The Russian VTB Bank has completed the sale of the second largest copper-molybdenum mine in Armenia, Teghut. The company’s multimillion-dollar debt was initially bought by a local company and then resold to an as-yet-unknown main investor.
As reported “Freedom” radio station, the Teghut mine with estimated reserves of about 450 million tons of ore was previously operated by the “Vallex Group” company owned by businessman Valery Mejlumyan. However, in 2018, due to non-fulfillment of loan obligations, the mine was transferred to the Russian state-owned VTB Bank for a debt of 380 million dollars.
During the transition period, the bank owned 49.95 percent of the shares of “Teghut” CJSC, and the remaining share belonged to other individuals. Since the mining industry was not included in the profile of the financial structure, in April the CEO of VTB Andrey Kostin announced the final stage of the sale of the asset.
The mystery shopper and the role of the middleman
The process of expropriation of the asset received an official formulation in the summer. On July 7, the Competition and Consumer Protection Commission approved the application of the “Kuprar RA” company, allowing it to acquire the shares of “Teghut”.
According to the register of legal entities, “Kuprar RA” was founded in February of this year by a former government official and banker. Sergey Virabyan who was the sole owner and director of the company until June. Currently, the position of the general director of the company is held by a lawyer Artyom Geghamyan, who previously held the position of Legal Director of “Vallex Group”.
As reported by “Azatutyun” radio station, Sergey Virabyan personally confirmed that he assumed the debt of “Teghut” to VTB purely for business purposes in order to resell it to another person.
In an official interview, he refused to reveal the identity of the final buyer, citing trade secrets. At the same time, according to the sources of the radio station, a telecommunications businessman, owner of “Viva Armenia” was very interested in the acquisition. Konstantin Sokolov։
Financial condition and prospects
The financial burden of Teghut was quite heavy. according to 2024 reports, the volume of outstanding credit obligations exceeded $440 million. Normal operation of the mine was disrupted in the spring of 2022 due to geopolitical developments and logistical complications, but production was later partially restored.
Already at the end of 2024, the company has ensured the production of 88 thousand tons of copper concentrate, which was exported to China, Russia and Switzerland. Under the conditions of the new owner, stabilization of the mine’s production volume and final settlement of financial obligations is expected.
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