2023 October 31

Daily news wrap-up

Is the Armenian government libertarian or socialist? /// How big is the shadow economy in Armenia? /// Dozens missing in Nagorno-Karabakh /// Dry port /// New Russian law will impact ethnic Armenians /// Road lighting /// Tourism budget & stats
by ar_david_hh

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tens of residents of Nagorno-Karabakh died from lack of medication and food during the forced exodus caused by Azerbaijan's military aggression

The authorities have identified 64 civilians who died during the exodus or from reasons immediately linked to the forced migration.

==how many residents of Nagorno-Karabakh are still missing after the military aggression?

Deaths: 200 soldiers, 9 civilians, 3 children.

Wounded: 231 soldiers, 80 civilians.

Missing: 12 civilians, 30 soldiers.

[source,](https://www.civilnet.am/news/755460/արցախից-հայաստան-գաղթելիս-մահացել-է-64-մարդ/) [source,](https://www.youtube.com/watch?v=IL9tDp4kOIs) [source,](https://a1plus.am/hy/article/464003)

Armenia's finance ministry estimates that the annual financial support that it was providing to Nagorno-Karabakh in the past will be enough to cover the needs of refugees now

The millions of dollars that Armenia used to wire to Nagorno-Karabakh will now go towards paying pensions, housing subsidies, and other social programs for the refugee families who settled in Armenia.

The government recently approved a decision to grant the forcefully displaced persons a legal status equivalent of "refugee" to allow Karabakhi seniors to apply to receive their pensions in Armenia instead. It envisages various legal protections and benefits for refugees.

[source,](https://www.youtube.com/watch?v=FJ5Rj0MTbcE?t=534)

new Russian citizenship law is expected to cause headaches for ethnic Armenians and other minorities

The law went into effect last week. It impacts those who intend to apply for citizenship or dual citizenship.

Before: Foreigner qualified for a simplified path to citizenship after being married to a Russian citizen for 3 years.

Now: Must be married together for 3 years AND have a child together.

REPORTER (1in): Can you describe the amendments to the citizenship code?

RUBEN KIRAKOSYAN (Moscow-based expert): The Russian government is attempting to promote a new ideology and reshape the state. The effort began a few years ago. Russia wants to create a new "political" nationality that will be more monotonous rather than based on the ethnicities of residents. They want everyone to be "Rossiyane" [the word used to describe every Russian national including those who aren't ethnic Russians].

Under this doctrine, Russia places importance on the education of new migrants rather than the quantity of migrants.

The citizenship law now requires the married couple to have a child because the marriage requirement alone was often fictive and was easily abused.

REPORTER: The law also makes it easier to revoke citizenship.

RUBEN: In the past the citizenship could be revoked if the applicant was caught lying and faking the marriage. Now a new "political" element is added to revoke the citizenship of those whose biography "poses a threat". This is mainly about bloggers and individuals in the information sphere *[TLDR: Talk bad about Putin, have your citizenship revoked]*. Naturalized citizens who get convicted on charges of terrorism *[a broad term that nowadays can include political activism by opposition]*, narcotics, or sexual assault can also lose their citizenship from now on. I would rather Russia instead focus on convincing Russian diasporans to return home instead of doing "quality control" of migrants.

REPORTER: We have been receiving alarming reports from Armenians about being pressured by Russian authorities. If in the past the document raids were only conducted on Tajiks and Uzbeks, today it's being used against Armenians as well. The paperwork process has gotten stricter for them. Is this because of the recent diplomatic issues in AM-RU relations?

RUBEN: I have not observed this on a mass scale but if some regional authorities are doing this then they should explain why. In any case, I encourage Armenians to be more vigilant and avoid breaking rules in order to avoid headaches.

REPORTER: Why are the political relations strained between Armenia and Russia?

RUBEN: I met with an official from the Russian foreign ministry who told me that the Armenian government is not doing enough work with various Russian agencies to stabilize the relations.

REPORTER: Why do Russian officials keep telling Armenia that "more Armenians live in Russia than in Armenia"?

RUBEN: I don't know the purpose. Today Armenians are not doing enough in the media sphere to ensure a balance. Many individuals with Armenian last names who appear on Russian media, are Armenian in name only, and do not truly represent Armenians' and do not raise the issues we face.

REPORTER: Are you referring to Margarita Simonyan and others?

RUBEN: There are many. I won't name them. There is no serious work by the Armenian community in Russia, either.

REPORTER: Is the Union of Armenians in Russia [led by Ara Abrahamyan] taking any steps?

RUBEN: They are not influential enough nowadays. Their union is weaker and smaller today. Virtual communities based on the internet can be more influential than large traditional structures. The entire architecture needs to be reviewed. Armenians in Russia have many problems that have gone unresolved for years. The Armenian language is losing its position in Russia. Even the paperwork within our diasporan structures is not in the Armenian language. People are forgetting the alphabet.

[continue,](https://www.youtube.com/watch?v=I_7ON7hXKjo?t=849)

Central Bank lowers the refinancing rate for the 4th time

From 9.75% to 9.5%.

In December 2020 it was 4.25%. They gradually increased the rate to 10.75% to control the inflation.

This is the 4th time the rate is being decreased.

[source,](https://www.civilnet.am/news/755468/կբ-ն-025-ով-իջեցրել-է-վերաֆինանսավորման-տոկոսադրույքը-սահմանելով-95/)

the average tourist spends $1,200 in Armenia, of which $110 enters the state budget: minister

The budget for tourism will significantly increase next year:

2022: ֏53 billion

2023: ֏63 billion

2024: ֏92 billion

The ministry will allocate ֏50 million to retrain the tourism staff.

An additional ֏200 million will be spent on tourism research including contracts with third-party advisory groups.

economy minister about various programs:

Part of our budget is spent on supporting small and medium enterprises (SME):

2022: ֏4 billion

2023: ֏10 billion

2024: ֏20 billion

There is a program aimed at modernizing Armenia's industry by providing subsidies to companies and factories to acquire new tech. Over 3,000 have already taken advantage of it.

A new program is in the works: loans with preferential terms for startups and small businesses.

[more,](https://www.youtube.com/watch?v=5lGKqackvw8)

Now we know why Nikol is growing a beard. He wants to resemble Karl Marx.

Is the Armenian government libertarian or socialist? There was a mini-debate in the parliament today during the [2024 budget discussion](https://www.reddit.com/r/armenia/comments/17k41oi/how_different_is_the_2024_budget_from_2023_and/).

In 2024 the government will increase the tax-to-GDP ratio by 0.75% to 24.4%, and raise it by 0.5% annually afterward.

An opposition MP cited an index by a *"very libertarian organization"* called Fraser that highlights the economic freedoms of states. The opposition MP noted that Armenia's ranking was lowered from 11th to 33th out of 165. The MP wanted to know why, and whether the government believes it's best to adopt libertarian policies or a more "heavy involvement" approach. The context is the budget revenue which has been increasing significantly.

Oppo MP: A libertarian economy assumes lower taxes. The government cited the libertarian Fraser index last year to show progress, but on the other hand, it brags about collecting more taxes now. How do you explain this conflict of ideas? What is your direction?

BADASSYAN (IRS chief): We certainly have some socialists in this room [humor, points to one of the government members]. My personal stance is that we have a social contract that requires us to be strictly disciplined when it comes to taxation so we can collect the necessary funds and allocate them to appropriate programs. But I think Armenia has a relatively low tax rate, especially compared to Europe. If we compare it to our neighbors, some of our taxes are lower. This relatively low tax rate makes a proper collection of taxes even more important.

Ruling MP: Fraser index takes into account not only the taxation but also the simplicity of doing business, ease of obtaining construction permits, time spent on dealing with the IRS, etc. Sure, we might have scored lower due to taxation, but in other areas we have been making progress.

[source,](https://www.youtube.com/watch?v=QtkZ-uB5dDA) [source,](https://arka.am/en/news/economy/armenian_government_plans_to_collect_2_566_trillion_drams_in_taxes_in_2024/)

how big is the shadow economy in Armenia?

IRS chief: Approximately ֏240b ($600 million). Half of it is tax evasion (unpaid VAT) and the other half is unpaid income taxes.

[source,](https://arka.am/en/news/economy/shadow_economy_activity_in_armenia_estimated_at_about_240_bln_drams_head_of_src/)

government has hired a Dutch company to study the construction of an industrial "dry port" in Armenia

MINISTER KEROBYAN: We have hired the Dutch company MTBS [Maritime & Transport Business Solutions]. The preliminary report indicates sufficient demand for the industrial park or the dry port [near Gyumri]. The final report will be submitted this year. The government will study the report, likely in December, and make a decision on whether to co-invest. The approval chances are high. The tender for construction will likely launch in 2024. We will involve a reputable international operator(s) to manage the logistics and various activities in the industrial park.

[source,](https://www.youtube.com/watch?v=hKYCaTDf9t0?t=281)

Armenia will demolish the "pathetic" infrastructure on the Armenia-Iran border and build a new customs checkpoint

IRS chief: The Meghri checkpoint on the AM-IR border will be demolished and built from scratch to meet international standards with the help of EBRD financing. It will be equipped with innovations for faster and more comfortable passage. The modernization agreement was signed with a tender-winner Iranian company this year. The construction will be completed by 2026.

[source,](https://arka.am/en/news/business/meghri_checkpoint_on_armenian_iranian_border_to_be_built_from_scratch/)

construction of the new power line to Georgia will begin next year

Infrastructure minister says two companies will soon submit their bid. The winner will launch the construction of one of the lines next year. There will be multiple lines. Armenia hopes to export more electricity.

[source,](https://www.youtube.com/watch?v=TUCHJIp0E64)

government allocates $13.7 million to repair Yerevan subway and launch the construction of a new station

$3.7m to repair the subway and $10m to build a new station in Ajapnyak district. It's in next year's budget.

The total cost of Ajapnyak station is estimated at $50m. Last year a Russian company named Metrogiprotrans won the tender to design the station.

[source,](https://arka.am/en/news/society/next_year_s_budget_earmarks_5_5_billion_drams_for_repair_of_yerevan_metro_and_construction_of_new_st/)

Armenia has switched to using reflective paint on dim roads: minister

Ruling MP: I've been to various countries and have never seen streetlights being installed along highways connecting cities. They use reflective paint on lanes, shoulders, and other reflective elements to make driving comfortable even if there is no lighting. Why did you decide to install lights along the road connecting Yerevan to Dilijan if the aforementioned practice is cheaper?

MINISTER THANOSYAN: The road in question is the busiest in Armenia according to the data from traffic sensors. Better lighting is justified here. As for the reflective elements and safety signs, I agree with you, and if you've noticed, the roads that are being built today use special paint that's 8x more expensive. It also lasts longer.

In recent years we've added 8,000 road signs across the country in addition to the signs that we install during road repairs. It's a big number but we need a lot more. //

[source,](https://www.youtube.com/watch?v=lz80Q1WGJNo)

anti-corruption: authorities press criminal charges against the ex-mayor of Stepanavan

The mayor is accused of dozens of counts of abuse of power, forgery, illegal sale of lands including park territories, money laundering, and embezzlement.

[source,](https://factor.am/706160.html)

anti-corruption: Armenia's former ambassador to Israel has confessed to committing crimes in a case worth ֏1 billion

Armen Smbatyan has given a confession, said Armenian authorities on Tuesday. His son, a famous orchestra conductor, was found not guilty by prosecutors and had the charges dropped against him yesterday.

Smbatyan has returned ֏208 million to the authorities.

There are 6 suspects in this case involving the theft of lands belonging to Tchaikovsky musical school. One of the alleged accomplices is Armenia's former Culture Minister Hasmik Poghosyan. She is on the run.

[source,](https://www.youtube.com/watch?v=ivbhlN2pra0)

Jesus's followers gathered in Yerevan's Northern Avenue to protest Halloween

• "We worship Jesus Christ in our country!"*

• "Do not praise the Satan! This is why the country is in this shape, people!"*

• "God is light. Walk through the light!"*

A group of religious residents gathered in downtown Yerevan under the chants of *"Jesus! Jesus!"* to protest against Halloween. They engaged in arguments/debates with passersby.

[video,](https://www.youtube.com/watch?v=CPZ2SUn5xJM)

Enjoy your ghapama.

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Link to original report and comments: https://www.reddit.com/r/armenia/comments/17kw42q/is_the_armenian_government_libertarian_or/