Whether the Armenian diamond-cutting industry is hurt or helped by the likely sanctions will depend on the EU's ability to trace the gems' origin to Russia.
Armenia is increasingly keen on Western mediation while Azerbaijan prefers to see the issue settled with the participation of regional powers like Russia and Turkey.
Azerbaijan's state oil company, SOCAR, will receive a $1.5 billion loan from Russia's Lukoil as part of a deal to supply crude oil to SOCAR's oil refinery in Turkey.