ArmInfo.Sanitek has filed a lawsuit against Armenia in the International Center for Settlement of Investment Disputes (ICSID) demanding compensation for its investments. This is stated in a statement by the company's management.
According to the source, for almost two years now, the law enforcement system of Armenia, represented by the investigative bodies, the prosecutor's office and the courts, apparently following the instructions of the executive power, has been illegally pursuing the shareholders of the Sanitek group of companies, who are foreign investors. As the authors of the statement note, various criminal cases have been unlawfully initiated against them, which have not been terminated yet. Nevertheless, no charges were brought against any official, no episode of the crime was established, which testifies to the groundlessness of the case. The preliminary investigation is currently not being conducted, the criminal cases have reached a dead end. The aforementioned criminal cases are a continuation of the previous illegal actions of the Yerevan Municipality, which refused to fulfill its payment obligations to the Sanitek group of companies, submitting a number of unsubstantiated lawsuits. In addition to initiating unfounded criminal cases, the prosecutor's office and investigative bodies, at the direction of the Mayor of Yerevan, carried out an illegal process of terminating contracts with Sanitek companies in order to transfer these contracts to a company owned by the municipality. Apart from the fact that the property illegally confiscated from Sanitek was transferred to a newly formed company, the Yerevan Municipality now spends at least 20 percent more money organizing the same services through its own company without paying the relevant taxes, as evidenced by numerous publications. These actions result in the expropriation of Sanitek's investment.
As a result of these actions, the Sanitek group of companies was forced to cease operations and go bankrupt, which led to negative consequences for the company's shareholders. "At the same time, it should be noted that the Sanitek group of companies has repeatedly appealed to the current authorities with a request to return to the negotiation process, expressing their readiness to make additional investments, but unsuccessfully, all appeals and attempts to reach an agreement were unsuccessful. For several months, Sanitek hoped that in the conditions of a devastating war, a catastrophic epidemic, the Armenian government will show goodwill and express a desire to resolve the situation. Nevertheless, the country's authorities continued their policy of refusing any cooperation, leaving Sanitek with no choice but to file a lawsuit against Armenia at the International Center for the Settlement of Investment Disputes (ICSID) against Armenia, demanding reimbursement of tens of millions of dollars of investment, " the company's statement reads.
To recall, on October 3, 2019, it became known about the early termination of the agreement between the capital's administration and Sanitek. The company believes that they were ousted from the market in order to expand the activities of the municipal institution "Garbage collection and sanitary cleaning in Yerevan".