Bill to “Deliver Possession of Dilijan” to Russian Businessman; Tax Incentives to Non-Existent Investors

The RA Government proposes to adopt a development and investment bill for the Armenian town of Dilijan and surrounding areas, which would allow income tax exemption and other tax incentives for foreign investment companies operating in the area.

The draft was presented at the National Assembly on Wednesday, June 17, by Vache Terteryan, RA Deputy Minister of Territorial Administration and Emergency Situations. Among other benefits, Terteryan said, the bill proposes to exempt foreign investors' import from value added tax (VAT). 

The Deputy Minister explained they plan to provide tax exemptions and incentives to currently non-existent businesses. 

“In other words, we expect that these incentives will promote interest,” Terteryan said. 

Naira Zohrabyan, head of the opposition Prosperous Armenia Party parliamentary faction, reminded the Deputy Minister that “we've had illusions about possible investments in the past, too.”

“To turn Gyumri into a cultural center; turn Jermuk into something else; to make goat cheese a brand equivalent to Chanel. What if we allow incentives, and there are no investments? Who's going to be responsible for these investments?” Zohrabyan said. 

In Jermuk and Gyumri, Terteryan responded, development works are underway, and they have high expectations for Dilijan. 

Opposition Armenian National Congress MP Nikol Pashinyan, in turn, said the bill was illegal. This foreign investor, he added, was most likely going to be Russian businessman Ruben Vardanyan. 

“This is a bill to deliver possession of Dilijan to Ruben Vardanyan. I have great respect for the intellectual projects he implements, but for me, [this bill] is the continuation of the same phenomenon: let’s give Syunik province to [governor] Surik Khachatryan; Artashat – to [RA Prime Minister] Hovik Abrahamyan and his family; Malatia Sebastia [administrative district] to [oligarch] Samvel Aleksanyan; Abovyan – to [businessman] Gagik Tsarukyan. The government has brought a bill contradictory to the state system,” the oppositionist said. 

Note, Russian businessman of Armenian descent Ruben Vardanyan is the founder of The United World College Dilijan (Dilijan International School). 

Pictured – RA President Serzh Sargsyan and Ruben Vardanyan on the territory of the school