The Armenian Government\'s Ongoing Support for the Military Industry

At the Cabinet meeting on September 12, a project submitted by the Ministry of High-Tech Industry was approved, aimed at advancing the military industry. Under the new Government decision, the maximum profit limit will no longer apply (except for R&D and experimental design work), while regulatory mechanisms will ensure the most favorable conditions for the continued development of Armenia’s military industry. Until now, military industry actors were limited to a maximum profit margin of 15%.

Given the high risks associated with the sector, the maximum profit limit significantly reduced investment attractiveness, which in turn slowed the growth of this strategically important industry. Additionally, the logistical, technical, and geopolitical risks created disproportionate challenges for companies, increasing the likelihood of failure to meet national orders.

By removing the maximum profit limit, the production processes of domestic companies will be stimulated, fostering the development and promotion of the industry, and increasing the competitiveness of military-industrial companies in both domestic and international markets