2022 August 24

Daily news wrap-up

Aug/24/2022. Gov't nationalizes more Zangezur shares, now owns 23% __ Pensions will increase __ Armenia's first accredited hospital; insured tourists __ Army reforms: from conscript to contractor __ Programs to promote investments in Armenia & Artsakh __ Sarsang project __ Anti-corruption __ More
by ar_david_hh

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11 minutes, 2873 words.

government now owns 22% of Zangezur, efforts to raise transparency

Last year one of the shareholders acquired shares from fellow shareholders and proceeded to donate 15% to the government for nationalization. The shareholder has since donated another 6.8%.

Pashinyan: Last year a shareholder transferred 15% to us and we gave it to the state-run ANIF national investment fund for effective management.

In March, the shareholder donated another 6.8%. This transaction was kept secret at the request of the shareholder for commercial reasons. Now it's no longer a secret. This 6.8% is also being transferred to ANIF.

As a result, the government owns 21.875% of the shares, which is a very important development. It was one of my campaign promises in 2021. Hopefully, this will generate more state revenues and introduce transparency at Zangezur.

Efforts are underway to raise transparency. We have since appointed a Board member and a financial controller, and we're doing everything with other shareholders to improve the company's health.

Deputy PM Mher: Our appointees are ensuring transparency in day-to-day operations and purchase transactions. We are already seeing significant expenditure differences, lower expenditures, and more taxes.

[video,](https://youtu.be/9W6S4NGibcw) [article,](https://armenpress.am/arm/news/1090943.html) [article,](https://armenpress.am/arm/news/1090960.html) Tags: #ZangezurCopper

Zangezur plant reopens the Sisian stone factory after 3 years of suspension

VH Stone ceased operation in 2019 and laid off its 120 employees. They decided to resume operations under the new Zangezur leadership.

The preparations began in May. Today they employ 40 locals from Sisian. The output stands at 1,500 sq.m. per month, a third of its capacity.

Today was the opening ceremony, attended by government officials and Roman Khudoliy, the head of Zangezur and GeoProMining. The factory exports materials primarily to Russia.

[article,](https://armenpress.am/arm/news/1090953.html) [article,](https://factor.am/546516.html)

pensions & benefit payments will increase starting this September

The base rate used for calculating pensions will increase from ֏18k to ֏21k, and for soldiers from ֏18k to ֏20k.

Basic pension for seniors, the disabled, and those who lost a breadwinner will increase from ֏28.6k to ֏30.5k ($75).

A ֏2k increase in disability pensions is planned for servicemen (up to $110) and children ($96).

On [July 12](https://www.reddit.com/r/armenia/comments/vxknex/jul122022_news_gambling_will_be_outright_banned/) the government announced that the pensions would increase in two phases, starting January.

Pashinyan: It was initially planned to raise the pension in two phases in January and July of 2023, but since the IRS has outperformed the collection by $173m, we decided to launch the first phase now.

The base pension will increase by 17%, while the average pension by 7%. The plan to raise the pensions and benefits in July 2023 is still in effect.

This is part of our electoral campaign promise to raise the average pension to ֏61k ($150) by 2026. Պետք է նախ ապահովենք պարենային զամբյուղը, ապա՝ սպառողական զամբյուղին հասցնել մեր կենսաթոշակները: //

QP MP Tunyan: Սա նշանակում է, որ կենսաթոշակներն ավելի արագ են աճելու, քան սպառողական զամբյուղի արժեքը: Թոշակառուն իր թոշակով կկարողանա հոգալ գոնե մինիմալ կարիքները: Որքան էլ ոմանց սա դուր չգա, որքան էլ նեղվեն, որ կառավարությունը անելու է այն, ինչ իրենց 20 տարի չի հաջողվել, մենք ամեն ինչ անելու ենք, որ դա իրականություն դառնա: //

[article,](https://armenpress.am/arm/news/1090936.html) [video,](https://youtu.be/cmyj5oLpOUM) [article,](https://armenpress.am/arm/news/1090960.html) [video,](https://youtu.be/9W6S4NGibcw) [article,](https://www.armtimes.com/hy/article/242736)

thousands of seniors have taken advantage of the new "anti-inflation" cashback program

The government recently launched a program to give a 10% refund to seniors if they use a bank card to make purchases and pay their bills. There is a monthly limit.

Labor Minister Mkrtchyan: The program began in July. So far 17,000 seniors have taken part. They made ֏524m in purchases. These are seniors who were using exclusively cash in the past.

Pashinyan: 17,000 is better than 0, but we have 173,000 seniors who have cards issued by participant banks. We need to urge the banks to convince more seniors to use the cards.

For seniors to be able to use the cards, there must be POS card terminals in as many shops as possible. What's the status on that?

IRS chief Badassyan: We have 68k receipt-printing terminals, from which 13k accept electronic payments with another 25k pending activation. We are working with the Central Bank to activate more. //

The government recently adopted a law to require most businesses to accept electronic payments at the request of the customer.

[article,](https://armenpress.am/arm/news/1090938.html) [article,](https://armenpress.am/arm/news/1090960.html) [video,](https://youtu.be/9W6S4NGibcw)

Do you plan to invest $1 million on new infrastructure? The government will subsidize the construction of pipes and roads.

Economy Minister Kerobyan: Armenia saw a high economic activity growth in H1. It encourages us to help prospective investors. Last year QP drafted the "infrastructure in exchange for investments" bill. It's meant to assist every investor to address their infrastructure needs.

Many people who build factories and hotels almost always come across issues with a lack of water pipes, gas pipes, roads, etc. This program will address those issues.

If you invest up to ֏500m, we will invest a sum equalling 20% of your investments to build the infrastructure you need, or 10% if the investment is above ֏500m.

Pashinyan: We made this promise back in 2019. It's essentially a program to encourage investments by tying the infrastructure subsidy to the investment amount. If you invest ֏500m, we will invest ֏100m. How will we decide where to invest that sum?

Minister Kerobyan: By consulting with the investor about their needs. There will be insurance mechanisms to prevent a situation where we build the road but their factory doesn't operate.

[article,](https://armenpress.am/arm/news/1090941.html) [article,](https://armenpress.am/arm/news/1090960.html) [video,](https://youtu.be/9W6S4NGibcw?t=1119) Tags: #investment

Artsakh launches multiple business assistance programs to restore the post-war economy

In 2021 the GDP -13%, industrial output -34%, agriculture -51%, construction +48%.

Government: We plan to use modern technologies and apply promotional programs to increase work productivity, particularly in agriculture, industry (mining and manufacturing), and several other branches.

We have a tax privilege package for small and medium businesses. It covers nearly all types of taxes. Most businesses working in the 10% profit tax range were exempted from paying taxes until 2022, while the rate will be 5% starting in 2023.

Private entrepreneurs were also exempt from revenue tax. Agricultural output trade is exempt from VAT until 2026.

Companies and individuals who suffered material damages due to the war are offered a treasury promissory note with a 5-year maturity date and 7% yield. They need to present a business plan.

We also launched a grant program promoting entrepreneurship in agriculture, process manufacturing, and village tourism. //

[article,](https://armenpress.am/eng/news/1090930.html) [article,](https://armenpress.am/eng/news/1090930.html)

Azeri business launches talks with Artsakh government to jointly manage water resources

Artsakh government: Starting last year, under the mediation of Russian side, representatives of Artsakh and Azerbaijan have been visiting lands controlled by Azeris and Armenians to discuss irrigation projects.

The latest meeting was held near Sarsang with representatives of the Azeri company "Amelioration and Water Management". We discussed mutually beneficial projects, considering the fact that Artsakh controls the Sarsang reservoir while Azeris control certain irrigation channels. We can't irrigate Martakert without Azerbaijan's cooperation, while they can't irrigate Aghdam without our cooperation.

The discussions will continue around electricity production and water use around Sarsang, as well as the delivery of water to Artsakh's regions. //

If the negotiations are successful, around 5,000 hectares of land will become irrigated in Martakert.

Official: The biggest issue is that we haven't used the right-side water infrastructure for 30 years. It's in extremely bad shape and requires investments and possibly years of effort, but both Armenians and Azeris truly need it. We are discussing various projects on how to implement them. Sarsang's hydro energy production won't be impacted by this. //

[video,](https://youtu.be/B5gYds600LE) [article,](https://armenpress.am/arm/news/1090952.html) [article,](https://www.1lurer.am/hy/2022/08/24/Սարսանգից-ադրբեջանական-վերահսկողության-տարածքով-հնարավոր-է-ոռոգվեն-Մարտակերտի-հողատարածքները/782830)

European Court for Human Rights denies Azerbaijan's petition for an interim measure in Lachin settlements

Some Armenian residents are burning down infrastructure before leaving Aghavno and Berdzor. Azerbaijan had asked ECHR to help end the practice. The court refused to apply an interim measure.

[article,](https://factor.am/546677.html)

army reforms: hundreds of more reservists will be drafted and retrained for 3 months

The practice to draft a large number of reservists began last year. The goal is to retrain them and protect the borders. 318 reservists will be summoned on September 15 for a 3-month training.

The reservists will update their skills in drone warfare, radio-electronic warfare, topography, etc.

[article,](https://armenpress.am/arm/news/1090944.html)

army reforms: MOD drafts a bill to introduce new types of conscription and contract service; earn a grand per month

MOD: As part of the 2021-2026 government program, we need to establish a high-quality contract service and gradually reduce dependence on conscription.

Under an existing contract program, you can sign a 3-year contract with the army, receive a higher salary, 7 days of vacation per month, and ֏5m upon completion.

However, the number of applicants was underwhelming from the beginning and kept dwindling every year, and we had no applicants in 2021-2022. Many existing applicants terminated their contracts after the war. We only have 3 such contractors today.

This is why we are proposing reforms in the system. It's about shifting from mandatory conscription to a contract service. After the 5-year service, the contractor will receive a ֏5m payment but could be discharged sooner and receive the payment in case of disability.

The 2021-2026 plan envisages a shorter conscription term. Under the proposed plan, which also was based on the experience of other countries, a conscript will undergo the mandatory 4.5-month training and earn the option to end the conscription early by making a $59,000 payment to the army.

That sum equals the $990/mo salary of a contractor who will be recruited by the army for 5 years. //

[article,](https://armenpress.am/arm/news/1090945.html) Tags: ArmyReforms

anti-corruption: authorities uncover an elaborate plot by savvy crooks to defraud IRS of ֏560m

IRS: A company engaged in cargo transportation submitted recalculated tax information in June. The initial calculations were accurate, while the recalculation was meant to fraudulently lower the company's tax liabilities. As a result, ֏63m was refunded.

4 other companies submitted similar documents in June-July. They were given ֏495m in refunds.

The investigation revealed that it wasn't the companies that submitted the falsified numbers because they fell victim to a fraudulent scheme organized by citizens H. K. and G. N.

To commit the crime, the fraudsters registered 9 shell companies and 23 bank accounts. They went on to forge stamps and documents belonging to the aforementioned victim companies. The documents were submitted to Justice Ministry's registry and IRS so they could register themselves as CEOs. The IRS proceeded to give them usernames and passwords.

The crooks accessed the victims' electronic tax portal and submitted false tax information. After receiving the refunds, they split them into hundreds of smaller pieces and transferred them to the 23 personal bank accounts they had opened earlier.

The crooks used a web of transactions to send part of the money to their real personal accounts. The authorities uncovered the scheme before they were able to transfer the full amount.

The crooks have been arrested and charged with multiple felonies. //

[article,](https://armenpress.am/arm/news/1090935.html)

anti-corruption: state auditor agency uncovers financial shenanigans in Sardarapat (Armavir)

SSS: We uncovered ֏19m in violations during an irrigation program, and ֏12m in unauthorized purchases.

For example, USAID financed the construction of water pipes last year. A company used cheaper pipes to skim ֏6m. There have been numerous similar violations in other projects. The findings are sent to prosecutors. //

[article,](https://armenpress.am/arm/news/1090980.html)

freedom has a cost

People are living through a series of crises, extreme temperatures, fires and drought, war, and disruptions to global trade, said French president Macron on Wednesday while urging the population to brace for a difficult winter.

"Freedom has a cost. The battles we have to fight ... will only be won through our efforts."

[article,](https://www.reuters.com/world/europe/macron-warns-french-sacrifices-will-be-needed-tough-winter-looms-2022-08-24/)

people gathered near the statue of Ukrainian cultural figure Taras Shevchenko in Yerevan to celebrate Ukraine's Independence Day | VIDEO

The group performed the national anthem of Ukraine. Another group gathered in Freedom Square to protest Vladimir Putin's policies. Several protesters were detained for ignoring police instructions.

[video](https://youtu.be/iZBqLai6ffc) [article,](https://www.azatutyun.am/a/32002924.html)

what's the status of the dreaded grape procurement process?

Economy Minister Kerobyan: This year we've been able to finalize most procurement contracts ahead of the grade harvest season. We are in touch with farmers and buyers.

This year the situation is incomparably better. A few growers are yet to sign their contracts. Everything is being done to establish trust between the farmer and buyer. If it continues like this, in 2 years the parties will trust each other enough to sign long-term contracts.

The harvest was also great this year, especially the grapes used for wine. //

[article,](https://armenpress.am/arm/news/1090955.html)

💰 rich father 💰

The media reported that a 2018-2019 Deputy Transport Minister and 2019-2020 Infrastructure Ministry official, who is now a Pashinyan staff member, had purchased a house in the U.S. for $584,000. The official disclosed it in his wealth declaration.

Reporter: Where did the resources come from?

Badalyan: I inhered it from my father in 2020. He worked as a businessman all his life. It's disclosed in my 2020 and 2021 declarations.

Reporter: The media writes that a construction company that you acquired began to sign more contracts with the state.

Badalyan: The company's shares were handed over to fiduciary management in accordance with the law. Pay attention to the fact that none of the companies owned by my family had won any contracts from the Infrastructure Ministry during my time in the Ministry. The companies' participation resumed only after my resignation.

[article,](https://factor.am/546487.html)

💰 the yacht is gone 💰

A video was circulated showing a sinking yacht in Italy. It belongs to Russian-Armenian businessman Gennady Ayvazyan, the head of coal company Krutrade.

[video & article,](https://boingboing.net/2022/08/23/oligarchs-130-foot-superyacht-sinks-off-the-coast-of-italy.html)

search efforts end in Surmalu

Rescuers were unable to locate the body of the only missing person. It is believed his body might have turned into ash because of extreme temperatures and the proximity to the blast.

The government will not provide material assistance to businesses that rented space in Surmalu. A private insurance company had earlier offered to cover their properties but some shop operators chose not to insure theirs. "Եթե գործարարը այդ ռիսկը մեծ չի համարել,ապա կառավարությունը անելիք չունի այստեղ: We urge business operators to acquire insurance."

[article,](https://armenpress.am/arm/news/1090929.html) [article,](https://armenpress.am/arm/news/1090947.html) [video,](https://youtu.be/i5Zt7ut6j4A) [fake news after Surmalu,](https://youtu.be/BFG8VfHchAs)

TUMO will open a mobile education center in Artik (Shirak)

During today's session, the government approved the donation of a 338 m^2 land to TUMO for the upcoming project. They don't need a construction permit because it's not going to be a permanent structure. The TUMO boxes are mobile. They provide free education to students aged 12-18.

[article,](https://armenpress.am/arm/news/1090960.html)

STEM teachers will be retrained as part of a pilot program

Two hundred teachers in Tavush will take a 14-hour retraining course. Students in 2nd, 3rd, 6th, 8th, and 11th classes will have an updated STEM curriculum as part of ongoing education reforms.

[article,](https://armenpress.am/arm/news/1090960.html)

a new kindergarten is being built in Nor Gyugh (Kotayk)

The state has allocated lands and ֏149m to co-finance the construction of the new kindergarten in the village.

[article,](https://armenpress.am/arm/news/1090960.html)

Armenian mind in space

[documentary video](https://youtu.be/RU9hUXxcP1w)

Armenia's Astghik Hospital receives a certification from an international accreditation agency JCI

Minister Avanesyan: This is very important in the sense that we will have an accredited medical center in the region. This means higher quality, and hopefully other medical centers will undergo similar processes.

Pashinyan: They are gonna claim I'm advertising Lfik's business now.

Minister: LOL. I promise to praise any hospital that receives this certificate.

Pashinyan: So what exactly is this certificate about?

Minister: The hospital invited the certification agency to monitor the facility and activities for 3 years. The certification means there is quality control in equipment and patient handling. There are over 1,500 indicators that were monitored. The certificate is good for 3 years. There will be continuous monitoring.

Pashinyan: Can we officially claim that Armenia has a hospital that provides services that meet international standards?

Minister: Exactly.

Pashinyan: Are we encouraging state-run hospitals to go through a similar accreditation?

Minister: Yes. The hospitals have received ISOs, which is part of the journey. Astghik's success is a result of overall improvement in national healthcare standards.

Pashinyan: This is important because we always talk about developing medical tourism in Armenia. Now we are on that map.

Deputy PM Mher: We are currently trying to take this international organization's standards and make them the national standard in Armenia, or at least close. This will allow more foreign health insurance companies to cover visitors during their trips to Armenia.

Pashinyan: Hold up. So we are talking about the healthcare of not only the medical tourists but every tourist? If you visit Armenia and God forbid you need surgery, a medical company will cover you?

Deputy PM Mher: Yes. They will have insurance coverage. Many tourists have been avoiding Armenia because their health insurance wouldn't cover it because some insurances would only cooperate with certified medical centers.

Pashinyan: Are the other hospitals currently applying for a similar accreditation?

Minister: Yes, but JCI is one of the international agencies. They will apply with various agencies.

Pashinyan: Thanks. Session closed. Take a vacation, Avanesyan.

[article,](https://armenpress.am/arm/news/1090960.html) [video,](https://youtu.be/9W6S4NGibcw?t=1813)

daily news digests won't be translated to Russian for 2 weeks

[why?](https://www.reddit.com/r/armenia/comments/ww01in/tuesday_aug232022_your_daily_news_summary_from/ilkbrq7/)

in case you missed

Yesterday's news in English, русский (by Impossible-Ad-). Archive by Armeniapedia. Donate to Armenia & Artsakh here

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

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Link to original report and comments: https://www.reddit.com/r/armenia/comments/wwsv2j/aug242022_govt_nationalizes_more_zangezur_shares/