TODAY.AZ / Politics

Armenia's rulers start to "devour its children"

12 May 2015 [12:37] - TODAY.AZ

/By AzerNews/

By Mushvig Mehdiyev

Armenian president's recent visit to the United States could cost the Armenian oligarchs dear - a new wave of attack on their business is inevitable, reports the media in Yerevan.

Dark clouds are expected to gather over the tycoons in Armenia following President Serzh Sargsyan's return from the U.S. with "empty pockets". According to media reports, he failed to convince the Diaspora to place the necessary amount of investments into Armenia's economy. With no influx of capital coming in, the regime might be forced to rotate its cannon towards the country's rich oligarchs and cannibalize its own to survive. Collecting huge amounts of money from its businessmen seems the only option for Armenia now.

Zoghovurd newspaper in Yerevan claims that the regime will resort to inspecting the businesses of its oligarchs to raise the money it needs.

"Thorough examination of the oligarchic class businesses in the upcoming days will end in huge fines. The same raids have already been carried out against the business enterprises of Ashot Babayan, a member of parliament from the ruling Republican party," the newspaper said.

The finance ministry conducted an inspection in Razdan fair belonging to Babayan and fined it at nearly $125,000 earlier in March. This happened amidst a deteriorating economic atmosphere in Armenia at a time when the government emerged unable to address its budget challenges.

"More penalties will be imposed on other businessmen from the ruling party so that the state budget can receive money. Obviously the regime has started to devour its children," Zoghovurd wrote.

Relations between Yerevan and the Diaspora are far from good those days. Even very recent calls by Armenia's Diaspora minister on Armenians abroad to participate in the country's recovery plan fell on deaf ears. The Diaspora argued that they see no point in enabling monopolies and corrupt figures with their hard earned money.

When it comes to the oligarchs, it is obvious that they have an overwhelming power in Armenia as key decision makers. An official data released last year showed that there were 20 millionaires in Armenia's parliament nine of which were from the ruling Republican party. Certain fields of import and export markets are fully controlled by such individuals, mostly represented in public offices.

A recent report by Thomas de Waal, a senior associate at the Carnegie Endowment, showed that Armenia oligarchic economy remains within the hands of certain powerful individuals, who dominate the economy and manipulate prices of key goods. Through such moves they buffer themselves against misfortune, such as a falling dram, exposing the population to more misery. Summarizing Armenia economic outlook, de Waal said "the oligarchs also control the levers of political power, and make the rules to suit their own personal interests not the country’s and broad population’s interests".

URL: http://www.today.az/news/politics/140676.html

Print version

Views: 1028

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: