By Mkrtich Karapetyan
A new criminal case was initiated in January at the Investigative Committee regarding violations of mineral conservation and utilization requirements by the Zangezur Copper-Molybdenum Combine (ZCMC). The case is based on the findings of the Environmental and Mining Inspection Body’s audits from 2018-2019.
Six years ago, the inspection revealed that the company had extracted significantly more ore than contractually allowed, an excess of 17.6 million tons between 2015 and 2017. Based on the copper content of the ore and the prices recorded on the London Metal Exchange during those years, the estimated value of the excess-mined raw material was around $250 million.
Currently, law enforcement bodies are also investigating a money laundering case related to ZCMC. In the spring of 2022, it was revealed that as part of a criminal case being examined by the State Revenue Committee, the former director of the combine, Mher Poloskov, had reimbursed 15 billion drams [$37.5 million] to the state budget. It was found that he had executed copper concentrate supply deals at significantly lower-than-market prices using a special scheme.
In November 2023, the Prosecutor’s Office launched criminal proceedings against Karen Vanetsyan, a dual citizen of Armenia and Switzerland, on charges of money laundering. Vanetsyan is the cousin of former National Security Service director Arthur Vanetsyan. According to the indictment, in July 2018, Vanetsyan acquired a 12.5% stake in the combine through a Cypriot company. This stake previously belonged to Serzh Sargsyan’s son-in-law, Mikael Minasyan, and the acquisition allegedly aimed to conceal the illicit origin of that share.
For years, ZCMC has made donations to various foundations. Between 2016 and 2021, it transferred between 385-455 million drams [$962,000-$1.14 million] annually to the “Public Diplomacy” NGO (Para TV). After 2018, the company began making contributions to the “City of Smiles” and “My Step” foundations, led by Prime Minister Nikol Pashinyan’s wife, Anna Hakobyan. In 2023-2024, “My Step” received 50 million drams [$125,000] annually.
Despite the Armenian government holding a 21.9% stake in the company, it received more than 33.2 billion drams [$83 million] in dividends just for 2023. The total dividends for ZCMC in 2023-2024 amount to 294 billion drams [$734 million]. However, the market value of the state-owned shares remains unclear, as the State Property Management Committee has not conducted an official valuation.
The ongoing criminal cases, shareholder changes, and donations to government-affiliated foundations raise suspicions about political influence over the company and its use for government interests. These criminal cases appear to be driven not by legal justifications but by political circumstances—either to redistribute shares or to exert pressure on political opponents.Read the full article in Armenian:
Նոր քրեական վարույթներ ԶՊՄԿ շուրջ. բաժնետոմսերի նոր վերաբաշխման ուրվականը
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