Facing Protests, Armenia Backs Off a Transportation Fare Hike

A recent decision in Armenia to reverse a fare hike for public transportation is a sign of the delicate balance the country must strike both in economic matters and in terms of foreign policy. The mayor of Yerevan, Taron Margaryan, on July 25 reversed a decision to raise the price of public transport fees. The reversal followed five days of protests in the city, including a strike by some minibus drivers, from July 20-24.

Though it is speculated to be a temporary measure, the reversal shows the sensitivity of the Armenian government to public grievances over an increase in transportation costs, akin to the recent (and much larger) protests in Brazil. Armenia has felt growing economic pressure recently as Russia has raised the cost of natural gas exports to the country, and Yerevan has concurrently looked to strengthen economic ties with the European Union. While Armenia's strategic orientation toward Moscow is not in question, Yerevan could begin to diversify its economic ties with other partners.