Armenian Government Takes Control of Gagik Tsarukyan's Ararat Cement

The Armenian government has taken control of Ararat Cement, the country's largest privately owned cement producer, after the Anti-Corruption Court ordered the company owned by billionaire businessman and opposition leader Gagik Tsarukyan to be placed under state management while prosecutors pursue its permanent confiscation.

The ruling transfers the management and safekeeping of the company's shares to the Armenian government while prosecutors pursue a civil forfeiture case seeking to confiscate the plant and a large portion of Tsarukyan's wealth. The decision comes less than two weeks after Tsarukyan was detained on money laundering and other charges and after authorities carried out searches at dozens of his businesses and properties.

According to the court's July 15 decision, the shares of Ararat Cement will remain under state control as legal proceedings continue. Prosecutors argue the company was acquired illegally and should ultimately become state property.

The Prosecutor General's Office is also seeking the confiscation of 75 real estate properties, the market value of 10 additional properties, 42 vehicles, ownership stakes in 38 companies and nearly 106 billion drams, or about $289 million, in cash and other financial assets.

Among the companies named in the lawsuit are Multi Group Concern, Multi Avtotrans and Onira Club, along with dozens of other businesses. Prosecutors are also seeking to recover what they describe as the proceeds of illegal income, including outstanding loans, assigned claims and the market value of five vehicles.

The court's decision follows recent remarks by Prime Minister Nikol Pashinyan, who said earlier this month that Ararat Cement would "very soon become state-owned" and that a state-appointed manager would take over operations. During the parliamentary election campaign, Pashinyan repeatedly described the factory as the foundation of Tsarukyan's business empire and questioned the legality of its privatization in the early 2000s.

Tsarukyan has been under criminal investigation since June 9, two days after Armenia's parliamentary elections. At the time, his Prosperous Armenia Party was awaiting recount results that could have determined whether it would secure seats in parliament. The Central Election Commission later confirmed the party failed to pass the 4% threshold required for representation in the National Assembly.

Authorities have also said Tsarukyan attempted to leave Armenia through Yerevan's Zvartnots International Airport after the investigation began but was prevented from doing so.

One of the country's wealthiest businessmen, Tsarukyan built a sprawling business empire over three decades with investments in food and alcohol production, hotels, casinos, mining, pharmaceuticals and cryptocurrency mining.

He has faced multiple criminal investigations over the years. In 2020, prosecutors charged him with alleged vote-buying linked to the 2017 parliamentary elections. He was also investigated over the operation of the Shangri La casino without a license. Armenian authorities revoked the casino's license in late June.

Tsarukyan was also convicted by a Soviet court in 1979 and sentenced to seven years in prison for the rape of two women. According to Radio Free Europe/Radio Liberty, it remains unclear whether he served the sentence. Armenia's Court of Cassation overturned the conviction in 2001 during the presidency of Robert Kocharyan, clearing him of the charges.

The Anti-Corruption Court will now continue hearing the prosecutors' broader confiscation case, which could ultimately transfer one of Armenia's largest private business holdings and hundreds of millions of dollars in assets to state ownership.

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