Hetq.am: State Fund Under ANIF Invested AMD 700 Million in Business Linked to Former Director Papazyan’s Frien
According to a publication by Hetq.am, the Entrepreneur+State Anti-Crisis Investments state fund operating under ANIF invested AMD 700 million in Global Connect CJSC in 2022. The company is linked to Sergey Grigoryan, a close friend of former ANIF Director David Papazyan. According to the article, the investment was made in three tranches, with the purpose of purchasing trucks and semi-trailers to serve major companies importing and exporting goods in Armenia. As a result of the investment, the state fund became a 49 percent shareholder in the company.
Hetq.am notes that this investment, made with public funds, also raises questions from a valuation perspective. According to the publication, before the state investment, Global Connect had only a few trucks, while the company was valued at a level at which the state received only a 49 percent stake in exchange for AMD 700 million. Moreover, according to the article, it was precisely after the state investment that the company was able to significantly expand its vehicle fleet.
An important part of the publication concerns the connections between David Papazyan and Sergey Grigoryan. By examining the Pandora Papers, Hetq.am found that they had previously shared offshore business interests in the British Virgin Islands. According to the published documents, Sergey Grigoryan participated in the transfer of a stake in one of Papazyan’s offshore companies, while in another offshore entity they were business partners. The article notes that these facts could be important in the context of the criminal proceedings concerning ANIF’s activities.
Hetq.am also recalls a statement by Prosecutor General Anna Vardapetyan, according to which possible abuses in the course of joint activities involving ANIF and a number of companies are being investigated. Global Connect is also mentioned in connection with the case. At the same time, law-enforcement authorities have initiated criminal prosecution against former ANIF Director David Papazyan, as well as other individuals involved in the management of state investments.
The article also addresses other major investments made through ANIF. According to Hetq.am, billions of drams from the state fund were directed to companies connected to former high-ranking officials or people in their circles. These include CFW, Universal Closures, and Berrymount, which are linked to representatives of Tigran Avinyan’s circle or influential financial circles.
Meanwhile, the government has decided to begin the process of selling the shares acquired through the state fund’s investments. According to the publication, companies that received investments were offered the opportunity to buy back the state’s shares in exchange for the amount invested plus calculated interest. In the case of Global Connect, the amount in question is approximately AMD 921 million. However, as Hetq.am notes, the companies are dissatisfied with the government’s terms and have proposed more lenient options, which have been rejected.
The publication concludes by emphasizing that the companies that received investments are effectively facing a choice: either agree to the financially burdensome terms proposed by the government or come under the scrutiny of the state system and law-enforcement authorities, given the ongoing criminal cases surrounding ANIF.