Galuzin: Signs of a "property redistribution" for political reasons are being observed in Armenia

ArmInfo. Signs of a politically motivated "property redistribution" are being observed in Armenia. This was stated by Deputy Foreign Minister Mikhail Galuzin, responding to a comment by Russian Security Council Secretary Sergei Shoigu, as reported by the Russian Ministry of Foreign Affairs (MFA).

The latter described the treatment of Armenian enterprises, in which Russia has invested billions, as a corporate raid.

According to the Russian Deputy Foreign Minister, they regularly raise the issue of operating conditions for Russian businesses in Armenia in conversations with their Armenian counterparts. "We have been assured at various levels that domestic investments are not in danger. However, as we see, these statements do not entirely coincide with reality. More and more experts agree that signs of a "property redistribution" are being observed in the republic." "for political reasons," Galuzin noted.

As an example, he cited the ongoing nationalization of Electric Networks of Armenia CJSC, owned by businessman and Strong Armenia party leader Samvel Karapetyan. "The ruling team is trying to justify its actions with slogans of 'fighting corruption,' returning illegally acquired funds to the treasury, and striving to improve the company's efficiency. Their veracity, however, is highly questionable. In reality, this looks more like a politically motivated crackdown on a competitor in the domestic arena. It's telling that before the businessman appeared in the republic's political life, there were no complaints about the company's operations. "At the same time, the new managers, as far as one can judge, have not had much success at the helm of an enterprise in which hundreds of millions of dollars were invested," the Russian Deputy Foreign Minister noted.

Furthermore, he recalled statements by the Armenian leadership about the need to sell the concession of South Caucasus Railway CJSC (SCR), a subsidiary of Russian Railways, to a third country to manage the Armenian railway network. "It is claimed that the Russian presence allegedly deprives Armenia of competitive advantages due to the threat of Western sanctions. In reality, the opposite is true - the Russian company has been investing all its revenues for many years in the maintenance, renovation, and development of the Armenian railway infrastructure. Let me give you some figures. The investments of SCR CJSC "Since 2008, revenues have amounted to 30 billion rubles (approximately $388 million), and taxes have amounted to 15 billion rubles (approximately $194 million). More than 520 km of track have been repaired, while the operational length of the network managed by SCR CJSC is approximately 700 km. 50% of the sleepers have been replaced, and more than 50 structures, including 38 bridges and two tunnels, have been repaired and reconstructed. The company, as an employer, provides employment to more than 2,500 people," Galuzin recalled.

All this, according to him, has allowed Armenia to preserve its strategic asset and create the preconditions for its effective integration into the international transport network. Meanwhile, as Galuzin noted, persistent talk of selling the concession without a convincing explanation of why Russia might need it may indicate an intention to seize and transfer railways for the geopolitical interests of other states. "We are closely monitoring the observance of the legitimate interests of Russian economic operators in Armenia. Violating these interests will not only damage the republic's investment climate but will also provoke a proper response from Russia," the Russian Deputy Foreign Minister concluded.

It should be noted that on September 17, Russian Security Council Secretary Sergei Shoigu stated that an unfriendly approach and outright "double standards" are being adopted toward Russian businesses operating in Armenia, and that what is happening to enterprises and entire industries in which Russia has invested billions can be described as a hostile takeover. In turn, Deputy Secretary of the Security Council of the Russian Federation Alexey Shevtsov stated on September 18 that the Armenian authorities are trying to devalue Russian assets in order to force owners to get rid of them. Shevtsov warned that "such tactics would be a real 'shot in the foot' for the Armenian economy, given that Russian businesses have created tens of thousands of jobs for the republic and effectively manage their assets legally, making a significant contribution to Armenia's GDP."