tons per day, or 102,000 tons per year. The site has accumulated over 7.5 million tons of domestic waste over 50 years. 

A waste processing plant is scheduled for construction near Hrazdan city, which will allow for closure of 10 waste dumps.  

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.