Benzene Market: Arthur Vanetsyan's Father Exits the Sector

The State Commission for Protection of Economic Competition has studied the gasoline market and reported that it has high concentration. This was revealed in the commission's conducted study. High concentration means that competition in the market is low.

"In 2017, four businesses imported gasoline in the 'Gasoline' commodity market, and in 2018, the number of businesses increased by two. From January 1 to October 1 of 2019, the number of economic operators engaged in importing reached 5," the commission stated.

The commission's study clarifies that in 2017, gasoline was imported into the republic by four companies: 'Flash,' 'CPS Oil Corporation,' 'AB Export,' and 'Max Petrol.' The commission's study does not include information about the owners of these companies. The owner of 'Flash' is Barsegh Beglaryan, a close associate of Serzh Sargsyan; the owner of 'CPS Oil Corporation' is reported by Hetq to be Arthur Danielyan; 60 percent of 'AB Export' shares are owned by Gagik Vanetsyan, the father of former NSS head Arthur Vanetsyan. The director of 'Max Petrol' LLC is Patrick Ajemyan, while the company’s shareholder registered in state records is Karen Akhverdyan.

Akhverdyan's name is also linked to another company, 'Zoraget Hydro,' which is connected to former Armenian ambassador to the Vatican Mikhail Minasian. According to state registry data, 'Zoraget Hydro' currently has one shareholder, 'Energo Invest Holding' LLC, which is owned by the family of Armenian billionaire businessman Samvel Karapetyan. Their company’s shares have also passed through Leonid Arevshatyan and Armen Petrosyan, who are around Minasian, while Arevshatyan’s name appears among the players in the gasoline market.

Returning to the Commission's study, it should be noted that in 2018, two other companies entered the market: 'Rosneft Export' LLC and 'Platinum Oil.' The owner of the former is Ashot Salazaryan, who was previously the sole shareholder of 'CPS Oil Corporation' and later sold his shares. In 2019, Arthur Vanetsyan's father's company, 'AB Export,' exited the gasoline market. The commission's conclusion states that the vast majority of imported fuel from Russia is acquired from 'Rosneft-Armenia' LLC.

According to public registry, this company was founded in 2013 by Arthur Alaverdyan, who is also the director of 'Rosneft-Armenia.' The company’s shareholder is Rosneft Techno S.A., registered in Luxembourg. Documents retrieved from the Luxembourg registry show that among the beneficiaries of Rosneft Techno S.A. are two Armenians: Arthur Alaverdyan and Leonid Arevshatyan. The latter, as noted above, is among Mikhail Minasian’s close associates and is one of the owners of the company supplying imported gasoline to Armenia.

Arthur Alaverdyan established 'Oil Techno LP' in the UK in 2012, which is again related to the gasoline market. Alaverdyan holds more than 75 percent of the company’s shares.

In 2017, about 142 thousand tons of gasoline were imported to Armenia, with the lion's share imported by 'CPS Oil Corporation' and 'Flash.' A year later, import volumes in the country reached 160 thousand tons, where 'Max Petrol' joined the two major importers. Notably, while in 2017, 72 percent of imported gasoline came from Russia, last year this share increased to 95 percent.

According to the commission's study, gasoline importers are also the main sellers, particularly 'CPS Oil Corporation,' 'Flash,' and 'Max Petrol.' The high level of market concentration has also been explained by the commission as the need for significant investments for maintenance and marketing infrastructure, and the existing demand is met by current market participants.

The commission also addressed the diesel fuel market in its study. Again, the leaders are 'Flash' and 'CPS Oil Corporation'; if in 2017 the number of companies engaged in diesel imports was 6, by 2019 their number reached 18. Details on the players in the diesel market will be addressed in future reports by Lurer.

Source: 1lurer.am