Monday, July 04, 2018 Serzh Sarkisian’s Brother Suspected Of ‘Illegal Enrichment’ • Ruzanna Stepanian Armenia -- President Serzh Sarkisian (R) awards a medal to his brother Levon Sarkisian, 22 March, 2016. A brother of former President Serzh Sarkisian and his two children could face prosecution on corruption charges after law-enforcement authorities discovered nearly $7 million held by them in an Armenian bank. The State Revenue Committee (SRC) launched criminal proceedings against them on Friday shortly after announcing that a company linked to Levon Sarkisian has been fined 800 million drams ($1.7 million) for tax evasion. The SRC said that while searching Sarkisian’s home its investigators found documents showing that he, his son Narek and daughter Ani deposited a total of $6.8 million in the unnamed bank “in the second half of 2017.” It said that the ex-president’s youngest brother and Ani Sarkisian failed to disclose these sums to a state anti-corruption body while Narek did not file any income declarations at all. Under Armenian law, such declarations are mandatory for high-ranking state officials and their family members. This legal requirement applies to Levon Sarkisian because he has long worked as ambassador-at-large at the Armenian Foreign Ministry. The Special Investigative Service (SIS), which took over the corruption inquiry launched by the SRC, said on Monday that Sarkisian and his children are now suspected of “illegal enrichment.” Levon and Ani could be also accused of underreporting their incomes and assets, which is also a criminal offence in Armenia. None of the suspects has been formally charged so far. An SIS spokesperson that they all have signed written pledges not to leave the country until the inquiry is over. However, an aide to Levon Sarkisian told RFE/RL’s Armenian service (Azatutyun.am) that he has not been in Armenia for the last twelve days. Armenia - Vachagan Ghazarian empties his bag filled with cash after being arrested by the National Security Service in Yerevan, 25 June 2018. The SIS filed last Wednesday the same criminal charges against Vachagan Ghazarian, Serzh Sarkisian’s longtime chief bodyguard arrested a week ago. Ghazarian carried over $1 million worth of cash in a bag during the arrest. Police found another $1.1 million as well as 230,000 euros ($267,000) in cash when they searched his apartment earlier in June. The National Security Service (NSS), another law-enforcement body, said last week that Ghazarian was also planning to withdraw 1.5 billion drams ($3.1 million) held by him and his wife in a local bank. He claimed that he “forgot” to add these sums to his official income declarations, according to the NSS. Former President Sarkisian has not yet commented on the corruption cases against his relatives and Ghazarian, one of his most trusted individuals. Armenia’s new government has been instrumental in these and other high-profile corruption probes. Prime Minister Nikol Pashinian has repeatedly pledged to “root out” endemic corruption in the country since he swept to power about two months ago. Workers Protest Against Blockage Of Armenian Mining Site • Anush Mkrtchian Armenia - Employees of the Lydian International mining company demonstrate in Yerevan, 2 July 2018. More than 200 Armenian employees of a U.S.-based mining company demonstrated in Yerevan on Monday against the blockage of a massive gold deposit in southeastern Armenia which continued for a tenth consecutive day. The Lydian International company, which had won exclusive rights to develop the Amulsar deposit, said it has suffered millions of dollars in losses and could take legal action if one of the largest business projects in Armenia’s history is disrupted. All roads leading to Amulsar have been blocked since June 23 by a group of residents of nearby communities protesting against gold mining operations planned there. More than 1,400 people working there, many of them also local residents, have therefore been unable to go to work. The protesters already twice blocked workers’ access to the site for several days in late May and early June. Prime Minister Nikol Pashinian urged them to end the protests. He said he will order government inspections of “all metal mines” in the country to verify and, if necessary, ensure their compliance with environment protection norms. Pashinian criticized the renewed road blockade on June 25, warning that it could be deemed an act of “sabotage” against Armenia’s new government. He said Lydian must be allowed to resume its operations pending the findings of an ad hoc government task force that will start inspecting the mining company soon. However, the protesters rejected the appeal, saying that Lydian must immediately halt the construction of its gold mining and smelting facilities at Amulsar, which was due to be completed this fall. Pashinian said on Sunday that all government decisions regarding Amulsar will be based on “irrefutable facts.” He did not say whether he will order the Armenian police to forcibly unblock the mining site. The Lydian employees led by senior company executives in Armenia marched to the prime minister’s office in Yerevan the following morning. They demanded urgent government action against what they see as an illegal obstruction of their company’s operations. “As many as t 1,400-1,500 people earning a living there are now forced to stay at home,” said one of the protesting workers. “If our operations are illegal then let them find a solution to that. If they are legal, then the roads must be reopened so that the people can go back to work.” “We have already suffered $5 million in losses in the last ten days,” Lydian’s chief executive in Armenia, Hayk Aloyan, told RFE/RL’s Armenian service (Azatutyun.am). Armenia - Gold mining facilities constructed by Lydian International company at Amulsar deposit, 18 May 2018. Aloyan insisted that Lydian, which is registered in a British tax haven but headquartered in the U.S. state of Colorado, is not yet considering suing the Armenian state for failing to meet its contractual obligations. He said the demonstration staged by Lydian employees was also a show of support for the Pashinian government’s stance on the Amulsar blockage. Still, Aloyan did not rule out the possibility of legal action. “If we see that the matter is not solved through dialogue, we could appeal to other bodies and try to have our rights restored. But we will keep working with the government [for now.]” Lydian started construction at Amulsar in 2016 after going through a lengthy licensing process administered by Armenia’s former government. It pledged to invest more than $400 million in the deposit and more than triple Armenia’s gold exports which stood at an estimated $100 million last year. Gold production at Amulsar was due to start before the end of this year. It is not yet clear whether the continuing protests there will delay it. Armenian environment protection groups are strongly opposed to the Amulsar project, saying that it would contaminate air and water in the mountainous area. Lydian maintains that it will use advanced technology to prevent any damage to the local ecosystem. The mining project is strongly supported by the U.S. and British governments. The U.S. ambassador to Armenia, Richard Mills, argued last year that it has been deemed “fully compliant” with environment protection standards set by the World Bank and the European Bank for Reconstruction and Development (EBRD). The EBRD holds a minority stake in Lydian. Mills apparently expressed concern over the disruptions when he met with Deputy Prime Minister Tigran Avinian on June 14. According to Avinian’s press office, the U.S. envoy “stressed the importance of the continuation of Lydian Armenia’s activities.” According to the National Statistical Service (NSS), Lydian was the main source of $246 million in foreign direct investment attracted by Armenia last year. Workers Protest Against Blockage Of Armenian Mining Site Հուլիս 02, 2018 • Anush Mkrtchian Armenia - Employees of the Lydian International mining company demonstrate in Yerevan, 2 July 2018. More than 200 Armenian employees of a U.S.-based mining company demonstrated in Yerevan on Monday against the blockage of a massive gold deposit in southeastern Armenia which continued for a tenth consecutive day. The Lydian International company, which had won exclusive rights to develop the Amulsar deposit, said it has suffered millions of dollars in losses and could take legal action if one of the largest business projects in Armenia’s history is disrupted. All roads leading to Amulsar have been blocked since June 23 by a group of residents of nearby communities protesting against gold mining operations planned there. More than 1,400 people working there, many of them also local residents, have therefore been unable to go to work. The protesters already twice blocked workers’ access to the site for several days in late May and early June. Prime Minister Nikol Pashinian urged them to end the protests. He said he will order government inspections of “all metal mines” in the country to verify and, if necessary, ensure their compliance with environment protection norms. Pashinian criticized the renewed road blockade on June 25, warning that it could be deemed an act of “sabotage” against Armenia’s new government. He said Lydian must be allowed to resume its operations pending the findings of an ad hoc government task force that will start inspecting the mining company soon. However, the protesters rejected the appeal, saying that Lydian must immediately halt the construction of its gold mining and smelting facilities at Amulsar, which was due to be completed this fall. Pashinian said on Sunday that all government decisions regarding Amulsar will be based on “irrefutable facts.” He did not say whether he will order the Armenian police to forcibly unblock the mining site. The Lydian employees led by senior company executives in Armenia marched to the prime minister’s office in Yerevan the following morning. They demanded urgent government action against what they see as an illegal obstruction of their company’s operations. “As many as t 1,400-1,500 people earning a living there are now forced to stay at home,” said one of the protesting workers. “If our operations are illegal then let them find a solution to that. If they are legal, then the roads must be reopened so that the people can go back to work.” “We have already suffered $5 million in losses in the last ten days,” Lydian’s chief executive in Armenia, Hayk Aloyan, told RFE/RL’s Armenian service (Azatutyun.am). Armenia - Gold mining facilities constructed by Lydian International company at Amulsar deposit, 18 May 2018. Aloyan insisted that Lydian, which is registered in a British tax haven but headquartered in the U.S. state of Colorado, is not yet considering suing the Armenian state for failing to meet its contractual obligations. He said the demonstration staged by Lydian employees was also a show of support for the Pashinian government’s stance on the Amulsar blockage. Still, Aloyan did not rule out the possibility of legal action. “If we see that the matter is not solved through dialogue, we could appeal to other bodies and try to have our rights restored. But we will keep working with the government [for now.]” Lydian started construction at Amulsar in 2016 after going through a lengthy licensing process administered by Armenia’s former government. It pledged to invest more than $400 million in the deposit and more than triple Armenia’s gold exports which stood at an estimated $100 million last year. Gold production at Amulsar was due to start before the end of this year. It is not yet clear whether the continuing protests there will delay it. Armenian environment protection groups are strongly opposed to the Amulsar project, saying that it would contaminate air and water in the mountainous area. Lydian maintains that it will use advanced technology to prevent any damage to the local ecosystem. The mining project is strongly supported by the U.S. and British governments. The U.S. ambassador to Armenia, Richard Mills, argued last year that it has been deemed “fully compliant” with environment protection standards set by the World Bank and the European Bank for Reconstruction and Development (EBRD). The EBRD holds a minority stake in Lydian. Mills apparently expressed concern over the disruptions when he met with Deputy Prime Minister Tigran Avinian on June 14. According to Avinian’s press office, the U.S. envoy “stressed the importance of the continuation of Lydian Armenia’s activities.” According to the National Statistical Service (NSS), Lydian was the main source of $246 million in foreign direct investment attracted by Armenia last year. Another Member Of Former Ruling Party Quits As Mayor • Karlen Aslanian Armenia -- Elections of the mayor of Hrazdan, 17Apr2016 The municipal council Hrazdan, a town in central Armenia, unanimously accepted on Monday the resignation of its longtime mayor affiliated with former President Serzh Sarkisian’s Republican Party (HHK). Aram Danielian, who has run Hrazdan for over 15 years, is the third HHK-affiliated mayor who has stepped down since the recent change of the country’s government.Unlike the mayors of Armavir and Echmiadzin, he has not faced street protests by local residents. Explaining his decision, Danielian said he wants to make sure that “the town doesn’t suffer” as a result of regime change in Yerevan. “A new political force has come to power and it now wields financial resources and administrative levers,” he told RFE/RL’s Armenian service (Azatutyun.am). “That is why I found it necessary to cede my post to a representative of [Prime Minister Nikol Pashinian’s Civil Contract] party who could solve the town’s problems.” Danielian said at the same time that he was “advised” to resign by Romanos Petrosian, the new governor of the Kotayk province of which Hrazdan is the administrative center. Petrosian, who is a Civil Contract member, admitted that he “urged” the mayor to quit. Under Armenian law, a fresh mayoral election must be held in Hrazdan later this year. The town will be governed by an interim mayor appointed by the central government until then. The government has not yet named Danielian’s temporary replacement. According to some press reports, a 25-year-old son of Sasun Mikaelian, a prominent Civil Contract member based in Hrazdan, could become its next mayor. Mikaelian, who is also a parliament deputy, was Danielian’s main challenger in the last mayoral election held in 2016. He accused the incumbent of buying votes and abusing administrative resources. The HHK denied the allegations. Danielian was again put on the defensive last year after his teenage son Razmik was charged with running over and killing a man with a car belonging to the Hrazdan municipality. The 16-year-old had no driving license because of his young age. He not only avoided imprisonment but was also among more than 100 schoolchildren who received medals for academic excellence from Serzh Sarkisian later in 2017. Sarkisian’s decision to hand the state award to Razmik prompted strong criticism from independent Armenian media outlets. Some commentators portrayed it as further proof of impunity enjoyed by senior government officials, their cronies and relatives. Press Review (Saturday, June 30) “Azerbaijan has no idea what it can expect from these [new Armenian] government on the battlefield,” Pavel Felgenhauer, a Russian military analyst, tells “168 Zham.” He speculates that Baku now hopes to ascertain Yerevan’s “intentions” and test the latter’s “real strength” by heightening tensions in the Nagorno-Karabakh conflict zone. “Zhamanak” looks at a set of amendments to the Armenian Electoral Code that have been drafted by an ad hoc team set up by Prime Minister Nikol Pashinian. One of those amendments would lower the vote threshold for winning seats in Armenia’s parliament to 4 percent for political parties and 6 percent for alliances. “On the one hand, it would allow us to have a more representative parliament,” comments the paper. “On the other hand, it is hard to tell how a more diverse parliament would contribute to the establishment of a [democratic] political system, especially in Armenia where consolidation of political forces is long overdue.” “Hraparak” notes that none of Armenia’s former presidents has ever been prosecuted or even questioned as a witness in a criminal investigation. “Yesterday Armenia’s law-enforcers broke that taboo,” writes the paper. “They first searched one brother of Serzh Sarkisian, looking for but not finding illegally owned weapons before freeing him. Then the investigative department of the State Revenue Committee (SRC) opened a criminal case against the other brother, Levon Sarkisian. We are sure that the majority of our society will welcome this news as a major step towards the triumph of justice.Indeed, maybe it’s about time everyone in our country, including the most protected individuals and, in particular, members of the family of the country’s leader, realized that everyone is equal before the law.” “Aravot” says that Serzh Sarkisian’s Republican Party of Armenia (HHK) is now the only major political force which is in opposition to Nikol Pashinian’s government. “That party should rid itself of criminal elements in order to stand a chance of becoming normal opposition,” writes the paper. “Other opposition parties will also emerge within a year, before [fresh parliamentary] elections. They must not be labelled as anti-popular or anti-state.” (Tigran Avetisian) Reprinted on ANN/Armenian News with permission from RFE/RL Copyright (c) 2018 Radio Free Europe / Radio Liberty, Inc. 1201 Connecticut Ave., N.W. Washington DC 20036. www.rferl.org