Thursday, April 1, 2020
Tsarukian’s Top Business Manager Faces More Charges
Ապրիլ 09, 2020
• Naira Bulghadarian
Armenia -- Sedrak Arustamian speaks to workers of a cement plant in Ararat,
April 15, 2019. Կիսվել
• 1
Կարդալ մեկնաբանությունները
Տպել
A law-enforcement agency has brought more criminal charges against the top
manager of companies belonging to Prosperous Armenia Party (BHK) leader Gagik
Tsarukian. The Investigative Committee said on Wednesday that Sedrak Arustamian, the chief
executive of Tsarukian’s Multi Group, is prosecuted for his refusal to stop the
“illegal” construction of a luxury hotel in downtown Yerevan which the holding
company began in early 2018. Yerevan’s current municipal administration froze the construction shortly after
taking office in October 2018. It said Multi Group never received a building
permission for the high-rise. Tsarukian denied that. Arustamian’s lawyer, Hovik Sukiasian, insisted on Thursday that both the current
and previous Yerevan mayors did issue construction permits to Multi Group. Sukiasian also said that Multi Group is now locked in a court battle with the
municipality and the Investigative Committee should not have indicted his client
before a final court ruling in the case. Arustamian was already charged with fraud and tax evasion in September 2019. Those accusations do not relate to any of the several dozen firms making up
Multi Group and stem from Arustamian’s separate economic activities. The Investigative Committee claimed that Tsarukian’s right-hand man helped a
Chinese construction company building a 56-kilometer highway in northwestern
Armenia evade 240 million drams ($503,000) in taxes. It said the company also
paid an Armenian firm owned by Arustamian and run by two other men 117 million
drams in fictitious consulting frees as part of the scam. Arustamian denied those charges as well. He avoided arrest after Armenian courts
granted him bail over investigators’ objections. The Investigative Committee
decided not to seek his arrest this time around. Tsarukian is one of the country’s wealthiest men. His opposition party controls
the second largest number of seats in the Armenian parliament. Armenia Evacuating Nationals From Turkey
• Tatevik Sargsian
Turkey A worker sprays disinfectant outside Ortakoy Mosque, to prevent, the
spread of coronavirus disease (COVID-19), in Istanbul. Armenia’s government is evacuating at least 70 Armenian citizens from
coronavirus-hit Turkey in coordination with Turkish and Georgian authorities,
the Foreign Ministry in Yerevan said on Thursday. Three buses carrying them left Istanbul on Wednesday morning and were due to
reach Armenia via Georgia early on Friday. “The transportation was agreed with relevant Turkish and Georgian authorities
whose assistance is appreciated,” the Foreign Ministry spokeswoman, Anna
Naghdalian, said in written comments to the Armenpress news agency. Naghdalian said that just like Armenians returning from other countries, all of
the evacuees will be placed in a two-week quarantine on their arrival in Armenia. One of them, Gagik Musheghian, confirmed that the Armenian government paid for
the bus service. “The Armenian authorities have helped us a lot,” Musheghian told RFE/RL’s
Armenian service by phone. “They’ve paid our bus fares, they’ve covered all our
expenses.”
“The buses will pass through a transit corridor in Georgia and enter Armenia
through the Bagratashen crossing,” he said. It was not clear whether more Armenians living and working in Turkey will be
repatriated in the coming days. According to Naghdalian, about 100 of them have
so far contacted Armenia’s Foreign Ministry for the purpose of their possible
evacuation. Turkish President Recep Tayyip reportedly expressed readiness to assist in the
repatriation of Armenian citizens when he spoke to the spiritual leader of
Turkey’s ethnic Armenian community, Patriarch Sahak Mashalian, on Wednesday. According to the Armenian Patriarchate of Istanbul, Erdogan also said that
Ankara is ready to provide Yerevan with medicines that could be used for
treating coronavirus. Commenting on the reported offer, Naghdalian said: “As a third party, we will
refrain from commenting on unofficial information. In any case, such information
is not on our agenda.”
The Turkish authorities have reported more than 38,000 coronavirus cases and 812
deaths resulting from them so far. Armenia and Turkey do not have diplomatic relations. Successive Turkish
governments have kept the border between the two neighboring states closed
because of the unresolved conflict over Nagorno-Karabakh. World Bank Warns Of Recession In Armenia
• Emil Danielyan
Armenia -- A deserted sidewalk in the center of Yerevan, April 7, 2020. The World Bank has warned of the growing risk of a recession in Armenia while
saying that the Armenian economy could still grow modestly this year despite the
coronavirus pandemic. “Under the baseline scenario, envisaging the start of a gradual recovery [of
economic activity] in mid-summer of 2020, the real GDP growth rate in 2020 is
expected to moderate to 1.7 percent,” the bank said in its Europe and Central
Asia Economic Update released on Thursday. “At the same time, a prolonged [coronavirus] outbreak scenario would result in
stagnant GDP or even an economic contraction,” it warned. “The probability
weight on that happening is rising due to worsening health, economic, and
financial outcomes across the world.”
The Armenian economy grew by 7.6 percent last year and continued to expand
robustly in the first two months of this year. However, the situation changed
dramatically last month as the Armenian government put the country under
lockdown to fight against the spread of coronavirus. The Central Bank of Armenia (CBA) forecast last week a 0.7 percent GDP growth
rate for 2020. Economy Minister Tigran Khachatrian agreed with that projection. The World Bank noted that the pandemic has already shut down the Armenian
tourism sector, caused a major drop in international prices of copper, one of
the court’s main exports, and will increasingly cut multimillion-dollar
remittances from Armenians working abroad and Russia in particular. “Efforts to contain the spread will dampen demand further,” reads its report. “A
dollarized economy and undiversified exports add to the challenges of managing
the shock. However, a relatively healthy banking sector, a precautionary [loan]
arrangement with the IMF, as well as some fiscal buffers partly mitigate the
risks.”
A wide-ranging stimulus package approved by the Armenian government late last
month calls for one-off cash payments to a large part of the population,
financial assistance to businesses and loan subsidies for farmers. In
particular, many creditworthy firms and individual entrepreneurs are due to
receive grants worth $500 million ($1 million). Armenia -- Prime Minister Nikol Pashinian holds a cabinet meeting in Yerevan,
April 9, 2020. The government on Thursday decided to extend the cash handouts to the owners of
microbusinesses with annual revenue of up to 24 million drams. They will be
eligible for up to 136,000 drams in compensation. “The government has a clear strategy of how to overcome the crisis,” Prime
Minister Nikol Pashinian insisted during a cabinet meeting in Yerevan. The government has already spent 3.7 billion drams on coronavirus relief, he
said, adding that the sum makes up less than 10 percent of emergency spending
planned by it. Pashinian went on to praise Armenian banks for honoring their pledge to suspend
loan repayments for some 290,000 individual borrowers and 5,300 businesses. He
also noted that the Armenian national currency, the dram, has rallied against
the U.S. dollar in recent days after losing more than 4 percent of its value in
March. The World Bank report warns that falling remittance inflows from Russia may lead
to “stronger depreciation pressures” on the dram in the months ahead. The bank offered a far more positive outlook for the next few years. “GDP growth
is forecast to recover over the medium term, to around 4.5 percent in 2021-22,
supported by stabilizing external conditions and catch-up of delayed
activities,” it said. The Ministry of Health reported on Thursday morning that the number of
coronavirus cases in Armenia rose by 28 to 921 in the past 24 hours. The latest
official figures suggest that the virus, which has killed 10 people so far,
continued to spread considerably more slowly than it did in the second half of
March. Pashinian again stated that the government is “cautiously optimistic” about
containing the COVID-19 epidemic. He said a government task force will meet on
Friday to decide whether to extend or ease the nationwide lockdown imposed on
March 24. EU To Boost Coronavirus Aid To Armenia
Belgium -- European Commission President Ursula von der Leyen holds a news
conference detailing EU efforts to limit economic impact of the coronavirus
outbreak, Brussels, April 2, 2020. The European Union has pledged to nearly double its promised financial
assistance to Armenia aimed at helping the country tackle the coronavirus
epidemic and its severe socioeconomic consequences. The EU said last week that its aid package will be worth 51 million euros ($55
million). The EU Delegation in Yerevan announced late on Wednesday that the 27-nation bloc
has decided to increase the assistance to 92 million euros after “further
restructuring” of ongoing projects in Armenia financed by it. “The funds will be directed towards supplying medical devices and equipment,
training for medical and laboratory staff, support to [small and medium-sized
enterprises] and business community, as well as social and humanitarian
assistance to those affected by the coronavirus outbreak,” it said in a
statement. The statement added that they will be part of the EU’s 20 billion-euro aid
program for “partner countries” around the world hit hard by the disease. The Delegation specified on its Facebook on April 2 that the EU will spend 30
million euros on supporting Armenian businesses by improving their “access to
cheap loans, working capital and guarantees.” It also promised to deliver
“humanitarian aid packages” to over 3,000 poor families living in three Armenian
provinces. The EU announcements mark the largest coronavirus-related aid allocation secured
by Yerevan so far. Reprinted on ANN/Armenian News with permission from RFE/RL
Copyright (c) 2020 Radio Free Europe / Radio Liberty, Inc. 1201 Connecticut Ave., N.W. Washington DC 20036.
Category: 2020
CIVILNET.Should Yerevan Respond to Erdogan’s Offer of Help?
CIVILNET.The World After COVID – 19: A View From Malaysia
The transformation of the Post-Cold War global order has been underway since the mid 2000s. The unipolar era of US hegemony is fading away, while the world is entering into а multi-polar system. Many experts now talk about the return of rivalry between the great powers. The key feature of the 21st century geopolitics will be the rivalry between the US and China. It remains to be seen if Beijing and Washington are able to avoid a confrontation and choose the path of managed competition.
The COVID–19 pandemic will definitely have its impact on the evolution of world geopolitics. The efficient struggle against the Virus requires international cooperation. In the meantime governments have resorted to increasing national sovereignty and seeking more localised solutions to the issues that emanate from the pandemic.
The world is already witnessing the start of conflicts around narratives. Many in the US and the EU accuse China of an alleged initial weak response which resulted in widespread dissemination of the virus. Meanwhile China has blamed the US military for bringing the Virus into Wuhan. Thus the COVID–19 pandemic may either usher a new era of cooperation or may trigger an intensified confrontation between China and the US.
US-China confrontation/cooperation will largely shape the new world order after the pandemic.
Benyamin Poghosyan, CivilNet’s host of the “Crossroad” project, discusses these issues with Ong Tee Keat, founding Chairman of the Centre for New Inclusive Asia, a leading think-tank based in Kuala Lumpur, Malaysia. Mr. Ong Tee Keat is the former Deputy Speaker of the Malaysian House of Representatives. He joined CivilNet from Kuala Lumpur.
CIVILNET.Nagorno Karabakh Elections: Balasanyan’s Lackluster Performance Shows Artsakh Voters Don’t Support Armenia’s Former Presidents
On March 31 presidential and parliamentary elections were held in Nagorno Karabakh. None of the 14 candidates running for president passed the 50% threshold. Former Prime Minister Arayik Harutyunyan received 49.3% of the votes, while Foreign Minister Masis Mayilyan got 26.4%. Karabakh hero and army general Vitaly Balasanyan, who was covertly supported by former Armenian Presidents Robert Kocharyan and Serzh Sargsyan, came third with 14.7%. Five parties entered the 33-seat parliament, with Arayik Harutyunyan’s Free Motherland having the most – 16 mandates.
KAREN HARUTYUNYAN: There were varying assessments about the presidential and parliamentary elections in Karabakh. Some Armenian observers (who had received Armenian government funding for monitoring work) reported a number of violations. Meanwhile, Armenia’s Prime Minister Nikol Pashinyan praised the quality and outcome of elections stressing the fact that not a single party won by a landslide, “which is proof of democracy,” he said. What is your observation of the conduct of these elections?
EMIL SANAMYAN: If the fact that there was no landslide is an indication of democracy, then Armenia has been democratic since 1998, since neither Robert Kocharyan nor Serzh Sargsyan nor the Republican Party ever won by a landslide. Incidentally, unlike the current ruling party in Armenia. I doubt that Nikol Pashinyan would use the same measure to assess Armenia’s elections.
What is true is that a competitive political environment is a necessary precondition for a healthy democracy. In that sense, the fact that the 2020 election was the most competitive republic-wide election ever held in Artsakh is certainly a step forward for democracy, but not an indication of an established democracy, let alone an irreversible one.
It is also a fact that just as in elections in the Republic of Armenia or anywhere, there are citizens of Artsakh who were hoping for a more substantial change in how Artsakh is governed and who supported non-winning candidates and who are disappointed with the outcome and are also disappointed with Pashinyan’s position.
– Even though Armenia’s Government had claimed that it would not support any of the candidates or parties, there was a noticeable “positive neutrality” towards NK former Prime Minister Arayik Harutyunyan. Moreover, certain circles in Armenia’s elite covertly assisted Harutyunyan, who was also being supported by the outgoing president of Karabakh. In your opinion, was Arayik Harutyunyan “the best option” for Pashinyan? Why didn’t Pashinyan put his cards on the foreign minister, Masis Mayilyan, who has, among other things, an NGO background and, seemingly, whose mindset and values are closer to the revolutionary guys in Yerevan?
– I agree with Tatul Hakobyan’s point in his recent op-ed that Harutyunyan was more successful at lobbying in Yerevan. I see several reasons for that. The political reality of Harutyunyan being able to mobilize his supporters and to bring them to Pashinyan’s rallies in Yerevan in August 2018 or in Stepanakert a year later I think was a real factor. Mayilian could not do anything similar, particularly while in the position of foreign minister. Another argument could be that Pashinyan did not want to lean too publicly in favor of one candidate over another and that left Harutyunyan a favorite over Mayilian. In fact, this is also what happened in local elections — in Kapan in 2018 or last year in Stepanakert. Finally, Harutyunyan has shown greater ability to work with Armenia’s political figures, himself being more of an administrator than a politician. In that sense Pashinyan’s choice in favor of Harutyunyan is not dissimilar to Serzh Sargsyan favoring Bako Sahakyan over Masis Mayilian back in 2007.
– Is it possible Mayilian was in the race to prevent Balasanyan from derailing Harutyunyan’s bid? Without Mayilyan, chances are that this would have been a Harutyunyan vs Balasanyan election, in the first round, and the risks would have been too high for Pashinyan? It would have been seen as a proxy battle?
– No, I think Mayilian had his own ambitions and election results showed that he was in the best position to lead the pro-reform constituency in Artsakh. Another thing is that he was unable to assemble a broad coalition to successfully challenge Harutyunyan. Balasanyan had similar and even more obvious problems in that sense.
If Mayilian were not in this race for whatever reason, Harutyunyan would have most likely won with a larger margin.
– Now it is certain that Arayik Harutyunyan will be Karabakh’s next president. However, it is still unclear how he will form a government since his party only won 16 seats in the 33-member National Assembly. Who do you think he will partner with to form the government?
– I see little intrigue in that sense. With two long-standing partners of Harutyunyan’s party represented in parliament — Ashot Ghulyan’s party and the ARF-Dashnaktsutyun — the likely new president will have majority support in parliament, at least 21 seats of the 33. Harutyunyan has also indicated that he might reach out to his main election opponents. He has options.
– What about Samvel Babayan whose party won nine seats in parliament? And this seems his first successful attempt in politics after he was released from jail in 2004. All his previous efforts had failed – his Alliance party had not overcome the threshold in Armenia’s 2007 parliamentary elections, his advent after the 2016 April war and political ambition in Karabakh also got him another year in jail. What is Babayan’s ambition in politics now?
– I would note that this is actually a second successful political campaign for Samvel Babayan. Back in 1999, when he was still NKR’s defense minister, Babayan actively supported the Right and Unity Bloc (Artashes Geghamyan / Hrant Khachatryan) that came third in Armenia’s parliamentary elections.
This election has confirmed Babayan as the main alternative to Arayik Harutyunyan, notably that it was his party that made it into parliament rather than the New Artsakh bloc affiliated with Mayilian. Babayan will also have a larger faction than Vitaly Balasanyan, although Balasanyan came in third in the presidential race..
If we draw a parallel with Yerevan, Babayan is in a position similar to that of former president Levon Ter-Petrossian in Armenia before 2007 when, formally, the opposition was led by other figures while Ter-Petrossian had no formal role. We’ll see to what extent Babayan will be comfortable with this informal role and for how long. There was a risk that as with Ter-Petrossian’s return in 2008, Babayan’s return this year could lead to some clashes with Harutyunyan’s supporters. After all, there had been small-scale altercations between their supporters in 2019, and Babayan sounded firm about stopping Harutyunyan’s candidacy. So it is probably one of this election’s major achievements that they did not clash.
Because of this, I think some sort of coalition arrangement between Babayan and Harutyunyan should not be ruled out for the future, particularly in case of a possible increase in tensions with Azerbaijan. And there is precedent for that — Bako Sahakyan brought his former election challengers Balasanyan and Mayilian into his government after the war of April 2016.
– Many observers viewed these elections in the context of NK being a “last bastion” for Armenia’s former presidents Serzh Sargsyan and Robert Kocharyan. In your opinion, what will Kocharyan and Sargsyan do now (the latter still having a huge informal influence in NK)?
– I think Balasanyan’s lackluster performance, in spite of fairly robust support from Sargsyan and especially Kocharyan, shows that a majority of Artsakh voters are not easily swayed by the influence of either of the ex-presidents. In fact, if we compare the outcome of Armenia’s 2018 elections with Artsakh’s in 2020, the former ruling party in Armenia, the Republican Party together with the ARF – the forces in opposition to Pashinyan’s government — combined had over 100,000 votes. In that sense Kocharyan’s and Sargsyan’s support bases will remain where they continue to reside, in the Republic of Armenia, and their future political performance will be directly dependent on the successes and failures of Nikol Pashinyan’s government.
– There were numerous calls in NK and Armenia to postpone elections because of the risk of the Coronavirus epidemic spreading. The elections were not postponed and speculation continues over who gained from this? What about the second round when there are already people in Artsakh who have tested positive, since the elections?
– It is my conviction that it was wrong to hold the March 31 vote considering the emergency declared in Armenia and international shutdown over Covid-19. It would have made all the sense in the world to postpone the vote by 2-3 months. However, both Harutyunyan and Pashinyan insisted on going ahead, in spite of the risks that the voting process carried. On March 31, we could see that the majority of Artsakh voters supported this position and the voting was held reasonably well under the circumstances, though of course this became another missed opportunity in terms of foreign policy. Postponing the vote would have demonstrated that Karabakh is in line with global thinking, and make it possible for foreign observers to participate in large numbers. Foreign governments and NGOs could have seen regular civic processes at work. None of this was possible under emergency conditions.
Now that it’s over, and Mayilian has effectively conceded to Harutyunyan and the second round has become a mere formality without campaigning or competition, I am not as concerned about it being held on time. Overall, it appears that the Covid-19 pandemic is receding around the world, including Armenia, though of course it is not over yet, and it will take months if not years to address its major consequences.
CIVILNET.Russian Mobile Testing Labs Arrive in Armenia; Ter-Petrossian Extends His Support to the Government
CIVILNET.COVID-19: What is the Situation in Europe and Armenia?
By Ani Paitjan
In a statement to the press on April 8, Dr. Hans P. Kluge, World Health Organization (WHO) Director for Europe, said that Europe remains at the center of the COVID-19 pandemic.
According to Dr. Kluge, overall new cases continue to increase in Europe.
“The total number of laboratory confirmed cases was 687,236, including 52,824 people who have sadly passed away as of April 8,” he said.
These data are from 53 countries and seven territories, including Armenia.
The concerning fact for the WHO director is that, worldwide, seven of the top ten countries most affected are located in the European continent, including Spain, Italy, France, the United Kingdom, Turkey and Switzerland.
According to WHO, Armenia is ranked 32 out of 53 in terms of total number of infected cases, while Spain and Italy are in the first and second place with 140,510 and 135,586 cases respectively.
In terms of restrictions imposed by European governments to limit the spread of the virus, Dr. Kluge notes two main trends.
- Following the combination of public health and clinical interventions put in place, some of the countries with community transmission are starting to show signs of a decline in the rate of increase of new cases.
- Other countries are experiencing a rapid increase in cases or fresh surges.
Dr. Kluge stated that they were alarmed for Armenia’s neighbour, Turkey. The country has seen a dramatic increase in virus spread over the last week with 60 percent of cases coming from Istanbul.
Profile of people infected by COVID-19
“We now know that the virus behaves in the same way in Europe and in China – so we are also learning more about how it can be controlled”, noted Dr. P. Kluge.
Infection occurs across all ages, although proportionally less in children under the age of 15. But the burden of severe disease is greater in older people, particularly men, and those with underlying chronic conditions.
“Among those who have sadly lost their lives, two thirds are male, and 95% are over the age of 60. Most of these individuals had one or a combination of underlying conditions: cardiovascular disease (66%), diabetes (29%) and renal disease (21%), ” said Dr. P. Kluge