Government subsidies have supported most of the estimated 105,000 Armenians who fled Karabakh after Azerbaijan reconquered the entire region in September 2023. (Photo: armradio.am)

Armenia to Reduce Housing Aid for Nagorno-Karabakh Refugees

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By Ani Avetisyan

The Armenian government has announced it is scaling back a program that provides housing subsidies to refugees from Nagorno-Karabakh, casting the decision as a move to promote self-sufficiency and stimulate the integration of refugees into society. But for the tens of thousands of Karabakh refugees receiving assistance, the announced reduction in benefits is likely to cause a spike in discontent.

Armenia since November 2023 has provided a monthly stipend of 50,000 drams (about $125) to refugees from Karabakh without housing or government shelter. This assistance has supported most of the estimated 105,000 Armenians who fled Karabakh after Azerbaijan reconquered the entire region in September 2023.

Under a plan approved during a cabinet meeting in late November, subsidies will be scaled back starting in April 2025. Only children, college students, pensioners and individuals with disabilities — about 54,000 refugees, according to government estimates — will continue to receive aid. Payments for eligible individuals will decrease to 40,000 drams in April and 30,000 drams by July. Working-age refugees who do not fall into these groups will lose benefits.

Armenian Prime Minister Nikol Pashinyan said the changes are intended to motivate refugees to seek employment or entrepreneurship opportunities. “We need to create conditions where people can support their families through their own work,” Pashinyan said.

The Armenian government is struggling to encourage Karabakh Armenians to apply for Armenian citizenship because doing so would cause them to lose temporary protection status as a refugee. As of this November, only about 1,500 Karabakh residents have applied for citizenship, while over 90,000 have received temporary protection status as refugees. According to the country’s Labor Ministry, more than 25,000 refugees have already secured jobs or started businesses.

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The reduction in allowances coincides with a government housing program launched last June. The initiative offers financial grants ranging from 2 million to 5 million drams ($5,000-$13,000) per person, including children, to refugees who purchase or build homes, primarily in rural areas. The program is part of a broader effort to address housing shortages and depopulation in these regions.

Refugees and advocacy groups have criticized the program, arguing that the grants fall short of covering rising property prices, even in rural areas. The amounts provided by the government are not enough to buy or build even small houses in many regions of the country. Critics also point to inadequate infrastructure and limited job opportunities in rural locations as barriers to participation.

Officials have long faced pushback over strategies concerning Karabakh, pre-dating the total loss of the territory to Azerbaijan. Artak Beglaryan, a former top Karabakh official, accused the government of lacking a clear strategy for supporting refugees. He cautioned that government policies, instead of promoting integration, may end up stimulating emigration.

Armenia has allocated more than 75 billion drams ($190 million) for the support of the refugees since September 2023, with nearly 90 percent of funding coming from the state budget. The revised aid program is projected to cost 30.5 billion drams ($78 million) in 2025. Armenian officials have applied to international organizations and Western states for aid to tackle the refugee crisis.

Government officials defend the shift, arguing that it prioritizes aid for vulnerable groups while fostering economic independence. However, housing shortages, rising rents, and limited employment opportunities remain significant hurdles for many refugees trying to integrate.

(This article was originally published in www.eurasianet.org.)

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