Armenia finds itself in an unfriendly neighborhood and engaged in a highly militarized 20-year territorial dispute with Azerbaijan over the Nagorno-Karabakh enclave. It has long pulled off a diplomatic coup, maintaining simultaneous close relations with Iran, Russia and the United States, all three of which it relies on for protection, investment and trade.
But the chickens came home to roost two years ago when it drew the ire of the U.S. government upon the discovery by U.S. intelligence that Armenia had transferred Bulgarian missiles and rockets to Iran, according to a December 2008 cable from the secretary of State, posted on WikiLeaks.
Those weapons were later "recovered from two Shia militant attacks in which a U.S. soldier was killed and six others were injured in Iraq," according to a January 2009 cable from the U.S. Embassy in Yerevan.
Washington was demanding answers, and Armenia was feeling the heat.