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President Sarkissian introduces Armenia’s investment attractiveness to several leading German companies

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Armenian President Armen Sarkissian, who is in Germany on an official visit, on November 28 had a luncheon with the heads of several leading German companies that operate in Armenia or are interested in cooperating with Armenia, the Presidential Office told Armenpress.

The meeting has been organized by the Armenian Embassy in Germany, OWC publishing house, the Eastern Committee of the German economy and the Eastern Europe: The Union of Small and Medium Entrepreneurs.

The meeting in particular was attended by the heads of Zeppelin, Siemens, SAP, Nokia, Schneider Group, Airbus Group and other companies.

President Sarkissian said a number of companies with the German capital are successfully operating in different sectors of Armenia’s economy and expressed confidence that there is a great potential to expand these sectors and deepen the mutual cooperation.

The President said the 21st century is an era of rapid changes, adding that Armenia is a right country because it’s in the right place at a right time. “It’s the right time as we live in the 21st century. It’s an era where everything changes quite rapidly. It’s not a secret that I have completed my book recently which is called “The Quantum Behavior of Global Risks”. By saying quantum I don’t mean that the rules of quantum mechanics can be applied. Quantum supposes that that behavior is no longer the classical one. In the 21st century the changes are dynamic, drastic and dramatic. The measures, which enable to manage and describe the risks in the 21st century, are also not the classical ones and will not be. From this perspective it’s the high time for Armenia”, the President said.

Armen Sarkissian said Armenia has been in the crossroads of civilizations for thousands of years. “This crossroad today can become a bridge as today Armenia is the only country that is a member of the Eurasian Economic Union (EAEU), which means that the country has a market worth over 200 million, rather than 3 million, which includes Central Asia, Russia. In addition, Armenia has also signed deep and comprehensive agreement with the EU, and we want to deepen the relations with this structure. In  other words, Armenia is the only country that has deep relations both with the East and the West. Our country is in the right place”, Armen Sarkissian said.

The President introduced the businessmen on key directions of Armenia’s economy, the investment attractiveness and business environment, the competitive advantages on running a business in Armenia. “Armenia is an interesting place to make an investment. The country has a great potential in different sectors, starting from agriculture up to light industry, banking sector and information technologies”, he said.

At the meeting the heads of the companies operating in Armenia briefed their ongoing programs, as well as the opportunities to expand them.

The President proposed the remaining businessmen of the meeting to visit Armenia to observe and discuss the mutually beneficial cooperation prospects.

 

Head of special service: Over 1,000 interrogations conducted in March 1 criminal case

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YEREVAN. – There have been over 1,000 interrogations in connection with the March 1 case over the recent six months, head of Armenia’s Special Investigation Service Sasun Khachatryan told reporters.

“Over 20 examinations have been appointed and over 40 searches conducted,” Khachatryan said, adding that there were dozen cases of confiscation.

Armenia’s second president Robert Kocharyan is among those charged within the framework of the March 1 criminal case.

Eight demonstrators and two police officers were killed as a result of clashes between the authorities and the opposition on March 1, 2008 in Yerevan. No one has been held accountable for their deaths so far.

 

Should Armenia Grant Citizenship To Foreign Investors?

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By Harut Sassounian
Publisher, The California Courier,
The Acting Prime Minister of Armenia Nikol Pashinyan has made attracting overseas investors the priority of his new government.
 
So far, it is too early to determine if foreign investors are interested in doing business in Armenia. The common explanation for the lack of new investors is that they are waiting for the results of Parliamentary elections scheduled for December 9, 2018. It is expected that the Acting Prime Minister’s political party will win the majority of the Parliamentary seats. Government officials believe that this will encourage foreigners to start investing in Armenia.
 
However, there is an additional way that Armenia can attract new foreign investors relatively quickly by offering them citizenship. Many countries around the world have offered such citizenship opportunities to foreigners, including the United States, Europe and third world countries.
 
Earlier this year, the hetq.am investigative website published an article on Arton Capital, a company that specializes in “citizenship by investment” programs around the world. A delegation from the company visited Armenia last year at the invitation of the International Center for Migration Policy Development. Anton Capital’s website stated after the visit: “the concept of citizenship by investment was embraced by [Armenia’s] high level officials at the Ministry of Economic Development and Investments, the Ministry of Foreign Affairs, the Presidential Administration, the Central Bank, the Police, the State Migration Service and the Center for Strategic Initiatives.”
 
Armand Arton, a Bulgarian-Armenian, is the President of Arton Capital, and Emil Shahmooradian is the company’s Vice President of Business Development. Arton Capital has offices in a dozen countries. On his company’s website, Armand Arton stated: “as a proud Armenian, I am honored to offer my years of professional experience and acute know-how to help the country meet its foreign direct investment goals. In support of its philanthropic commitment, Arton Capital has pledged to donate the consulting fees awarded by the contract to help refugees in Armenia. More than 20,000 Syrians, many of whom are ethnically Armenian, have found refuge in Armenia since the Syrian war began in 2011.”
 
Countries offering such a program require from foreigners different levels of investment to qualify for citizenship. Arton Capital recommends that Armenia require the small amount of $50,000 as a minimum investment for a foreigner to become a citizen. Other countries demand much more from foreign investors with the most attractive countries asking as much as $10 million of investment for citizenship. The Company estimates that Armenia would receive $138 million of additional revenue in the next six years, if it implements the suggested investment for the citizenship program.
 
According to hetq.am, Arton Capital recommended that “Armenia offer potential investors two options: a $50,000 direct contribution to a state-owned fund or a $100,000 investment in a fund run by an asset management company chosen by the government, which would offer the possibility of some return. It further suggests that Armenia sets two types of fees. The first would be a non-refundable processing fee of up to $10,000; the second fee, the amount of which is not specified, would cover background checks into applicants’ records and sources of income.”
 
Arton Capital’s trip report on Armenia “highlights the country’s positives, such as its strong ties to global economic hubs and its geographic and cultural proximity to strategic markets. Armenia offers investors access to Russia and almost all the post-Soviet states, which means around 250 million potential consumers, including in Central Asia – plus almost 82 million more in neighboring Iran, with which the country has friendly relations. And if the country achieves visa-free access to the Schengen zone, which it might in five to seven years, it could justly claim to have recreated its historic role as a stop on the Silk Road linking east and west. As a whole, investors looking for long-term value can be sold on the advantages of Armenia. With [visa-free access] to 60+ countries and its special relationship with Russia together with its geographical proximity with Iran, obtaining an Armenian citizenship will be seen not only as a means to secure one’s future and security, but also as a strategic move for one’s business development and positioning.”
 
Significantly, hetq.am cautioned in its article that some foreigners interested in investing in other countries for the sake of acquiring citizenship can bring with them all sorts of illegal activities, such as tax evasion, money laundering, corruption and organized crime.
 
Armenian government officials have to balance the benefits of the investment for citizenship program with its drawbacks. Foreign applicants have to be thoroughly vetted before being granted Armenian citizenship in return for their investments.
 
Update on Armenian-American Candidates in US Elections
 
In addition to the list of Armenian-American candidates in the U.S. midterm elections that I reported in an earlier article, we should add:
 
— Dick Harpootlian (Democrat) was elected to the South Carolina State Senate on November 6, 2018. He won 52.3% of the votes against his Republican rival Benjamin Dunn’s 47.6%.
 
— Anthony Brindisi (Democrat) was elected a Member of Congress from upstate New York on Nov. 6, 2018, according to the final count of the vote. Brindisi’s great grandparents were born in Mardin, southeastern Turkey and fled during the Armenian Genocide to Aleppo, Syria, where his grandfather was born. As of January 2019, there will be three Armenian-Americans in the U.S. House of Representatives: Brindisi, Eshoo, and Speier.





168 Zham: Turkey and Russia in deal over Karabakh?

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The statements by Ibrahim Kalin, the spokesperson of Turkish President Recept Tayyip Erdogan, give clear signals that Turkey and Russia collaborated very actively in the past to coerce Armenia into concessions, according to an Ankara-based political analyst.

In recent comments to the paper, Cengiz Aktar referred to the processes initiated back in 2008 (“football diplomacy”), and the subsequent Zurich Protocols which he said implied progress over Karabakh. “Russia was very active in that period if you remember – although it was not a Russian initiative. Yet the statement makes clear that there were other developments running parallel with the Armenia-Turkey processes,” he said, commenting upon Kalin’s speech delivered at Ankara Yildirim Beyazit University

According to Paul Stronski, a senior fellow specializing in Russia and Eurasia Affairs at Carnegie Endowment, a Russian-Turkish transaction over Karabakh is absolutely likely albeit not in line with OSCE Minsk Group format”. He said that he even predicts a successful outcome in the region in case of an undermined influence by the West (US and OSCE Minsk Group) and challenges to the Armenian-Russian relations.

Stronski he also highlighted possible changes in the US-Armenia relations, hinting also their future impact on the Nagorno-Karabakh conflict settlement talks. He cited particularly US National Security Advisor John Bolton’s recent statement – expressing hope that there will be chances for a real settlement after the parliamentary elections in Armenia.

Armenian parliament approves 2019 state budget

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The Armenian National Assembly adopted the draft state budget for 2019 at a special session on Thursday.
66 MPs voted in favor of the draft budget, 4 voted against, while 2 abstained.

Ahead of the voting, Republican lawmakers Eduard Sharmazanov, Arpine Hovhannisyan and Armen Ashotyan announced their decision to vote against the bill.

“In spite of the fact that the Republican (HHK) faction has announced it will vote in favor, I accept that opinion, but I will vote against given the fact that this is a regression budget, rather than inertial,” Sharmazanov said.

Republican faction head Vahram Baghdasaryan said the faction MPs are free to vote on the draft budget.

The lawmakers also adopted a draft law on making amendments and supplements to the Labor Code, as well as a bill on ratifying a loan agreement signed between Armenia and the Asian Development Bank on 9 November.

Armenian Authorities deny plans to tax migrant workers’ revenue

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The State Revenue Committee of Armenia has issued a clarification over the initiative on launching a revenue declaration process for individuals, i.e. natural persons.

In response to certain online rumors, The State Revenue Committee said that no bill, or even an idea of taxing the revenues of migrant workers exists.

“The topic on declarations of natural persons is widely discussed in the press and social networks. The State Revenue Committee finds it necessary to inform that prior to introducing the project it should be put for broad public discussion, during which the positive and negative sides of the issue will be raised.

As far as the mechanism on taxing the revenues of citizens who depart for migrant work, no such draft or even idea exists. While the State Revenue Committee president’s response in an interview stemmed from the general principles of taxing revenues received by residents (revenues received by Armenian or foreign sources), however this doesn’t mean that their revenues will be subject to taxation or that any similar project is being discussed”, the State Revenue Committee said in a statement.

 

Armenia: New law to enable students to pay tuition fees on a monthly basis

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A new bill envisages enabling students of universities to pay their yearly tuition fees on a monthly basis.

The bill on amending the law on education was approved today at the parliamentary committee on science, education, culture, youth and sports affairs.

The bill will be included in the next plenary session of parliament.

MP Tigran Urikhanyan said the issue has been raised numerously by students.

 

The Armenian Military Prosecutor’s Office has revealed substantial violations of the acquisition, maintenance and use of material resources in the Armed Forces engineering forces and services

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YEREVAN, NOVEMBER 6,  The RA Military Prosecutor’s Office carried out an in-depth study of state protection of state interests in the process of acquisition, maintenance and use of material resources by the engineering services of the Armed Forces Engineering Departments and subdivisions of the Armed Forces.
The Prosecutor General’s Office of the Republic of Armenia informed “Armenpress” that the aim was to find out the existence and operation of material resources of the Armed Forces of the Armed Forces of the Republic of Armenia, the existence of violations and abuses in the organization of the service, the causes and conditions contributing to their formation, the legality of the operation of technical and other equipment, the existence of the damage caused to the state and non-recoverable damages, the official duty of officials issued non-performance, improper performance of circumstances.

2018 In the first half of the year 11 cases of sampling were registered in 10 cases, which caused damage to the state made about 50 million drams. According to the results of investigations, criminal cases have been instituted on 7 cases of violation.

The results of the study indicate that recorded violations, abuses and shortcomings refer to almost all aspects of service organization, acceptance, storage, distribution, use of material resources, etc.

Particularly, the study of the State Interests Protection Department of the RA Central Military Prosecutor’s Office revealed that in 2014-2016, In the course of the contractual prices for separate engineering services, the contractual prices have been exaggerated or a service renovation has been presented in documents twice, including being in another work.

Studies conducted in 5 military units have revealed that during the years 2015-2018, fraudulent documents have been formulated for non-performing marching, heavy duty vehicles or vehicles, with a large amount of fuel consumed, and the speedometer has been added kilometers, reported in fact unfulfilled works: As a result, the state has caused large and particularly large damage to each case. As a result of only one study, the initial damage to the state makes about 23 million drams. Criminal cases have been instigated on the crimes provided for in Articles 1 and 375 of the Criminal Code of the Republic of Armenia. The investigation is underway.

According to a study carried out in another military unit, factual data has been obtained that the Ministry of Defense of the Republic of Armenia, with the exception of the right of subsoil use, provided a large amount of diesel fuel for the transportation of red sand, with a large part of the total value of 14.646.000 Armenian drams There is no data on the location and purpose of the use, which can prove to be in reality a smaller amount of red sand and the addition of diesel fuel at a total cost of AMD 2,582,300. The criminal case was initiated based on the crime described in Article 291 (2) and (179) of the RA Criminal Code.

A study conducted by the State Interests Protection Division of the RA Central Military Prosecutor’s Office has also provided data on the fact that in 2014-2016, During the period, the prices for purchase contracts with the total value of AMD 403.699.900 concluded with two organizations for the purchase of spare parts for the engineering equipment are exaggerated. There have been no unusual cases when the same products were sold by the provider to other organizations at a substantially lower price than the contractual prices with the RA Ministry of Defense. The results of this study were also sent to the DNC of the Investigative Committee of the RA.

The RA Military Prosecutor informed the RA Minister of Defense on the detected violations. In addition, a number of assignments were given to garrison military prosecutors in order to ensure more effective and coordinated work on the protection of state interests in the Armed Forces’ military forces and other relevant military units. Particularly, the task is to work closely with the military police units and other operational bodies of the Ministry of Defense to investigate operative information from the bodies regarding property and non-property interests of the state and to plan future actions based on them. Additionally, it was also instructed to be consistent in the detriment of the property interests of the state,

Source: ARMENPRESS

Rudy Giuliani: Armenia may become a 90-98% cyber-safe country

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Armenia may become a 90-98% cyber-safe country, said the former mayor of New York, US cybersecurity adviser Rudy Giuliani.

His remark came on Tuesday at the III International Forum of the Eurasian Partnership (IEPF) held in Yerevan.

According to him, ensuring cybersecurity is a top priority for Armenia, since the country has a population of three million and a geographically small territory.

It is easier for Armenia to develop a scheme for protection against cyberattacks than for the whole of Europe.

To ensure cybersecurity at the elementary level, it is necessary to build a pyramid scheme and implement primary protection from the outside, Giuliani added.

According to him, addressing the issue of ensuring protection against cyber attacks is a top priority for each country.

For the US, cybercrime poses a more serious threat than theft and abduction, he sad adding that in the developing countries of Europe and Asia, cyber attacks are also gaining momentum, which has its own reasons.

As reported earlier, the Eurasian Week annual business forum of the Eurasian Economic Union (EAEU) has gotten underway Monday in Yerevan, the capital city of Armenia.

The event will bring together sectoral deputy PMs and ministers of the governments of EAEU member and partner countries, as well as the heads state-owned corporations and leading businesses.

An important event of this forum will be the exhibition of the EAEU export and cooperation potential. More than 120 companies will participate in this exhibition.

The Eurasian Week will conclude on Wednesday.

The Eurasian Economic Union comprises Armenia, Russia, Belarus, Kazakhstan, and Kyrgyzstan.