Yes, it is a kindjal for sure. Not necesserily from Armenia but its is certainly a possibility. This must have been a really beutiful piece back in the day. I can see the jewels adoring the hilt of nicely polished bone (ivory?) and gold lettering on the blade. The blade seems to have been of good quality but I am afraid it is now ruined beyond repair. In my honest opinion any attempts in restoration will probably cause more harm than good - the blade is too worn out with rust as can be seen from your pictures. The best thing to do is to oil it well with mineral or gun oil and, which will protect the steel from further oxydation, and to store it away.
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