Politics 15:11 06/03/2023 Armenia

Armenian government mulls sale of its stake in ZCMC?

The Armenian government may be considering selling its stake in the Zangezur Copper Molybdenum Combine (ZCMC), Pastinfo reports.

In late 2022, the government decided to hand over its 21.9% stake in the mining giant to the State Property Management Committee of the Ministry of Territorial Administration and Infrastructures for management, without giving any reason. The shares were previously managed by the Armenian National Interests Fund (ANIF).

According to Pastinfo’s sources, members of the ruling team have different approaches to the government’s stake in ZCMC “acquired as a result of a deal causing corruption allegations”, and the sale of the shares is widely discussed.

On September 30, 2021, the Industrial Company, a wholly owned subsidiary of Russian billionaire Roman Trotsenko’s GeoProMining Gold, acquired 60% of ZCMC and immediately donated a quarter of that stake to the Armenian government.

The 15% stake was first managed by Prime Minister Nikol Pashinyan’s office. Later on 5 January 2022, it was handed over to ANIF for trust management.

At a weekly cabinet meeting on 24 August 2022, Pashinyan revealed that the firm called AMP Holding had secretly donated its 6.8% stake in ZCMC to the government. The premier said AMP asked the government at the time not to publicize the transfer due to “commercial issues.” The 6.8% stake was also handed over to ANIF for management.

“In December 2022, the Armenian government again changed the body managing its shares. Apparently, there were disagreements in ANIF, whose Board of Directors includes foreign members, regarding the stake management, and its chairman Tigran Avinyan did not succeed in concealing the corruption allegations concerning the transaction. Thus, the government decided to hand over its 21.9% stake in ZCMC to the State Property Management Committee of the Ministry of Territorial Administration and Infrastructures,” Pastinfo writes.

The media outlet undoctors that the committee is also entitled to wholly or partially sell the state-owned shares of commercial organizations.

“This means the government can and will most likely put up its stake for sale, especially when the idea is backed by many government members. It’s worth noting that the EU or the US Embassy, which have always talked about the fight against corruption, democracy, freedom of speech and protection of fundamental human rights, have recently turned a blind eye to the incumbent authorities’ corrupt practices, bringing the political element to the foreground. That is, as long as Nikol Pashinyan's administration pursues the expected foreign policy, its corruption offences will be "forgiven". However, the stance of leading international organizations on the matter is a bit different. While showing loyalty, they cannot turn a blind eye to the scandalous cases and have eventually recorded Armenia’s retreat in the fight against corruption under the current government,” Pastinfo says.

Transparency International downgraded Armenia’s position in its annual survey of corruption perceptions around the world, pointing to “worrying signs” in the country.

Armenia ranks 63th out of 180 countries and territories evaluated in the watchdog’s 2022 Corruption Perception Index (CPI) released in January. It occupied 58th place in the previous CPI released a year ago.

“Experts believe the retreat in international rating is attributed, among other things, to the ZCMC deal and the secret donation of its shares to the government. Some government members have expressed deep concern that the stake sale may trigger greater criticism from international non-governmental organizations, although there are already potential buyers, including one of the pro-government oligarchs, who may help in a possible redistribution of the shares among Civil Contract members,” the report adds.



Source Panorama.am
Share |

Newsfeed

13:11
Temps to plummet in Armenia
Clear weather is expected in Armenia's regions on Friday and over the weekend. Rain and snow are forecast for most parts of the country...
12:32
Alexis Ohanian showcases rare Armenian coin
Reddit co-founder Alexis Ohanian has showcased a rare Armenian coin from 95 BC featuring Tigranes the Great, a famous Armenian king....
12:16
German foreign minister criticizes Azerbaijan's human rights record
German Foreign Minister Annalena Baerbock criticized the human rights record of Azerbaijan during her first appearance at the UN Climate Change...
12:06
Minister shares new images captured by Armenia's first satellite
Armenia's Minister of High-Tech Industry Mkhitar Hayrapetyan has shared new satellite images from orbit captured by ARMSAT-1,...
11:36
World Cadet Chess Championship passes its halfway mark
The 2024 World Cadet Chess Championship has passed its halfway mark in Montesilvano, Italy. After 6 rounds, in the Open 12 category CM...
11:15
Iran to launch 'new and advanced centrifuges' in response to IAEA censure
Iran said Friday it would launch a series of "new and advanced" centrifuges in response to a resolution adopted by the IAEA that...
11:00
Armenian, Iranian foreign ministers hold phone call
Armenian Foreign Minister Ararat Mirzoyan on Thursday had a telephone conversation with his Iranian counterpart Seyed Abbas Araghchi....
17:07
Winter military draft starts in Armenia on November 25
The winter conscription for compulsory military service starts in Armenia on November 25 to run through January 31, 2025. The...
16:45
Russian spokeswoman told not to comment on ballistic missile strike live on air
Russia's foreign ministry spokeswoman Maria Zakharova received a phone call during a live press briefing on Thursday telling her not to...
16:33
Belgian politicians call for immediate release of all Armenian prisoners held in Baku
In the backdrop of the COP29 currently taking place in Baku 20 members of the Belgian Federal Parliament, the Flemish Parliament, the Walloon...
16:06
Armenia thwarts large-scale drug smuggling attempt
Officers of Armenia’s State Revenue Committee (SRC) have foiled an attempt to smuggle some 1,600 grams of cocaine into the country as part...
15:33
Armenian government reduces financial aid for Artsakh refugees
The Armenian government on Thursday approved a decision to reduce financial aid for the displaced Artsakh Armenians. Starting from...
14:45
Percival Everett wins National Book Award
Percival Everett has won the $10,000 National Book Award for fiction, one of the US’s most prestigious literary prizes, for James, his...
14:35
Pyunik v West Armenia match canceled
An Armenian Premier League match between FC Pyunik and West Armenia has been canceled. The 17th round match was scheduled for November 21....
14:06
Armenian Foreign Ministry denies cooperation with Azerbaijan on water management
Armenia’s Foreign Ministry has denied claims of cooperation with Azerbaijan on transboundary water resources management. In a social...
13:36
No rain in sight for rest of the week
Clear weather is expected in Armenia's regions from Thursday to Sunday.  Rain and snow are forecast for most parts of the country...
13:06
Pashinyan thanks dismissed officials for cooperation
Armenian Prime Minister Nikol Pashinyan expressed gratitude to the dismissed top government officials for joint work and wished good luck to...
12:36
Armenian church marks Presentation of Virgin Mary
The Armenian Apostolic Church celebrates the Presentation of the Blessed Virgin Mary on Thursday, November 21. According to tradition,...
12:15
Luxembourg's parliament demands immediate release of all unlawfully imprisoned persons in Azerbaijan
Luxembourg’s Chamber of Deputies has adopted a resolution condemning the Azerbaijani government’s sanctions against the freedom of...
12:00
Davit Khudatyan appointed minister of territorial administration
Armavir Governor Davit Khudatyan has been appointed Minister of Territorial Administration and Infrastructure. Armenian President Vahagn...
11:45
Australia launches bill to ban social media for children under 16
Australia's centre-left government on Thursday introduced a bill in parliament that aims to ban social media for children under 16 and...
11:30
Armenia's Andranik Avetisyan wins gold at World Military Wrestling Championships
The 37th World Military Wrestling Championships kicked off in Yerevan, Armenia, on Wednesday, bringing together 400 participants...
11:10
Leopard missing for two years spotted in Armenia's Tavush
A leopard, that lost its front paw and disappered from Armenia's Vayots Dzor Province in December 2022, has been spotted in...
17:09
Armenian political analyst warns of risk of nuclear war
Political scientist Stepan Danielyan has warned of an imminent threat of nuclear war after the Russian nuclear doctrine change. President...
16:45
Rain, snow expected in parts of Armenia
Rain and snow are forecast for some parts of Armenia on Wednesday, overnight Thursday, late on Sunday and next Monday. Clear weather is...
16:22
GM Robert Hovhannisyan qualifies for FIDE World Cup
The European Individual Chess Championship 2024 has concluded. GM Aleksandar Indjic from Serbia became the champion, scoring 9 points...
15:46
Cher reveals she lost her virginity at 14 to get revenge on boyfriend
Cher has revealed she lost her virginity at age 14 as an act of revenge against her teenage boyfriend, The Independent reports. In part...
15:32
Political analyst: Azerbaijan transported weapons to Nakhichevan 5 times in 4 days
Political analyst Sergei Melkonian, a research fellow at the Applied Policy Research Institute (APRI Armenia), says Azerbaijani planes carrying...
15:04
Azerbaijan attempts to distort Energy Charter goals in lawsuit against Armenia
Azerbaijan is attempting to distort the content and goals of the Energy Charter Treaty by trying to link it to the Nagorno-Karabakh conflict,...
14:32
Armenian MP calls for tough response to destruction of Artsakh heritage
Opposition lawmaker Tigran Abrahamyan calls for a tough international response to Azerbaijan’s destruction and desecration of Armenian...

Follow us and get updates!

Most popular articles

{"core.blocks.header.spell_message1":"Selected mistake: ","core.blocks.header.spell_message2":"Send a message about the mistake?"}