Armenian Government Takes Over Another Gagik Tsarukyan Business, Places NOY Brandy Factory Under State Management

Armenia’s government has taken control of another company owned by opposition leader Gagik Tsarukyan, with an anti-corruption court ordering the shares of the Yerevan Ararat Brandy-Wine-Vodka Factory, one of the country’s best-known alcohol producers, transferred to the state while a sweeping illicit assets case against him moves forward.

The Prosecutor General's Office said the Anti-Corruption Court approved its request to place the company's shares under state management, assigning their administration and preservation to the Ministry of Economy until the legal proceedings are resolved.

The decision is part of a broader civil forfeiture case that prosecutors launched in October 2023 against Tsarukyan and individuals affiliated with him. Authorities argue that a large portion of their assets was acquired through illicit means and should be confiscated in favor of the Armenian state.

According to prosecutors, the lawsuit seeks the seizure of a vast portfolio of property and business interests linked to Tsarukyan. In addition to the Ararat factory, the state is seeking to confiscate 75 real estate properties, including 52 apartments in Yerevan's Nor Nork district, five apartments on Abovyan Street and 11 apartments in Kotayk Province.

The claim also covers the market value of 10 additional properties, 42 vehicles and ownership stakes in 38 companies, including Multi Group Concern, Multi Autotrans and Onira Club.

The total value of the monetary claim stands at 105.87 billion drams, or roughly $287.7 million.

Prosecutors requested the interim measure on July 29, asking the Anti-Corruption Court to transfer management of the factory's shares to the government while the confiscation case remains under review. The court granted the request the following day, placing the shares under the management of the Ministry of Economy.

The ruling follows a similar order issued earlier this month involving another major Tsarukyan-owned business. On July 15, the Anti-Corruption Court transferred the management of Araratcement to the Armenian government after prosecutors sought the same temporary measure in that case.

The legal campaign against Tsarukyan has unfolded alongside an increasingly tense political confrontation between the government and one of its most prominent critics. During the parliamentary election campaign in May, Prime Minister Nikol Pashinyan publicly declared that Tsarukyan would be stripped of his wealth.

Less than two months later, on July 6, Armenian law enforcement officers searched Tsarukyan's home and several companies associated with him before placing him in pretrial detention. Authorities also sealed multiple businesses connected to the businessman as investigations continued.

The criminal proceedings and parallel asset forfeiture lawsuits now represent one of the most significant legal actions ever brought against a leading opposition figure in Armenia, placing billions of drams in private assets under judicial review while intensifying political debate over the government's anti-corruption campaign.

—

Support independent reporting from the region by subscribing to The Armenian Report. Our team is funded solely by readers like you.