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Oligarchy In Trouble Or Cherchez La Carrefour

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  • Oligarchy In Trouble Or Cherchez La Carrefour

    OLIGARCHY IN TROUBLE OR CHERCHEZ LA CARREFOUR
    HAKOB BADALYAN

    12:33 07/02/2013
    Story from Lragir.am News:
    http://www.lragir.am/index.php/eng/0/comments/view/28842

    "I'm sure that company should operate in Armenia, and we will spare
    no effort to create favorable conditions for it," said Prime Minister
    Tigran Sargsyan dwelling on the fact that the French Carrefour wants
    to open in Armenia.

    Those oligarchs who are also monopolists or have huge quotas of
    imports or in supermarket business are trying to block the way of
    the French retailer.

    Since the beginning of his tenure Tigran Sargsyan has issued a number
    of statements about the fight against monopolies and oligopolies
    but the oligarchs still feel at ease as they used to, and have even
    extended their monopolies and oligopolies.

    The U.S. Ambassador to Armenia has delicately hinted on the Carrefour
    issue. He expressed hope on Twitter that Carrefour will come to
    Armenia and will boost competition.

    If the U.S. ambassador is already involved in the issue, it means the
    obstacles to Carrefour are serious. In other words, otherwise the U.S.

    ambassador would have hardly touched upon this issue which was also
    an expression of support to Tigran Sargsyan.

    "Carrefour should surely be represented in Armenia, and we have
    already made our proposals to the company to facilitate the process.

    As to the agreement between both private companies, they need to work
    in the legal field trying to find mutually beneficial solutions,"
    Tigran Sargsyan said.

    Actually, he seems to shift the issue from the governmental field to
    the field of oligopolies. The prime minister apparently meant Dalma
    Garden Mall which will host Carrefour. The opening soon banner of the
    company has been there for a long time now. As is known, the owner
    of the mall is the Russia-based Armenian billionaire Samvel Karapetyan.

    During the initial agreement with Carrefour Karapetyan could not
    imagine the reaction of the Armenian import and retail oligarchs to
    the fact. Producer oligarchs also opposed because Carrefour is very
    rigid about the quality of products sold in its hypermarkets.

    Tigran Sargsyan hints at a disagreement between Samvel Karapetyan
    and the French company. Karapetyan has close ties with the Armenian
    oligarchy and it would not be a surprise if he yielded to the
    dissatisfaction of his "allies", especially if they agree to compensate
    for the profit lost due to refusal to Carrefour.

    For example, when on February 4 PAP leader Gagik Tsarukyan attended the
    meeting of parliament for the first time after the May parliamentary
    elections, oligarch Samvel Alexanyan met him very warmly and even
    kissed him. Later he told reporters he had not seen Tsarukyan for a
    long time.

    It is not ruled out that there is another. Cherchez la Carrefour,
    as the French would probably say. The oligarchy might be trying
    to resolve the issue internally. Samvel Alexanyan may have asked
    Tsarukyan to convince Karapetyan not to host Carrefour.

    This may be a good option for the government. No doubt a major investor
    is a serious political issue evidence to which is the involvement of
    the U.S. ambassador. The government may blame private companies to
    display that it has political will. It is clear that the political
    solution is not at Tigran Sargsyan's level and the issue is whose
    lobby will be stronger for Serzh Sargsyan.

    But the government has no right to bring the excuse of dissatisfaction
    of two private companies. After all, if two private companies create
    obstacles for a big company in Armenia, the the government needs to
    make a new proposal to Carrefour becoming the direct partner of the
    famous brand.

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