Yesterday former PM Hrant Bagratyan met with journalists and suggested them to fill in a test and answer to questions whether the positive or negative is dominating in Armenia. There were questions in the list such as whether information or disinformation, intellect or money, power or the law, the traditions are dominating. Mr. Bagratyan suggested to draw percentage on how much each of the abovementioned components are dominating over the opposite ones. As a result of the test the information-disinformation relationship median percentage was 82-18%. In the same way, the power percentage made 69,5% over the factor of intellect, the money factor – 79, and the factor of traditions made 70% over the factor of the law. Mr. Bagratyan suggested the same test during trainings in Russia, Ukraine and Europe too, where the picture has been more positive. The relationship between the positive and negative factors almost halved in Ukraine. The positive factors’ relationship was 70% in Russia, and in Europe – 90%. “It is a very bad picture, it can’ go on”.
According to Bagratyan, 17% of Armenia’s Gross Domestic Product (GDP) is controlled by two persons. He has come to this conclusion through analysis of the methods how the biggest companies of Armenia are being privatized. “As for the president, he participates in the banking system and controls a big share of import. Minimum two banks are under his direct control. He significantly controls the mining and construction businesses. How was the copper-molybdenum company of Zangezur privatized?” In 2004 that company was sold at $132 million by direct sale in case when its annual income exceeds the purchase price by several times. I don’t think that the mentioned transaction was done without the participation of the authorities or the governing clan, otherwise that transaction would be prohibited. Which of you would refuse to take that company with a condition to cover that sum within three years in case when the company circulation is over one billion dollar,” said Hrant Bagratyan.
According to him, the Armenian molybdenum cannot compensate the balance of the Azeri oil, but the prices of molybdenum are growing faster than the prices of oil. According to Bagratyan’s estimations, the Armenian molybdenum volume is equal to ¼ of the Azeri oil volume. The economy of Azerbaijan grows by additional 40% due to their oil, but our potential is just wasted. In addition, he connects the business in “Armavia” company with the name of the prime minister. “Certainly, no one is a kid. If Baghdasarov were not supported by the authorities, he would not be the owner of that company now. Before it there was another company, “Armenian Airlines” CJSC, which had over 30 flight routs. The annual circulation of our airline company makes about one million dollar each year. Let’s assume the median price of one airline ticket is 300 dollar. This means that the net price of its assets is 300 million dollar. Indeed it was privatized for free,” said Bagratyan.
According to him, these companies will be sold at higher prices later as these transactions were artificial. Bagratyan says that “Armsavingsbank” has been bought in the same manner and the buyer paid just 400.000 USD and purchased the bank with its 105 branches.
We wander whether this kind of transactions have not been made in the tenure of the previous authorities. Answering to this question Bagratyan said that Levon Ter-Petrosyan and the ministers of his government were neutral managers and did not have any businesses. “It is shame to say, but they even didn’t have shops. It may seem arrogant, but I think that only the previous authorities can be proud of their honesty,” Bagratyan said.
Journalists reminded Mr. Bagratyan that during Levon Ter-Petrosyan’s office a certain number of businesses were controlled by the powers supported by ANM and also that a big part of the economy was controlled by the president’s brother, Telman Ter-Petrosyan. “He was the director of a company, and Armenia should be grateful to him for his efforts in air-raid protection. If there are names of heroes in Armenia, his name is one of them. He was the only person who supported the export of information technologies and was against the idea of privatizing “Hrazdanmash” company where he worked as a director,” said the former PM. “The situation of the Armenian economy is very bad. I don’t like this economy, I don’t like the economy, which is based on money transfers,” said Mr. Bagratyan and added that due to such growth of money inflow the GDP of our country will grow too. It appears to be economic growth. Bagratyan says that Azerbaijan’s economy is growing by 40% and in case of a potential war Armenia’s economy will be less independent than it was in the beginning of 90s. Bagratyan believes that if the existing economy of Armenia, which is based on monopolies and is under the control of the governmental umbrella, is not changed as a result of core changes, it will not be competitive even from the strategic point of view.
What does the former PM think about changing the existing system of unofficial relationships and ties in a manner so that to escape from shocks? Bagratyan agrees with that point and the fact that the problem is complicated, but assures that there are some solutions. He said that it is not excluded that many oligarchs and businessmen, who are being criticized now, may become better businessmen if adequate conditions are created. “The truth and the mistake are always specific. Each transaction should be treated separately and we should find it out whether any privatization of complexes or companies is connected with oligarchs or persons. Our work will be hard. I am a supporter of privatization policy, but I don’t exclude that some transactions may be invalidated,” said Hrant Bagratyan.