Country of “shareholders”: Businesses of the Sargsyan family

The names of relatives of third president Serzh Sargsyan have always been associated with the phenomenon of “50 percent share” and being involved in many businesses. After the revolution in 2018, it was expected that it would eventually be revealed to what extent the rumors “up in the air” were true, but the expectations on this issue were not justified and questions were raised about the authenticity of the rumors.

Studying extensive data from the State Register, the Fact Investigation Platform has made remarkable discoveries about the Sargsyans’ business activities, from hotel business to hydropower plants, real estate rentals, construction, car repairs, vegetable imports, and so on. All data are substantiated by official documents.

Alexander Azat Sargsyan

The most widespread rumors concerning Serzh Sargsyan’s brother, Alexander Sargsyan, who is always at the heart of scandalous stories, refer to the so-called “50/50”.

According to official documents, Alexander Sargsyan is involved in 6 companies. In 1999, Sargsyan founded “Hayk & Narek” LLC, which was renamed “Gandzaghbyur” LLC in July 2008. This company owns the hotel resort with the same name in the Arzakan community of Kotayk Marz. The sole shareholder of the company is Alexander Sargsyan. Hetq wrote that this resort was also operated during the Soviet times but even the State Property Management Committee is unaware of how Sargsyan privatized it. Gandzaghbyur LLC has received millions of dollars from the Ministry of Health for providing medical care services for several years.

In May 2003, two months after being elected MP, Alexander Sargsyan became a 50% shareholder at Multi-Leon LLC. Prior to that, from December 2002 to March 2003, Gagik Tsarukyan, the leader of the Prosperous Armenia Party, was also a shareholder of the company. On the same day Tsarukyan left the company, Multi Group Concern belonging to Tsarukyan became a 50% shareholder of Multi Leon LLC. Multi-Leon LLC is engaged in import and sale of liquefied gas for cars, owns gas stations in Yerevan and in the regions. Sargsyan quit this company in January 2012.

In October 2005, Alexander Sargsyan founded HANA M.E.K LLC, which provides outdoor advertising services and has had billboards on a number of streets in Yerevan. Sargsyan is the 100% shareholder of the company, and his son Narek Sargsyan has been the company’s CEO since 2012.

In 2012 Alexander Sargsyan became shareholder of Hana–Service LLC. It was founded in December 2011 by Sargsyan’s son, Narek Sargsyan, who was the sole shareholder of the company. In September 2012, the company was sold to Alexander Sargsyan. The latter has also been the company’s CEO since March 2018. According to the State Revenue Committee, Hana-Service LLC is engaged in car maintenance and repair activities.

In 2012, Alexander Sargsyan became a shareholder of another company, Hana-Trans LLC, founded by his son Narek Sargsyan. Narek Sargsyan registered the company in September 2011, and was initially a 100% shareholder and director of the company. In November 2012, Alexander Sargsyan became the 100% shareholder and director of the company. The company was initially registered as an interregional cargo transportation company. In 2012, Hana-Trans LLC received a tax privilege of three-year delay in VAT payments from the government for 40 dump trucks. According to another government decree in 2012, the former railway hotel building in Vardenis was sold to Hana-Trans LLC. The company was planning to transport coal from the village of Magavuz in the Martakert region of Artsakh to the Vardenis railway junction to later transport it to Yerevan through the Hana Group Company (owned by Serzh Sargsyan’s son-in-law Hayk Khachatryan). Coal was to be used as a hydrocarbon fuel at Yerevan HPP to obtain electricity. However, this project never materialized.

In October 2012, Alexander Sargsyan became a shareholder of Hana-Vard LLC. On July 30, 2012, the company was founded by former Prime Minister Hrant Bagratyan’s brother, businessman Mher Bagratyan, and Andranik Kocharyan from Gegharkunik region. A month later, on August 30, Bagratyan’s and Mkrtchyan’s shares were acquired by Alexander’s son Narek Sargsyan. But in October 2012 Alexander Sargsyan became the sole shareholder and director of the company. According to the State Revenue Committee, the main focus of the company was maintenance and repair of cars.

It is noteworthy that the activities of all of the above companies, except Multi Leon, are currently temporarily suspended.

Narek Alexander Sargsyan

The notorious son of Alexander Sargsyan, Narek Sargsyan, who was discovered in Prague in December with a fake passport with the name Franklin Gonzalez, was involved in a number of businesses, as has been mentioned above. In addition to the companies HANA M.E.K, Hana-Service, Hana-Trans, Hana-Vard, Narek is involved in other businesses as well.

Thus, in May 2011 Narek Sargsyan became the 100% shareholder of Aknadzor LLC. The company was founded in December 2008 by Narek’s brother, Hayk Alexander Sargsyan. “Aknadzor” is registered in the tax authority as a retailer of fruits and vegetables in specialized stores. In particular, Aknadzor LLC was involved in importing tomatoes from Turkey. Currently the company is temporarily suspended.

Since July 2012 Narek Sargsyan has been the sole shareholder of Vavan LLC. The company was founded in 2001 as a car repair and maintenance company. The company used to have a car wash under the Lambada Bridge in Yerevan. As a bridge leaseholder, Sargsyan’s company had accumulated about 54 million 800 thousand AMD in debt to the state, which it paid off after the revolution.

In July 2017, Narek Sargsyan together with a person named Artem Petrosyan founded Leader 1987 LLC. Sargsyan owns 70% and is also the director of the company. The company is registered with the tax authority as a restaurant service provider. Currently the activity is temporarily suspended.

On March 6, 2018, Narek Sargsyan founded Leader 7 LLC, and is its 100% shareholder and director. The activity of this company is also temporarily suspended.

Hayk Alexander Sargsyan

Alexander Sargsyan’s other son, Hayk Sargsyan, unlike his brother, is a “shareholder” in fewer companies. As mentioned above, he has been involved in Aknadzor and HANA M.E.K companies.

In addition to these two companies, Hayk Sargsyan has been a 50% shareholder of Goris Energy since February 2010. The other 50% of the company is owned by Hayk Sargsyan’s cousin Narek Lyova Sargsyan. The company was originally founded in February 2008 by Vardan Mushegh Barseghyan, brother of former Syunik governor Surik Khachatryan’s wife.

Levon Azat Sargsyan

One of the most scandalous revelations following the 2018 revolution was related to Serzh Sargsyan’s other brother, Lyova Azat Sargsyan, and his family.

In June 2018, having searched Narek Lyova Sargsyan’s house, the State Revenue Committee discovered contracts for about $ 6 million 800 thousand in depository funds in the names of Lyova Sargsyan and Ani Sargsyan invested in one of the banks operating in the Republic of Armenia, which neither Levon Sargsyan nor his daughter declared. A criminal case has been initiated on charges of illegal enrichment and concealing property subject to declaration.

A few months after his brother Serzh Sargsyan became president in 2008, he co-founded the Pyunik Charitable Foundation with Gabriel Djambardji. The latter was strangely registered at St. Gregory the Illuminator Church in Yerevan. The main areas of activity were the development of educational, cultural, health facilities and their upgrading with up-to-date equipment. The charter stated that the foundation does not carry out entrepreneurial activities. However, in 2017 CivilNet revealed that the Pyunik Charitable Foundation received AMD 156 million from the Yerevan Municipality to carry out flowering and landscaping activities in the city.

In addition, in 2010 the Pyunik Foundation founded the GLG Project Company LLC with the involvement of Gabriel Djambardji and Levon Sargsyan’s son Narek Sargsyan. The company is registered as a developer of residential, public and industrial buildings. After the revolution it was revealed that GLG Project Company LLC, which was engaged in the construction of a multifunctional building at 3 Byuzand Street in 2013-2017, caused the state more than 300 million AMD in damages.

The SRC initiated a criminal case on charges of intentionally causing insolvency of the company and failing to pay particularly large amounts of tax by inputting obviously false data in the calculations prescribed by law. Following the initiation of the case, GLG Project Company LLC recovered 800 million AMD to the state budget.

In December 2008, Levon Sargsyan, together with former Defense Minister Seyran Ohanyan and his senior adviser Babken Vardanyan, co-founded the Renaissance Foundation, which was registered as a cultural, educational, social and charitable organization. The fund was liquidated in 2017.

Narek Lyova Sargsyan

Lyova Sargsyan’s son, Narek Sargsyan, is most involved in various businesses among the relatives of Serzh Sargsyan. According to the electronic system of the State Register, Sargsyan is a shareholder in 23 companies. It is noteworthy that Narek Sargsyan founded companies or became a shareholder mostly after his uncle became president. Sargsyan started his business career at the age of 18.

As mentioned above, Narek Sargsyan is one of the shareholders of GLG Project Company LLC. He owns 20% shares in this company.

In December 2007, Narek Sargsyan co-founded Jersan LLC with Ashot Arsenyan from Jermuk and Samvel Sargsyan from Aghavnadzor village. Both Ashot Arsenyan (owner of Jermuk Group CJSC) and Samvel Sargsyan (former Vayots Dzor governor) are well known to the public. Both were members of the Republican Party and both were elected deputies of the National Assembly by the RPA list in May 2008. The company, in fact, was founded after they became deputies.

Jersan LLC deals with hotel business. The company owns Hyatt Place Jermuk Hotel. Narek Sargsyan left this company on June 12, 2019 and sold his shares to Samvel Sargsyan’s son, Frunze Sargsyan.

In May 2015 Sarsgayn co-founded Sanjer LLC together with Samvel Sargsyan and another shareholder, Anna Pushkin Sargsyan. The company owns Sanjer Medical Center which operates under the same address as the Hyatt Place Jermuk Hotel and offers spa services. Narek Sargsyan left this company in July 2019 alienating his shares to Samvel Sargsyan’s son again.

On January 17, 2008, when Serzh Sargsyan was preparing for the presidential election, Narek Sargsyan founded LL Bimbo LLC with Sedrak Kocharyan, son of Robert Kocharyan, who was stepping down from presidency at the time. The two young men own 50% shares each. The Company is registered with the State Revenue Committee as a leasing company of own or leased real estate. But in March 2008, Bimbo became a shareholder of Armenian-Russian Abit LLC. This company founded a bitumen plant in Surenavan village of Ararat Marz. Bitumen is an oil product used for asphalt production. The plant opened on May 15, 2009 and the inauguration was attended by then President Serzh Sargsyan.

On April 21, 2008, Narek Sargsyan became a 50% shareholder of Mina-Maya LLC. Mina-Maya LLC was founded in 2001. It operates “Yeghegnadzor” and “Yeghegnadzor SHP-1” SHPPs located on the Yeghegis River. Fact Investigation Platform has already presented what problems these SHPPs are causing to Lake Sevan. On May 20, 2019, Sargsyan sold his shares to Vachik Grisha Kokobelyan, the brother of Khachatur Kokobelyan, leader of the Free Democrats Party.

On April 2, 2010 Sargsyan co-founded Argavazshin LLC. This company is engaged in extraction of sand and crushed stone. The company has a sand washing and sorting plant in Yeghegnut community of Armavir Marz. Sargsyan left this company on March 20, 2018.  On February 17, 2012, Sargsyan founded Grisha Galstyan LLC together with three other individuals. On February 27 of the same year, the company received permission from Ararat Regional Administration to build an NGV-refuelling compressor station on N1 Airport street in Argavand village. Sargsyan left this company two months later. The company is currently liquidated.

In May 2012 Narek Sargsyan founded Lavita Pharm LLC with three Armenians from Syria. Sargsyan is also the director of the company. Lavita Pharma LLC is registered with the State Revenue Committee as a company of trading agents engaged in selling cars, industrial equipment, ships and aircraft.

In April 2015, Narek Sargsyan became a 25% shareholder of Jugha Group. The company is registered in Gyumri and deals with real estate leasing. It has an area of 6681.3 square meters on 7 Arin-Berd Street, Yerevan which was alienated by Yerevan Municipality decision of 2016 by direct sale.  It is noteworthy that a number of Dashnaktsutyun party officials, including ARF Bureau representative Hrant Margaryan (06.12.2001-02.04.2015) and David Lokyan, former Minister of Territorial Administration and Development (26.08.2015-15.02), were the shareholders of Jugha Group established in 2001.

In 2015 Sargsyan became the owner of 25% share of Rex Transforms LLC. The company was registered in 2014 and is engaged in the production of transformers. ARF Dashnaktsutyun’s David Lokyan was a shareholder here too from July 2015 until February 2016.

In December 2015, Narek Sargsyan co-founded Dipole LLC. The company is registered in Gyumri and, like Jugha Group, deals with real estate leasing.

In February 2017, Narek Sargsyan founded two companies in two days in a raw, namely Euphrates Tour LLC and Slaughterhouse LLC. Sargsyan owns a 50% share in the “Euphrates Tour.” The company deals with airline tickets and is the representative of Syrian Cham wings airline in Armenia selling Yerevan-Damascus airtickets.

Narek Sargsyan owned a 33% share in “Slaughterhouse” company. Initially Karlen Sargsyan, son of Vazgen Sargsyan’s brother Armen Sargsyan, also had a share in this company. In September 2017, Karlen Sargsyan passed his share to his sister Nono Armen Sargsyan. The company is registered as a wholesaler of meat and meat products. Narek Sargsyan left “Slaughterhouse” on May 30, 2018.

Sargsyan has had shares in AFT Trade, Halego Group, Sedas Oil, Aratta Finance Holding, Davig, Winds Park Corporation, Rosn Group, SMM Product, Sergio Stephanie, GCG Production companies. All of these companies are currently liquidated or the business is temporarily suspended. There is no information about the activities of these companies in the open sources or on the SRC website.

It should be noted that Narek Sargsyan’s shares are currently frozen in all the companies where he continues to be a shareholder within the framework of the criminal case on charges of  illicit enrichment and concealing property subject to declaration.

Ani Levon Sargsyan

Levon Sargsyan’s daughter, Ani Sargsyan, also got involved in business at an early age. The 18-year-old girl became a 50% shareholder of Golevar LLC in January 2011. The company owns the Ashtarak SHPP located on the Kasakh River in Aragatsotn region. The company is currently liquidated.

Ani Sargsyan became a 50% shareholder of Elite Bus LLC in March 2011. The company is one of the most well-known passenger transportation companies in Armenia and receives major orders from government agencies as well.

In fact, Serzh Sargsyan’s brothers and their children have really had shares in many businesses. It is noteworthy that they largely started their business activities after Serzh Sargsyan became president.

It should be noted that all the above information is substantiated by official documents.

Ani Grigoryan

Hovhannes Nazaretyan