Italy and Armenia affirm plans to bolster commercial exchanges
Italy and Armenia have taken a significant step forward in their economic relations with the signing of a memorandum of understanding between the Italian credit agency Sace and Armenia's Export Insurance Agency (EIAA). The agreement aims to promote and develop trade and investments between the two countries, opening new opportunities for Italian businesses, particularly in advanced technology and AI infrastructure.
Sace's managing director of international business, Michal Ron, stated that the agreement enables the credit agency to support economic and commercial relations between the two countries. The agreement with Armenia is not the first step by Sace to expand trade relations with Iran; it follows similar initiatives to support Italian exports to the country.
Armenia's geopolitical positioning and its active diplomatic efforts, such as the "Crossroads for Peace" initiative, underscore its strategic intent to connect multiple regions including the Black Sea, Caspian Sea, Gulf, and Mediterranean. Italy, with its strong interest in linking Central Asia to Europe, could leverage these corridors to support broader European economic connectivity, potentially opening new trade and transit routes benefiting Italian businesses.
One of the new areas of collaboration between Italy and Armenia is in advanced technology and AI infrastructure, which directly aligns with Armenia’s strategic push to become a regional tech hub. A landmark project illustrating this cooperation is the strategic partnership involving Firebird, the Armenian government, and NVIDIA to build a next-generation AI cloud infrastructure in Armenia. This multi-million dollar initiative aims to accelerate AI innovation and foster a dynamic tech ecosystem, supporting businesses, entrepreneurs, and academia in the region.
The agreement with Armenia also aims to enhance business opportunities by identifying projects of mutual interest, sharing information, and exchanging best practices. It allows for using advisory and technical assistance services to support Small and Medium Enterprises (SMEs) in the development of integrated supply chain projects in key areas for both countries.
Armenia's membership in the Eurasian Economic Union (EEU) could create new opportunities for Italian businesses, says EIAA's executive director, Vazgen Abgaryan. Italy can use Armenia as a gateway to the EEU, easing entry into a market of over 180 million consumers that benefits from harmonized trade regulations. Moreover, Armenia’s strong partnership with Iran opens a corridor for Italy to engage more deeply in Middle Eastern trade and logistics.
In April, Sace allocated new funding of €4bn to support Italian exports to Iran through initiatives in the infrastructure, oil and gas, and transportation sectors. Armenia's open economy and attractive investment climate offer significant opportunities for Italian companies to expand their business in the EEU and Iran markets. EIAA is willing to act as an information and transaction catalyst to facilitate business between Italian companies and Armenia.
In 2015, Italy exported €108mn of goods to Armenia, primarily in the textile and machinery sectors, making it Europe's second-largest exporter to the country after Germany. The new areas of collaboration between Italy and Armenia include the petrochemical, infrastructure, textile and fashion, food, and pharmaceutical sectors. The agreement, according to Michal Ron, also contributes to "the identification of new cross-border opportunities for Italian companies".
This partnership not only boosts Armenia’s technological capacity but also positions Italy as a partner in cutting-edge digital transformation in the Caucasus. The collaborations could benefit Italian businesses by expanding their market reach into the EEU, facilitating access to Iranian and regional markets, and supporting joint ventures in AI and digital infrastructure development. Italy's engagement aligns with Armenia’s strategic priorities and regional connectivity ambitions, creating a platform for mutual economic growth and innovation-driven partnerships.
The agreement between Sace and Armenia's EIAA is intended to support economic and commercial relations, opening new opportunities for Italian businesses, particularly in advanced technology and AI infrastructure. In addition, the agreement with Armenia is not the first step by Sace to expand trade relations, as it follows similar initiatives to support Italian exports to countries like Iran.
