“Hraparak”: “Factory Production” received contracts worth AMD 5.7 billion from the state budget
Following the change of government, a significant portion of the budget funds allocated for organizing state events has gone to two companies: “Doping Space” and “Factory Production.” According to the daily newspaper “Hraparak,” between 2018 and 2026, “Factory Production” signed 50 contracts with various state bodies, worth a total of AMD 5.7 billion. The company was entrusted with major events, including the organization of the 2022 European Boxing Championships, for which AMD 750 million was paid.
The volume of the company's state contracts has increased particularly significantly in recent years. This year alone, the value of the contract signed with the Prime Minister's Office amounted to AMD 1.7 billion. Meanwhile, the total value of the four contracts signed with Yerevan Municipality in 2025 exceeded AMD 771 million. According to the publication, a significant portion of the contracts was carried out through the single-source procurement procedure: 17 of the 25 contracts signed between 2023 and 2026 did not go through a tender.
Such practices raise questions regarding the transparency of the allocation of public funds and equal conditions for competition. It is also noteworthy that, by decision of Yerevan Mayor Tigran Avinyan, the company's director, Rudik Ter-Galstyan, was awarded the “Erebuni-Yerevan 2800th Anniversary” commemorative medal. The combination of the concentration of state contracts, contracts signed without tenders, and the awarding of the company's director creates a need for public oversight and clarification.