2021 December 9

Daily news wrap-up

Dec/9/2021: Ex-police chief Gasparyan & family charged w/laundering __ Gov't to boost diamond exports __ Drones & labs __ North-South & regional routes __ Ex-captives charged w/violating mil. order __ Illegal building bill __ Solar & Fruit dryer __ Constitutional Court verdict on MP __ CIS bills
by ar_david_hh

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This is your 16-minute Wednesday briefing in 4121 words.

government will establish a new "Arm-Almast" CSJC diamond company to boost processing and exports

Official: it's for developing the strategically important diamond business, promoting exports to EAEU and third countries, attracting investments for future expansion, and to find new cooperation avenues with Russia's "Alrosa" diamond giant.

This will allow annual diamond exports to reach $150M. The field will employ 5,000 people with 20-25 large manufacturers. //

Report: if the company with state participation imports the raw materials and distributes them to local firms, it will address several issues, such as maintaining the principle of equality between firms with different capacities.

Russian Alrosa supported the idea of dealing with a state company. The creation of this new company is being done for that purpose. It will act as a consolidating structure:

1) The company signs agreements with Armenian diamond firms. The company helps the firms by organizing inspections of raw materials in Russian Alrosa.

2) After the inspection phase, if a purchase agreement is reached, the firms transfer the payments to the company, which then deals with Russian Alrosa to finalize the purchase process.

If the firms use these services, they will pay a fee to Arm-Almast. The amount will be decided by the company board, consisting of industry members including those from diamond firms. //

https://armenpress.am/arm/news/1070322.html https://iravaban.net/360933.html

Tags: #diamonds

Sri Lanka wants to do precious stone business with Armenia

Their ambassador (in Moscow) organized a virtual meeting with the Economy Ministry, Armenian importers, and Sri Lankan exporters. "We have the stones, you have the jewelry industry."

https://armenpress.am/arm/news/1070363.html

new one of a kind dried fruit production facility opens in Armenia

Report: Armenia has a new innovative and portable fruit dryer, equipped with a thermal pump, solar heating, water heating, and other modern tech. It's unique in the international market, too.

The mobile station was manufactured by Optimum Energy. It saves 30-60% on energy costs compared to other industry options. It works on electricity, including solar. These savings lower the cost of dried fruits.

The station, which was created with funding from the government and AGBA, was recently purchased by one producer. Favorable loans are being offered to purchase one of these. //

https://armenpress.am/arm/news/1070371.html

anti-corruption: former police chief Vladimir Gasparyan is charged with ֏2B laundering / family members accused of having a field day in defense ministry

Anti-Corruption Committee reports: Gasparyan, being a public official in 2008-2018, abused his powers and committed corruption. He obtained expensive mansions and vehicles that cost far greater than his family's income and attempted to conceal it through various means, including by registering them under friends' names.

Gasparyan's wife, serving as an official at Defense Ministry's Military Police in 2010-2011, did not visit her office and did not work, while Gasparyan and his subordinates ensured that she received ֏17M in salaries.

While serving in other MOD military police positions in 2011-2018, Gasparyan's wife performed her duties improperly for no valid reason, by giving herself vacations to foreign countries, without reporting it [I NEED ONE OF THOSE!]. Gasparyan intentionally allowed this to happen, while paying her ֏19M in salaries illegally.

Gasparyan's daughter also served in the military police in 2015-2018. She never went to work but got paid ֏9M. Gasparyan intentionally allowed this to happen.

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Moreover, while serving as the president of Dinamo sports organization in 2012-2019, Gasparyan conspired with others to forge property documents. They tried to give 1ha Yerevan land and part of Dinamo property to Rafik Hayrapetyan's "Noratsvats Pyunik" soccer club. They weren't able to finish the crime, however, because the cadastre committee blocked the process. It would have caused ֏858M in damages.

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While holding exclusively state positions between 1982-2018, Vladimir Gasparyan appropriated properties that he stole between 2000-2018. In particular, Gasparyan and his family legally earned ֏353M between 1995-2021, but their properties and expenses exceeded ֏2.478B between 2005-2021.

The investigation has revealed that Gasparyan laundered ֏2.116B worth properties with the help of his associates. He is charged with crimes. The investigation continues. //

https://armenpress.am/arm/news/1070323.html

Tags: #VladimirGasparyan

anti-corruption: former mayor of Vardenis is charged with crimes

Investigators: he stole funds meant for low-income families with the help of accomplices. He also allowed for illegal construction to continue. The accomplices have confessed to stealing ֏232M. //

https://armenpress.am/arm/news/1070381.html

Pashinyan participated in the summit for democracy hosted by Joe Biden

Hundreds of world leaders and NGOs will take part in the two-day summit. Pashinyan will give a speech tomorrow.

https://armenpress.am/arm/news/1070387.html

Constitutional Court rules that if you're charged with crimes, then become an MP while in jail, you qualify for MP's immunity

The court has sided with the opposition HD alliance, whose MPs are in jail under the suspicion of election fraud and corruption. The MPs were not yet elected as MPs at the time of their legal problems.

A defendant's lawyer will ask the lower court to free the client, citing the Constitutional ruling.

https://armenpress.am/arm/news/1070382.html

today in history

Today is UN's International Anti-Corruption Day

1883: Western Armenian writer Hagop Oshagan is born.

1918: Armenian and Georgian soldiers clash over disputed territories for the duration of 3 weeks.

1942: Aram Khachaturyan's Gayane ballet is premiered in the theater

1968: Douglas Engelbart displays the computer mouse

1991: Yerevan Karl Marx University is renamed "National Polytechnic University of Armenia".

https://armenpress.am/arm/news/1070273.html

Azerbaijan violates ceasefire on Gegharkunik borders

MOD: Azerbaijan violated the ceasefire on the evening of December 8. The fire was suppressed. No injuries. We urge Azerbaijan to refrain from provocative actions.

Another ceasefire violation occurred today on Gegharkunik borders. The Armenian side returned fire. Two soldiers sustained light wounds. //

Azerbaijan claimed that one of its soldiers was killed during a shootout on the eastern border yesterday.

https://armenpress.am/arm/news/1070288.html https://armenpress.am/arm/news/1070362.html https://armenpress.am/arm/news/1070377.html https://www.armtimes.com/hy/article/227053

Russian Gen. Muratov: Russian peacekeepers will complete their “duty” of returning Armenian POWs

Muratov, who is the former chief peacekeeper in Artsakh and the deputy commander of the Southern Military District of the Russian army, said that there is a "positive understanding" in the issue of repatriating POWs. "The issue must be fully closed."

Pashinyan and Parliament president Simonyan met the Red Cross representative to continue discussions about the need to repatriate POWs.

https://armenpress.am/arm/news/1070308.html https://armenpress.am/arm/news/1070334.html https://armenpress.am/arm/news/1070338.html

authorities arrest 5 of the 10 POWs who recently returned home

As you may recall from previous posts, Parliament president Alen Simonyan said during a private conversation that some of the captives had disobeyed orders on November 16 and were captured while fleeing. Pashinyan also made general remarks about criminal investigations to learn details about how some of the soldiers were captured.

Investigative Committee today: we have arrested five of the 10 captives who were transferred on December 4. The court is discussing their pre-trial arrest. //

The charges are relating Article 365.3: violating the rules of military service which led to severe consequences.

https://armeniasputnik.am/20211209/hh-veradardzats-gerineric-5-in-kalanavvorelu-mijnvordutjun-e-nerkajacvel-36255738.html

two Azeris died from a landmine explosion in the occupied Shushi region

They were conducting repairs in Qarin Tak, reported the Azeri media.

https://armenpress.am/arm/news/1070333.html

Russia: we expect Armenia and Azerbaijan to form the border demarcation commission ASAP

The Sochi agreements have confirmed the readiness of the Armenian and Azerbaijani authorities to take further steps to resolve the situation, said Russian MFA.

In other news, spokeswoman Maria Zakharova said the parties should refrain from making statements that can disrupt ongoing negotiations, when she was asked to comment on Aliyev's public statements about 'corridor'.

https://armenpress.am/arm/news/1070365.html

NGOs condemned death threats towards journalist Tatul Hakobyan over his stance on foreign policy

Lately, Hakobyan has been writing articles about the need to normalize relations with Turkey and neighbors in general, citing historic precedence when ARF placed aside "patriotism" and negotiated with Turkish authorities shortly after the genocide.

Hakobyan believes now is not the right time for Armenians to talk about "Western Armenia".

He recently made remarks which included "Հայաստանն այնտեղ է, որտեղ կանգնած է հայ զինվորը" (Armenia is where the Armenian soldier stands). Certain nationalist figures were not pleased. Videos were uploaded [didn't save the link, sorry], calling Hakobyan a traitor.

Hakobyan said he received death threats but hasn't disclosed from whom, but promised he will file a report soon. He requested police protection.

https://armenpress.am/arm/news/1070351.html

Armenian MFA about the 1948 Convention on the Prevention and Punishment of the Crime of Genocide

MFA: the UN General Assembly adopted its first human rights treaty, about genocide prevention and punishment, on this day in 1948. The Armenian Genocide served as an important precedent for the adoption, which was publicly mentioned by the author Raphael Lemkin.

One of the specific aspects of this Convention is the imposition of a legal obligation on the states parties to the Convention to not only punish but also prevent genocide.

Despite enormous progress, the international community still needs to make further efforts for adequate and timely response, including for condemnation of gross violations of human rights, as well as for holding accountable the states guilty of genocide.

Today there are different methods and tools to commit genocide. Those who justify genocide have not changed their aspiration to achieve geopolitical goals through mass atrocities.

Full: https://armenpress.am/arm/news/1070319.html

CIS republics will establish a unified military communications system

Signed in May 2020, it is yet to be ratified by member states. Some have already done so.

>The initiative will help the military to exchange all types of information in the armed forces' control system. It will involve the resources of all signatory states.

>The transfer and protection of information shall be carried out in accordance with the national laws of the Member State

The government gave a green light to ratify it during today's session.

CIS republics will improve mechanisms to share information about hijacked/wanted vehicles

The government approves the ratification of CIS protocols signed in July 2018, aimed at combatting terrorism and hijackings. The member informs others in the event they find a wanted vehicle.

CIS republics will fight counterfeit products

The government approves the ratification of CIS protocols that aims to prevent the smuggling of counterfeit goods through customs.

https://armenpress.am/arm/news/1070322.html https://qazaqtv.com/en/news/politics/12721-cis-countries-to-establish-unified-military-communications-system https://armenpress.am/arm/news/1070322.html https://armenpress.am/arm/news/1070322.html

job rotations

Nature Minister Romanos Petrosyan has resigned and will lead the State Control Services.

https://armenpress.am/arm/news/1070379.html

post-elections: Pashinyan's and General Babayan's parties form a coalition to govern in two settlements

QP did not cross 50% in Vayk (Aragatsotn) and Artik. QP candidates will become mayors with the support of the Azatakan party.

In Amasia and Ashotsk, QP received the most votes but was unable to form a coalition with local forces, so they won't appoint the mayor.

QP crossed 50% in 15 settlements and received the most votes in 8 others.

https://factor.am/452157.html https://factor.am/452129.html

government will ban the use of old microbus and bus in Yerevan transport once all substitutes arrive

Official: microbuses that are older than 10 years are scheduled to be prohibited as of 1 July 2022. They must be replaced.

The ban applies to hundreds of old buses, and 750 microbuses from which 140 units will turn 15 next year (HAPPY BIRTHDAY!).

To prevent transport disruptions, the old buses will be allowed to operate until the new network, with new buses and trolleybuses, is ready.

https://armenpress.am/arm/news/1070322.html

Yerevan will work with the police to catch drivers that use summer tires in the winter

https://www.armtimes.com/hy/article/227101

MAP: new bypass road will be constructed in Yerevan's Arabkir district

It'll connect Mamikonyants-Aram Khachatryan. The project will cost ֏168M.

It's expected to alleviate traffic on Komitas Avenue, which handles the traffic coming from north and northeast.

https://www.armtimes.com/hy/article/227112

government wants to close a loophole to prevent illegal buildings from being legalized in the future

There is a law that has long allowed people to build illegal structures then use a legal loophole to legalize them. The government complains that it has led to the distortion of the urban picture in many cities.

Justice Minister: we drafted a bill. Illegal structures built in the future won't be legalized. This won't apply to the existing buildings.

If you have an illegal building in Yerevan, you have until 1 January 2023 to submit a petition to legalize it. The deadline is 2025 for villages.

Owners of illegal structures that were built this year, will have 2 months [after the law is passed] to submit legalization paperwork.

Mayors who refuse to follow inspection bodies' orders to suspend an illegal construction will face harsher penalties.

Another important amendment will be made to the litigation process. Currently, if the owner challenges the inspector's order in court, the inspector's order is automatically suspended. After the reforms, a judge has to review them manually. //

Pashinyan: Cadastre Committee is taking aerial photos of Armenian settlements. We will have information about all buildings in the country as of a certain date.

Cadastre Committee: the imaging and field work is complete. We're processing the data.

Pashinyan: the existence of this bill could incentivize some to build new illegal structures now, while they still "have time", so to reduce such instances, treat this bill as a priority and submit it to Parliament ASAP for discussions and approval.

https://armenpress.am/arm/news/1070305.html https://armenpress.am/arm/news/1070322.html

Tags: #IllegalProperty #PropertyLaw

COVID stats

7.7k tested. 0.3k infected. 0.2k healed. 19 deaths.

https://armenpress.am/arm/news/1070300.html

dram weakens against dollar

$1 = ֏495, similar to late-2020. Earlier this year it devalued to 530, then 480 throughout the year, and now 495.

https://www.armtimes.com/hy/article/227106

new workforce training program launches in Armenia

Education Ministry: it's a 5-year $7.5M program funded by USAID, carried out by Enterprise Incubator Foundation and partners.

10,000 young Armenians under 30 will receive practical skills for professions that are in demand, through work-based learning. The goal is to provide technical knowledge and soft skills to transform the Armenian labor market. //

https://armenpress.am/arm/news/1070292.html

new tech lab will open for students in Technical Creativity Center

Government decree: 280 schoolchildren are receiving technical education at the center. A new tech lab will open for them to help train a professional workforce. Part of the N159 school building will be attached to the center for the lab. //

https://armenpress.am/arm/news/1070322.html

more drone engineering labs are set to open this month

Today the government approved a program about building engineering labs in 14 schools in Syunik and one drone engineering lab in Kapan.

Official: At present, the significant imbalance of supply and demand in the high-tech sector is a serious problem. ArMath engineering labs play an invaluable role in providing tech education and professional orientation to students. We need more ArMath labs. //

ArMath engineering center: we will open more labs for 14-18-year-olds to operate and service UAVs. We have one in Dilijan's Monte Melkonian military academy, where children study to fly and service drones. They don't produce them.

There will be workshops, with each hosting 65 children in 3 groups. This will allow us to train 1,750 students annually. The majority will join the army.

It costs ֏6.5M to prepare one workshop with access to 7 drones. Children will create various components themselves. Next year we will organize the first technology camp for UAVs.

Besides UAV labs, we also have robotics/programming/modeling labs for 10-18-year-olds. They can apply the knowledge in practice.

We started opening these labs in 2012. The state began financing in 2014. Private investments helped open 280 facilities since 2016. In 2019 the government funded the opening of another 284 labs.

Expect to see these labs in 600 schools across Armenia. Several dozen have been built and will be built in Syunik this year. We have 22 in Artsakh. //

https://www.armtimes.com/hy/article/226946 https://armenpress.am/arm/news/1070322.html https://factor.am/451888.html

Junior Eurovision public polls: who should win the 2021 competition?

The audience has (so far) given the most votes to Malena, who represents Armenia with Qami Qami.

https://eurovisionworld.com/eurovision/polls

https://armenpress.am/arm/news/1070302.html

Saudi Arabia bans dozens of camels from beauty contest over botox

>Saudi authorities have conducted their biggest-ever crackdown on camel beauty contestants that received Botox injections and other artificial touch-ups, [...], with over 40 camels disqualified from the annual pageant.

The camels compete for $66 million in prize money.

https://apnews.com/article/oddities-health-travel-lifestyle-camels-b3e4d60991ce053d185cb8ed9cbbca74

solar energy firm SharoSolar receives a tax waiver to invest

The government gave a tax waiver to Sharosalar Ltd to import solar tech and double-sided solar panels for a project in Katnaghbyur (Aragatsotn).

Annual production is 10.5 million kWh. They will sell the electricity to the Electric Networks of Armenia. It's a ֏1.8B project, part of which is complete.

solar firm Magnak Solar receives a tax waiver

It's for making investments in Arev-1 and Arev-2 solar farms with European standards, located in Shoghakat (Gegharkunik).

10.5 million kWh annual production from each. A ֏3.6B investment project.

clothing manufacturer Alex Fabrika receives a tax waiver

They will invest ֏300M and create 30 new jobs.

cosmetics producer Arevi Skincare receives a tax waiver

It's an Armavir-based company founded in 2020. They produce organic cosmetics. 12 new jobs are planned with an average ֏433K salary. The vast majority of products will be exported to the US, Russia, EU.

https://armenpress.am/arm/news/1070322.html https://hetq.am/hy/article/119994

government allocates ֏1B to finance road & lighting projects in Gyumri

Infrastructure Ministry: it's for renovating roads and building energy-efficient street lighting networks. 26km of new asphalt on 37 roads.

The total cost of the program is €23.84M (EBRD loan & grant). The construction began in 2019. Most of it is for renovating roads and surrounding infrastructure. A third will be spent on the lighting network.

North-South highway & other vital roads

Infrastructure Ministry: works are being done as part of the North-South highway project on Tranche-2, Tranche-3, and Vanadzor-Georgia road. This vital road network improvement program includes 12 settlements, in 10 of which the works have been completed. 55km out of 67km is done.

https://armenpress.am/arm/news/1070314.html https://armenpress.am/arm/news/1070322.html https://armenpress.am/arm/news/1070322.html

Abkhazia has offered Georgia to start a border demarcation process

The proposal was made during the 55th round of international discussions held in Geneva. Abkhazia said the demarcation will allow regulating a proper border crossing process in official checkpoints.

Abkhazia also complained about activities by Georgia and NATO forces in the sea and air.

https://armenpress.am/arm/news/1070307.html

Thomas De Waal about unblocking regional trade & transport routes:

Parts of the article: The South Caucasus is experiencing a major reset in trade links. The economic picture is promising. At issue is a series of transport routes that have been closed since the 90s, cutting off Armenia and Nakhchivan.

If they are unblocked, the most noticeable impact will be a reactivated North-South route that runs from Russia to Armenia and Iran via Azerbaijan. The economic boost to Azerbaijan and Armenia could be appreciable.

Rebuilding relatively small sections of railway in Armenia and Azerbaijan would make much more viable the 7,200-kilometer International North-South Transport Corridor, a projected rail route stretching from Finland-Persian Gulf-India.

A new good-quality rail network with minimal border controls would also boost east-west trade, especially if the Armenia-Turkey border reopens. It would enhance the attractiveness of the Middle Corridor, a route carrying goods between China-Turkey-EU via the South Caucasus.

Since the 1990s, there has been an established east-west route via Georgia. The Middle Corridor currently sees very small traffic flows compared to the Northern Corridor (China-Russia). Many are skeptical the Middle Corridor can compete against the Northern Corridor, because it has obstacles such as Caspian and the Black Sea, and multiple borders must be crossed with some countries having difficult customs regimes.

However, journey times have decreased thanks to “block trains” that operate from origin to destination with all documentation having been arranged in advance. One such "block train" arrived in Tbilisi in February, having left China 22 days before.

Even a tiny increase in the overall share of trade between China-Turkey-EU would have a beneficial effect on the economies of the South Caucasus.

In February Azerbaijan announced it was starting reconstruction of the 108km railway from the town of Horadiz to Armenia. If and when the entire line is restored, the three countries stand to benefit.

Azerbaijan will connect to Nakhijevan. Russian freight traffic can bypass mountains and Georgia to connect to Armenia and Iran. Officials and private businesses in Armenia also see advantages with the new connection to their EAEU partner.

Russia is a major market for Armenian goods. Currently, the shipping costs are high: trucks must travel via Poti port (time-consuming) or Upper Lars road (handles 80% of Armenia's exports to Russia).

Upper Lars is mountainous, often choked with vehicles and by bad weather. It's risky, especially with perishable exports. Armenian traders are penalized when choosing this route.

Armenia will gain another economic benefit if the Turkey border opens: the 60km Gyumi-Kars railway. This route will be used not just by Armenia and Turkish freight, but also by Azerbaijan, Iranian, Russian, etc.

This one will be expensive to restore. A 2013 document estimates $433M to rebuild/repair the entire Baku-Kars link, although restoring it could cost less than three other expensive railway projects that were mooted before 2020.

(THE OTHER THREE PROJECTS THAT WERE MOOTED BEFORE 2020)

One project that could be shelved is the planned 223-kilometer >$200M railway line between Nakhchivan and Kars. Azerbaijan and Turkey are under budgetary pressure. They might opt for a less costly alternative via Armenia. That project was not part of Turkey's 2021 budget.

A second project, a railway from the Iranian border into Armenia, has never been under serious consideration, as the highland topography of southern Armenia makes it expensive and challenging. [mountains and more mountains]

A third 172km rail project, between Azerbaijan's Astara and Iran's Resht, may fade away due to economic problems. Iran could instead choose to use its existing railway to connect to Armenia via Nakhijevan. This suits Iran’s political agenda of partnering with Armenia, vs AZ-TR. This rail connection via Armenia would potentially be the missing link in the International North-South Transport Corridor, whose rationale was to cut journey times from Finland to Iran.

(GEORGIA)

Georgia can no longer take its status as a regional hub for granted. It will need to work much harder to realize its potential as an international transit route. "These new projects are on approximately a seven-year timeline. Georgia has two years to do some strategic planning," said a Georgian analyst. There has been little public debate over this in Georgia. The parties are focused on domestic politics.

EU is offering Georgia 3.9 billion euros in grants/loans for better physical and digital connection via the Black Sea.

The oil/gas route currently passes through AZ-GE-TR, while bypassing AM. This route may now have competition. If and when a new southern route opens up along the Araxes river, Georgia will lose a great deal of revenue.

Georgia transfers 11m tons via rail and 7m tons via road annually. Each million ton brings $5M in tax revenue.

With the exception of some projects like the Baku-Tbilisi-Kars railway, much of the Georgian infrastructure is poor. The East-West highway is only partially complete. The rail network needs major investments.

Georgia also lacks a fully modern port on the Black Sea to handle large volumes. Its ports could lose traffic if Armenia gains access to Turkish ports.

A $2.5B U.S.-supported project was launched in 2016 to build a new deep-water port but it was suspended in 2020 amid political problems and accusations that Georgia's leader Bidzina had a vested interest in another port project in Poti. In 2020 they announced that Poti would increase capacity, though to much lower levels than the original project proposed in 2016.

Upper Lars vehicle road goes through the Caucasus Mountains. It's congested and vulnerable to natural and intentional closures. Some of the problems could be solved with a new $558M bypass road.

It would be much cheaper for Armenian traders if a new route to Russia opens up via Azerbaijan along the Caspian Sea coast. [is that right...]

Georgia should take a fresh look at reopening two north-south routes:

1) Georgia has an inactive agreement with Russia to reopen three corridors. Two of these are sensitive because they travel through disputed Abkhazia and Ossetia. This agreement was opposed by some circles in both countries. The Ossetian route, along the TransKAM highway, is much better than Upper Lars - it uses a tunnel.

2) Georgia could try to reopen the Abkhazia railways, closed since 1992. This would benefit Russia, Armenia, Turkey, and Iran. Before 2020, Azerbaijan tried to block its reopening because it would benefit Armenia. Azerbaijan doesn't want to block it anymore, since Nakhijevan could benefit from this North-South route.

Georgian leader Bidzina Ivanishvili spoke in favor of reopening the Abkhazian railway but political opponents accused him of being pro-Russia.

(CONCLUSION)

The economic benefits of unblocking communication routes could extend to every country if Armenia and Azerbaijan reach a deal.

Full: https://carnegieeurope.eu/2021/11/08/in-south-caucasus-can-new-trade-routes-help-overcome-history-of-conflict-pub-85729

in case you missed Wednesday news

Pashinyan provided details about the proposed trade routes and jurisdiction, 3+3 platform, Karabakh negotiations.

https://www.reddit.com/r/armenia/comments/rc1ho6/news_dec82021_pashinyan_about_unblocking_regional/

end of report

The accused are innocent unless proven guilty in the court of law, even if they "appear" guilty.

News archive: http://www.armeniapedia.org/wiki/Daily_Anti-Corruption_Reports

Donations: soldiers' families, humanitarian aid, US tax-deductible donation.

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Link to original report and comments: https://www.reddit.com/r/armenia/comments/rcqlsz/dec92021_expolice_chief_gasparyan_family_charged/