Court asked to void 2002 Ararat Cement privatization

PanARMENIAN.Net - The Prosecutor General’s Office has asked the Administrative Court to declare invalid the 2002 government decision on the privatization of AraratCement and to eliminate the legal consequences arising from it.

According to the Prosecutor’s Office, a review of the privatization process identified several alleged violations, including the transfer of the company’s shares through a direct sale to Roberto LLC after the tender had been declared unsuccessful and in breach of procedures and deadlines established by law.

Within the framework of its authority to protect state and community interests, the Prosecutor’s Office examined the privatization process of AraratCement, which was alienated under Armenian Government Decision No. 1465-A of September 12, 2002. Based on the violations identified during the process, prosecutors filed a lawsuit with the Administrative Court seeking to have the government decision declared null and void and its consequences reversed.

Among the issues cited in the claim are several circumstances surrounding the privatization process.

In particular, under Government Decision No. 690 of July 31, 2001, a tender commission was established to privatize state-owned shares of AraratCement through a competitive process. Purchase proposals were submitted by the Swiss company Holcim LTD and the British company SK.Ajikawo Group.

At the tender held on September 26, 2001, Holcim LTD was declared the winner. However, on October 22, 2001, the company informed the Minister of State Property Management that its board of directors had rejected the investment program without providing reasons.

According to prosecutors, after the tender was deemed unsuccessful on October 22, 2001, the Armenian government exceeded the 60-day deadline and violated Article 18 of the Law on Privatization of State Property. It allegedly ignored the status of SK.Ajikawo Group as a previously identified purchaser and, instead of transferring the shares directly to that company, privatized 317,003 shares of AraratCement, each with a nominal value of 10,000 drams, through a direct sale to Roberto LLC.

The Prosecutor’s Office describes Roberto LLC as a company established in Belgium with authorized capital of only €18,952, engaged in the import and export of food products, semi-finished goods and vehicles, as well as the operation of laundries and fuel stations. According to the statement, the company was managed by Vahagn Ghuloyan, uncle of Karapet Ghuloyan, the son-in-law of Gagik Tsarukyan’s daughter.

Under the same government decision, the share price was set at $800,000, with the buyer required to make payment within three banking days of signing the privatization agreement.

The Prosecutor General’s Office also reported discovering a number of alleged violations in the process through which AraratCement acquired ownership rights to land plots. Having identified indications of a possible crime while exercising powers to protect state interests, a prosecutor submitted a criminal report to the Anti-Corruption Committee on May 27, 2026, and also filed a state-interest protection claim with the Anti-Corruption Court.

In addition, on May 5, 2026, the Prosecutor General’s Office sent a letter to the Armenian government proposing that it review the violations identified at the company and consider measures to remedy their consequences, including the possible appointment of a temporary administrator.