Pandora Papers: Children of Former MPs Linked to Offshore Accounts

According to Hetq.am, the "Pandora Papers" have revealed not only Armenian officials and businessmen, but also their relatives, including their children. Among those mentioned are the daughter of former Minister of Environment and ex-MP Vardan Ayvazyan, as well as the sons of former MPs Gagik and Armen Abrahamyan, brothers of Ara Abrahamyan, the president of the Union of Armenians of Russia.

It should be noted that the International Consortium of Investigative Journalists (ICIJ) and its partner media outlets, including Hetq, continue to investigate leaked documents from various offshore zones that journalists have labeled the "Pandora Papers." This package contains over 27,000 companies and their owners (around 30,000 individuals) linked to more than 200 countries and territories around the world, which indicates the vast geographical scale of the leaked documents.

With a file size of 2.94 terabytes, the largest package ever published by the ICIJ, it also includes Armenian beneficial owners of companies, including officials, businessmen, their relatives, and close associates. The total number of leaked documents reaches 11.9 million, having been leaked from 14 companies that provide services in offshore jurisdictions. These are intermediary or agency companies that help establish nominal companies in tax havens for various purposes.

Why did businessman Gagik Abrahamyan’s son create a company in an offshore zone? Ara Abrahamyan, president of the Union of Armenians of Russia, has four brothers (Alexander, Seryozha, Gagik, and Armen) and one sister (Karine). Seryozha, Gagik, and Armen Abrahamyan have previously been MPs from various factions, despite being non-partisan. Notably, between 2007-2012, Gagik Abrahamyan represented the ruling Republican Party of Armenia (RPA) in parliament, Seryozha Abrahamyan was from the ruling coalition's Armenian Revolutionary Federation (ARF), while Armen Abrahamyan belonged to another coalition team from the Prosperous Armenia Party (PAP).

Among the Abrahamyan brothers, Gagik has the longest political biography. He served as a member of parliament from 1990-1995 (as part of the ruling Armenian National Movement), 1995-1999 (from the ruling "Republic" bloc), and 2007-2012 (from the ruling RPA). From 1993-1998, Gagik Abrahamyan was the director of the diamond factory "Shoghakn," where he earned the nickname "Brilliant Gago." In 1998, he founded "Di Si Ey" diamond company, and in 2001, he established "Jey Si Ey" jewelry company in Armenia. Between 2002-2004, Gagik Abrahamyan served as the honorary consul of Armenia in North Korea. In 2006, he was elected president of the International Association of Armenian Jewelers.

The former MP is also a significant landowner. In 2018, Hetq reported on the old and new villas built by officials in front of Yerevan's "Victory" Park, specifically on the section between Freedom Avenue and Babayan Street, noting that the largest plot of land (1.3 hectares) belongs to G. Abrahamyan, who also constructed a villa that, according to the State Committee of Real Estate Cadastre, holds the highest cadastral value for residential homes in the country (428 million AMD).

Next to his villa, Abrahamyan built another one that houses the Japanese embassy in Armenia as a tenant. In 2020, it was reported about individuals acquiring and renting plots in the Dalma Gardens area; Gagik Abrahamyan's "Di Si Ey" and "Jey Si Ey" companies occupy 3.8 hectares of land at Aiyasy Street 114.

While much can be said about Gagik Abrahamyan, we will limit ourselves to his son Aram Abrahamyan and his offshore dealings.

One of the agents behind the origins of the "Pandora Papers" is the "Trident Trust Group," which has offices in two dozen countries, but according to the ICIJ, the main company is "Trident Trust Company (B.V.I.) Limited," registered in the British Virgin Islands (BVI). Of the 11.9 million leaked documents from the "Pandora Papers" package, 3.37 million are attributed to "Trident Trust," covering the period from 1970-2019. Aram Abrahamyan is also among the customers of "Trident Trust." In January 2012, Aram Abrahamyan's company "Chessman Services S.A." was registered in the BVI, with him as the sole owner and director.

At the end of 2017, correspondence from "Trident Trust" employees disclosed an issue regarding the restoration of Abrahamyan’s company. The company, which had been deleted from the BVI registry but was pending resolution, could be restored if the respective fines and state taxes were paid along with a restoration application. In early 2018, "Chessman Services S.A." was reinstated in the Virginian registry. Documents submitted by Aram Abrahamyan help unravel why the company was created in 2012.

Accordingly, the offshore "Chessman Services S.A." serves as a means to hold assets from the Armenian “Di Si Ey” diamond company, with those assets valued at 5 million USD. The source of the assets is stated as follows: "Aram Abrahamyan is a successful businessman in Armenia, and he comes from a wealthy family, with his father being a notable businessman. They are well-known in the jewelry sector." The reason for registering the company in the BVI is expressed as: "To ensure a certain security for the assets." Interestingly, despite Aram Abrahamyan being the beneficial owner of "Chessman Services S.A.,” his father, Gagik Abrahamyan, is listed as the authorized person who can instruct the agency "Trident Trust" regarding transactions related to the company, to whom bills and account statements for "Chessman Services S.A." must be sent.

On the other hand, the companies connected with Armen Abrahamyan’s son have historical ties. For many years, Armen, one of the Abrahamyan brothers, has worked in the tax system. In 2003, he founded "Magas Invest" LLC, which shared ownership with businessman Gagik Tsarukyan 50-50 since 2007. It's not surprising that the non-partisan Abrahamyan was elected as an MP from Tsarukyan's PAP between 2007-2012.

"Magas Invest" serves as the official representative of the well-known South Korean company "Hyundai Motors" in Armenia, selling "Hyundai" vehicles, spare parts, and accessories. The showroom is located near Tsarukyan's native village of Arinj. It is also noteworthy that since 2004, A. Abrahamyan has been the honorary consul of North Korea in Armenia.

Armen Abrahamyan’s son, Abraham Abrahamyan, is linked to several offshore companies as well. Like his cousin, Aram Abrahamyan, he has become a customer of "Trident Trust" based in the BVI. In February 2015, before turning 20, Abraham Abrahamyan became the director and owner of the Virginian "Edgelane Limited," a company founded in 1998 that had changed owners several times previously. In March of the same year, Abrahamyan acquired another company registered in the BVI, "Omonte Corp.," established in 2008. However, he did not remain there for long; in November 2016, Abraham Abrahamyan transferred the company to Yerevan resident Bagrat Asatryan, who also became its director. In April 2015, he bought yet another Virginian company, "Gal Marine (BVI) Limited," founded in 1997. Documents indicate that "Gal Marine (BVI) Limited" is the owner of shares in another unnamed company, although the shares are noted in rubles, suggesting a connection to a Russian enterprise. In April 2016, he acquired "Integro Invest Limited," created in November 2015 in the BVI, from Yerevan-based Vilen Hakobyan.

In August 2016, Abraham Abrahamyan became the owner and director of another company called "Maktron Corp.," founded in 2008, having previously been owned by Moscow's Vladislav Abrahamyan, who is the son of Ara Abrahamyan. "Maktron" holds a 50% stake in the offshore "Moscow Construction and Development S.A.R.L.," while the remaining 50% is owned by Luxembourg’s "Amara Management S.A.," connected with businessman Gagik Adibekyan. The "Moscow Construction and Development" company is engaged in constructing "41 kvartal" residential complex in Moscow. In September 2017, Abraham Abrahamyan transferred his entire stake in "Maktron Corp." to