MFA_Report_on_the_occupied_territories_March_2016_1

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Prime Minister of Armenia Hovik Abrahamyan is a frequent visitor to the occupied territories │Photo from www.gov.am │25 June 2014 President of Armenia visits “Stepanakert Silk plant Co Ltd” in the occupied territories │Photo from www.president.nkr.am │01 September 2014 engaged in such activities. At their meeting on 28 July 2015, Prime Minister H.Abrahamyan of Armenia and Vartan Sirmakes discussed a number of investment projects to be implemented in the occupied territories. Sirmakes promised to contribute to the development of both Armenia and “Nagorno-Karabakh” through various programmes, creating new jobs and ensuring economic activity. Abrahamyan stressed the importance of the projects implemented in “Nagorno- Karabakh”. 505 As mentioned above, Abrahamyan is particularly interested in agriculture development in the occupied territories and is generally believed to be personally engaged, including through his family and friends in agriculture business, as his income disclosures from the sale of agricultural goods indicate. 506 According to the Armenian sources, in 2002, the “Karabakh Telecom CJSC”’s owner Pier Fattushe reportedly concluded a secret deal with the then so-called “president” of the subordinate separatist regime Arkadi Ghukasyan and the former so-called “prime minister” Anushavan Danielyan, in accord with which that company acquired monopoly rights on the IT market and the above-mentioned individuals – shares from company’s profits. According to the same sources, those agents of the separatist regime are not the only ones getting profit from that company. 507 Ghukasyan also reportedly still owns businesses in Armenia. 508 The parasitic system of exploitation of natural resources established in the occupied territories and modelled from the notorious mining practice in Armenia 509 is another example of collusion of the subordinate separatist regime and the private companies, which serves the interests of Armenian and foreign corporations and individuals holding senior positions in Armenia and in the subordinate separatist regime who illegally grant concessions for exploitation in return for private gain. 510 It is unknown to whom the “licenses” for the exploitation of natural resources have been Prime Minister of Armenia Hovik Abrahamyan meets with President of the GeoProMining Group, Roman Khudoly │Photo from www.gov.am │18 December 2015 505 See “Prime Minister Receives Swiss Businessman Vartan Sirmakes”, 28 July 2015, . 506 See “All In the Family: Armenian Prime Minister’s Booming Business Empire”, Hetq.am, 20 October 2014, . 507 See “Who Robs Karabakh”, 13 July 2010, . 508 See “Chorrord Inknishkhanutyun: Former President of Artsakh to sell shares of his companies in Armenia”, Panorama.am, 29 May 2012, . 509 See e.g. “Time for Armenia to Choose: Mining for Development or Systematic Plunder?”, Hetq.am, 30 March 2015, ; and report “Environmental Crime in Armenia”, European Union Action to Fight Environmental Crime-EFFACE, 2015, ; “Why are Armenia’s Natural Resources So Attractive?”, Massis Post, 05 September 2014, . 510 See “Who Armenia’s Natural Resources Belong to”, Lragir.am, 26 March 2013, ; “Russia Seizes Subsoil of Armenia and Karabakh from Oligarchs”, Iragir.am, 11 October 2013, . 79
granted in reality, or how much investment has been made. The true ownership of the mines and other production facilities in the occupied territories is generally unclear, as many companies are subsidiaries of larger conglomerates, oftentimes registered offshore. 511 Even those foreign pro-Armenian organizations and funds, involved in supporting the illegal activities in the occupied territories, admit that transparent investment sources and mechanisms of issuing “licenses” do not exist in the mining sphere. 512 The system of embezzlement established in the occupied territories allows Armenia and its subordinate separatist regime to control wealth generated from the exploitation of resources and share it only with a limited number of select political and military leaders and oligarchs. 513 As a result, the offshore-registered companies gain unrestricted access to the mineral resources in the occupied territories under exclusive preferential conditions and the mining income flows into these offshore companies, as well as to officials in Armenia and the subordinate separatist regime that are reportedly hidden behind these offshore companies. The Vallex Group CJSC, with offshore ties to Cyprus and Liechtenstein, 514 has dubious financial schemes, described by the Armenian sources as “a financial labyrinth”. 515 According to some reports from these sources, a gold mine in the occupied Kalbajar district “belongs” to Bako Sahakyan. 516 Chairman of Vallex Group Valeri Mejlumyan (left) visits ore processing plant at Gyzylbulag mine near Heyvaly village in the occupied Kalbajar district │Photo from www.bm.vallexgroup.am Former Prime Minister of Armenia Hrant Bagratyan confirmed that Armenia has been pillaging the copper deposits in the occupied territories. 517 According to Bagratyan, Surik Khachatryan, Governor of the Syunik district of Armenia, and former President of Armenia, Robert Kocharyan, are involved in ruthless exploitation of the natural resources in the occupied territories and in Armenia. In his words, Kocharyan is behind a German company operating a mine there. Another Armenian report estimated that Kocharyan controls “half of the shadow Armenian economy”. 518 The system of uncontrolled exploitation of natural resources in the occupied territories explains why, despite the sharp decrease in world copper prices (by March 2014, it had dropped to the lowest level in the past four years) that reduced profitability of that trade, 519 copper mining in the occupied territories is continuing with more investments by the Vallex Group CJSC and its subsidiary Base Metals CJSC made into development of new mines. In fact, exports of copper from Armenia in 2014 increased by 12 tons in comparison with the previous year. 520 The Vallex Group CJSC was expecting to raise its mining output to 7 million tons in 2015. 521 511 See “Time for Armenia to Choose: Mining for Development or Systematic Plunder?”, Hetq.am, 30 March 2015, . 512 See “Building A Budget Base: Targeting Growth In Five Karabakh Industries”, Armenian General Benevolent Union, 01 December 2012, . 513 Ibid. 514 See “Teghout: A Contentious Danish Investment in Armenia”, Civilnet.am, 26 September 2014, . 515 See “Teghout’s Offshore Labyrinth and Valeri Mejlumyan’s Business Empire”, Hetq.am, 29 April 2014, . 516 See “Armenian newspaper: Underground recourses of Nagorno Karabakh are exploited by leadership of separatist regime there”, APA News, 14 August 2012, . 517 See “Former PM: With the current, predatory pace of copper deposits exploitation, its reserves in Armenia will be depleted in 10-15 years”, Armingfo.am, 22 December 2011, Retrieved from . 518 See “Whom Kocharyan’s Property Attracts?”, Lragir.am, 21 August 2012, . 519 See “Drop in World Copper Price Hurts Armenia’s Economy”, Hetq.am, 27 March 2015, . 520 Ibid. 521 See “By 2015 Vallex Group to considerably increase ore mining and processing”, Arminfo.am, 27 June 2012, . 80
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Contents A. Introduction 5 B. Execu
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A. Introduction At the end of 1987,
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The OSCE Minsk Group co-chairmen co
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B. Executive Summary The examined e
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Armenian statistical information sh
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thus profit from and support the oc
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programmes that ultimately serve th
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the field commanders. 20 S.Ohanyan
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II. Continued attempts of Armenia t
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the country’s president.” 44 Ar
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the NKR.” 58 According to the Arm
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Armenian public to be a subsidiary
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planning, development of collaborat
Page 30 and 31: Settlement activities in the occupi
Page 32 and 33: and mechanical growth. 134 In 2001,
Page 34 and 35: the separatist regime Arthur Aghabe
Page 36 and 37: Orientation for the newly arrived S
Page 38 and 39: There are reports that Syrian Armen
Page 40 and 41: Armenia’s Dorozhnik LLC company i
Page 42 and 43: as of 2013. Thus, for example, whil
Page 44 and 45: X. Providing products, investments,
Page 46 and 47: in Armenia lack sufficient financia
Page 48 and 49: consists of public figures and busi
Page 50 and 51: percent shares of Armenia's Armswis
Page 52 and 53: Armenia’s Prime Minister Hovik Ab
Page 54 and 55: “Kataro” wine production facili
Page 56 and 57: It is difficult to determine the ac
Page 58 and 59: The Asmaryan family from Syria work
Page 60 and 61: Former Prime Minister Tigran Sargsy
Page 62 and 63: Bako Sahakyan visits agricultural f
Page 64 and 65: Armenia is particularly interested
Page 66 and 67: President of Armenia visits “Trgh
Page 68 and 69: Wheat and other crops harvested in
Page 70 and 71: Back in February 1995, the National
Page 72 and 73: Caterpillar heavy machines are used
Page 74 and 75: 270 tons 460 ). Extracted unprocess
Page 76 and 77: Unprocessed ore form Soyudlu gold m
Page 78 and 79: acquainted with the works there. 48
Page 82 and 83: As far as gold is concerned, Armeni
Page 84 and 85: protection) in the Bashitchay Natio
Page 86 and 87: As of 2015, approximately 460 mines
Page 88 and 89: Juma Mosque in the occupied city of
Page 90 and 91: E. Obligations and Responsibility u
Page 92 and 93: should follow the UN Guiding Princi
Page 94 and 95: No exception or provision for derog
Page 96 and 97: the invoked laws cannot be consider
Page 98 and 99: “One of the cornerstones of the l
Page 100 and 101: Serious breaches of obligations und
Page 102 and 103: Nagorno-Karabakh was unilaterally d
Page 104 and 105: A large number of domestic criminal
Page 106 and 107: F. Urgent Measures to Cease and Rev
Page 108: G. ANNEXES Original designations of
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