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KREMLIN STARTS PRIVATIZATION OF ARMENIA IN TWO PARTS
Hakob Badalyan, Political Commentator
Comments - Friday, 28 February 2014, 17:18
Yerkir.am has reported that soon the Armenian Electric Networks will
announce its insolvency. Yerkir.am has learned that company is in
crisis behind which are some high-ranking officials. The newspaper
reported that currently Rosneft is interested in the Armenian Electric
Networks which is planning an investment expansion in Armenia.
Rosneft's intentions seem legitimate in the context of developments
underway in Armenia.
Privatization of the Armenian Electric Networks was planned in 1999.
The World Bank helped with the tender. One of the conditions was to
privatize the networks to two companies to ensure competition in the
future. The Russian companies were left out because did not comply
with the requirements, namely regarding international audit.
Later, however, the tender failed for whatever reason, and one or two
years later, was sold to Midland Resources, an offshore company, which
did not have any experience in management of electric networks. The
Armenian press reported that the company belonged to the Republican
ex-MP Harutyun Pambukyan who works in Moscow now. A while later
Midland Resources sold the networks to Inter RAO UEN, a subsidiary
of the Russian energy giant RAO UES. The Armenian government approved
the deal.
The network was thus fully owned by Russians. Now the owner may change,
according to Yerkir.am's information. Russia has a new giant, Rosneft
that competes with Gazprom. RAO UES has weakened in both economic
and political terms, which is reflected in Armenia.
At the same time, Rosneft's competition with Gazprom supposes that the
company should ensure that it is represented in Armenia similarly to
Gazprom. In other words, if in the beginning the electric networks were
intended to be privatized in two packages, in the current situation
privatization of Armenia in two packages between Gazprom and Rosneft
may be concerned, both headed by the Kremlin.
As to the stake of Armenian high-ranking officials in these
developments as mentioned in the report of Yerkir.am, everything
is natural. The Armenian press report every now and then that
high-ranking officials owe for gas and electricity. Big amounts are
meant. Deferred utility bills is the "stake" of the Armenian officials
in the abovementioned deals therefore the deals receive state approval
instead of investigation.
- See more at:
http://www.lragir.am/index/eng/0/comments/view/32004#sthash.IaQ4B50a.dpuf
Hakob Badalyan, Political Commentator
Comments - Friday, 28 February 2014, 17:18
Yerkir.am has reported that soon the Armenian Electric Networks will
announce its insolvency. Yerkir.am has learned that company is in
crisis behind which are some high-ranking officials. The newspaper
reported that currently Rosneft is interested in the Armenian Electric
Networks which is planning an investment expansion in Armenia.
Rosneft's intentions seem legitimate in the context of developments
underway in Armenia.
Privatization of the Armenian Electric Networks was planned in 1999.
The World Bank helped with the tender. One of the conditions was to
privatize the networks to two companies to ensure competition in the
future. The Russian companies were left out because did not comply
with the requirements, namely regarding international audit.
Later, however, the tender failed for whatever reason, and one or two
years later, was sold to Midland Resources, an offshore company, which
did not have any experience in management of electric networks. The
Armenian press reported that the company belonged to the Republican
ex-MP Harutyun Pambukyan who works in Moscow now. A while later
Midland Resources sold the networks to Inter RAO UEN, a subsidiary
of the Russian energy giant RAO UES. The Armenian government approved
the deal.
The network was thus fully owned by Russians. Now the owner may change,
according to Yerkir.am's information. Russia has a new giant, Rosneft
that competes with Gazprom. RAO UES has weakened in both economic
and political terms, which is reflected in Armenia.
At the same time, Rosneft's competition with Gazprom supposes that the
company should ensure that it is represented in Armenia similarly to
Gazprom. In other words, if in the beginning the electric networks were
intended to be privatized in two packages, in the current situation
privatization of Armenia in two packages between Gazprom and Rosneft
may be concerned, both headed by the Kremlin.
As to the stake of Armenian high-ranking officials in these
developments as mentioned in the report of Yerkir.am, everything
is natural. The Armenian press report every now and then that
high-ranking officials owe for gas and electricity. Big amounts are
meant. Deferred utility bills is the "stake" of the Armenian officials
in the abovementioned deals therefore the deals receive state approval
instead of investigation.
- See more at:
http://www.lragir.am/index/eng/0/comments/view/32004#sthash.IaQ4B50a.dpuf