Spayka Issues New Statement

Spayka has released a statement on its Facebook page:

“Since its inception, Spayka has directed all its activities towards creating economic value in Armenia and has not allowed itself to be drawn into political processes through various manipulations. The security of the state has been and remains a crucial criterion for us.

We actively cooperate with the government by presenting various programs, bringing in investors, opening multilayered doors for business financing, and training high-quality specialists in agriculture. We welcome the declared aim of implementing an economic revolution and are ready to support reaching the benchmarks set by the government.

Spayka has been purchasing products in Armenia since 2010, and despite the company's objective difficulties, we have been and continue to be alongside producers and farmers.

The company mainly operates in over 80 communities and indirectly works with dozens more. Throughout these years, there has not been a single substantiated case where the company owes any farmer. The company works with tens of thousands of farmers, providing necessary consultancy.

To organize the purchasing process, the company requires about 50,000,000 AMD monthly, which is utilized from the company's circulating credit funds. These funds are short-term and are subject to unconditional return to the bank upon the expiration of one or two months. According to the loan agreement, the bank can stop providing these funds at any time if it believes that the company's normal operation is disrupted for some reason or that the company’s financial situation poses a threat. In this case, the bank does not need any justification.

David Ghazaryan, the director of Spayka, mentioned at a press conference that last August, the company’s bank accounts were frozen by the banks, which paralyzed the company. They were reopened after the company halted criminal prosecution against it. At that time, the company was forced to pay 2,045,000,000 AMD in tax liabilities to the State Revenue Committee to continue its operations.

From May 2, 2018, to April 4, 2019, the company invested approximately 90,000,000 USD in Armenia's agricultural sector!

Currently, due to the detention of the company’s director and the unfounded accusations from state bodies and officials, the process of recalling the company's credit resources from foreign banks has begun, which may lead to the freezing of the company's accounts and the seizure of pledged assets, including trucks.

In such conditions, the company will be unable to utilize circulating funds and organize planned purchases in the following communities:

• Ararat Province: Avshar, Sisavan, Khachtrashen, Narek, Norashen, Verin Artashat, Shahumyan, Getazat, Kanachut, Mrgansh, Jrashen, Surenavan, P’k’v.tagsi, Nor Ughi, Lusarat, Dashtakar, Verin Dvin, Nerkin Dvin.
• Armavir Province: Lukashin, Mrgashat, Alashkert, Berqashat, Aravik, Hatsik, Aygeshat, Mayisyan, Myasniktayan, Araks, Lenoughi, Nor Amasia, Nalbandyan, Tandzut, Shenik, Ervandashat, Bagaran, Dasht.
• Tavush Province: Lchkadzor, Bagratashen, Ptghavan, Haghitak, Berdavan.
• Lori Province: Tashir City.
• Vayots Dzor Province: Areni, Rind, Aghavnadzor, Karaglukh, Sali.
• Aragatsotn Province: Ushqi, Karbi, Ohanavan, Parpi, Voskevas, Sasunik, Oshakan, Ujan, Agarak.
• Shirak Province: Karnut, Benjamin, Akhuryan, Azat'an, Hatsik, Getk, Arapi, Aravik.
• Gegharkunik Province: Vardenik, Zolakar, Astghadzor, Vaghashen, Tsovinari, Nerkin Getashen, Verin Getashen, Geghhovit, Madina, Lichq, Vardadzor, Zoragyugh, Yeranos.
• Kotayk Province: Nor Geghi, Nor Artamet, Mrgashen, Geghashen.

We understand that at the beginning of the agricultural year, agricultural households attract financial resources, often also credits (like our company) to organize agrotechnical work, including plowing, fertilization, pruning, treatments, irrigation, and harvest organization. To attract such resources, farmers need assurance of the consumption of products at prices commensurate with at least incurred expenses. The role of Spayka in agriculture is precisely that additional opportunity for farmers, rather than imposing them to sell products without alternatives specifically to Spayka.

The company offers farmers a price at least 10 percent higher than the market purchasing price. Moreover, until 2011, the average purchasing price for apricots was 200 AMD, with a minimum of down to 100 AMD. In the last five years, due to Spayka, the average purchasing price for apricots intended for export has been 300-350 AMD, with a minimum of 250 AMD. This pattern is the case for all products. Thanks to the company, beets, cabbage, peaches have started to be exported from the republic, and the volume of grape exports has increased. Spayka has been the initiator of export for all these products.

Even under the extremely unfavorable conditions created due to the detention of the company’s director, Spayka is actively working on organizing purchasing activities in the mentioned communities.

Spayka has never been subjected to anyone's blackmail and treats all its partners, especially the state and its security, with respect.

The director of the company has called for the illegal detention to cease and to allow work to be organized, instead of making threats. Any potential failure in the company’s purchasing activities would not be in the best interest of the company. Such a situation can only occur due to the illegal detention of the company’s director, resulting in the freezing of the company’s credit accounts by foreign and local banks or the imposition of seizure rights over the property, leading to a sharp deterioration in the company’s financial situation.”