RFE/RL Armenian Report – 01/24/2020

                                        Friday, January 24, 2020

Investigator Denies ‘Political Persecution’ Of Sarkisian
January 24, 2020
        • Naira Bulghadarian

Armenia -- Artashes Mailian, a senior official from the Special Investigatory 
Service, speaks to RFE/RL's Armenian service.

A senior law-enforcement official dismissed on Friday defense lawyers’ claims 
that corruption charges leveled against former President Serzh Sarkisian are 
politically motivated.

The Special Investigative Service (SIS) indicted Sarkisian in early December. It 
said that he “organized the embezzlement by a group of officials” of 489 million 
drams (just over $1 million) in government funds allocated in 2013 for the 
provision of subsidized diesel fuel to farmers.

The SIS claimed that Sarkisian interfered in a government tender for the fuel 
supplier to ensure that it is won by a company belonging to his longtime friend, 
businessman Barsegh Beglarian, rather than another fuel importer that offered a 
lower price. It also charged Barseghian and three former government officials 
during the investigation completed two weeks ago. All five suspects deny the 
accusations.

In a statement released earlier this week, Sarkisian’s lawyers insisted that the 
accusations are baseless and are part of his “political persecution” by the 
current Armenian authorities.

Artashes Mayilian, a senior SIS official who led the probe, dismissed those 
claims as a mere defense tactic. “I have still not heard … any clarifications as 
to what exactly makes the case political,” he told RFE/RL’s Armenian service.

Mayilian also disputed the lawyers’ assertion that Sarkisian enjoys 
constitutional immunity from prosecution. “As it stands, the former president of 
Armenia does not have the right to immunity in connection with that particular 
deed,” he said.

The high-profile case is reportedly based on former Agriculture Minister Sergo 
Karapetian’s incriminating testimony against the ex-president. Karapetian and 
his former deputy Samvel Galstian are among the five suspects in the case.

Sarkisian’s Republican Party of Armenia (HHK) has also condemned the charges as 
politically motivated. It says that the ex-president is prosecuted in 
retaliation for his public criticism of Prime Minister Nikol Pashinian.

Sarkisian, who ruled Armenia from 2008-2018, accused Pashinian’s government of 
jeopardizing democracy and stifling dissent in a November speech at a congress 
of the European People’s Party held in Croatia. He had kept a low profile since 
resigning in April 2018 amid Pashinian-led mass protests against his continued 
rule.

Pashinian has repeatedly implicated Sarkisian, his family and political 
entourage in corruption both before and after coming to power in the “Velvet 
Revolution.”



Armenian Constitutional Court Head’s Home Searched
January 24, 2020
        • Marine Khachatrian

Armenia -- Constitutional Court Chairman Hrayr Tovmasian talks to reporters 
outside his home searched by law-enforcement officers, Yerevan, January 24, 2020.

Investigators searched the Yerevan apartment of Hrayr Tovmasian, the chairman of 
Armenia’s Constitutional Court, on Friday one month after indicting him on 
charges which he rejects as politically motivated.

They did not confiscate any documents kept there, according to Tovmasian and his 
lawyers.

Tovmasian was charged with two counts of abuse of power. Prosecutor-General 
Artur Davtian said late last month that he unlawfully privatized an office in 
Yerevan and forced state notaries to rent other premises “de facto” belonging to 
him when he served as Armenia’s justice minister from 2010-2014.

Tovmasian strongly denies the accusations, saying that they are part of the 
Armenian government’s intensifying efforts to force him to resign.

The chief justice claimed that officers of the Special Investigative Service 
(SIS) raided his home for the same reason. “The current authorities are seeking 
to quickly get rid of me as chairman of the Constitutional Court, and that is 
being done in a very crude and open manner,” he told journalists after the 
search.

Tovmasian stressed that he has no intention to step down and remains undaunted 
by the possibility of his arrest. “It’s my cross which I have to bear,” he said.

His lawyers claimed, meanwhile, that the search was conducted illegally because 
the SIS investigators failed to give their client a copy of the search warrant 
issued by a Yerevan court. The SIS was quick to deny that.

The law-enforcement agency has brought the same charges against Norayr Panosian, 
a former Justice Ministry official related to Tovmasian. He too denies them.

Panosian was arrested in late September. Armenia’s Court of Appeals freed him in 
early November, questioning the credibility of the charges. The SIS altered them 
before arresting Panosian again on January 9.

The Armenian government and investigators maintain that there are no political 
motives behind the high-profile case.

Prime Minister Nikol Pashinian implicitly demanded in August the resignation of 
Tovmasian and other Constitutional Court judges who were installed before he 
came to power in the 2018 “Velvet Revolution.” He accused them of maintaining 
links with Armenia’s former leadership and impeding reforms which he says are 
aimed at creating a “truly independent judiciary.”

Pashinian’s critics say that he is on the contrary seeking to gain control over 
all Armenian courts.

Tovmasian was indicted on December 27 one day after President Armen Sarkissian 
signed into law a controversial government bill giving seven of the nine 
Constitutional Court judgesfinancial incentives to resign before the end of 
their mandate. None of those judges has accepted the proposed early retirement 
so far.



Opposition Leader Slams Government For Blocking Corruption Probe
January 24, 2020
        • Karlen Aslanian

Armenia -- Bright Armenia Party leaders Edmon Marukian (R) and Mane Tandilian at 
a joint news conference in Yerevan, March 27, 2019.

Opposition leader Edmon Marukian on Friday continued to condemn the Armenian 
authorities for blocking a parliamentary into Yerevan’s municipal administration 
and said they will pay dearly for their stance.

“The key thing is that for the first time after the [2018] revolution they took 
such a high-level step back from democracy,” Marukian told RFE/RL’s Armenian 
service. “They will not get away with this step. I promise you that the 
authorities will regret it.”

Marukian’s Bright Armenia Party (LHK) demanded such an inquiry last month after 
a member of the Yerevan city council affiliated with it, Davit Khazhakian, 
exposed expensive donations made to the municipality.

Khazhakian claimed that private firms donated dozens of garbage collection 
trucks and other equipment in return for construction permits issued by Yerevan 
Mayor Hayk Marutian. Marutian, who is allied to Prime Minister Nikol Pashinian, 
strongly denied such a quid pro quo.

The LHK collected in December a sufficient number of signatures in the Armenian 
parliament for the creation of an ad hoc commission tasked with investigating 
“corruption risks” in the mayor’s office. The parliament’s pro-government 
majority refused to give the green light for the commission’s activities on 
Wednesday, however, sparking a bitter war of words between senior lawmakers 
representing the LHK and Pashinian’s My Step bloc.

My Step parliamentarians said that Armenian law does not allow the National 
Assembly to interfere in the work of local government bodies. They said such a 
commission can only be set up by the city council. Pashinian personally endorsed 
this position.

Marukian again dismissed the official rationale for not investigating the 
municipality, saying that the authorities simply “decided to save their 
teammate” from an embarrassing corruption scandal.

“These people are increasingly losing their heads,” charged the leader one of 
the two opposition groups represented in the current parliament. “They are 
blindly going forward, thinking that the people’s trust is unlimited and 
perpetual and that they can do anything they want.”

Marukian also complained that Pashinian’s political team has failed to 
reciprocate what he described as the LHK’s goodwill towards it. He said his 
party has turned blind eye to many of the current government’s failings for fear 
of a potential “counterrevolution” in Armenia. From now on it will be far more 
outspoken in challenging government policies, added the LHK leader.



Armenian Bank Issues $300 Million Eurobond
January 24, 2020
        • Sargis Harutyunyan

Armenia -- Ardshinbank's chief financial officer, Davit Sargsian, speaks to 
RFE/RL, January 24, 2020.

One of Armenia’s largest commercial banks has issued a $300 million Eurobond to 
foreign investors at a yield of 6.5 percent, citing “positive” economic trends 
in the country.

Ardshinbank announced the sale of the 5-year dollar-denominated bonds on its 
website on Thursday. It is largest ever foreign borrowing operation carried out 
by an Armenian bank.

Ardshinbank’s chief financial officer, Davit Sargsian, said on Friday that the 
bank launched the bond issue after holding a series of meetings with Western 
investors in New York, London, Zurich and Munich last year.

Sargsian said that robust economic growth in Armenia was a key factor behind 
Ardshinbank’s deicision to attract the relatively low-interest funds from 
abroad. “Expectations among our bank’s analysts and foreign analysts are 
positive for 2020 as well,” he told RFE/RL’s Armenian service.

Sargsian also linked the deal to Armenia’s third $500 million Eurobond issue 
announced by the government in September.

Prime Minister Nikol Pashinian hailed Arshinbank’s “unprecedented” deal late on 
Thursday. “This is a foreign direct investment in our economy,” he wrote on 
Facebook. “This is a vivid reflection of our economic revolution.”

Deputy Prime Minister Tigran Avinian said, for is part, that Ardshinbank’s 
external borrowing indicates foreign investors’ growing interest in the Armenian 
economy.

“This is also a very positive signal in terms of the development of the capital 
market,” Avinian told RFE/RL’s Armenian service.

As of late December, Ardshinbank held 678.6 billion drams ($1.4 billion) in 
combined assets.


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