RFE/RL Armenian Report – 10/08/2021

                                        Friday, October 8, 2021


World Bank Ups Armenian Growth Forecast


Armenia - A construction site in Yerevan, July 2, 2021.


Armenia’s economy is on course to grow by just over 6 percent this year after 
contracting sharply last year, according to the World Bank.

“The economic recovery in 2021 has been faster than anticipated, and the economy 
is likely to return to pre-COVID output levels by mid-2022,” the bank said in a 
report released this week.

“Following a faster-than-expected recovery in [the first half of the year,] the 
projected GDP growth rate for 2021 has been revised to 6.1 percent, up from 3.4 
percent in April 2021,” it said, adding that the economic upswing will continue 
to be primarily driven by private consumption.

The International Monetary Fund has also signaled a significant improvement of 
its economic outlook for Armenia. A senior IMF official, Nathan Porter, forecast 
last month a 6.5 percent growth rate after holding virtual talks with Armenian 
officials.

The Armenian economy shrunk by 7.6 percent last year due to the coronavirus 
pandemic and the war with Azerbaijan.

The Armenian government had projected modest economic recovery until this 
spring. It now expects much faster growth not only in 2021 but also in the 
coming years.

The government’s five-year policy program approved by the parliament in August 
says GDP should increase by 7 percent annually. And a draft state budget 
unveiled by Prime Minister Nikol Pashinian’s cabinet last week commits Armenian 
tax authorities to increasing state revenue by as much as 25 percent in 2022. 
This would not only finance a 15 percent rise in public spending but also cut 
the country’s budget deficit that widened significantly during last year’s 
recession.

The World Bank report says, however, that Armenian growth will likely slow down 
to 4.8 percent next year and only slightly accelerate in 2023. It also lists 
“downside risks” to this scenario: “limited progress in COVID-19 vaccinations, 
rising COVID-19 cases, geopolitical tensions, and a delayed recovery among major 
trading partners.”

The IMF’s Porter sounded a similar note of caution: “Downside risks remain 
elevated, including from geopolitical tensions, a slowdown in external demand, 
and heightened global financial market volatility.”



Investigators Withhold Details After Former Defense Minister’s Arrest

        • Artak Khulian

Armenia -- Armenian Defense Minister Davit Tonoyan at a news conference in 
Yerevan, April 9, 2019.


Armenia’s National Security Service (NSS) has refused to shed more light on 
corruption charges brought by it against former Defense Minister Davit Tonoyan, 
two generals and an arms dealer arrested in recent weeks.

Tonoyan and businessman Davit Galstian were remanded in pre-trial custody on 
September 30 after being charged with fraud and embezzlement that cost the state 
almost 2.3 billion drams ($4.7 million). Both men rejected the charges and asked 
Armenia’s Court of Appeals to set them free.

The two other suspects are a deputy chief of the Armenian army’s General Staff 
and the commander of its Air Force. The NSS claims that the generals abused 
their powers to arrange for personal gain a $4.7 million contract for the supply 
of outdated rockets to the armed forces.

The security service said last month that a private intermediary, presumably 
owned by Galstian, delivered those rockets to Armenia in 2011 and that the 
Defense Ministry refused to buy them after discovering that they are unusable. 
It has yet to clarify just when the ministry changed its mind and decided to 
purchase the faulty ammunition.

Seyran Ohanian, Armenia’s defense minister from 2008 to 2016, again insisted on 
Friday that the rockets were not accepted by the military during his tenure. 
Ohanian, who is now a senior opposition lawmaker, said the rebuff forced their 
supplier to store them at a Defense Ministry arms depot.

“The supplier was obliged to obtain an [export] license and decide their fate 
over the next years,” he told a news conference. “But my guess is that the 
company failed to get the license because the rockets were faulty. You should 
ask them, not me, about that.”


Armenia -- Prime Minister Nikol Pashinian and Defense Minister Davit Tonoyan sit 
in the cockpit of a Su-30SM fighter jet at an airbase in Gyumri, December 27, 
2019.

The NSS questioned Ohanian as a witness in the case earlier this year. It 
refused on Friday to clarify whether Prime Minister Nikol Pashinian will also be 
summoned for questioning.

Citing the secrecy of the ongoing probe, the NSS also declined to specify the 
date of the supply contract signed by the Defense Ministry or give other details.

Pashinian appointed Tonoyan as defense minister days after coming to power in 
May 2018. Tonoyan was sacked in November 2020 less than two weeks after a 
Russian-brokered agreement stopped the Armenian-Azerbaijani war over 
Nagorno-Karabakh.

Some senior pro-Pashinian parliamentarians blamed him for Armenia’s defeat in 
the six-week war. The prime minister faced angry opposition demonstrations at 
the time.



Ruling Party, Opposition Deadlocked Over Parliament Post

        • Gayane Saribekian

Armenia - Artur Ghazinian of the opposition Hayastan bloc attends a meeting of 
the Armenian parliament committee on defense and security, September 22, 2021


The ruling Civil Contract party confirmed on Friday plans to pass legislation 
that would block further attempts to install an outspoken opposition lawmaker as 
deputy chairman of a key standing committee of Armenia’s parliament.

Armenian law entitles opposition members to heading three of the 12 parliament 
committees. It stipulates that the deputy chairpersons of several other 
parliamentary panels should also represent the opposition minority in the 
National Assembly.

The main opposition Hayastan alliance nominated this summer one of its deputies, 
Artur Ghazinian, as deputy head of the parliament committee on defense and 
security. He was also backed by the Pativ Unem bloc, the second parliamentary 
opposition force.

Seven members of the 11-member committee representing Civil Contract first 
blocked Ghazinian’s appointment on August 31. Hayastan responded by 
re-nominating him for the vacant post for five more times.

On each of those occasions, the pro-government deputies voted against Ghazinian 
after attacking him during tense committee meetings. Some of them cited 
Ghazinian’s harsh criticism of Prime Minister Nikol Pashinian’s handling of last 
year’s war in Nagorno-Karabakh.

Ghazinian has continued to hold Pashinian responsible for Armenia’s defeat in 
the six-week war that left at least 3,800 Armenian soldiers dead. Hayastan and 
Pativ Unem have made clear that they will continue to back his candidacy.

Vahagn Aleksanian, a Civil Contract deputy, said on Friday that the 
pro-government majority has started drafting amendments to the parliament’s 
statutes which would not allow parliamentary groups to nominate the same 
lawmaker for a vacant post for more than two times.

Pativ Unem’s Tigran Abrahamian denounced the initiative. “It’s not the 
authorities’ whims that must determine who will be our candidate for the 
position,” he told journalists.

Aleksanian said there are “many reasons” why Ghazinian’s appointment is 
unacceptable to Pashinian’s party. In particular, he said, Ghazinian did not 
serve in the Armenian army and lacks “elementary” knowledge of military issues.

Aleksanian downplayed the fact that Pashinian too did not serve in the armed 
forces.

Under the Armenian constitution, the prime minister becomes the army’s 
commander-in-chief in times of war.


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