Armenian rose grower forced to sell home, greenhouses amid Russia export crisis

The “Geghetsik Varder” (Beautiful Roses) greenhouse enterprise, located in the Mayisyan village of Shirak province, is currently on the verge of closure. Founded seven years ago, the business, which serves as the sole source of livelihood for two families and provides employment for nine fellow villagers, finds itself in a seemingly insurmountable crisis. Russian import restrictions, including those within the Eurasian Economic Union (EAEU), an unprecedented stagnation of the domestic market, and a catastrophic hailstorm on June 19 have pushed Artak Harutyunyan’s business to the brink of closure.

The Geghetsik Varder Greenhouse and its finances

Harutyunyan, the founder of the company, told The Armenian Weekly that the 5,500-square-meter (59,200-square-foot) greenhouse was constructed using bank loans of approximately 80 million AMD (about $220,000). After initially growing vegetables, the company transitioned to producing high-quality Dutch roses, which were then exported to Russia via air cargo.

Before the restrictions, the sector had been relatively stable. According to reports by the UN Food and Agriculture Organization (FAO) and international analytical centers, Armenia’s greenhouse sector recorded steady growth over the last decade, with the primary export market (accounting for over 80-90%) remaining Russia, thanks to EAEU privileges and simplified logistics.

However, recent recurring restrictions imposed by the Russian side at the Upper Lars checkpoint — driven by strict sanitary requirements or political considerations — have paralyzed the sector.

“Last year, it was the exact same picture; exports were shut down for two months. We couldn’t keep up with the loans, and our debt rose from 40 million to 70 million [about $110,000 to $193,000],” said Harutyunyan. “This year, the situation is repeating. Because the harvest cannot be sold, we simply throw away a portion of it, and we give another portion to people for free so they can at least take it home and it doesn’t spoil.”

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Government optimism and ground reality

This is where a massive chasm emerges between government statistics and the reality reported by farmers and business owners like Harutyunyan.

According to data and official statements published by Armenia’s Ministry of Economy, the state provides extensive support to the agricultural sector and exporters. Specifically, on January 23, 2025, the government adopted Decision N 98-N “On Approving the Assistance Program for Export Promotion.” Under this decision, resident organizations and individual entrepreneurs are provided with assistance when exporting goods of local origin to the European Union, the United Kingdom and Canada, equivalent to the amount calculated at the customs duty rate set by the importing country. Furthermore, there is official talk of a 37 AMD (10 cents) subsidy per exported flower, according to RFE/RL’s Armenian Service.

The state may be trying to create ideal conditions for market diversification. However, Harutyunyan’s actual calculations raise the question of whether these decisions are detached from the realities facing ordinary businesses.

“They say they provide a subsidy to export flowers to France. But where am I supposed to find that market?” asked Harutyunyan. “Even if they compensate the amount of the customs duty, shipping one kilogram to Europe by air cargo alone costs $7. What does that mean? Should I harvest for free, ship it, and then pay massive logistics expenses out of my own pocket? That is beyond the capacity of a small business.”

While the ministry reports on the stability of the agro-food sector, stagnation in the domestic market remains unbearable for the Harutyunyans. To maintain the greenhouse during the winter, the family accumulated a debt of around 20 million AMD (about $55,000) for gas alone, pawning their own gold. Today, a bundle of 20 high-quality 80-90 cm roses (31-35 inches) cannot be sold in the wholesale market even for 1,000 AMD (50 AMD per flower; about 14 cents each or $2.76 for 20 roses). This does not even cover the minimum expenses for labor or packaging paper.

UN warnings and systemic risks

Reports from international organizations, including the United Nations Development Programme (UNDP), also confirm that Armenian agriculture has become vulnerable not only to external market shocks but also to climate unpredictability. The reports note that the underdevelopment of the insurance system and the slow pace of disaster management mechanisms in Armenia place small and medium enterprises at risk.

An example of this was the catastrophic hailstorm on June 19, which shattered the structure and glass panes of the Mayisyan greenhouse. The business simply lacks the means to restore it, said Harutyunyan.

A family of ten and the decision to sell the apartment

Two families — ten persons, including three children — live off the income generated by the greenhouse. Harutyunyan’s brother faces serious health issues, leaving him as the sole breadwinner of the family. Additionally, one of his children studies at the Yerevan State Medical University, which entails substantial annual tuition fees and an apartment rental.

Confronted with monthly loan repayments of approximately 2 million AMD ($5,500), Harutyunyan said he sees no other option but to sell his own three-room apartment, purchased in 2017, to avoid the foreclosure of his property by banks.

“I will sell my house right now, just so I can clear my loans and think about a different business. There is no other option,” he said. “From 5 in the morning until 1 at night, fighting through winter winds and blizzards, we brought it to this point, but today we stand on the threshold of losing everything.”

Harutyunyan’s requests 

Harutyunyan is not asking for financial handouts from the state. His only expectation is effective support that will prevent the collapse of his business:

• Help finding markets: The establishment of collection centers or procurement points at the state level to help sell local produce, rather than leaving the business alone to deal with expensive international logistics and market searches.
• Loan holidays: A review of high bank interest rates and a temporary suspension of repayments until export routes are clarified.
• Compensation for disaster damage: A rapid assessment of the damage caused by the June 19 hailstorm and assistance to restore the greenhouse roof.

Harutyunyan said he has submitted applications and photographs documenting the damage but has yet to receive assistance. He said that without government support, the greenhouse will likely close.

Harutyunyan fears the loss of businesses like his will ultimately drive more families to emigrate.