The Government Must State What the 'Price' is for Which Armenia Received 25% of Zangezur Copper-Molybdenum Combine Shares, Economists Say

The transaction of donating 25% of the shares of the Zangezur Copper-Molybdenum Combine (ZCMC) to the Armenian government lacks any economic or financial rationale. It is a matter of private political arrangements, economist Suren Paryan stated in an interview with Aysor.am.

“It is unclear what this donation is in return for or what circumstances led to it. The government must state what the ‘price’ is for which Armenia has received these 25 percent,” the economist noted.

Regarding Roman Trotsenko’s statement, the chairman of the board of directors of GeoProMining, that this transaction will open new opportunities for Armenia’s economy, Suren Paryan emphasized that it should not be forgotten that the combine accumulated about $200 million in debt during 2016-2017, and significant resources are needed to service that debt.

The economist stressed that it is unlikely that the government will reap substantial profits from the donation of these 25% shares of ZCMC. “I definitely welcome and emphasize that the government has a stake in any enterprise, because for years liberal economists and politicians have claimed that the state is a poor manager and everything should be handed over to the private sector. But the next step the government should take, I believe, is to ensure full control over the management of the combine,” Suren Paryan stated.