A Brief History of a Businessman
Unprecedented voting in our Parliament has been recorded. A draft bill was submitted to RA Parliament, upon which a request has been made to exempts “Hrazdan-Cement” plant for fines. Voting of the draft bill failed. Probably, single opinion inside parliamentary majority lacks. It referred AMD 510 million penalties for budget liabilities of AMD 935 million. Oppositional factions boycotted the voting, which failed by 53 for and 1 against votes.
“Hrazdan-Cement” has operated under “Mika Cement” naming. It was one of the juicy shares of Mikhail Baghdasarov’s economy. However, it became clear from “Mika Cement” processes, that sunset of economic empire of the businessman has been launched. Publications were being circulated in media outlets in 2013, that the plant has accumulated immense debts regarding salaries. To calm down the public scandal, Baghdasarov dismissed the CEO of the Company. It was impossible to readjust the situation by means of administrative steps. Again in 2013, the Company owner was explaining at the press conferences that cement production is one of the fields with future in our economy.
However, economic statistics was mercilessly demonstrating the contrary. Peak of the field was 2008, when about 770 thousand tons of cement have been produced in Armenia. Production volumes have repeatedly decreased throughout the forthcoming years. About 417 thousand tons have been produced in Armenia in 2015.
Judging from the fact, that “Mika Cement” was periodically turning inactive due to debts, relative density of production of another plant—“Ararat Cement,” might have been considerably increased. It won’t be proper explaining economic failure of “Mika Cement” by reduction of construction or global economy crisis. Growth of volumes for cement production wasn’t conditioned by internal market only. It was being exported to Georgia with big volumes.
In 2013 the very Baghdasarov was explaining to the reporters that Georgians export their production to Azerbaijan, and import Armenian cement. During one of the interviews to “Azatutyun” radio he claimed, “Our country is in such a blockade, that monopolies help to exist.” Unfortunately, our authorities weren’t able to support the monopoly apologist businessman outside the country. And the businessman himself didn’t notice that in Rustavi city, Georgia, construction of a new plant for cement production was underway. It was exploited in 2014.
Investments haven’t been made in “Hrazdan Cement,” which has been exploited since 1970. The cement produced via out-of-date technologies was no more competitive in the market, and the owner has “exhausted” the plant as much as possible, and it went bankrupt. Just the same way like Baghdasarov’s other enterprises. However, businessman Mikhail Baghdasarov is a single character in our economy. Surely, he isn’t the only businessmen, who went bankrupt in Armenia. Neither he is the first scientist among our businessmen and officials. Yet in 2008 he defended his PhD thesis in Moscow State University after M.Lomonosov, entitled “Mental capital in the system of corporate relations.” [No one, of course, can definitely claim which word is more preferred—“mental” or “capital”?]. Instead, it’s known that one of unlucky Russian websites accused Baghdasarov of plagiarism in 2013. 80% of the thesis of the monopoly supporter sociologist-businessman has been rewritten from two authors. Exactly by this he is single in the class of our businessmen. While ordering his dissertation, surely, he was as careless as while managing his economy. His manuals in the field of aviation and sports are a proof to it.
Other businessmen of our economy may be accused of numerous things. However, no one may be accused of such carelessness towards his own business and property. And now, when “Mika Cement” has passed on to VTB Bank, our Government attempted to free it from fines and penalties. For this step, naturally, economic grounding may be found as well. The enterprise was providing more than 600 workplaces a couple of years ago. And nobody knows why some MPs disagreed, that debts of the unsuccessful businessman were covered by the state.
“In 2003 it privatized ArmInvestBank for free, and two years later it sold to VTB by USD 30 million. Penalties should be paid by Mikhail Baghdasarov,” Hrant Bagratyan said and added, “Now you are concealing crime.” “Find and let him bear the responsibility,” Naira Zohrabyan said. And, strange enough, parliamentary majority doesn’t contradict them by voting. However, our law enforcement seems not to be interested in the famous question in “We and our mountains” movie—“And where is he now?”
By Ara Galoyan
