Artak Sargsyan

MONEY HAS NO SMELL: ARTAK OF SAS – FROM A FINANCIAL PILLAR OF THE FORMER GOVERNMENT TO PASHINYAN'S “TASTY PARTNER”

Artak Sargsyan, owner of the SAS supermarket chain, has demonstrated a remarkable ability to maintain his position in Armenia's political and economic life. The former Republican Party MP and one of the business pillars of the former government quickly found common ground with the new authorities after the 2018 change of power, without relinquishing his business position.

Sargsyan's business was established back in the 1990s. The first 24-hour SAS supermarket, opened in 1997, later developed into an extensive retail chain. The company's activities also expanded beyond Armenia, with connections to entities registered in Cyprus, the British Virgin Islands, the United States, the United Kingdom and Georgia.

Artak Sargsyan's political path has passed through several parties, from Orinats Yerkir and Tigran Karapetyan's People's Party to the Republican Party. In 2012, he became an MP again, but during his five years in parliament, he never delivered a speech. During the 2017 parliamentary elections, according to published allegations, SAS employees were pressured to register on voter lists and vote in favour of Sargsyan. An audio recording related to this process was also published. The criminal case was dropped on September 8, 2017, on the grounds that no elements of a crime were present. SAS Director Stepan Sahakyan was among the 11 people convicted in the “Zibilix” case, while Sargsyan was not held criminally liable, although his name was also mentioned among the accused in an Armenpress publication in English.

After the 2018 change of power, Sargsyan voted in favour of Nikol Pashinyan's election as Prime Minister, left the Republican Party and supported the snap parliamentary elections. In May 2019, he stated that he had always had good relations with the new authorities. Around the same time, SAS Group's SAS Sweet company transferred 1 million 688 thousand drams to the City of Smiles Foundation, whose Board of Trustees was chaired by Anna Hakobyan. The company, in turn, received the designation of “tasty partner.”

The economic activity of Sargsyan's family continued through new real estate projects in Yerevan. In 2020, his family acquired ownership rights related to a project involving land plots and a commercial complex located near the Yerevan Water World. His son, Tigran Sargsyan, became the sole owner of the Luizas company, while the total area of land plots belonging to family members through inheritance or other grounds exceeded 7,300 square metres. According to the 2024 audit report, Luizas owed SAS Group 137.7 million drams.

Sargsyan's name also appeared in publications concerning offshore companies and assets not reflected in parliamentary declarations. According to an investigation by Hetq based on the Pandora Papers, he had ties to a company registered in the British Virgin Islands and a 50% stake in SAS USA LLC, operating in the United States. In May 2022, the Prosecutor's Office forwarded the materials from the publication to the Anti-Corruption Committee, where criminal proceedings were initiated. However, as of July 2024, Sargsyan still had no procedural status.

SAS Group's 2024 financial report also contains noteworthy figures. The company's revenue amounted to 32.3 billion drams, while dividends paid in 2024 amounted to 3.21 billion drams. Over two years, the total amount of dividends reached 5.51 billion drams. At the same time, the company owed banks 21.76 billion drams. The report also lists loans of 2.64 billion drams provided to Artak Sargsyan and 2.5 billion drams to his brother, Aram Sargsyan. However, different sections of the document present contradictory information about the company's ownership structure: one section states that the two brothers each hold a 50% stake, while another lists Artak, Aram and Davit Sargsyan as each holding approximately 33.3%.

Decisions by the municipal authorities have also been favourable to SAS's business. In May 2024, Yerevan's Council of Elders approved a decision to allocate 36 parking spaces to the company for servicing purposes. In March 2025, their number was increased to 71 across ten addresses in the city. The calculated annual fee amounted to 21.3 million drams. These spaces are designated for the company's use, limiting other drivers' opportunities to park.

On April 13, 2026, Artak Sargsyan was once again present, alongside Samvel Aleksanyan, at a breakfast meeting of businesspeople attended by Nikol Pashinyan. It is noteworthy that in 2017, Pashinyan himself had demanded explanations regarding the election-related story at SAS. After the change of power, that harsh criticism was replaced by friendly interaction with the businessman.

Artak Sargsyan's story shows how comfortable life can be for big business in Armenia, regardless of changes in government. Yesterday's financial pillar of the government is today the new government's “tasty partner.” And the business continues to operate, generate revenue and expand its opportunities. Money, as they say, has no smell.