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    Categories: 2019

RFE/RL Armenian Report – 05/06/2019

                                        Monday, 

Tsarukian Responds To Government, Denies Breaking Law

        • Gayane Saribekian

Armenia - Prosperous Armenia Party leader Gagik Tsarukian holds an election 
campaign meeting in Gyumri, December 6, 2018.

Prosperous Armenia Party (BHK) leader Gagik Tsarukian on Monday dismissed 
pro-government lawmakers’ claims that he may be engaged in entrepreneurial 
activities in breach of Armenia’s constitution and laws.

Tsarukian responded to parliament speaker Ararat Mirzoyan in writing as he 
risked being stripped of his parliament seat because of the alleged violation.

The ruling My Step alliance led by Prime Minister Nikol Pashinian implicitly 
threatened last week to expel Tsarukian from the parliament amid mounting 
tensions with the BHK, which controls the second largest group in the National 
Assembly.

In a letter to Tsarukian, Mirzoyan said there are “legitimate concerns” and 
“reasonable” doubts about the BHK leader’s compliance with a constitutional 
provision that bars parliament deputies from engaging in business. The speaker 
publicized the letter on Thursday just hours after law-enforcement authorities 
pledged to investigate a small pro-government party’s claims that Tsarukian is 
flouting that ban.

Tsarukian and his associates had long denied such claims, saying that while he 
owns dozens of businesses they are not run by him on a day-to-day basis. The 
tycoon reiterated these assurances in a detailed written response to the 
speaker released by his spokesperson.

“I do not hold any position in any of the commercial firms founded by me and do 
not personally participate in their management,” he wrote. “Therefore, I object 
to your evaluations regarding the subject matter formulated as ‘justified 
concerns’ and ‘reasonable suspicions.’”

Tsarukian said that the “artificial” questions raised about his business 
interests are aimed at tarnishing his reputation.He claimed that he has never 
used his 16-year-long membership in the parliament to further those interests.

Mirzoyan and other critics have cited, among other things, Tsarukian’s recent 
calls for the government to impose hefty tariffs on imports of cement to 
Armenia. The tycoon owns the country’s largest cement plant which is 
increasingly struggling to compete with cheaper cement imported from 
neighboring Iran. He has warned that it could lay off the vast majority of its 
1,100 workers.

Tsarukian insisted that he is primarily concerned about the fate of those 
workers, rather than profits made by the Ararat Tsement plant. He also said 
there is nothing wrong with his publicized contacts with local and foreign 
businesspeople considering investing in Armenia.

“I have for years used my personal connections and standing solely for the 
development of Armenia’s economy and strengthening of the country,” he added.

Meanwhile, Lilit Makunts, My Step’s parliamentary leader, complained on Monday 
that the existing legal provisions meant to separate business from politics are 
not specific enough. “We must eliminate that loophole as soon as possible,” 
Makunts told reporters.

“The line between business ownership and management is too fine,” she said. 
“Right now it’s impossible to tell what amounts to involvement in business and 
what doesn’t.”



Armenian Businessman Freed From Custody

        • Artak Khulian

Armenia - Davit Ghazarian, the owner of Spayka company, speaks to journalists, 
March 26, 2019.

The official owner of Armenia’s largest food exporting company accused of tax 
evasion has been released from custody after paying the government 1 billion 
drams ($2.1 million).

In a weekend statement, the State Revenue Committee (SRC) said a prosecutor has 
decided to set Davit Ghazarian free because there are no longer “grounds” for 
holding him in detention and because he has made the hefty payment “within the 
framework of the criminal case.” The statement did not give further details.

One of Ghazarian’s lawyers, Arsen Sardarian, told RFE/RL’s Armenian service 
that the businessman was released on Friday, just three days after Armenia’s 
Court of Appeals refused to grant him bail.

Ghazarian’s Spayka company reposted the SRC statement on its Facebook page but 
did not officially comment on the development as of Monday evening.

Ghazarian was arrested one month ago after the SRC charged that Spayka evaded 
over 7 billion drams ($14.4 million) in taxes in 2015 and early 2016. The 
accusations stem from large quantities of foodstuffs which were imported to 
Armenia by another company, Greenproduct. The SRC says that Greenproduct is 
controlled by Spayka and that the latter rigged its customs documents to pay 
fewer taxes from those imports.

Ghazarian has strongly denied any ownership links to Greenproduct. He said on 
April 5 that the SRC moved to arrest him after he refused to pay the alleged 
back taxes.

Sardarian told the “168 Zham” newspaper on Saturday that the tax evasion 
charges against his client have not been dropped and that he might have to make 
more payments to the SRC. “Calculations still need to be done,” the lawyer 
said. “The criminal proceedings will end only when they the calculations are 
over and they reach agreement on that issue.”


Armenia -- A commercial greenhouse belonging to the Spayka company, April 19, 
2017.

Spayka is Armenia’s leading producer and exporter of agricultural products 
grown at its own greenhouses or purchased from farmers in about 80 communities 
across the country. The company employing about 2,000 people also owns hundreds 
of heavy trucks transporting those fruits and vegetables abroad and Russia in 
particular.

In a series of statements issued last month, Spayka claimed that because of 
Ghazarian’s arrest its mainly foreign creditors are withholding further funding 
for the company. It said it may therefore not be able to buy large quantities 
of agricultural produce from Armenian farmers this year.

Prime Minister Nikol Pashinian dismissed those warnings on April 9. He said he 
is confident that the food giant will carry on with the wholesale purchases.

As recently as on March 26, Pashinian attended the inauguration of a cheese 
factory built by Spayka in Yerevan.

Spayka was already fined about 2.5 billion drams ($5 million) for profit tax 
evasion in July last year. Ghazarian said before his arrest that he agreed to 
pay the “unfounded” fine in order to have the company’s bank accounts unfrozen.



Armenian Lawmaker ‘Accused Of Assault’

        • Nane Sahakian

Armenia - Arsen Julfalakian, an Armenian parliament deputy and former world 
wresling champion.

A man in Yerevan reportedly claimed to have been beaten up on Sunday by Arsen 
Julfalakyan, a prominent Armenian wrestler and pro-government parliamentarian, 
and his equally famous father.

Police said on Monday that the 63-year-old man, Sergey Mkhitarian, was taken to 
the city’s Erebuni hospital after suffering physical injuries. The incident is 
being investigated, a police spokesman told RFE/RL’s Armenian service.

The Erebuni director, Mikael Manukian, said Mkhitarian was discharged from the 
hospital after doctors examined him and found that there is “nothing dangerous” 
in his injuries.

According to Shamshyan.com, Mkhitarian claimed that he was punched and kicked 
by Julfalakyan and the latter’s father Levon during a dispute. The Julfalakyans 
were questioned at a police station in Yerevan later on Sunday, reported the 
crime news website.

Mkhitarian did not return phone calls and could not be reached for comment. 
Arsen Julfalakyan denied assaulting him.

Julfalakyan is a former world and European wrestling champion who was elected 
to the Armenian parliament on Prime Minister Nikol Pashinian’s My Step 
alliance’s ticket in December. The 31-year-old still competes for Armenia in 
international wrestling tournaments.

His father is the head coach of Armenia’s national Greco-Roman wrestling team. 
Levon Julfalakyan is also a former Olympic, world and European champion.

Arsen Julfalakyan revealed on Monday that he, his father and Mkhitarian co-own 
a café in Yerevan. They met on Sunday to discuss business, he said, adding that 
Mkhitarian required hospitalization because he “felt unwell” during the 
conversation that was “a bit more tense than usual.”

In a Facebook post, Julfalakyan insisted that “there was no brawl or physical 
violence.” “I can’t imagine what would happen if I (and my father together with 
me) beat up someone, what consequences that could have,” he wrote.



Sharp Pay Rise For Yerevan Mayor Criticized

        • Artak Khulian

Armenia -- Yerevan Mayor Hayk Marutian speaks to journalists, February 15, 2019.

Opposition members of Yerevan’s municipal assembly denounced Mayor Hayk 
Marutian on Monday for planning to double his and his top aides’ salaries.

Under a bill drafted by his office, Marutian’s monthly salary is to rise from 
575,000 drams to 1.2 million drams ($2,500). His deputies would earn 947,000 
drams, a large sum in a country where the average wage stands at 177,000 drams.

The bill also calls for similarly sharp pay rises for other high-ranking 
members of the mayor’s office. Most of them have been appointed by Marutian.

A much larger number of other, lower and mid-ranking municipal workers would 
have their salaries raised by around 30 percent.

Citing this disparity, the two opposition groups represented in the city 
council, the Luys (Light) bloc and the Prosperous Armenia Party (BHK), said 
they will vote against the bill when it is debated later this week.

“The heads of [Armenia’s] National Security Service, police, State Oversight 
Service or State Revenue Committee would get lower salaries than some 
municipality officials,” argued Davit Khazhakian, the Luys leader.

“Regional governors would earn less than deputy heads of Yerevan’s 
administrative districts,” he said. “We have 22 deputy district chiefs.”

The BHK’s Mikael Manrikian also criticized the proposed measures as unfair. 
Manrikian said Marutian should on the contrary double the wages of his 
rank-and-file staffers and opt for a more modest pay rise for himself and other 
senior officials.

The mayor’s spokesman, Hakob Karapetian, dismissed the criticism, saying that 
the uneven increases in salaries are mandated by Armenian law. Karapetian 
claimed that the mayor would have liked to keep his own salary unchanged but 
cannot do so because of those legal requirements.

Marutian has already been under opposition and media fire in recent months over 
a worsening situation with garbage collection in Yerevan. He has pledged to 
significantly improve it in the coming months.

A former TV comedian, Marutian, 42, is a senior member of Prime Minister Nikol 
Pashinian’s My Step alliance. He became mayor as a result of the September 2018 
municipal elections in which My Step won 80 percent of the vote.

The governing bloc controls 57 seats in the 65-member city council, putting it 
in a position to easily enact the controversial bill.



Japan Donates More Fire Engines To Armenia


Armenia -- Japanese fire engines donated to Armenia at a ceremony in Yerevan, 
May 6, 2019.

The government of Japan donated 14 fire engines to Armenia on Monday at a 
ceremony in Yerevan attended by Prime Minister Nikol Pashinian.

Officials said that 22 more such vehicles as well as other firefighting 
equipment will be delivered to the country later this year as part of a $14 
million aid program launched by the Japan International Cooperation Agency 
(JICA) in 2017.

The first batch of those fire trucks will be provided to three provincial 
divisions of the Armenian Rescue Service (ARS). Firefighters in the Shirak, 
Lori and Syunik provinces are already being trained by Japanese instructors, 
according to an Armenian government statement.

The Japanese ambassador to Armenia, Jun Yamada, said outdated firefighting 
equipment used in those regions complicates the ARS’s ability to prevent and 
cope with fires.

“Natural disasters frequently occur in Armenia, which is an obstacle to the 
development of rural areas,” Yamada said in a speech delivered in Armenian. 
“That is why Japan finds it imperative to assist Armenia in the area of 
disaster prevention.”

The Japanese government had already donated 28 fire engines worth $8 million to 
firefighters in Yerevan in 2010.

Speaking at the ceremony, Pashinian thanked Japan for this and other aid 
provided to Armenia since its independence.

“It must be pointed out that Japanese aid has been particularly significant for 
our capacity to guard against natural disasters,” he said. “That includes the 
fight against landslides, seismic stability, modernization of the firefighting 
service and other activities.”

“Armenia is always ready to strengthen friendly relations and cooperation with 
Japan,” added Pashinian. “I believe there are many things that unite our 
peoples.”

Japanese Foreign Minister Taro Kono visited Yerevan and met with Pashinian in 
September.


Reprinted on ANN/Armenian News with permission from RFE/RL
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