ARMENIA: FUGITIVE BUSINESSMAN COMES IN FROM THE COLD
Marianna Grigoryan

EURASIA INSIGHT
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9/03/09

One of Armenia’s most prominent entrepreneurs, who also happens to be
a major supporter of opposition leader Levon Ter-Petrosian, is now
in custody after spending more than a year in hiding. The fugitive
businessman, Khachatur Sukiasian, has expressed a desire to clear
his name of charges that he helped instigate political violence in
March 2008.

Sukiasian, who is also a member of parliament, surrendered to
authorities on September 2. He had been wanted by police since March 4,
2008, when authorities issued a warrant for his arrest in connection
with his alleged involvement in post-presidential election political
violence. [For background see Eurasia Insight archive]. At least
10 people died during the street fighting in early March 2008. [For
background see the Eurasia Insight archive].

It is expected that Sukiasian will now face trial on charges that he
organized "mass disorder." If convicted, he could face up to 10 years
in prison. Sukiasian is not covered under an amnesty adopted by the
Armenian parliament in June. That measure gave opposition suspects
until July 31 to surrender.

In a statement issued in early July, Sukiasian insisted that he had
"committed no crime." He went on to say that he would vigorously
contest the charges against him. "I’m ready to consistently fight
for restoration of the rights and freedoms of myself and my people
and I believe justice will finally triumph," the statement said.

Until 2007, when he became active in opposition political causes,
Sukiasian was considered one of the most influential entrepreneurs
in Armenia. He led a conglomerate known as the SIL group, which
encompassed a wide variety of businesses, including a pizza parlor
chain, a tobacco distributorship, an insurance agency and a mineral
water bottling plant. Sukiasian built his commercial empire from
scratch during the early years of Armenia’s post-Soviet existence,
a time when Ter-Petrosian was the country’s president.

Starting in the fall of 2007, Sukiasian’s business empire became
embroiled in a variety of tax disputes with the government. "They
[authorities] have been trying to paralyze the work of the whole [SIL]
concern," said Anna Lazarian, a spokeswoman for the conglomerate. "And
it’s continuing right up to today."

Attention in the continuing tax dispute centers on the Bjni mineral
water plant. After being subjected to numerous audits and environmental
inspections, the plant was declared bankrupt in late 2008 and auctioned
by the government after SIL could not, or would not, pay roughly
$14 million in fines. The government’s actions prompted SIL to sue
the state in the European Court of Human Rights. Ara Zohrabyan, an
attorney representing the Bjni plant, said SIL was seeking roughly $300
million in damages, adding that the case could take years to resolve.

Stepan Safaryan, a prominent figure in the opposition Heritage
Party described the criminal case against Sukiasian as "political
punishment." The cases against him and his business empire are designed
to have a chilling effect on other entrepreneurs who might want to
support opposition parties.

"He is not an accidental target," Safaryan said, referring to
Sukiasian.

Editor’s Note: Marianna Grigoryan is a freelance journalist based
in Yerevan.