Armenia's Ex-President Sargsyan Charged with Bribery, Illegal Entrepreneurship

Former Armenian president Serzh Sargsyan

Armenia's Ex-President Sargsyan Charged with Bribery, Illegal Entrepreneurship

Former Armenian President Serzh Sargsyan has been formally charged with bribery and illegal entrepreneurship, the Anti-Corruption Committee announced on Wednesday.

Investigators said Sargsyan abused his powers to help his confidant’s businesses secure a business deal in establishing a bitumen plant, which was launched through foreign investments, The Caspian Post reports, citing Armenian media.

The law enforcement agency stated in a report that Sargsyan had been involved in illegal entrepreneurship since 2006, when his confidant launched a new company with two Russian firms registered in Cyprus, and allegedly transferred 22.5% of the shares to a company founded by Sargsyan’s nephew and former President Kocharyan’s son. In 2013, investigators said, the company failed, and foreign investors planned to sell their shares. However, Sargsyan allegedly instructed his confidant to take a $14,000,000 loan from an Armenian bank owned by his associate to return the investments made by the two Russian companies. Sargsyan then allegedly organized the sale of his confidant’s company assets to benefit a business affiliated with his son-in-law.

In 2015, the said company acquired the assets for $40,000,000, effectively gaining a monopoly on petroleum imports (the assets included 23 gas stations, a petroleum base, and a bitumen factory). Furthermore, Sargsyan allegedly instructed his business partner to pay $6,000,000 to “the son of the Second President of Armenia” in exchange for the 22.5% of the company shares that had been previously given as a bribe. The money was allegedly transferred to his company through a fake transaction contract. The indictment has been sent to the Anti-Corruption Court.

Sargsyan served as President from 2008 to 2018. He was the Minister of Defense before that.

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Former Armenian President Serzh Sargsyan has been formally charged with bribery and illegal entrepreneurship, the Anti-Corruption Committee announced on Wednesday.