Old Owners of New Armenia's Mines: Who Benefits from Preferential Conditions?

The Initiative for Transparency in Extractive Industries (ITEI) has published the third national report on Armenia's mining sector, providing various data presented by metal mining companies as of 2019 regarding extraction, export, directions, and funds paid to communities and the state budget, writes Lurer.com.

Overall, the volume of domestic sales of metallic products decreased in 2019. According to the report, the 'AT Metals' company, which operates the Meghrasar gold mine, sold gold concentrate worth 294 million drams to 'Chaarat Kapan' LLC. The 'Teghut' LLC sold molybdenum concentrate worth 373 million drams to 'AFZ Production' LLC. The Zangezur Copper-Molybdenum Complex sold ferro-molybdenum worth 7 million drams to 'Aske Group', which is a major steel production company owned by the uncle of former head of the Judicial Acts Enforcement Service Mihran Poghosyan.

However, what is noteworthy here is not the decrease in sales volumes, but the fact that individuals and companies with direct ties to the former government continue to shape the sector and record new successes. Moreover, the Armenian government plans to ban the export of scrap black and colored metals. The draft decision was approved at a government meeting on January 14. Several companies, including 'Aske Group', are interested in this ban.

The founder of 'Aske Group' is former MP Vahan Harutyunyan from the Republican Party of Armenia, and nearly 50 percent of the shares, according to the company’s relevant documents, belong to businessman Mikayil Harutyunyan, who is the father of Vahan Harutyunyan and the uncle of Mihran Poghosyan.

The other 50 percent of 'Aske Group' is owned by 'Moraco Holdings', a company registered in Cyprus.

Furthermore, 60 percent of the lands allocated to 'AT Metals' for mineral exploitation—located within the territory of the 'Arevik' National Park—came under the scrutiny of supervisory bodies and later law enforcement after the 2018 revolution. However, the case was closed. This seems unlikely to be mere coincidence.

It appears that, post-revolution, very little has changed in the sector deemed the most corrupt by Prime Minister Pashinyan. The government's operational approach has also seen little change. The government of Pashinyan, which has been fighting against the former regime with an iron fist, is creating comfortable conditions for the successful and uninterrupted operations of companies linked to those very former officials.