Zaven Margaryan

The importance of this study is underscored by the increasing significance of economic resilience in the face of global instability. The Russian-Ukrainian armed conflict, initiated by Russia in 2022, has caused profound shifts in the geopolitical and economic environment, affecting capital flows, foreign exchange transactions, and the credit and financial policies of countries in the region. For the Republic of Armenia, whose economy is closely tied to external markets, such events present both substantial challenges and opportunities for adaptation and transformation within the banking sector. The objective of this article is to analyze the dynamics of financial results of commercial banks in Armenia and assess the impact of the Russian-Ukrainian armed conflict on the functioning of the banking system. By analyzing financial data from five leading banks from 2020 to 2023, the study evaluates key indicators such as total assets, net profit, capital, and loan portfolios. The findings indicate significant growth in financial indicators, particularly in 2022 and 2023, driven by increased remittances, migration, and tourism flows from Russia and Ukraine. The results suggest that, despite the challenges posed by the conflict, the Armenian banking sector demonstrated resilience and capitalized on external economic shifts. This study concludes that geopolitical crises can create opportunities for the financial sector when managed effectively. Further research is needed to explore the long-term effects of the conflict on Armenia’s broader economy and the adaptation of banking policies to future geopolitical challenges.

Acknowledgment
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Type of the article: Research Article

Abstract
ESG integration has become increasingly relevant to banking-sector performance, particularly in emerging markets where standardized external ESG ratings remain limited. This study aims to examine the association between ESG performance and the financial performance of selected Armenian commercial banks and to assess the relative role of the Environmental, Social, and Governance dimensions. The study uses a multi-method design based on 27 bank-year observations for Ardshinbank OJSC, Ameriabank CJSC, and ACBA Bank OJSC over 2017–2025, combining a disclosure-based ESG framework, descriptive analysis, Pearson correlation, Ordinary Least Squares regression, Multi-Criteria Decision Analysis, and evidence from 52 banking professionals. Overall ESG performance is positively associated with ROA (r = 0.64) and ROE (r = 0.60) and negatively associated with the Cost-to-Income ratio (r = −0.52). In the OLS analysis, Governance, Environmental, and Social dimensions show positive estimated relationships with ROA, with coefficients of 0.037 (p = 0.001), 0.023 (p = 0.012), and 0.019 (p = 0.018), respectively. Governance therefore demonstrates the strongest estimated association among the three dimensions. The MCDA framework assigns weights of 45% to Governance, 30% to Environmental, and 25% to Social factors, providing additional evidence of the relative importance of governance-related practices. The findings provide preliminary evidence of positive ESG–financial performance associations in the selected Armenian banks, while the results should be interpreted as exploratory and associational rather than causal due to the limited sample.