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Armenia's oligarchy in trouble
By Mehmet Fatih Oztarsu
March 7, 2015
[Mehmet Fatih Oztarsu is an analyst with the Strategic Outlook Institution.]
In a somewhat predictable move, Armenian President Serzh Sarksyan has
sent a letter to parliament speaker Galust Sahakyan urging that
protocols between Turkey and Armenia be retracted.
Sarksyan, who asserted in his letter that Turkey has not taken the
steps necessary in conjunction with the 2009 protocols -- signed to
normalize ties between Turkey and Armenia in Zurich on Oct. 10, 2009,
with the goal of establishing diplomatic relations and opening the two
countries' land border -- and that it is Ankara which bears full
responsibility for this failure, noted also that political will in
Turkey on the Armenian front is sorely lacking.
Sarksyan is, of course, a skilled chess player, and his moves in the
run-up to April 24 -- the day on which the Armenian victims who died
at the end of World War I in Ottoman Turkey are commemorated -- are a
repeat of past years; he is trying to draw the attention of the
international community to the situation between Yerevan and Ankara.
In the meantime, Sarksyan's stance never wavers from the principle of
not being the first side to sit down at the table for talks; he is
also now using the lack of political activity in Turkey on the
protocol front in a masterly -- and timely -- manner.
At work in this latest move from Sarksyan is not just the hasty stance
taken by the Turkish side in inviting him to Canakkale, commemorating
the centenary of the battle of the Canakkale Campaign of World War I,
but also domestic political turbulence at home in Armenia. And this is
the most important symbol of the oligarchic battle that began recently
in Armenia.
The war between Sarksyan and Armenia's biggest oligarch, the founder
and leader of the Prosperous Armenia Party (BHK), Gagik Tsarukyan,
might well make Sarksyan even more authoritarian than he already is.
For his part, Tsarukyan has the widely known nickname of "Dodi Gago"
or "Stupid Gago," and as not only an oligarch but an important
politician he has displayed an anti-Sarksyan stance for a while now,
working in concert with generally anti-Sarksyan blocs in Armenia.
Worsened relations between Tsarukyan and Sarksyan
Recent decisions made by the ruling party to make moves against tax
evasion in Armenia have worsened relations between Tsarukyan and
Sarksyan, with worries over the possibility of the loss of his
enormous empire pushing him to take an even tougher stance. In the
meantime, though, the response from Sarksyan -- who is himself a
resilient former soldier -- did not take long in coming. Labeling
Tsarukyan a disaster for the state, Sarksyan first announced that the
oligarch had been unceremoniously kicked off the National Security
Council of Armenia, and then noted that people should not expect to be
able to arrive at and depart from such an important council as though
they were "going to the cinema." As this was playing out, circles
close to Sarksyan began to underscore how vital it was to eliminate
Tsarukyan without wasting time. It is expected that, at any moment
now, Sarksyan will strike a serious blow at Tsarukyan's chain of
oligarchy. In the meantime, another important Armenian oligarch, Hovik
Abrahamyan, has announced his full-fledged support for Sarksyan, thus
putting Tsarukyan even more in the target position.
As all this unfolds, Robert Kocharyan, who was the second president of
Armenia, and is also one of the most critical fulcrums in the
unshakable Armenian oligarchy, has called on all sides to bring this
war to an end as soon as possible.
Kocharyan, who underscored in his announcement that the oligarchic war
would have negative effects on the country's economy, the Karabakh
issue and, of course, all the topics related to the 100th anniversary
of the Armenian genocide, has also noted his real fears that the war
might come right to his own doorstep. Following Kocharyan's
announcement, Sarksyan and Tsarukyan did, in fact, hold a private
meeting in which the war was postponed for the time being. Tsarukyan's
decision to make peace for now has, in the meantime, greatly
disappointed opposition forces in Armenia, who had been planning large
rallies with this oligarch and politician. While that particular war
has abated for the time being, it does appear that the question of how
Armenian resources are to be distributed looks set to elicit the axes
of war again in the near future. And so this is, for now, the greatest
deadlock in Armenia, where the opposition seems unable to move into
action, one way or the other.
In terms of understanding these latest developments, it is important
to grasp just what a terrible state Armenia is in, and how firmly
rooted the "mafioso" oligarchy that leads it has become. Just one
example in all this can be seen in the considerable assets of former
President Kocharyan, whose worried attempts to intervene in the
unfolding war were notable. Kocharyan single-handedly holds some 80
percent of cellphone imports into Armenia in his hands; he is also the
sole owner of many banks, mines and holiday facilities throughout the
country. But it doesn't end there; Kocharyan also owns a shopping
center and gambling casinos in Moscow. He is also an "honorary"
partner and board member of countless Armenian companies.
As for Tsarukyan, he worked in Russia during the 1980s as a gendarme,
later going to prison based on what some (widely spread) rumors assert
were rape charges. Tsarukyan's rapid accumulation of power and assets
came during the era of Kocharyan's presidency; although he did not
have much in connection with the political sphere, Tsarukyan managed
to acquire factories (cement and alcohol manufacturing), petrol
stations, furniture production facilities and mining companies during
this time. Known now for his luxurious personal abodes, Tsarukyan is
also said to love keeping both lions and predatory birds on the
grounds of his homes.
In order to get a complete picture, though, it is of course also
helpful to take a look at the assets of Sarksyan and his supporters as
well. Sarksyan was a military commander during the era of the Karabakh
war, and was until recently listed as the eighth-richest person in all
of Armenia. Interestingly, Sarksyan is also an avowed gambler, even
facing accusations on this front at the 2013 Parliamentary Assembly of
the Council of Europe (PACE). At the time, Zaruhi Postanjyan, of the
opposition Heritage Party, asked Sarksyan directly whether or not it
was true that he had lost 70 million euros at a European casino. The
line of questioning caused reverberations in the global press at the
time due to the striking nature of the topic. Sarksyan has an enormous
financial empire of his own; this includes many personal homes,
buildings, a holiday resort, a petrol station, cement and alcohol
factories, market chains, a football team and his own bank. He manages
many of these through a variety of different partnerships he has
formed over the years.
In the meantime, Sarksyan's brother Sashik, who had some serious
clashes with Tsarukyan in previous years, moved to the US, along with
his own considerable fortune; the $30 million he brought with him
remain shrouded in mystery as to their origin.
At the same time, it is also important to remember that the less
prominent figures in Armenian politics sometimes have personal wealth
and assets that far overshadow those that dominate the news with their
warring. For example, the personal financial empire of Prime Minister
Abrahamyan, who has proffered his full support for Sarksyan in this
latest round of clashes with Tsarukyan, far outweighs those of the
oligarchs we have listed thus far. Abrahamyan owns petrol stations,
holiday resorts, mines, countless fields, cement and alcohol
factories, hotels and apartments; he also has family ties through
marriage with Tsarukyan. One of Tsarukyan's daughters is married to
Abrahamyan's son. These days, Abrahamyan has become one of the most
hotly debated figures in the Armenian media, as he has chosen to take
sides with Sarksyan despite familial relations with Tsarukyan.
For years now, various groups have managed to plunder and take control
of Armenia's natural resources, using the protection of their
political ties that give them unhindered access and no risk of
prosecution. It is a giant oligarchic structure, and one whose
enormous accumulation of wealth sometimes triggers arguments over how
to divide assets. The structure is filled with names willing to remain
quiet over internal disputes in order not to trigger public political
fights. At this point, though, it appears that one faction of this
structure is preparing to peel off, and the coming division will
herald the emergence of a new group.
The recent move made by Sarksyan in regard to Turkey -- a move that
comes at a time of extraordinary tension at home -- has clearly been
made with calculations that have far-reaching implications. The
attempts to strike down Tsarukyan and other chains in the oligarchic
structure can all be interpreted as a reflection of rising
authoritarianism on Sarksyan's part, and as an attempt to block any
slide in the existing axis of power. As the scene in Armenia appears
more and more like that of a country under complete Russian guidance,
Sarksyan's unceasing desire to take single-handed control is now
bringing the country face-to-face with even greater problems. One of
which is that the various groups attached to and dependent on the
Kocharyan chain of wealth and oligarchy appear unwilling to remain
silent given all this.
http://www.todayszaman.com/op-ed_armenias-oligarchy-in-trouble_374489.html
By Mehmet Fatih Oztarsu
March 7, 2015
[Mehmet Fatih Oztarsu is an analyst with the Strategic Outlook Institution.]
In a somewhat predictable move, Armenian President Serzh Sarksyan has
sent a letter to parliament speaker Galust Sahakyan urging that
protocols between Turkey and Armenia be retracted.
Sarksyan, who asserted in his letter that Turkey has not taken the
steps necessary in conjunction with the 2009 protocols -- signed to
normalize ties between Turkey and Armenia in Zurich on Oct. 10, 2009,
with the goal of establishing diplomatic relations and opening the two
countries' land border -- and that it is Ankara which bears full
responsibility for this failure, noted also that political will in
Turkey on the Armenian front is sorely lacking.
Sarksyan is, of course, a skilled chess player, and his moves in the
run-up to April 24 -- the day on which the Armenian victims who died
at the end of World War I in Ottoman Turkey are commemorated -- are a
repeat of past years; he is trying to draw the attention of the
international community to the situation between Yerevan and Ankara.
In the meantime, Sarksyan's stance never wavers from the principle of
not being the first side to sit down at the table for talks; he is
also now using the lack of political activity in Turkey on the
protocol front in a masterly -- and timely -- manner.
At work in this latest move from Sarksyan is not just the hasty stance
taken by the Turkish side in inviting him to Canakkale, commemorating
the centenary of the battle of the Canakkale Campaign of World War I,
but also domestic political turbulence at home in Armenia. And this is
the most important symbol of the oligarchic battle that began recently
in Armenia.
The war between Sarksyan and Armenia's biggest oligarch, the founder
and leader of the Prosperous Armenia Party (BHK), Gagik Tsarukyan,
might well make Sarksyan even more authoritarian than he already is.
For his part, Tsarukyan has the widely known nickname of "Dodi Gago"
or "Stupid Gago," and as not only an oligarch but an important
politician he has displayed an anti-Sarksyan stance for a while now,
working in concert with generally anti-Sarksyan blocs in Armenia.
Worsened relations between Tsarukyan and Sarksyan
Recent decisions made by the ruling party to make moves against tax
evasion in Armenia have worsened relations between Tsarukyan and
Sarksyan, with worries over the possibility of the loss of his
enormous empire pushing him to take an even tougher stance. In the
meantime, though, the response from Sarksyan -- who is himself a
resilient former soldier -- did not take long in coming. Labeling
Tsarukyan a disaster for the state, Sarksyan first announced that the
oligarch had been unceremoniously kicked off the National Security
Council of Armenia, and then noted that people should not expect to be
able to arrive at and depart from such an important council as though
they were "going to the cinema." As this was playing out, circles
close to Sarksyan began to underscore how vital it was to eliminate
Tsarukyan without wasting time. It is expected that, at any moment
now, Sarksyan will strike a serious blow at Tsarukyan's chain of
oligarchy. In the meantime, another important Armenian oligarch, Hovik
Abrahamyan, has announced his full-fledged support for Sarksyan, thus
putting Tsarukyan even more in the target position.
As all this unfolds, Robert Kocharyan, who was the second president of
Armenia, and is also one of the most critical fulcrums in the
unshakable Armenian oligarchy, has called on all sides to bring this
war to an end as soon as possible.
Kocharyan, who underscored in his announcement that the oligarchic war
would have negative effects on the country's economy, the Karabakh
issue and, of course, all the topics related to the 100th anniversary
of the Armenian genocide, has also noted his real fears that the war
might come right to his own doorstep. Following Kocharyan's
announcement, Sarksyan and Tsarukyan did, in fact, hold a private
meeting in which the war was postponed for the time being. Tsarukyan's
decision to make peace for now has, in the meantime, greatly
disappointed opposition forces in Armenia, who had been planning large
rallies with this oligarch and politician. While that particular war
has abated for the time being, it does appear that the question of how
Armenian resources are to be distributed looks set to elicit the axes
of war again in the near future. And so this is, for now, the greatest
deadlock in Armenia, where the opposition seems unable to move into
action, one way or the other.
In terms of understanding these latest developments, it is important
to grasp just what a terrible state Armenia is in, and how firmly
rooted the "mafioso" oligarchy that leads it has become. Just one
example in all this can be seen in the considerable assets of former
President Kocharyan, whose worried attempts to intervene in the
unfolding war were notable. Kocharyan single-handedly holds some 80
percent of cellphone imports into Armenia in his hands; he is also the
sole owner of many banks, mines and holiday facilities throughout the
country. But it doesn't end there; Kocharyan also owns a shopping
center and gambling casinos in Moscow. He is also an "honorary"
partner and board member of countless Armenian companies.
As for Tsarukyan, he worked in Russia during the 1980s as a gendarme,
later going to prison based on what some (widely spread) rumors assert
were rape charges. Tsarukyan's rapid accumulation of power and assets
came during the era of Kocharyan's presidency; although he did not
have much in connection with the political sphere, Tsarukyan managed
to acquire factories (cement and alcohol manufacturing), petrol
stations, furniture production facilities and mining companies during
this time. Known now for his luxurious personal abodes, Tsarukyan is
also said to love keeping both lions and predatory birds on the
grounds of his homes.
In order to get a complete picture, though, it is of course also
helpful to take a look at the assets of Sarksyan and his supporters as
well. Sarksyan was a military commander during the era of the Karabakh
war, and was until recently listed as the eighth-richest person in all
of Armenia. Interestingly, Sarksyan is also an avowed gambler, even
facing accusations on this front at the 2013 Parliamentary Assembly of
the Council of Europe (PACE). At the time, Zaruhi Postanjyan, of the
opposition Heritage Party, asked Sarksyan directly whether or not it
was true that he had lost 70 million euros at a European casino. The
line of questioning caused reverberations in the global press at the
time due to the striking nature of the topic. Sarksyan has an enormous
financial empire of his own; this includes many personal homes,
buildings, a holiday resort, a petrol station, cement and alcohol
factories, market chains, a football team and his own bank. He manages
many of these through a variety of different partnerships he has
formed over the years.
In the meantime, Sarksyan's brother Sashik, who had some serious
clashes with Tsarukyan in previous years, moved to the US, along with
his own considerable fortune; the $30 million he brought with him
remain shrouded in mystery as to their origin.
At the same time, it is also important to remember that the less
prominent figures in Armenian politics sometimes have personal wealth
and assets that far overshadow those that dominate the news with their
warring. For example, the personal financial empire of Prime Minister
Abrahamyan, who has proffered his full support for Sarksyan in this
latest round of clashes with Tsarukyan, far outweighs those of the
oligarchs we have listed thus far. Abrahamyan owns petrol stations,
holiday resorts, mines, countless fields, cement and alcohol
factories, hotels and apartments; he also has family ties through
marriage with Tsarukyan. One of Tsarukyan's daughters is married to
Abrahamyan's son. These days, Abrahamyan has become one of the most
hotly debated figures in the Armenian media, as he has chosen to take
sides with Sarksyan despite familial relations with Tsarukyan.
For years now, various groups have managed to plunder and take control
of Armenia's natural resources, using the protection of their
political ties that give them unhindered access and no risk of
prosecution. It is a giant oligarchic structure, and one whose
enormous accumulation of wealth sometimes triggers arguments over how
to divide assets. The structure is filled with names willing to remain
quiet over internal disputes in order not to trigger public political
fights. At this point, though, it appears that one faction of this
structure is preparing to peel off, and the coming division will
herald the emergence of a new group.
The recent move made by Sarksyan in regard to Turkey -- a move that
comes at a time of extraordinary tension at home -- has clearly been
made with calculations that have far-reaching implications. The
attempts to strike down Tsarukyan and other chains in the oligarchic
structure can all be interpreted as a reflection of rising
authoritarianism on Sarksyan's part, and as an attempt to block any
slide in the existing axis of power. As the scene in Armenia appears
more and more like that of a country under complete Russian guidance,
Sarksyan's unceasing desire to take single-handed control is now
bringing the country face-to-face with even greater problems. One of
which is that the various groups attached to and dependent on the
Kocharyan chain of wealth and oligarchy appear unwilling to remain
silent given all this.
http://www.todayszaman.com/op-ed_armenias-oligarchy-in-trouble_374489.html