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TROUBLE WITH PARIS OR OLIGARCHS AND SLUSH FUNDS
The Armenian Time reported that Serzh Sargsyan and Tigran Sargsyan
avoid a meeting with the representatives of Carrefour Group referring
to the upcoming election. Basically, they do not know what to answer
to Carrefour's question.
It was announced that Carrefour with annual sales of 100 billion
dollars would open a store in Yerevan's Dalma Garden Mall owned by
the Moscow-based businessman Samvel Karapetyan.
However, opening is delayed. The announced date of opening was
November 2012.
As the Armenian Time had reported a few weeks earlier, some importer
oligarchs owning chains of grocery stores block Carrefour's way in
because some goods sold in Carrefour will be cheaper than in those
grocery stores. Eventually, they would have to close or lose excess
profit.
This is real danger for some Armenian oligarchs resting on the
excess profits of import and sales monopoly, devouring both income
and remittances which totaled over 2 billion dollars.
The government has fully benefitted from these profits. The oligarchs
shared their excess profits with the government, paying this money
to the black budget or the so-called slush funds.
Moreover, the authorities used their powers to multiply the profits.
In 2004-2006 the national currency was artificially revaluated. The
authors and implementers of the monetary policy, one of them being the
prime minister, emptied the pockets of people receiving remittances
with a single touch. By that time remittances had amounted to 2
billion dollars.
The government has found itself in a difficult situation. On the one
hand, Carrefour is not a Diaspora Armenian investor to invite, chip
in, squeeze and see off. Jokes with Carrefour may be very expensive.
On the other hand, the government will have to act against Samvel
Alexanyan or SAS Artak or chief of police of Yerevan Nersik Nazaryan
who all own chains of grocery stores or against the head of the SRC
who is a major investor.
On the other hand, the government could have prevented all the
trouble with Carrefour. Samvel Karapetyan would hardly invite the
French retailer without Serzh Sargsyan's consent. There may have been
a preliminary approval due to the political conjuncture relating to
the relations with France. It is not ruled out that Serzh Sargsyan
had approved Carrefour during the period of his warm and intensive
meetings with Nicolas Sarkozy in the autumn of 2011 when big economic
projects were discussed.
It is possible that after Sarkozy's meetings the French side has
forgotten some commitments, and now Serzh Sargsyan cancels his
commitment to Carrefour. During his meetings with Sarkozy Serzh
Sargsyan made ambitious statements on regional energy projects.
Apparently the ex-minister of France made some pledges which were
later forgotten. Serzh Sargsyan may have pledged the support of the
Armenian community, while Sarkozy was not reelected, and commitments
were forgotten.
Last November when Carrefour was expected to open Serzh Sargsyan
visited France and met with Francois Hollande. Apparently Serzh
Sargsyan did not get essential support from Hollande and is therefore
reluctant to open the door for Carrefour. In other words, Carrefour
is small change in French-Armenian relations. Armenia is trying to
use it, expecting assistance from Paris.
It is also possible that Serzh Sargsyan did not predict such clash of
interests and backlash from oligarchs. Turning out Carrefour will not
be a desired step for Armenia because afterwards no foreign investors
will take the Armenian president seriously who is unable to enable
the presence of the worldwide brand in Armenia. Armenia should be
first and foremost be interested in appearing on Carrefour's map.
Although, it is obvious that not only the oligarchs but also Serzh
Sargsyan will have to make a compromise. Oligarchy will agree to
the compromise only when the government agrees to a compromise on
contributions to the slush funds.
HAKOB BADALYAN 18:41 25/01/2013 [footer_logo.png] Story from Lragir.am
News: http://www.lragir.am/index.php/eng/0/comments/view/28729
The Armenian Time reported that Serzh Sargsyan and Tigran Sargsyan
avoid a meeting with the representatives of Carrefour Group referring
to the upcoming election. Basically, they do not know what to answer
to Carrefour's question.
It was announced that Carrefour with annual sales of 100 billion
dollars would open a store in Yerevan's Dalma Garden Mall owned by
the Moscow-based businessman Samvel Karapetyan.
However, opening is delayed. The announced date of opening was
November 2012.
As the Armenian Time had reported a few weeks earlier, some importer
oligarchs owning chains of grocery stores block Carrefour's way in
because some goods sold in Carrefour will be cheaper than in those
grocery stores. Eventually, they would have to close or lose excess
profit.
This is real danger for some Armenian oligarchs resting on the
excess profits of import and sales monopoly, devouring both income
and remittances which totaled over 2 billion dollars.
The government has fully benefitted from these profits. The oligarchs
shared their excess profits with the government, paying this money
to the black budget or the so-called slush funds.
Moreover, the authorities used their powers to multiply the profits.
In 2004-2006 the national currency was artificially revaluated. The
authors and implementers of the monetary policy, one of them being the
prime minister, emptied the pockets of people receiving remittances
with a single touch. By that time remittances had amounted to 2
billion dollars.
The government has found itself in a difficult situation. On the one
hand, Carrefour is not a Diaspora Armenian investor to invite, chip
in, squeeze and see off. Jokes with Carrefour may be very expensive.
On the other hand, the government will have to act against Samvel
Alexanyan or SAS Artak or chief of police of Yerevan Nersik Nazaryan
who all own chains of grocery stores or against the head of the SRC
who is a major investor.
On the other hand, the government could have prevented all the
trouble with Carrefour. Samvel Karapetyan would hardly invite the
French retailer without Serzh Sargsyan's consent. There may have been
a preliminary approval due to the political conjuncture relating to
the relations with France. It is not ruled out that Serzh Sargsyan
had approved Carrefour during the period of his warm and intensive
meetings with Nicolas Sarkozy in the autumn of 2011 when big economic
projects were discussed.
It is possible that after Sarkozy's meetings the French side has
forgotten some commitments, and now Serzh Sargsyan cancels his
commitment to Carrefour. During his meetings with Sarkozy Serzh
Sargsyan made ambitious statements on regional energy projects.
Apparently the ex-minister of France made some pledges which were
later forgotten. Serzh Sargsyan may have pledged the support of the
Armenian community, while Sarkozy was not reelected, and commitments
were forgotten.
Last November when Carrefour was expected to open Serzh Sargsyan
visited France and met with Francois Hollande. Apparently Serzh
Sargsyan did not get essential support from Hollande and is therefore
reluctant to open the door for Carrefour. In other words, Carrefour
is small change in French-Armenian relations. Armenia is trying to
use it, expecting assistance from Paris.
It is also possible that Serzh Sargsyan did not predict such clash of
interests and backlash from oligarchs. Turning out Carrefour will not
be a desired step for Armenia because afterwards no foreign investors
will take the Armenian president seriously who is unable to enable
the presence of the worldwide brand in Armenia. Armenia should be
first and foremost be interested in appearing on Carrefour's map.
Although, it is obvious that not only the oligarchs but also Serzh
Sargsyan will have to make a compromise. Oligarchy will agree to
the compromise only when the government agrees to a compromise on
contributions to the slush funds.
HAKOB BADALYAN 18:41 25/01/2013 [footer_logo.png] Story from Lragir.am
News: http://www.lragir.am/index.php/eng/0/comments/view/28729