The Ministry of High-Tech Industry Provided Financial Support to Several IT Companies, Some of Which Temporarily Ceased Operations or Were Liquidated

The Armenian government, through a decision made on December 1, 2022, allocated 10 billion drams in state support to companies in the information technology (IT) sector. According to the report by Hetq, they managed to identify the names of the companies that received state assistance.

The purpose of the decision was to help IT companies overcome financial difficulties that arose from the depreciation of the dollar against the dram. However, the report highlights that out of the companies that received support, 14 have temporarily suspended operations, and 4 are in the process of liquidation. Many of these companies had already ceased operations before signing grant agreements with the Ministry of High-Tech Industry (MHI).

This indicates that the MHI provided financial support to companies that were already temporarily inactive. Collectively, 18 companies received a total of 190 million drams in grants from the state, with 8 of these companies owned by foreign citizens or organizations. Among the four companies currently in the liquidation process, three are owned by foreign entities.

As a result, the government aimed to assist IT companies through the grant program so they could overcome financial challenges. However, these companies initiated dissolution shortly after receiving grants. For instance, the company 'Optimum Armenia' began its liquidation process on the very day it signed a contract, receiving 46 million drams in the process.

Four companies, including 'Optimum Armenia LLC', 'Material Exchange LLC', 'Capital Health Care LLC', and 'Highlern LLC', collectively received 103 million drams in grants. Artem Baghdasaryan, who was the director of 'Optimum Armenia' before the liquidation process began, stated in an interview that the company had informed the MHI of its intention to enter the liquidation process prior to signing the grant agreement. Nevertheless, the MHI still signed a grant agreement for 46 million drams.

On June 26, 2023, a contract was signed between 'Material Exchange LLC' and the MHI, granting 'Material Exchange LLC' 21 million drams. Approximately three months after the contract signing, on September 29, the company also began its liquidation process. 'Capital Health Care LLC' received 29 million drams as per its contract with the MHI, signed on June 28, 2023, but started the liquidation process on October 19. Founded on March 13, 2020, it is owned by an identically named foreign company registered in the USA.

Details are available on the website.