Decisions Are Based on the Balanced Interests of Our Country and People, Says Tigran Avinyan

The Deputy Prime Minister of Armenia, Tigran Avinyan, has once again commented on the ongoing discussions regarding the Amulsar issue on his Facebook page. He stated:

“For several days now, discussions surrounding the Amulsar issue have been continuing. In finding a solution to this problem, one fundamental question carries significant importance: will the operation of the mine pollute the water resources of Jermuk, the catchment area, and Lake Sevan, and are the risks that may arise from the exploitation of the Amulsar mine manageable?”

“It is evident that in making decisions, we must rely on facts and expert assessments rather than emotions, desires, personal affinities, or antipathies, no matter how significant those factors may be.”

“What does the expert report from Elard say regarding the aforementioned questions? It states that the concerns raised for a long time by environmental groups regarding the waters of Lake Sevan and Jermuk are unfounded. Additional measures to mitigate potential pollution have already been proposed.”

“Nevertheless, there are points in Elard’s report that are not directly related to the risks concerning Lake Sevan, Jermuk, or nearby rivers but have caused concern among parts of the public. Therefore, I am providing a link to the complete conclusion prepared by the Investigative Committee, which presents not only the issues raised by Elard but also the assessments and necessary clarifications from the authority conducting the proceedings. I hope that this document will alleviate most of the questions.”

“I should also note that today, we are setting high standards in the mining sector, whereby all mines in our country's territory must operate in accordance with the highest environmental standards. Any entity possessing the right to exploit natural resources in the Republic of Armenia must be aware that Article 30 of the 'Law on Subsoil' allows for the suspension of the right to exploit subsoil. Thus, if violations are recorded by the subsoil user, the supervisory authority is authorized to require that the subsoil user address the issue within 90 days; otherwise, the company’s subsoil exploitation permit may be revoked.”

“In this regard, we will continuously monitor not only the proper fulfillment of each commitment undertaken by Lydian but also impose equivalent requirements on all remaining mining companies concerning environmental protection.”

“Now, I wish to address all those who are against the exploitation of the mine regardless of any facts or expert conclusions. I understand and resonate with your position, as last year, when we were about to leave for a march, all the facts were against us. According to those facts, we were expecting a disgraceful defeat against a system that possessed financial, coercive, expert, and media resources available in the country. The best expectation we could have had was to endure as little time as possible in captivity.”

“However, those facts and arguments did not work because there was a universal consensus among the Armenian people: The system led by Serzh Sargsyan had to change, as it was exploitative and coercive, built on corruption and deceit.”

“There is no universal consensus regarding the Amulsar issue. Besides environmental concerns, there are investors who have made about $400 million worth of investments in our country in compliance with our laws. There are citizens who have found employment within the company but are now at risk of losing their jobs. I note that the exploitation of the mine will open 750 jobs. If we consider the multiplicative effect of employment, the number of created jobs could rise to as much as 4,500.”

“Before the opening of the mine, we expect an additional investment of $130 million. The annual additional revenues for the state budget will amount to $45-50 million. GDP growth is projected to be around 1.4%, with 1% attributable to direct impact. The output, which will almost entirely be exported, is estimated to be around $250 million. As a result, the impact on exports is estimated to be around 10%.”

“If we talk about risks, we also need to consider the potential arbitration process. As I mentioned yesterday, we have properly assessed the state’s potential legal arguments, stance, and opportunities. However, no matter how prepared the state is for the outcome of the arbitration process, it is entirely unpredictable, and substantial compensations cannot be ruled out. We understand that this money does not come out of thin air, but is generated from taxes paid by the taxpayers.”

“To make this more tangible, we need to understand that any potential financial loss means a road that is not repaired, a kindergarten, a hospital, and perhaps even not purchased weapons.”

“And the biggest risk, which cannot be quantified, but is very important for our transforming economy, is connected to the country's investment environment. If we genuinely want to build a Armenia where both domestic and foreign investors are protected, we cannot obstruct any company's activities without legal justification. Otherwise, there is a risk that we will turn into a state from which investors flee, and new ones do not even think about coming.”

“Meanwhile, the current government is working day and night to attract investors, and I believe we all understand the importance of this.”

“In conclusion, I want to clearly state that the basis of any decisions made by the government is the balanced interests of our country and people.”