According to the statistics of Armenia’s Ministry of Agriculture (Food Safety Service), tomatoes and cucumbers are mainly sent to Russia, Georgia, Belarus and the Czech Republic. According to the ministry, 1,178 tons of tomatoes and 4,029 tons of cucumbers were exported to these countries in 2015.
Deputy Minister of Agriculture Robert Makaryan told Hetq that during the past two years, some 120 hectares of hothouses, using modern technology, have been put into operation, and that another 70 hectares are planned for this year.
According to the agricultural ministry, the main exporters of tomatoes and cucumbers are: Mavas Group, Mak-Agroexport, Spayka, Fresh Fruit, Madar-Mar, Alternative Energy, Foodarm and Progress Agro.
One of the large importers of tomatoes and cucumbers to Armenia is an outfit called Aknadzor Ltd. Founded in 2008, it’s wholly owned by Narek Sargsyan, the son of President Serzh Sargsyan’s brother Aleksandr.
It also turns out that Sargsyan also exports tomatoes and cucumbers.
The next largest exporter is Armyanski Urazhai Ltd., founded in 2014 by Aram and Abel Gharibyan. Aram is the chief advisor to Armenia’s president. He sold his shares in the company in 2015.
Markos and Ara Gharibyan, the sons of Aram’s uncle, now own 13% and 27% respectively. Abel owns 20% and the remaining 40% is owned by Aram’s close friend Armenak Sandoyan.
The government has looked favorably on the company ever since its founding, providing VAT and customs tax payment postponements.
Small hothouses, naturally, don’t get such favorable deals from the government. They face unfair competition from the big guys. During the winter, Armenia’s gas provider has no problem shutting off fuel supplies to hothouses with an unpaid utility bill.
The government’s response is standard. The gas company is a private concern and the government has no leverage over it.
In the meantime, the large importers and exporters, many with ties to the government, get special tax deals and undercut local growers by importing cheap Turkish agricultural products.
