What is the connection between the Yesayan brothers and Alisher Usmanov regarding the monopoly in the QR codes business?

As a member of the Eurasian Economic Union, Armenia is subject to the rules of that supranational organization. One of these rules is the newly implemented unified system for the identification of goods within the union. Hetq has uncovered the owners of this boundless business, which is linked to the successful businessman brothers Haik and Alexander Yesayan, who have recorded business successes since 2018, as well as the Uzbek-born Russian oligarch Alisher Usmanov.

Among the EAEU countries, Russia was the first to implement a goods labeling system. This required the affixing of QR codes on certain goods imported into the Federation, which would monitor the entire sales chain of the product, from production to sale. For instance, when exporting tobacco and alcoholic beverages from member countries, each item must have a QR code attached. This requirement later expanded to other member countries. In Armenia today, tobacco products, alcoholic beverages including beer, water, portable computers, and mobile phones are already being sold with QR codes. Stores scan the products at the point of sale, after which the product data is sent to the State Revenue Committee. The aim is to reveal shadow and counterfeit products. QR codes have replaced excise stamps.

Business operators, including producers and importers, pay to obtain QR codes, and in some cases, to print them as well. One QR code costs 4.2 drams, while printing costs 2.2 drams. Without considering other costs incurred in the production process, an operator pays 6.4 drams for receiving and attaching one QR code on a product. For example, in the past eleven months, 53 million liters of water were bottled in Armenia. Assuming that the bottled water is in 1-liter containers, 53 million QR codes were produced, costing 222 million drams (excluding printing costs).

In December 2020, the company “Center for Development of Perspective Technologies – Armenia” LLC was selected as the national operator by government decision. The consortium is formed with the companies “Center for Development of Perspective Technologies” and “AIMARK” LLC, operating out of Russia.

In 2020, the State Revenue Committee announced that the requirement for labeling medical-use drugs, tobacco products, and footwear with identification measures would come into force in Russia. Simultaneously, the sale of such unlabeled products was banned. The SRC also announced that the government would establish an Armenian national operator. That year, an interdepartmental commission was formed to select the national operator, with the regulations for its selection determined and requirements set for both the national operator and the system being implemented. The government chose a national operator for product labeling, granting it exclusive rights for product identification. There cannot be more than one national operator in EAEU member countries.

The “Center for Development of Perspective Technologies – Armenia” LLC was established in 2020 and has two shareholders with a 50/50 share, namely “Center for Development of Perspective Technologies” LLC registered in Russia and “Fructus” LLC established in Armenia. The 100% shareholder of “Fructus” LLC is Narek Sedraki Yesayan. “Fructus” is a shareholder of another company, “Nordern Teruar” LLC, holding a 4.8% stake, with the remaining 95.2% owned by “Team Holding” LLC. The ultimate beneficiaries of “Nordern Teruar” are Haik and Alexander Yesayan. Narek Yesayan, a shareholder of “Fructus” LLC, is connected to the successful businessmen Narek and Alexander Yesayan who have made strides after 2018.

Hetq tried to clarify with Haik Yesayan via written inquiry whether it is due to possible connections with representatives of Armenia's high government that “Fructus” LLC has become part of the business of product labeling with identification measures within the EAEU, and whether it is true that he and Narek Yesayan, the 100% shareholder of “Fructus” LLC, are relatives. Haik Yesayan confirmed in a written response that Narek Yesayan, the owner of the national operator for product identification “Fructus” LLC, is indeed his relative. “I learned about what you mentioned in the first paragraph of your inquiry precisely from your query. I was unaware of the 2021 Armenian government decision that designates `Center for Development of Perspective Technologies – Armenia` LLC, `Center for Development of Perspective Technologies` LLC, and `AIMARK` LLC as the national operator for product labeling with identification measures in the EAEU,” Haik Yesayan responded.

The other shareholder of “Center for Development of Perspective Technologies – Armenia” LLC, “Center for Development of Perspective Technologies” LLC, is reportedly associated with Uzbek-born Russian billionaire Alisher Usmanov, according to Russian RBK media. Based on information available in the Russian tax service database, the founders of “Center for Development of Perspective Technologies” LLC also include three other companies: “CRPT-Management,” “ELVIS-Plus Group,” and “MDOM” LLC. “Center for Development of Perspective Technologies” LLC is a partner in the consortium with the other company “AIMARK” LLC.

Following the Russo-Ukrainian war, Alisher Usmanov appeared on the list of individuals sanctioned by the West. Could Usmanov's inclusion in the EU sanctions list and the partnership with his company create problems or obstacles in relations between Armenia and the EU? In response to our inquiry sent to the government, the State Revenue Committee replied. According to the SRC's International Cooperation Department head, Nerses Zeynalyan, based on information available in open sources, the national operator for product identification, “Center for Development of Perspective Technologies,” is not on the EU sanctions list. “This issue has not been discussed with EU partners, as it does not constitute a bilateral agenda topic, and the State Revenue Committee sees no need to bring the matter to discussion,” said the SRC official.

Haik and Alexander Yesayan came to public attention due to the situation surrounding the “Ucom” company. In 2020, when major shareholders of “Ucom,” sons of former SRC president Gagik Khachatryan, came under the scrutiny of law enforcement, chaos ensued at “Ucom.” Haik Yesayan, the company's director and shareholder, submitted a resignation request, followed by hundreds of employees. “Ucom” found itself in crisis, after which Haik Yesayan stated that there was an intention to buy 94% of the company's shares. The situation was linked in the media to a potential restructuring of the shares of “Ucom” by the authorities through Alexander and Haik Yesayan, which he denied. After failing to achieve success at “Ucom,” the Yesayan brothers acquired shares in another telecom operator, “Beeline,” through their newly established “Team” LLC.

Shortly thereafter, Varag Siseryan, who was the head of the office of the Deputy Prime Minister (during Tigran Avinyan's tenure), took the position of Deputy Director at the company. While acquiring “Beeline,” the Yesayan brothers founded the company “Team Solutions” and signed multi-billion dram contracts, continuing to do so with the State Revenue Committee. Their next significant transaction involved the acquisition of the “Grand Hotel Yerevan” hotel, which the “Team” group bought from the Italian company “Renko.”