Kan-Tor & Acco (KTA) is a leader in the field of corporate immigration law.

The principal mission of KTA is to assist the business sector in relocating employees from one country to the other.

For over 25 years KTA has worked to secure work permits for experts and professionals worldwide, including the United States, Israel and the European Union countries.

Our client base ranges from multinational corporations and industry leaders to technology start-ups in numerous industries, such as high-tech, bio-tech, banking, aviation, telecommunications, management consultancy and jewellery and diamonds.

Kan Tor & Acco also implements assistance with employment visas, complex family-based visa petitions and/or waivers, E-1 treaty trader or E-2 investor issues, or other immigration law concerns, it has the in-depth experience required in the US.

Kan-Tor & Acco I Israel, Poland, Armenia I www.ktalegal.com I Armenia office: [email protected] I (+374 93) 703 005 An Official Publication of the American Chamber of Commerce in Armenia

Editor in Chief

Karine Sarkissian

Editors

Lusine Shaljyan Anush Hovsepyan Lusine Zoryan

Layout & Design

Printing

Contact Information

1 Amiryan Street, Armenia Marriott Hotel Yerevan, 0010, RA (+374 10) 599 902; (+374 10) 599 187; (+374 55) 599 187 [email protected] www.amcham.am AmCham Armenia AmChamArmenia AmChamArm

PUBLISHER

AMERICAN CHAMBER OF COMMERCE IN ARMENIA The content of this publication must not be reproduced in full or in part without prior written permission of the publisher. CONTENT KARINE SARKISSIAN EXECUTIVE DIRECTOR American Chamber of Commerce in Armenia – 6 ELINA MARKARYAN 1ST VICE PRESIDENT – 7 Amchams in Europe Statement – 8 Gold Members – 10 Archidutch – 11 IDEMIA – 12 KPMG – 13 Silver Members – 14 New Members – 16 Bronze Members – 18 COVID-19 – 21

ROAD TO SUCCESS Ms. Lynne M. Tracy, U.S. Ambassador to Armenia – 24 Mr. Avag Avanesyan, Deputy Minister of Economy – 26 Mr. Aram Yolyan, ContourGlobal Hydro Cascade – 28 Mr. Karen Nalbandyan, IDBank – 30 Mr. Vahe Danielyan, Philip Morris – 32 Mr. Sedrak Asatryan, Concern Dialog – 34

FEATURED ARTICLES Mr. Artak Petrosyan, HSBC Bank Armenia CJSC – 38 Ms. Lynne M. Tracy, US Ambassador to Armenia, Mr. Christopher C. Ellis, Economic and Commercial Officer, US Embassy in Yerevan, Blue Dot Network – 40 Mr. Levon Ohanesyan, Investment Support Center – 42 Mr. Gevorg Poghosyan, Business Support Center – 43 Ms. Irina Chaltikyan, McCann Yerevan – 44 Ms. Lilit Karapetyan Concern Dialog – 46 Mr. Sargis Grigoryan, Ms. Susanna Amirkhanyan, GPartners – 48 Mr. Alexey Rusanov, Mr. Aram Vardanyan, PwC – 50 Mr. Sevada Baghdyan, Relevant LLC – 52 Mr. Aleksandr Khachaturyan, TK & Partners Legal and Advisory – 54 MEMBER NEWS FINCA – 55 Concern Dialog – 56 Habitat for Humanity – 57 Kan-Tor & Acco Armenia – 58 Tufenkian Heritage Hotels – 59 World Vision – 60 American Councils – 61 FINARM – 62

AmCham Board Members' Meeting with President Armen Sarkissian – 63 Advocacy and Networking – 64 Board of Directors

Ara Hovsepyan Elina Markaryan Aharon Levonyan 1st Vice President 2nd Vice President/ President Coca-Cola Hellenic Bottling Treasurer ContourGlobal Hydro Company Armenia Seraphim Consulting Cascade

Arthur Hovanesian Ashot Ghazaryan Christopher C. Ellis David Sargsyan Diana Gaziyan Director Director Ex-Officio Member Director Director Synergy International Systems American University of Armenia U.S. Embassy in Armenia Ameriabank HSBC Bank Armenia

Diana Ghazaryan Hayk Aloyan Irina Dumanyan Karen Garaseferyan Tigran Gasparyan Director Director Director Director Director Microsoft Armenia Lydian Armenia Mentor Graphics a Siemens Business Japan Tobacco International KPMG Armenia

Executive Office

Karine Sarkissian Lusine Shaljyan Anush Hovsepyan Kristina Sahakyan Executive Director Member Relations and Marketing and Chief Accountant Communications Lead Events Lead

EDITORIAL I AMCHAM

MESSAGE FROM THE EXECUTIVE DIRECTOR

KARINE SARKISSIAN EXECUTIVE DIRECTOR American Chamber of Commerce in Armenia

Dear Readers,

Back in January when we identified the topic of the AmCham Given the current situation with COVID-19 crisis, I want to stress Business Magazine - Business Environment, Foreign Trade & that the systems resilience is being tested like never before. Investment, we could not even imagine that the economy and Companies are operating under a new reality that puts great the business community in Armenia will be facing the COVID-19 pressure and the companies need to develop the ability to operate worldwide crisis with a high level of uncertainty and challenges. during a major disruption with minimal impact on critical business and focus on workforce security and connectivity, as well as AmCham Armenia, immediately adapted its operation and, while productivity challenges due to employees working remotely. Today, working remotely since 13 March, 2020 was assisting our members the companies need to set a strong base for their tomorrow’s and government to navigate the crisis with virtual connection and success, and the leaders need to take prompt actions to address communication platforms. AmCham Board of Directors took a the immediate challenge and successfully navigate the crisis and decision and donated 1 ml AMD to the State Fund which was created emerge even stronger. There is a strong need for a public and private to support the healthcare professionals, as a note of appreciation sector dialogue for finding the best cooperation opportunities. The on behalf of our Members. AmCham member companies also Government of Armenia needs to adapt its policies to assist the supported the government initiatives of COVID-19 with about businesses in the sectors which are strongly impacted, like tourism 750 K USD in Armenia and 1 bn USD Globally, and you will find and hospitality, HoReCa channel, etc. the details in the current issue. As proud member of AmChams in Europe we released a joint statement on solidarity, coordination In the current issue, we are honored to present Mr. Avak Avanesyan, and action on what we need to fight the pandemic and protect the Deputy Minister of Economy of RA and his interview, which focuses economy. on the Ministry of Economy long-term vision on the development of the business environment in Armenia and the international In cooperation with European Business Association (EBA) and trade and investment promotion plans and challenges during Business Support Organization (BSO) we ran a survey among these very difficult times of COVID-19. The US Ambassador to our members to understand what were the immediate challenges Armenia Ms. Lynne M. Tracy in her interview has kindly clarified the and invited our members to participate in a series of webinars led US Government’s continuous support to Armenia to mitigate the by the Ministry of Economy Investment Support Center and BSO. challenges related to COVID-19. You will also find other AmCham In collaboration with Tatarklubben, an exclusive business club, Member companies and partner organizations sharing articles, we started Webinars series with Harvard Business Review Press which we hope will be beneficial for you. published authors and editors, as well as web presentations by global thought leaders, who gave a powerful understanding on new For 20 years AmCham continues to serve your business advocacy ideas, trends and forces shaping the business world long before and networking needs, share the best knowledge, and we will be they enter the mainstream during this turbulence. We also started happy to raise your voice and make Armenia a better place for a sectorial meeting series where our member companies shared American and local businesses and operations. their current challenges, plans and how they are adapting to the current ‘normal’. Enjoy the reading and stay safe!

6 AMCHAM 1ST VICE PRESIDENT’S MESSAGE I AMCHAM

MESSAGE FROM THE AMCHAM 1ST VICE PRESIDENT

ELINA MARKARYAN 1ST VICE PRESIDENT American Chamber of Commerce in Armenia

Dear Readers,

Today, Armenia is a country of fundamental transformation, which business, Armenia is the 10th and registering property is the opens wide prospects for economic cooperation with international 13th in the world. According to the Index of Economic Freedom, partners. Armenia is the 47th in the world. Also, Armenia has unimpeded access to the market of the Eurasian Economic Union with After the Velvet Revolution of 2018, the Government of Armenia about 180 million consumers. initiated reforms to modernize its political and economic institutions to strengthen democracy and establish conditions conducive for Armenia is a member of the Eurasian Economic Union and economic growth and development. In this regard, in the last two at the same time, Armenia is deepening cooperation with the years, the government has already reinforced the rule of law and European Union through the Comprehensive and Enhanced established a level playing field for all the players. Partnership Agreement, which provides strategic framework and principles for dialogue on trade and investment issues. If you ask why you should invest in Armenia, the answer will be the following: investing in a small country with global networks and the Nevertheless, in view of the current developments of pandemic skilled labor force is quite promising. It provides an excellent platform worldwide, as well as in Armenia, the country must navigate through for investors in the high tech industry and, specifically, in information the financial and operational challenges of coronavirus while rapidly technology, as well as banking, tourism, agriculture, manufacturing, addressing the needs of its people. Virtually all companies are still renewable energy, textile, urban transport and infrastructure determining how to work in the short and long-term, as workforces development. It is a benchmark for international investors. and communities try to function and perform while struggling to cope with what is happening in their daily lives. Armenia implements an open-door policy towards foreign investments, providing with a full property ownership opportunity, as Going forward, mitigation strategies have been introduced by well as embarked on bilateral treaties on investment promotion the Government of Armenia to support the economy, and create and protection with 43 countries including the United State. favorable social and economic stability in the country both for local According to the World Bank, Armenia is ranked 47th among and international investments. 190 countries at an ease of doing business. By ease of starting

7 Solidarity, coordination and action: what we need to fight COVID-19 and protect the economy

The world is facing an extraordinary challenge from the outbreak of COVID-19. The pandemic poses a severe threat to the health and wellbeing of citizens and the global economy with harmful consequences for all parts of society. AmChams in Europe, the umbrella organization for 45 AmChams from 43 countries across Europe and Eurasia, fully support governments’ efforts to tackle the pandemic and mitigate its effects. The mobilization of resources has been unprecedented, and we need continued leadership to address the impact of the crisis on society. We call on our governments to focus on: 1) Solidarity – We are all in this together. Increased sharing of resources and information among our countries and globally is critical to address the pandemic successfully. Now is the time to demonstrate the values we share in Europe, across the Atlantic and with the rest of the global community. 2) Coordination – Governments need to enhance coordination across borders and within alliances to ensure a consistent and harmonized approach to the crisis but also to start setting the foundations of the economic recovery. Cooperation at the regional and global levels is vital as governments put together initiatives to protect our economies, and ultimately the livelihood of citizens. 3) Action – We need bold action to ensure access to critical goods and services we all depend on. In particular, the movement of goods across borders must be unimpeded. Much-needed goods rely on integrated supply-chains for production before they can be delivered to individuals and businesses. AmChams in Europe are committed to doing all we can do to mobilize our member companies and our networks to support the economic recovery. We are coordinating with our colleagues across the European region and globally to put forward recommendations for a strong and sound economic recovery for the prosperity and wellbeing of all our citizens and businesses.

8 About AmChams in Europe AmChams in Europe serves as the umbrella organization for 45 American Chambers of Commerce (AmChams) from 43 countries throughout Europe and Eurasia. In Europe we represent the interests of more than 17,000 American and European companies employing 20 million workers and accounting for more than $1.1 trillion in investment on both sides of the Atlantic. As the bilateral voice of American and European companies, AmChams in Europe works to communicate the importance of the transatlantic economy in both Europe and the United States. Below is the full list of members:

AmChams in Europe AmCham Kosovo AmCham Albania AmCham Latvia AmCham Armenia AmCham Lithuania AmCham Austria AmCham Luxembourg AmCham Azerbaijan AmCham Macedonia AmCham Belgium AmCham Malta AmCham Bosnia and Herzegovina AmCham Moldova AmCham Bulgaria AmCham Montenegro AmCham Croatia AmCham the Netherlands AmCham Cyprus AmCham Norway AmCham Denmark AmCham Poland AmCham Estonia AmCham Romania AmCham to the European Union AmCham Russia AmCham Finland AmCham Serbia AmCham France AmCham Slovak Republic AmCham Georgia AmCham Slovenia AmCham Germany AmCham Spain AmCham Gibraltar AmCham Sweden AmCham Greece AmCham Switzerland AmCham Hungary AmCham Turkey (ABFT) AmCham Ireland AmCham Turkey (TABA) AmCham Israel AmCham Ukraine AmCham Italy British American Business

9 GOLD MEMBERS

10 MEET OUR NEW GOLD MEMBER

ICN Group focuses on organizations in architecture, engineering, mechanical engineering, infrastructure and ICT. Today, ICN Group comprises of a number of leading companies in consultancy, IT and HR services. With over twenty years of experience, four locations and more than ninety employees, ICN Group has conquered a prominent place in the Dutch market. In 2018 ICN Group spread its wings to Armenia with the establishment of two local companies ArchiDutch and ArDesk. Our three offices in Vanadzor and one in the centre of Yerevan offer direct services to the country of Armenia. ArchiDutch is an exclusive architect, trusted consultant and service provider for the construction industry with more than 20 years of experience in The Netherlands. We add value to the work of architects, building engineers, contractors and real estate managers. Our core activities are Building Information Modeling (BIM) modeling, 3D rendered visualizations and the development of real estate project websites. The mission of ArchiDutch is to contribute to sustainable building. We want our planet to be safe, healthy and resourceful for future generations. Therefore, we promote Green Building Information Modeling, with less CO2 emission and less waste of materials and a positive impact on the environment: we are the Green BIM company. ArDesk, the second ICN Group company in Armenia is the Autodesk reseller in Armenia. Besides software delivery, we believe that learning is the key to your college and career success. Certified trainers offer Autodesk softs’ trainings courses at various levels /Autodesk Revit, Autodesk Inventor, etc./. From beginners to advanced, we train to become an Autodesk Certified Professional. Both ArchiDutch and ArDesk, have grown rapidly since 2018, today, with over 45 employees, and the number is increasing. This growth is due to the knowledge and experience that we have gained in The Netherlands as ICN Group and to the enthusiastic Armenians who want to take every opportunity to ensure their future. We are not only building on our own success, but we also contribute to the growth of the local economy in Vanadzor by: • Offering free training to the students of Vanadzor State Polytechnic University in Autodesk Revit, 3D architectural modelling software. And soon we will start with free Autodesk Inventor training too (3D mechanical engineering). • Offering internships to these students, to gain more BIM knowledge and learn how to work with Autodesk Revit. This gives them an opportunity to get a better job after graduation. They are trained to become one of the few building and construction experts in Armenia who can work with Autodesk Revit, which is actually the world standard for 3D modelling today. • Supporting also other educational institutions by providing the BIM and Sustainability knowledge and leave benefits. Besides these efforts, we are creating a modern, transparent and legal work environment in Armenia which gives companies the opportunity to grow their business and get more international clients and projects. We encourage the use of BIM standards by organizing national conferences, webinars and developing an online knowledge platform: myBIM.am. Al these efforts, just to get the Armenian professionals to the next BIM level, to improve and to succeed. And that is our mission!

11 MEET OUR NEW GOLD MEMBER

IDEMIA is a merger of two great companies: Oberthur Technologies and Safran Identity & Security, which have joined forces to form the new leader in Augmented Identity for an increasingly digital world. Major trends are impacting our world: the explosion in demand for security in both the private and public sectors, the migration from the physical to an increasingly digital world and the demand for convenient, frictionless user experiences. In the face of these trends, IDEMIA views security globally, beyond pure technical developments, by factoring in the customer’s environment and how technology is used. In a world of ever-increasing interaction beyond borders, security primarily means protecting identities. This is why IDEMIA is passionate about Augmented Identity. IDEMIA places the customer, the consumer and citizens at the very heart of everything. We combine security, convenience, the human factor and continuity in a single, fully integrated and unique value proposition. We call this the “magic combination”. Close to 15,000 IDEMIA employees work for a safer world. They anticipate, think, design, develop, protect and market our security solutions for today and for the future. Our mission at IDEMIA is to contribute to society’s progress by providing each individual with a unique legal identity. We create trust at every level, whether that be at a national level or at the level of a company, an IT system or even an individual device. These are our commitments at IDEMIA. IDEMIA serves clients in 180 countries in two major customer segments: 1. Private Sector • Financial Institutions - we are trusted by 1,800 financial institutions including most of the world’s largest banks • Mobile Operators - we are trusted by 500 mobile operators including leading mobile operators worldwide • Biometric Devices and Automotive – 5 million biometrics terminals deployed worldwide • Digital transformation solutions. 2. Public Sector • Public Security & Identity - we are #1 in civil identity solutions with 135+ customers and we are #1 in police biometric systems • Identity & Security North America – we are #1 in US driver’s license issuance: 33 out of 50 US States trust IDEMIA to deliver their driver’s licenses.

12 MEET OUR NEW GOLD MEMBER

AUDIT, TAX & ADVISORY

KPMG is a global network of professional firms providing Audit, Tax and Advisory services, operating in 147 countries and territories with over 219,000 people working in member firms around the world. Our purpose and aspiration are to turn knowledge into value for the benefit of our clients, our people, and the world’s capital markets. • KPMG in Armenia KPMG Armenia started its full operating office in 1997. It was the first of the Big Four auditing firms to have registered in Armenia. • Current Structure and Activities Almost 70 professionals work in KPMG Armenia. Apart from Partner, Directors, Senior Managers, Managers and other experienced professionals (including 13 UK qualified chartered accountants (ACCA, FCCA), 16 licensed auditors authorized by the RA Ministry of Finance), every year KPMG’s doors are opened for new graduates who join the company and are well trained to meet KPMG’s high standards/requirements. • Services Audit and Assurance KPMG in Armenia provides independent audit services designed to enhance the reliability of financial reports prepared by clients for use by investors, creditors and other stakeholders, including country-specific statutory requirements. Advisory Across KPMG’s international network of member firms, the Advisory team has concentrated knowledge and experience to assist companies and other organizations to sustain growth, to assist in improving and strengthening performance and establish efficient and effective governance. Tax and Legal KPMG’s tax and legal professionals provide a full range of tax and legal advisory services which can help businesses reduce the financial risks and take advantage of available tax planning opportunities before entering into transactions or structuring their businesses in Armenia and other CIS countries. • Industry Focus and Expertise KPMG was the first of the major firms to organize itself along industry sector lines – a structure that has enabled us to develop in-depth knowledge of our clients' businesses and to provide them with an informed perspective on the issues they face. The benefits to the clients of our industry focus include: • Access to multidisciplinary teams used to work together, and • Increased efficiency of services through shared experience and knowledge and the opportunity to use advanced methodological developments of KPMG.

13 SILVER REGULAR MEMBERS

14 SILVER REGULAR MEMBERS

15 AMCHAM I NEW MEMBERS

particular courses that make students can provide them with services that eligible for various operational areas are tailored to client’s specific needs. of hospitality management like Food Their expertise allows them to make and Beverages, Reservation and come up with the questions and get HOTELIER Front Office Operations, Sales and answers with outstanding solutions. H O S P I T A L I T Y Marketing, Event Management and Assets team will help clients evaluate Catering, etc. all the options and their possible outcomes to help them select the best HOTELIER HOSPITALITY The hospitality courses are prepared one. www.hotelier.am by instructors having hands-on experience in hotel management. We Assets Vision: Hotelier Hospitality has been are committed to providing quality established with the objective of hotel management learning with To accomplish the ultimate balance supporting hospitality businesses to practical assignments and related between outstanding client service achieve high standards of customer industry experience to our learners which the company accomplishes by service and professional operational and followers. taking pride in what Assets team do management goals. We provide and show company’s passion through tailored hospitality management HOTELIER – Hospitality Academy list of accomplishments. Assets and full range A to Z consultancy for is based on two concepts: to alternate primary focus as an accounting and pre-opening and operating study and practical training and to financial consulting firm is to deliver accommodation providers. The ratio remain as close as possible to the only the highest quality financial of our consultancy services starts with realities of the hotel industry. products in both by content and the design and construction of hotels, outlook. up to the opening, staff training and management services for properties. Outsourcing services for hospitality businesses is another aspect of our business portfolio, which includes PR and marketing outsource, digital media marketing, operational audit Kan-Tor & Acco (KTA) is highly Assets CJSC is an accounting and regarded in the field of corporate services and more. financial consulting company, which immigration law. The principal mission was founded in 2017. The company of KTA is to ensure legal employment HOTELIER Magazine provides accounting and tax consulting when travelling or relocating from services to Armenian and international www.hoteliermagazine.net one country to the other. For over 25 companies. The company provides years KTA has worked to secure work Hotelier Magazine is a publication general accounting and financial permits for experts and professionals from Hotelier Hospitality. Published consulting services in Armenia and worldwide, including United quarterly, the magazine focuses helps small businesses to get started States, Israel and the European on hotels and professionals of the and to mid-sized companies to grow. Union. Our client base ranges industry. The latter is committed to intelligently from multinational corporations managing your books and ensuring The magazine content contains and industry leaders to technology your financial well-being. interviews with top hoteliers, market start-ups in numerous industries, information, news and international Assets team of accountants is ready such as high-tech, bio-tech, banking, trends of the vibrant hospitality to help its clients with any issue, from aviation, telecommunications, industry. Every issue includes general accounting to tax preparation. management consultancy, jewellery articles featuring top hotel chains and Assets team goal is to decrease and diamonds. international hotel suppliers, as well financial risk of its partners and to KTA is comprised of four inter- as analyzes and statistical information increase the efficiency. regarding the industry from different related practice areas: Israel-bound sources. The company's certified experts will Immigration, U.S. bound Immigration, help clients to achieve its financial Global Immigration and Document Hotelier Magazine is posted out to goals while providing with efficient Procurement and Apostil Services 2,000 managers and employees and high-quality services. The team Department. The U.S. Immigration in the hotels, and the magazine is provides exceptional financial Department of Kan-Tor & Acco also published on all major online solutions to the businesses of all provides top-of-the-line service platforms. The readership on all sizes, including assurance services and support in the areas of U.S. platforms and distributed copies and financial consulting for private employment, family based visas exceeds 14,000 people per issue. The and public companies, as well as and consular processing issues. language is English and Russian. individuals at competitive prices. The Department has particular expertise in obtaining treaty trader/ Businesses and individuals require HOTELIER Hospitality Academy investor work visas, and identifying guidance in helping their finances to and implementing visa options for www.hospitality.am flourish. The company’s experts have start-ups, small businesses as well an experience in providing services In 2020, Hotelier Hospitality as publicly-traded organizations. to businesses of all sizes and in a launched the Academy of Our focus is upon our clients and Hospitality, which focuses on the wide-array of industries, and thus

16 NEW MEMBERS I AMCHAM our purpose is to identify the best Medicine, Foreign Languages, employer presents the details on what immigration solutions which will meet Pedagogy and Methodology. The kind of specialist he or she is looking individual and organizational needs. classes are usually taught in for in advance. It concerns both Armenian and English, and in case of professional expertise and personal Kan-Tor & Acco is a member of the the demand are also held in Russian. qualities. KTA, a Global Integration Center comprised of a broad network of The University has its own special As for the headhunting, the company vendors and affiliates that provide educational seven buildings, a sports clearly mentions which specialist it complete world-wide corporate complex, a swimming pool, a hostel, wants to hire and the Relevant’s team immigration and relocation services. laboratories and training facilities both starts negotiations with the candidate Whether you need to transfer in Yerevan and Vanadzor. Research on their behalf. workers from the U.S. to Russia, from works are at a high level. 9 graduates Relevant’s guiding principle is Argentina to Singapore, from Ireland defended their candidate and doctoral confidentiality and trust. While to Kazakhstan or from Germany to dissertations. searching for candidates, the Australia, the KTA can assist you The Mkhitar Gosh University’s company does not disclose the name with all your immigration needs. main structural academic units are of the employer until it makes sure the We are happy to announce that the the departments, which carry out candidate meets the demands of the KTA Group now has a local educational and research activities. employer and is interested in the offer. presence in Armenia, and is ready The Departments have aboratories and able to provide assistance in all The company uses an internationally and other educational and research areas of corporate immigration and acclaimed methodology while units. relocation services. checking the skills and capacities of a The Management of the The Mkhitar candidate. If needed, in some cases Additional information may be found Gosh University is based on a the selection method is discussed and at: self-governance by combining the finalized together with the employer. www.ktalegal.com or contact at: principles of personal leadership and (+374 93) 703 005 Upon the request of the employer, collegiality with the activities of the Relevant searches for the best fit for University Council, the Academic the position among those professionals Council, the Administration and the who are happy with their current roles Student Council. but do not mind considering more The Student Council of the University attractive job opportunities. carries out activities of student self- governance of the University. The main activities of the Council are in Mkhitar Gosh University was the fields of education, art, sports, and founded on June 1, 1996 by a group of social programs. teachers, lawyers and scientists. The The Mkhitar Gosh University #Berlitz has been helping people to high educational institution is named received an international accreditation learn and smoothly communicate in after the great Armenian lawyer of in 2019. new languages for over 140 years. the middle ages, the author of the Berlitz is the world leader in language Armenian Judicial Mkhitar Gosh. The teaching with over then 600 centers University received a state license across 70 countries. by the decision of the Ministry of Education and Science of the Republic Why Berlitz is the right choice for a of Armenia for the introduction of language learning? higher, secondary special and general • More than 140 years of experience public education. Relevant is specialized in executive • Unique Berlitz Method® focusing search and headhunting in Armenia Currently, we have about 800 students, on active speaking and abroad. The company’s team and many of them are from foreign • Rapid learning progress of professionals helps businesses countries. This makes the University • Flexible training formats and organizations to find the best a multinational and multicultural candidates for top and mid-level • Qualified native-speaker educational institution with a long management positions. instructors. tradition of respecting diversity. Being committed to the motto “Hire #Berlitz takes the experience gained The University leadership worked Relevant Professionals”, the over the last 140+ years to give you the closely with Moscow State company helps employers to hire language skills, cultural understanding Pedagogical University. V.I. Lenin, candidates who can develop their and confidence to open up a world full developing curricula, subject businesses and drive them towards of new opportunities and enriching programs, developed professional new achievements. experiences - and help you, your criteria, etc., and the University is business and the world to make the accredited in all specialties. Thus, the two key services provided connections that open the world to by Relevant are executive search High education is carried out at the possibilities. and headhunting. University in the following professions: And now Berlitz is in Yerevan, Management, Law, Finance, Dentistry, In case of executive search, the Armenia.

17 BRONZE ASSOCIATE MEMBERS

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18 BRONZE ASSOCIATE MEMBERS

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22 AmCham Members' Donations FOR COVID-19 the companies are listed as per the order the feedback recieved

23 AMCHAM I ROAD TO SUCCESS

MS. LYNNE M. TRACY U.S. Ambassador to Armenia

Whether you are a government official responsible for millions of people, an executive who looks after just a few employees or thousands, or simply someone caring for a family, COVID-19 has tested all of us...

EDITOR’S NOTE Ms. Lynne Tracy was sworn in as Ambassador to the Pakistan, 2006-2009, where she was awarded the Republic of Armenia on February 19, 2019. She is a career Secretary’s Award for Heroism. She was also the Principal member of the Senior Foreign Service. Most recently, she Officer at the U.S. Embassy Branch Office in Astana, served as Senior Advisor for Russia Affairs in the Bureau Kazakhstan, 2004-2006. Other overseas assignments of European and Eurasian Affairs at the U.S. Department include the U.S. embassies in Kabul, Afghanistan, and of State. She was Deputy Chief of Mission at the U.S. Bishkek, Kyrgyzstan. She worked in the Office of the Embassy in Moscow, Russia, 2014-2017. Special Envoy to the Newly Independent States at the Department of State in 2000-2001. Her other senior leadership positions include Deputy Assistant Secretary for Central Asia in the Bureau of South Ms. Tracy earned a B.A. from the University of Georgia in and Central Asian Affairs at the Department of State, 2012- Athens, Georgia and a J.D. from the University of Akron, in 2014, and Deputy Chief of Mission at the U.S. Embassy Akron, Ohio. She earned the Distinguished Honor Award in Ashgabat, Turkmenistan, 2010-2011. Ms. Tracy was in recognition of her performance as Deputy Chief of the Principal Officer at the U.S. Consulate in Peshawar, Mission in Moscow. She speaks Russian.

Q: Ambassador Tracy, how did you other precautions when they are not challenges related to COVID-19 and the US Embassy in Armenia on the clock outside of the office, and what purpose will it serve? adapt to the situation related to including limiting their movements the COVID-19 pandemic? and wearing masks when they must A: The United States took action go out in public. Though many visa from the beginning of this crisis to A: Our top priority at the Embassy is services have been temporarily assist our friends and partners all the safety and health of our employees suspended to protect the health of over the world, including in Armenia. and visitors. So when it became staff and applicants, the Embassy As of May 19, we have provided clear that the outbreak was affecting is open for business, including for $5.4 million in new assistance to Armenia, we immediately took steps emergency consular services, and Armenia to combat COVID-19. In to follow the recommendations of we remain focused on our diplomatic addition, we have redirected existing the U.S. and Armenian governments efforts in Armenia. We continue to assistance funding to help with the and implemented a number of work closely with the government crisis, bringing the total allocated so precautions to protect our staff and the people of Armenia on areas far to address the health, economic, while continuing the work of the of shared interest between our and social issues stemming from this Embassy. The vast majority of our countries, including increasing trade pandemic to $6.6 million. employees have been teleworking and investment, working in support $2.7 million of the new funding during the pandemic and continue of democracy and the rule of law, provided specifically to combat to do so. Only those employees and safeguarding regional and global COVID-19 is going towards whose presence at the Embassy security. I know that together, we will strengthening laboratory capacity, is absolutely essential report to the come through this crisis stronger improving management of severe building – and even in those cases than ever. cases of COVID-19, and supporting we have a rotating schedule to community level preparedness minimize the number of people at the Q: Ambassador Tracy, what planning, risk communication, and Embassy at any one time. We also support is the US Government health and hygiene promotion. strongly encourage our staff to follow offering to Armenia to mitigate the

24 ROAD TO SUCCESS I AMCHAM

As we know, the COVID-19 crisis us as we seek to elevate our bilateral ideas to move political processes has far-reaching implications beyond trade and investment relationship, forward. As Armenia continues the disease itself, and we are also support U.S. interests abroad, and to take steps in these directions, allocated funding to achieve a variety promote the unrivalled U.S. brand. I have every confidence this will of other objectives. For instance, generate increasingly positive $1.2 million is meant to address Q: How do you evaluate the momentum for Armenia and create the economic impact of COVID-19 Government of Armenia’s new opportunities for the country’s through small grants to businesses immediate actions taken to success on the world stage. and support for economic activities at address COVID-19 in Armenia? Q: What is your key message to the community level. A: I welcome the government’s the AmCham business community In addition, $1.8 million is going efforts to meet this crisis in a during these hard times? direct and forthright manner while towards community-based A: Responding to the COVID-19 assistance through social workers maintaining flexibility to respond to new challenges as they emerge. pandemic has reinforced the to support vulnerable children and critical importance of training, families affected by COVID-19. This This is a very complex situation, with economic and social repercussions crisis preparedness, and direct crisis cuts across all sectors and the communication, all of which should United States will continue to work in addition to the immediate public health consequences. In my be key considerations for any with our Armenian and international organization. It also shows that these partners to assist. many interactions with Armenian government officials during the are areas that must be addressed Q: What are the main directions crisis, I have been encouraged by before a crisis hits, to maximize of US-Armenia cooperation and their commitment to transparency, our ability to respond rapidly and what support is planned in each efficiency, and accountability, all while efficiently when needed. direction? maintaining a focus on the wellbeing During my career, I have seen of the Armenian people. We are firsthand how training helps ensure A: The U.S. Embassy is committed honored to partner with Armenia the safety of people and property. It to supporting Armenia’s sovereignty during these difficult times and is no exaggeration to say that training and its democratic reform agenda. coordinate to implement strategies can save lives. At the Department of Our support touches many sectors, and solutions that will allow us to State, we are continuously evaluating including building democratic emerge from this pandemic stronger how to improve and deliver training institutions, fighting corruption, than before. to our personnel working around promoting sustainable, inclusive the world so they can be prepared economic development, and Q: After more than a year of to respond to crises whenever and ensuring international security and experience in Armenia what is wherever they may arise. I encourage regional conflict resolution. We also your impression of the economic AmCham members to consider how continuously strive to strengthen and democratic changes that are they can take similar steps, lead by U.S.-Armenia ties based on shared taking place in Armenia? example, and create clear channels values. of communication to deliver key I am encouraged by the A: messages before, during, and after Furthermore, in addition to assisting government’s efforts to root out crises. I know that many AmCham in the current fight against COVID-19 corruption, promote transparency, members have done outstanding in Armenia, the U.S. government improve the rule of law, and take work to prepare for and react to continues to provide funding to steps to defend human rights. These crises such as COVID-19, and I hope support Armenian democratic and efforts will signal to the international all members will continue to improve economic development in a wide community that Armenia is open their resilience and responsiveness. variety of areas, including security, for business and committed to the energy, education, English language, promise of free market principles. We Governments, private businesses, forest and wildfire management, firmly believe that the path to success educational establishments, and civil human rights, agriculture, tourism, for Armenia will be found by continuing society organizations represent just civil society, independent media, and to raise the bar, not lowering it. This a few of the key groups that have the strengthening of transparent and means creating an environment with been forced to react to the hard accountable government institutions, responsive and inclusive democratic realities and uncertainty created including the judiciary. institutions, supporting free and fair by COVID-19. Whether you are a competition to reward innovation and government official responsible for As we press forward with these creativity, and seizing the promise millions of people, an executive who initiatives, we appreciate hearing of the immense human capital that looks after just a few employees or from AmCham and its members is present in Armenia. We also thousands, or simply someone caring as they explore new opportunities attach great importance to the for a family, COVID-19 has tested all of in Armenia or seek to develop their ability of civil society, the media, and us. But this situation has also shown ties with the United States. Knowing opposition politicians to contribute that we have what it takes to stand up what is on the minds of AmCham to inclusive and representative civic and fight – and I am confident we will members is of critical importance to discourse and offer constructive continue to persevere, together.

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MR. AVAG AVANESYAN Deputy Minister of Economy

Q: Mr. Avanesyan, tell me about not only as a professional but as a will resolve the issue of economic and your education, your experience, personality and public figure. I had the national security. as well as how did you become a privilege of working with professionals One of the steps taken in this Deputy Minister at such a young with great leadership skills and a very regard is that in cooperation with age. solid professional track record and UN Commission for Trade and history and learned from them. A: My alma-mater is the Russian- Development (UNCTAD), we have Armenian University. I also acquired Q: Mr. Avanesyan, what is the prepared the Investment Policy both my masters and Ph.D. at this Government of Armenia, the Review (IPR), which was published Higher Education Institution (HEI), Ministry of Economy long term in November 2019. The IPR highlights with my main focus being Computable v i s i o n i n t e r m s o f d e v e l o p m e n t o f t h e the country's investment and export General Equilibrium Modeling on Tax business environment in Armenia potential across a range of economic Policy. I started my career as an Expert and what are the international trade activities, including the booming high- in the Government staff, then I was and investment promotion targets tech industry, tourism, textile and promoted to Mr. Vache Gabrielyan’s and challenges during these very garments, wine, agri-business and office, Deputy Prime Minister of difficult times of COVID-19? pharmaceuticals. It also explores Armenia, as a first advisor in the nascent activities in business process A: Due to the COVID-19 the long- Macroeconomic Department, then as outsourcing, regional logistics and food term planning horizon is unfortunately a Deputy Head of Department, and safety, aircraft repair and maintenance, not clear, making it hard to predict the later as a Head of Department, after regional financial services and higher consequences of our policies. Still, which in March 2018, I was invited to education. we are positive that the recovery will fill the position of the Deputy Minister take place in sectors with high value- Beyond measures to tap the export of Economy. So, currently, I have more added and productivity. COVID-19 has potential through investment, the than 8 years of experience, and though proved that low productivity business IPR includes the broader policy for some I may be too young for this models may become a liability in trying objective of promoting inclusive position, the deficiency of my age is times, thus the business community growth and sustainable development. the only one that will hopefully fix itself should focus on investing in increasing We will focus on becoming a hub for with time… labour productivity. the attraction of export and quasi Q: Mr. Avanesyan, have you ever efficiency-seeking investment. One The Government long term-vision is dreamed of becoming such a high of the main advantages of Armenia, as that Armenia needs to become more ranked official? a selling point, is that we have better visible on the global economic map. access to the Eurasian Economic A: Not really as I’ve been mostly We need to create proper conditions Union (EEU) than our partners. We interested in academics and I never for our people to create value for the have good access to EU countries as thought about it as a goal. It kind of world and be open to our international well. So, we have to target the investors happened, I was noticed and offered partners so they can access and who are a) seeking deficiency and b) the position, and I accepted it with combine their talents with the talents of seeking efficiency to access the EEU excitement, as I was greatly impressed Armenian people to create even more markets. The Government has to by Mr. Gabrielyan, my first head of the value. By putting ourselves on the make sure that the infrastructure is department, Mr. Vigen Ktikyan, Mr. map and becoming part of the global up to date and is competitive. Hence, Tigran Khachatryan and many others economy, being integrated into global currently, the Government targets as leaders, and they have shaped me value chains as an inseparable link, we

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and implements massive renovation depends on how long will the we will have a decline and it is already of the roads and improves the cross- pandemic last and how the global reflected in the budget. The rate of boarder infrastructure. Besides, the markets will be shaped by this crisis. expected decline, however, is still Government will be also focusing on But we know that investment flows, under consideration, as the situation in the business processes and regulatory especially, the investment across the world is changing so fast you can’t environment to become more efficient borders will experience a slowdown be sure that your prediction today will and agile. in the upcoming years. Still, we know be valid tomorrow. that investors in the pharmaceutical The human capital is another focus We believe that our current institutional industry will be trying to diversify from area, as we believe that improvement framework enables us to grow. But traditional markets. We need to make of the human capital through education we must make sure that there is sure that Armenia benefits from this and healthcare will be at the core of no structural damage done to the diversification. our investment attractiveness. We economy, and that nothing hampers will make sure that when the investors Thus, especially for attracting Foreign the recovery as soon as the pandemic are in the market, they won’t have Direct Investment (FDI), we believe passes. That’s the main target of the shortages of specialists with great that an urgency exists for us to Government. learning potential. significantly improve our investment Q: Mr. Avanesyan, what are the climate and develop trust towards After the 2018 revolution, Armenia strategy and key actions in the our country. We can be proud of our proved effective and successful with manufacturing sector for a fast reliable banking system which did not the fight against corruption and has pickup? have currency shocks during the crisis institutionalized the decision making and can be considered as strong and A: Our industrial strategy was targeting processes. The National Assembly competitive. Investors are expecting to reforms that would ensure that is extremely active and a system of profitably invest in a county and, thus, investment and capital creation will be checks and balances, a system of need to easily withdraw their financial highly targeted towards sectors that asking questions, is becoming more resources out of the country, which is base value creation on human capital, and more acceptable. The investors applicable for Armenia. We just need productivity and utilisation of innovative can and should be sure that there to communicate those advantages. technological solutions. This will be will not be any sudden worsening of So, as a long-term strategy, we have to driven through reimagined industrial conditions and any change shall be improve the institutional environment zones, special tools for enhancing the well communicated and any law that of the country. It might take some time profitability of modernizing investment affects the business environment will but the Government has a strong will and supporting knowledge-building be pass through an adequate process and uses all its resources to attract activities in the private sector. that will take into account both costs FDI. and benefits before adoption. Q: Mr. Avanesyan, what are the What we can do is to draw a circle challenges you encounter in your Q: Mr. Avanesyan, what of excellence where greenhouse job and what is your learning to consequences COVID-19 will have conditions will be created through succeed? on the Armenian economy and what a better business environment, steps are you going to take both in A: The main challenge is making regulations and infrastructure for each the long and short-run to come out sure that the public is actually served of the priority sectors. We can compare of this situation? well and that my personal bias is not this approach to the difference in affecting my decision making process. A: The Government has identified pressure applied when you are pushing The core question is, are you informed the key areas and prepared about 21 something with your hand, which is our enough to make the right decision? Actions to support the businesses, general investment policy, to when And if not, how should you become focusing on SMEs and vulnerable you are pushing something with your informed enough? The challenge is to groups of population and made sure finger, which is the vertical approach make as informed and fair decisions that those actions were targeted and to what we’re trying to do through our as conditions allow, though you can fair as much as possible. Our core industrial policy to reach the targets never be sure that you have covered economic target during the outbreak set in the IPR. all available information. is to make sure that the short-term Q: Mr. Avanesyan, you had liquidity problems will not turn into a Q: Mr. Avanesyan, in your dreams, significant growth of GDP in long-term structural challenges and how do you see Armenia in 2050? 2019, and what is the Government the system of knowledge and capital expectation for 2020, have you A: In my dreams, Armenia is a country remain largely undamaged. The adjusted GDP for this year and what where there are extremely strong Government has rolled out several are the best and worst scenarios? institutions in the private and public supporting SMEs, creating pillars of sectors. A place where Armenians can stability in our economy and making A: Let’s be clear that along with the always feel at home and feel protected. sure that companies that retain GDP growth, the GDP structure has A place where talented people will their workforce receive appropriate also changed, manufacturing was create value for themselves and the support. the highest contributor, which is an world… encouraging fact. This year, however, What will happen in the long-run

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MR. ARAM YOLYAN Plant Manager

EDITOR’S NOTE COMPANY BRIEF Aram Yolyan was born in Goris, the cradle of the historic ContourGlobal Hydro Cascade (CGHC) CJSC or Zangezur province. After graduating the school there, Vorotan cascade consists of three level Hydro Power Aram moved to Yerevan to pursue higher education Plants (HPP) located on the river of Vorotan in Syunik Diploma studies (BA and MA) at the Yerevan State Marz (Goris and Sisian Regions) using both river water Polytechnics, in the department of radio-technics. and streams. The length of the river is 129 km, waterfall Having successfully graduated with the degree, Aram is 1,333 m, natural annual flow speed is 18.6 m3/sec was then conscripted to the Military Forces of Armenia for Tatev Hydro Power Plant. Overall, the production for two years. His professional career began in 1997 in capacity is 404.2 MW and the annual average planned the High Voltage Electric Network, as a shift dispatcher. production is 1.11 billion kW/h. The highest-pressure In 2002, Aram moved to Vorotan Complex of Hydro station in the cascade is the Tatev HPP. The plant is Power Plants (HPP) as the Deputy Head of Tatev HPP known for its bucket turbine which was the first to be and got promoted as the Head of Tatev HPP in 2005. operated in the former USSR. The self-cost of the Since 2015, after Vorotan Complex of Hydro Power 1kW/h electricity production is the lowest in Armenia. Plants was acquired by ContourGlobal, he remained in the position of the Head of Tatev HPP until Spring 2017 when he was promoted to the position of the Plant Manager of ContourGlobal Hydro Cascade. Aram is married and has two children.

Q: What does an isolated location A team with seven to eight people operate in a quarantine regime, having mean? was set for shifts to work in a a full shift in the power plants for 24/7, quarantine regime in the plants. They till the end of the emergency situation A: With the outbreak of COVID-19, were fully isolated not to contact any in the country. Thus 22 employees Management of ContourGlobal other working brigade in the area of from ContourGlobal Hydro Cascade Vorotan made a decision to ensure the plant. We also assigned one driver operational staff were isolated to work a safe working environment for its for each plant, to transport the same in the quarantine regime to ensure employees, as one of the priority working groups to the same plant, thus business continuity 24/7. values of ContourGlobal. Isolated work limiting the contact of drivers with other zones/ locations have been dedicated Q: How did you implement it and for plants. to all three power plants of Vorotan how long? Complex (Tatev HPP, Spandaryan Q: How has this idea come out? A: Starting from March 25-27, 2020 HPP and Shamb HPP). The entrances A: Our task was to prevent the we divided the personnel into groups to the HPPs were under strict control spread of the COVID-19 virus and for working in shifts. However, given and were not permitted for visitors, and ensure safety of the personnel, as well the situation and the fact that the the entrance of our contractors, their as business continuity. Since some National Emergency was extended sub-contractors, etc, and were only of the personnel of the company were until May 14, we have decided that permitted after the pre-registration in the risk group above the age of 55, they should stay in this regime for and the approval. All the employees of we found it important to have them at at least the current duration of the ContourGlobal and contractors need home and to be far from any risk. In National Emergency situation, and to follow the rules of wearing PPEs and this case, full replacement of the team based on the Government decision protective masks, etc. was not possible and wew decided to we will plan how to move forward. We

28 ROAD TO SUCCESS I AMCHAM will also make a new decision about The company provided full facilities ongoing Vorotan Refurbishment our operations, whether we continue for 24/7 residence, e.g. separated Project, works at Shamb HPP with to work in the isolated regime or we rooms with bed, bedside table, shifts so that none of the isolated are adopting a new approach. mattresses, food delivery twice a workers interact with him. week, kitchenware, dishwasher, etc. The Management instructed Q: What people do in the isolated for each plant. As the canteens are the personnel and continues location (after working hours)? well equipped and in good conditions, providing daily assignments to the each team is in charge of making the A: The company provided entertaining team. I, personally, organize daily daily meal, cleaning and other needed pack of books, TV, table games, as talks with the employees working in domestic activities. well as high-speed internet. the quarantine regime. The Health & Safety Team has a close control over In addition, to a fully dedicated In some of the plants, employees look the processes, in general. The HR doctor’s service, the company has after the trees and the plants in the and the GM have weekly calls with the provided an external line with a HPP yard. staff members. The staff is updated on team of psychologists to ensure They take care about the environment the approaches of the company on a mental wellbeing of all members of in the area by making it more beautiful daily and weekly basis. The company ContourGlobal Vorotan Team. and clean. issues weekly updates on COVID-19 Our colleague, the Environmental task force, available to all employees Health & Safety Manager for the of the company.

Q: Is there anything you want to COVID-19 weekly newsletter is of The teams also manage to spend share with your peers for a better enormous value, especially having it time for outdoor initiatives, like the management on the isolated in Armenian language, since many of one in Spandaryan HPP where our location initiative? the operational people are not entirely employees have initiated gardening confident in English. activities. ​​​​​​A : Being isolated, in what is called a regime of quarantine, does not Smartphones allow daily video and Some employees celebrated their mean people are cut off from the audio calls with their loved ones, birthdays in quarantine, and the daily business, or their families, and since almost all of the quarantined team company made sure to turn the day let alone from the world outside. members are married with children into a fest by surprising them with a Through connection to ContourGlobal of different ages. It is also for their birthday cake and special birthday Hydro Cascade virtual portals families that they have volunteered lunch! the personnel keep track of daily for such isolation – to keep them safe, news in the company. Having the healthy and more confident in future!

29 AMCHAM I ROAD TO SUCCESS

MR. KAREN NALBANDYAN Business Development Director

EDITOR’S NOTE

Mr. Nalbandyan was born and raised in Vanadzor. After IDBank performs the full range of financial services available finishing school, he left for Moscow for studying at the Faculty on the market, setting the development of digital services as a of Mechanics and Mathematics of Lomonosov Moscow priority. State University, where he studied Financial and Actuarial In June 2018 the Bank was rebranded to IDBank (formerly - Mathematics. After graduation, he worked in insurance and Anelik) with a new logo and visual identity to better reflect the investment companies and funds. As you can see, the whole of new strategy and brand image. The Bank has 12 branches, his working activity was related to the financial. Finance loves operating in Yerevan, Gyumri, Vanadzor, Echmiadzin and accuracy, and accuracy means mathematics. Therefore, the Abovyan cities. basic mathematical education has helped him a lot. The most important thing is the mindset: mathematics helps to structure In the field of digital services, thanks to a strategic partnership the thoughts, detect the interconnections and correlations, with Idram Payment System, and continuously developing the formulate and check the hypotheses. new digital platform, the Bank offers a wide range of traditional and new digital services, constantly offering innovative At the end of 2016, he received a proposal from the new solutions in the Armenian financial services market. shareholders of the Bank to join the IDBank team (it had a different name at that time) and move to Armenia. He agreed Recently the new flagman branch of the Bank was opened, as it was a new challenge for him. which is one of a kind in the region and represents a new banking culture due to the provision of customer convenience COMPANY BRIEF and high quality service. IDBank is an innovative customer-oriented financial institution, The Bank is a member of the Union of Banks of Armenia, the main mission of which is to be the first choice bank for SWIFT system, Banking Association for Finance and Trade its customers, as the best innovative bank. The bank offers (BAFT), Visa and Mastercard international card payment services and provides a wide range of products both to private systems, ArCa local card payment system and AmCham in customers and businesses. Armenia. The Bank is actively cooperating with international With its 30 years of proven experience and best international banks and financial institutions. standards, the Bank is a reliable partner for its customers.

Q: Please tell us about IDBank paradigm of the approaches to the offices for service, but their number operations in Armenia. What kind of creation of products and services. We should be enough so that the customers new banking culture and strategy is have created and are (still fine-tuning) can receive necessary consultations Company implementing? developing a digital platform that allows and the products which can’t be fully receiving financial and payment products, digitalized. A: With the arrival of the IDBank’s to carry all standard transactions without Thus, here is what we mean by the new new shareholder in 2016, the team attending the Bank. At the same time, banking culture: each customer is special formulated a new business strategy that we reformatted our branches for a for us, and he or she must receive the can be described as total digitalization more convenient and effective contact most comprehensive and equally high- and high standards of service. Let with the customers. We want to be a quality service regardless of how they me reiterate once again that we don’t digital bank with representative offices interact with us. take digitalization as good-quality and we believe this ratio reflects the Internet and mobile banking. Many needs of today’s clients in the best Q: Mr. Nalbandyan, what challenges banks perform this task more or less way. Our flagman office on 6, Northern do you face in a very competitive successfully. Our main goal is to create Avenue perfectly reflects our vision for banking sector of Armenia and what a comprehensive eco-system covering the new banking format: besides the steps do you undertake to overcome the needs of the customers, and able to consultations of the Bank’s specialists the competition? provide the best customer experience on and service you can get some coffee any channel - both remote and physical. or take some refreshments at the same A: Honestly, all of us in our bank are This requires not only a huge bulk of place, or you can work comfortably in the for healthy competition and are glad to work in operation digitalizing processes co-working area. face strong contestants on the Armenian and IT-development but also changes banking market. It gives us additional in the team’s thinking, as well as in the We don’t aim to have many physical motivation.

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There are 17 banks that operate in the via QR and NFC and the checkouts to review the approaches and priorities. market. And all these banks compete in online shops of many merchants in This relates to the health infrastructure for the customer, trying to be more the Armenian market, then why not to in particular: doctors are the heroes of attractive. The market now belongs provide this great opportunity to our our times. I hope that the governments to the customers, and that’s the customers as well? throughout the world will pay more customer who chooses the bank and attention to the healthcare system. That’s exactly what we did. And the life not vice versa. But what can attract the Second, I believe that the role of science proved that we got it right: especially, customer the most? As we understand will increase both for the countries and during the COVID-19 pandemic we see - mainly two factors: interest rates and the societies, generally. I wish that the the rapid growth of the number of our the quality of service. status of a prominent scientist will be customers, who pay more and more higher than of a famous athlete. Being We have defined that we must have often by QR-payment system at points a scientist must be more prestigious for competitive interest rates, but the main of sale by using their smartphones and students. Third, all the processes that accent needs to be done on the service, avoiding both contacts with cash and have been ongoing for a long time will as this is the factor where one can’t even bank cards. receive additional acceleration. I mean count on a quick outcome. It means that We are attentively monitoring the work the digitalization of various services, by doing a good set up in this direction of companies in other fields and if we e-commerce, online education, remote we can get a lag in time which can be spot a service-provider offering the work outside the centralized offices. used for another step towards growth. best customer experience in their field, People have realized that it is effective The customer is oriented on long-time which can be complementary to our and convenient and the trends in this quality service, and we want to confirm services, then we will try to integrate direction will increase. This will change that his or her loyalty to us is justified. and offer additional opportunities to our the business landscape in many fields: I’ve already answered how we are going customers. The more the opportunities from retail to commercial real estate. On to provide the reliability and quality. - the better is the service. We think the other hand, I am sure that the global Besides, we are not interested in short- that’s a win-win strategy for us and our demand will recover in the midterm. It term “interest wars”, it could be a way to partners: for example, Idram customers will be different by its structure, but it nowhere for us, although we offer some have an opportunity of becoming Bank’s will recover in its volume by 2022 and of the most competitive rates on the customers online by a few easy steps, will increase. It will affect consumption, market for loans, deposits and saving so they can use the banking services/ recreational services and a comfortable accounts. products in addition to Idram services. living environment. Q: Mr. Nalbandyan, what are the Q: Mr. Nalbandyan, IDBank is the first As for banking, the boost will affect what opportunities in the banking to present Visa Signature premium we have been doing for the recent years sector, and how do you see further class card in Armenia. What can – the digitalization. The processes development processes? you say about it and how would you taking place in the background of the describe its advantages? pandemic will only strengthen our A: Of course, while speaking about the confidence in the correctness of our fierce competition for the customer, we A: First, Signature Card is a great strategy. need to mention that we have defined premium card from VISA, which gives the fields where we want to become a number of benefits to cardholders Q: If you could start all over again, leaders. And when talking about the from both VISA and us. Besides, we would you change your career path banking of the future, we mean that have made it the key to our new world of in any way? Why? the customer must receive not only the premium banking service on the second A: Honestly, if I had a chance to start banking itself but also complementary floor of our flagman office (6, Northern my career path once again having the services via a single entry point. Avenue). The special zone of premium information I have now, I would continue Firstly, I mean the digital platform service called Privilege banking is studying applied sciences in the field of which provides receiving the services designed for the most convenient artificial intelligence as this field is very remotely through digital channels. You service and work. Also with the help of attractive to me. Now I’m interested in it may know that we have concluded the the personal manager you can book a but on an amateur level. strategic partnership with Idram, which meeting room for your negotiations. In is considered to be the champion of addition, there is a kid-room where you Q: Mr. Nalbandyan, what will be your the e-money field in Armenia. We were can leave your child with the animator advice to the business community in not planning to reinvent the wheel but for the time you are being served. And the banking sector of Armenia? followed the concept that if something these all are available not for some already exists and operates well for the special VIP-customers but for all IDBank A: I’m glad that the banking system of customer, then there is no need to try Visa Signature cardholders. This is also Armenia is one of the most stable both to create something similar from the an element of our new banking culture. in the region and among the countries scratch, to waste time and resources, of the former USSR. It was achieved but you can, instead, unite your efforts to Q: Mr. Nalbandyan, what do you thanks to both, the competent policy create a synergy for the customer. Idram think: what will be the business of the regulator and systematic self- provides the most inclusive service in environment and, in particular, the improvement of the commercial banks. the field of online payments for different banking sector after the COVID-19 The actors within the banking system services from various service-providers pandemic? are tightly interrelated, we are in the same boat, so I wish all the banks and and it would be interesting to offer Many people say that the world will not A: the business community to pass the these opportunities to our customers. be the same anymore. I don’t know what current crisis with honor, and, I am sure, And if the same company is the leader exactly they mean, but I can say that the they will. in the field of contactless payments COVID-19 pandemic will definitely force

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MR. VAHE DANIELYAN Manager External Affairs Scientific Engagement and Innovations

For the benefit of business, for the good of society

Q: Mr. Danielyan, please project. The project was designed in the tobacco industry. At the same tell us about yourself, your to ensure the future development of time, the company is undergoing educational background and work e-society and enterprise innovation in transformation at the international level experience and what is your best Armenia and was the first-ever project to become a technology company and accomplishment that you are proud of this kind introduced in Eastern to deliver innovative products that will of? Europe. I can say that it is due to totally replace the tobacco industry in this assistance and comprehensive the future. In the past, we used to be A: Every stage in my life was measures that we have managed to simply a large importer in Armenia, characterized by different build e-society, super technological but this has changed. In addition, to achievements. During my university parks and to ensure the high availability supplying products in Armenia, Philip years, together with my friends, of computers for the population here in Morris has turned into a company we managed to establish an Armenia. creating science and technology Armenian committee of AIESEC, an values. Thanks to building close international youth-run NGO, which is My latest considerable achievements cooperation with Armenia’s research in consultative status with the United are with Philip Morris Armenia. As companies, we, in fact, started doing Nations Economic and Social Council. a result of negotiations with the research and development in Armenia. When I joined the Central Bank many Government of the Republic of Our company’s unique model is not years later, our young ambitious Armenia, the transnational corporation about having dozens of people who are team developed Armenia's first decided to expand its existing research doing research in the company’s own macroeconomic model that embraced and development footprint in the labs, but about expanding cooperation all areas of economy and made it direction of Armenia as well. By the with Armenia's research institutes and possible to make forecasts. way, Armenia hosts Philip Morris contributing to their modernization. This International’s third-largest research creates a multiplier effect and has the I am proud of my achievements in and development facility (R&D) in greatest indirect impact on promoting the field of public administration, the world. The R&D center will be scientific research. This is the reason among them developing the Nagorno- located on the territory of the National our company is being perceived in Karabakh Republic's regional statistical Polytechnic University of Armenia, and Armenia as a technological partner, office into a state institution walking in the construction works are underway. a company consuming technological line with modern trends. The next step For three years now, Philip Morris has products and an importer of scientific was to bring Armenia's statistical system been contributing to the development innovation. in compliance with the standards of of science in Armenia by assisting the OECD member states. As for my students and researchers and by Important to add is that Philip Morris achievements after joining the Ministry working with Armenia’s research and is bringing advanced business culture of Economy, I would like to highlight the technology centers and institutes. which is typical for an international importance of Armenia's joining GSP+ corporation. Our company was named tariff system. Since I was coordinating Q: Please tell us about Philip the Top Employer in Armenia by the certain areas during the negotiations Morris International’s operations in Top Employer Institute for the second with the European Union, I was one Armenia? consecutive year, and this, among of the participants of the team that other things, is due to ensuring the managed to introduce the “E-Society A: Philip Morris International (PMI) is good conditions for our employees and Innovation for Competitiveness” an international company operating and building a constructive work

32 ROAD TO SUCCESS I AMCHAM environment. Our partners mention remotely before the state of emergency Reassessment of the company’s that Philip Morris somehow has set was declared; to some extent, we internal processes and approaches, a benchmark in various areas and even insisted that people who have including business models, employee's introduced the exemplary experience necessary conditions for working at way of thinking and other components, of developing business environment. I home, should stay at home. Thus, we is an integral part of this. think our culture of setting and solving reduced the risk for our employees and tasks is even more important than their families, setting an example for Q: Mr. Danielyan, can you tell us being among the top ten taxpayers. other companies. In fact, remote work about the PMI strategic cooperation That is why the company is perceived is not a new thing for us; our employees with the RA Government on in Armenia’s business circles as a had all technical equipment to work establishing the PMI Science R&D trendsetter in business culture. remotely even before. Of course, there center in Armenia? is a psychological problem: when A: Public private partnership is the Q: What immediate actions did you working remotely for a long period one principle for establishing Philip Morris take to address the challenges of may face the risk of losing touch with International's R&D center in Armenia, COVID-19? the business. We tried to be flexible and I do believe in its effectiveness. On and developed business culture for the one hand, the government believes A: The company, of course, had remote work. We tried to do even to display the top-level example of in the future of technological progress more: after seemingly endless online and the attraction of investments in business culture during the fight against meetings and consultations, we gather novel coronavirus. If we consider us Armenia. On the other hand, Philip in front of PC each Friday to discuss Morris had experience and knowledge a part of society, we definitely should our daily routine and sometimes even not stand aside in times of universal in that field and was capable to to drink wine together. We have remote contribute to the development challenges. Problems of the society meetings with business coaches and are company’s problems too. And, of respective infrastructure. The psychologists. There is a chance to government is a great impetus this is not about corporate social have a home workout with a fitness responsibility but a wider framework. to technology development, but trainer. So, we tried to use all options to eventually, the business community is Being an integral part of the society, make it comfortable for our employees what can Philip Morris do to be useful? its driving force. Business finds what is to work at home without choosing in the scope of its interests after having Philip Morris has provided nearly $35 between health, family and their job. million assistance internationally. an understanding of the directions and In Armenia, our company joined an Q: Mr. Danielyan, what challenges priorities for the development of the important initiative of the leading charity do you face in the very competitive country. Running a business in a way foundations to support economically sector in Armenia and what steps that society could benefit from it is the vulnerable families that lost their do you undertake to overcome concept of sharing values with society income due to pandemic. Thanks to the the competition? What is the and the key to future success. support of $150,000 provided by our uniqueness of your company? We, of course, are not a non-profit company, it has become possible to organization, but we are developing obtain 14-day packages including food A: Your last question is the answer. PMI is unique because it has competitive in line with the country for the benefit and essential items for people who had of the business and for the good of been self-isolated. The company also brands, and is capable of growing global brands. The key feature of society. Being a company that has its provided funds to purchase tablet PCs own advanced research center, it was for children from vulnerable families Philip Morris International is to foresee what will happen in the future and to a logical move to express readiness so that they could continue distance to work with the government in this education. With our support, personal adapt to the predicted future realities. The process of transformation that direction. Our Swiss partners, who protective equipment was provided were considering the possibility of to hospitals. The beneficiaries of the our company is going through proves that by observing and analyzing the establishing a research facility in projects were selected based on Armenia, discovered a huge potential the data received by the Ministry of business environment today, we foresee possible developments that for the development of physics, Labor and Social Affairs as well as the mathematics, chemistry, materials Commandant's Office. may occur tomorrow and make huge investments in the development of science, engineering in Armenia as well as the potential of our advanced Q: How did Philip Morris transform new technologies. Today we introduce scientists. This is a good background the working process to address a new product on the market, which to build an ecosystem. The existing pandemics? How do you keep your is different from a technological research institutions are being financed employees motivated? viewpoint. This will definitely have a considerable impact on the future to ensure development, while other research centers are set up to scale up A: As for business culture, I would behavior of the global market. Perhaps like to mention that the key point in PMI's challenge today is to develop the process. The creation of a favorable the fight against Covid-19 was our a new generation of products and to environment by the government with approach towards employees. At Philip create an entire ecosystem around support provided by the business is the Morris, we decided to provide all our it, at the same time educating and idea behind the research center. employees with an opportunity to work raising awareness of the public.

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MR. SEDRAK ASATRYAN Managing Partner

EDITOR’S NOTE Sedrak Asatryan holds the position of the Managing as Eminent Practitioner by Chambers and Partners, Partner of Concern Dialog law firm (formal name highlighting is role and experience in the legal market "Concern-Dialog" CJSC) from 2003. He is specialized of Armenia. in Property Law/Real Estate and Labor Law, as well as in general business law areas of practice. Mr. Asatryan COMPANY BRIEF is also an acting attorney and represents clients in Concern Dialog is a Yerevan-based full-service law courts in complicated cases. firm with focus on Business law established in 1998. Sedrak Asatryan has got wide experience in providing The firm provides services in litigation, representation, high-quality representation related to the interests of his and legal advising. Since establishment, the firm offers clients in different courts, as well as in administrative services both to individuals and corporate clients. bodies. Sedrak Asatryan has presented the interests The firm has 60 employees, 16 of which are licensed of his trustees, for instance, in the Public Services attorneys. Regulatory Commission of the Republic of Armenia, Concern Dialog providing services in all areas of State Commission for Protection of Economic Armenian laws, with more profound expertise in Competition of the Republic of Armenia, State Revenue specific areas. The firm is well known for representation Committee of the Republic of Armenia and other in complex litigation cases (this includes representation licensing or inspection administrative bodies. not only in Civil-law matters, but also Constitutional and From 2000 to 2009 he was employed in the position Human rights-related cases, complex criminal cases, of Deputy Director at Yerevan Centre of Technology and administrative disputes), international arbitration Management Department at Yerevan Municipality. (both investment and commercial). Furthermore, it provides comprehensive services and has long From 2004 to 2005 Sedrak Asatryan was the Advisor standing experience in legal counseling with regards to the Mayor of Dilijan. In 2010, he participated in the to M&A, Mining and Energy projects, Real Estate, courses organized by USAID in Cincinnati, Ohio, USA. Employment law, as well as services to the Financial He periodically takes part in scientific-educational sector. conferences, as well as he is restrained during professional courses The innovative and highly standardized solutions help the company to stand out in performing debt organized both in Armenia and abroad. management and collection (debt collection), as well He is also the author of a number of articles, as well as as in provision of standardized Corporate, Contract law he has been the co-author of the “New Labor Code of and Migration Services. Finally, on subscription basis the Republic of Armenia, Employment Contracts” (Book the Client may acquire legal support with their ongoing 1) and “New Labor Code of the Republic of Armenia, activities. Internal and Individual Legal Acts of the Employer” The firm and the lawyers are constantly getting (Book 2). appraised by international reputable rankings (for He has also recently co-authored a chapter in the details please see page 56), and the membership to Employment Law Review (11th edition) published by several major international law firm networks (TagLaw the Law Reviews, as well as a publication on Foreign and Nextlaw), allows the firm to provide services to its Investments in Armenia, published by Getting the clients practically worldwide. Deal Through. In 2020, Sedrak Asatryan was ranked

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Q: Mr. Asatryan, please tell us initially set before us the objective complicated tasks. Arpine became about yourself, your education to defend our clients’ interests the Deputy Director of the company and work experience. What impact through knowledgeable progressive in a short period with her vigour, hard have these all had on your life and specialists, contributing to the due work and knowledge, and despite her career? application of laws and development young age and lack of experience. of Armenia’s legal system. Living in The team was growing. In 2009, A: I had dreamed of becoming an an environment that is guided by the Arpine received an offer from one of investigator since childhood. However, rule of law is a goal for each of our the biggest foreign investors of the given the Soviet time issues I studied specialists. Indeed, legal support and country and left Concern Dialog for an for an engineer-mechanic, however, consultancy is a business activity, in-house position. It was exactly then my education was left unfinished but we always balance our business when Aram Orbelyan joined our team, under the personal circumstances. decisions on the bigger purpose of with whom we continued the work we While working in a regional company our profession: that is the complicated had undertaken. Due to his talented of agricultural equipment, I was and substantial objective of protection ideas, good faith and professional also dealing with the legal matters of rights. work, Aram soon would become a of the company. This attracted shareholder of the company in an me, and my childhood dream took Citizens of our country had lived unprecedented short time. With this over. Thus, I chose the profession in the Soviet system for around 70 commenced the new era for Concern of lawyer. I graduated from two high years, where, along with scientific Dialog law firm. specialize educational institutions and cultural achievements, human while working, but I acquired the main rights and freedoms had been Indeed, for a short period, Mr Orbelyan part of my knowledge through self- drastically infringed. My dream was to was invited to the Government of education and discipline. I realised an develop the company, to the best of the Republic of Armenia to work in important thing, that self-education my capacities, where citizens would the position of Deputy Minister, but, is an ongoing process and when it find professional support for restoring fortunately, he re-joined our team stops, the opposite process — that their violated rights, and where the three years later, having implemented of losing what has been acquired will business entities would receive high- serious reforms in the judicial and commence. In 1991, during the years quality legal assistance. legal system, and having implemented of the establishment of the Third several major e-gov projects which We undertake any necessary Republic, our generation had to start are still distinguishing Armenia in an measures to us to engage specialists everything over from the scratch; daily international arena. that share our beliefs and values. I am hard work, change of culture and way confident, that the main success factor In 2003, the company had around six of thinking were vital. While it was not is the correct and careful choice of attorneys and one assistant. Today, very hard for the part of my generation personnel and the ability to establish the number of attorneys, lawyers and which stayed to work in the public honest and reliable relationships with assisting employees of our company sector, where no major changes were our valued staff. The shared business is around sixty. Several talented and happening, it was much more difficult and professional vision is an integral professional attorneys and lawyers in the private sector. Everything had, part of these relationships. have joined our team. Some of them substantially, changed. I am certain have become equity partners of that the secret for success is a daily My understanding initially was that this our company and proudly carry the consistent hard work, belief in what idea would be feasible only through heavy and difficult daily problems of you do and in the future. engaging young specialists, who partnership on their strong shoulders. had good education, knowledge of This is how I started my journey in the Now, along with me the company languages, who would be smart and Law firm Concern Dialog which would has five shareholders. I am confident knowledgeable and, most importantly, later become the largest law firm in to claim that all shareholders have specialists that lacking negative Armenia. gained their shares due to their stereotypes. Unfortunately, finding fair, good faith, and professional Q: Mr. Asatryan please advise what such specialists was not an easy task hard work. Despite the economic are the success factors of Concern back then; we lived in a period when difficulties, including the 2007-2008 Dialog activities in Armenia. What the good specialist was defined as the global economic crisis, the company services do you provide and those person having managed to obtain a has recorded a two-digit economic are different and unique in the law faculty diploma. growth practically every single year, market? It was then, in 2006, when a young up until today. A: To be honest, Concern Dialog Law lady — Arpine Khachatryan joined Today, we are the largest law firm Firm has never directly competed or our small team. Prior to graduating in Armenia; the company appeared compared itself with other law firms from the Faculty of Law of the in the list of 1000 large taxpayers in in the market. we have simply tried to French University, she had decided 2019. organise our services in due manner, to undergo her professional practice being guided by the principles of good in our company. We worked together The company moves on in all faith and professionalism, loyal to the for three years, with new revelations directions with the principles it has high mission of the legal counsel. We each day, with solutions of difficult and adopted and achieves success both

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in judicial cases and in the sectors Q: Mr Asatryan, Concern Dialog professionalism. This includes the of business legal consultation and Law Firm is continuously highly specialists in the judicial system, the due diligence; at a later stage, the evaluated by internationally Police, the Prosecutor’s Office, the company started developing the recognised rankings, including Investigative Committee, and the criminal law practice, inter alia, we are the Chambers & Partners, “The Special Investigation Service, as well proud of our specialises in the sector Legal 500”, IFLR and Benchmark as attorneys and many colleagues of difficult, sensitive and economic Litigation Europe. How can you working in-house. and politically and publicly sensitive describe its importance for the Q: Mr Asatryan, Concern Dialog is crimes. company in the international the first and only company in the market? Q: What are the main goals of region to be member of “TAGLaw”. Concern Dialog as a company, and A: Indeed, our team and I are very What advantages and privileges what are the main values of the proud and honoured to receive does it give to the company? company? the highest rankings of these A: The “TAGLaw” membership respected organisations. These A: We firmly believe in the values provides us an exceptional opportunity include Chambers Europe 2020 and of our company: irrespective of any to provide quality services to our Chambers Global 2020 which ranked circumstances or difficulties that clients in around 150 jurisdictions Concern Dialog in the first ranking may rise on our way, we believe in throughout the world through group of the law firms in the country, the principality, legality, and loyalty. “TAGLaw” member companies, who The Legal 500 Europe, Middle East High level of responsibility and strict are handpicked in each jurisdiction and Africa 2020, which ranked Dialog compliance with the rules are leading through rigorous selection process, as a first-tier law firm. factors for us. Each of our clients is one which we passed in 2009-2010. confident that in Concern Dialog This is very important for the firm We are actively engaged in the they will receive services of premium for a number of reasons. Firstly, and annual and quarterly conferences quality, including professional and most importantly, we appreciate organised by “TAGLaw” and due to ethical competence of each of our the evaluation given by impartial this we get the chance to cooperate team members. organisations, who evaluate law firms with law firms with whom we have on thoroughly researched principles long standing good professional Obviously, to achieve these results, specifically tailored to meet the needs and personal relations. Besides, our Concern Dialog values the proper of professional clients from all over attorneys become familiar with the appreciation of merits of our the world. Secondly, a vital part of leading experience and expected employees. Creation of a high-level such evaluations are the references trends in the world at the mentioned and positive working environment is provided by our valued clients. conferences. In addition to TagLaw we one of the forces that helps us to be Thus, such high rankings reflect were also accepted to NextLaw global loyal to our values and achieve our the unbiased feedback of the direct network (by Dentons) and ISFIN, far-reaching goals. beneficiaries of our services. Finally, which gives as access practically to Q: Mr Asatryan, what are the we are continuously approached by each jurisdiction in the world. main challenges you face clients from all over the world who Q: If you started over, would you during COVID-19? What are the have learnt about us from these change your career path in any opportunities provided for the rankings: obviously, further relations way? Why? further growth and expansion with the client would be built on much during this period? more than mere high rankings, but A: I can confidently say that I would this is a great “first step” opportunity not change my career path. I love my A: As for almost all companies in for potential clients to meet us. profession. the world, COVID-19 has had its negative impact on our company as Q: Mr Asatryan, what would you Q: What advice would you give to well: this has resulted in the reduced change in Armenia and in the the Armenian business society? income, difficulties of organising world in general? A: I hope that the business society works in proxy. Providing effective A: I believe that any reasonable will be agile and flexible in this trying representation before the courts person would firstly wish that they or process of overcoming the harsh has also not been easy. Still, we do their children live in a state governed consequences of COVID-19. What our best to avoid any non-desirable by the rule of law. Evidently, as a is essential in this process is to be scenarios of reducing the number of lawyer, I hope that whole world is considerate of any potential risks employees or deducting the salaries inspired by the respect to the rule of in any of the business decisions of our team members. I, personally, law: Armenia is not an exception. made, which are not few. Thorough am optimistic that with the strong understanding and mindfulness of foundation that we have built in our I am certain that the bright future legal risks are not an exception and firm over the years will help us to keep of our country is highly dependent should be at the top priority lists of the resilience until the very end of this on specialists, including lawyers decision makers. pandemic. who do their job in good faith and

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HSBC’S FOOTPRINT IN THE FOUNDATION AND DEVELOPMENT OF GLOBAL TRADE

different cultures. Our connectivity supply and demand for trade shapes our expert knowledge of local solutions in any particular country. markets, giving us deep insights and Trade finance solutions are enabling us to be able to structure structured in nature. They clearly unique end-to-end solutions for our define the obligations of each party customers. in the particular transaction and HSBC’s extensive network makes it such obligations are documented. possible for the bank to participate Trade finance is a documentary in multinational projects such as solution where payments become China’s Belt & Road Initiative (BRI.) due only after an action (e.g. for The BRI is a long-term extensive plan documentary credits) or inaction (e.g. to increase connectivity in China with for guarantees) of either party to the Mr. Artak Petrosyan international partners worldwide. contract. Participating banks play Country Head of Global Trade HSBC was named Best Overall a crucial role in trade deals, since and Receivables Finance, International Bank for the BRI in they have mandatory obligations HSBC BANK ARMENIA CJSC Asiamoney’s New Silk Road Finance under provided trade products. Such Awards 2019. In the past 5 years commitments provided by banks and alone, HSBC has been recognized documentary requirements make nine times as the World’s Leading trade finance solutions beneficial for Trade Finance bank and Best Trade cross border transactions. bank in the world by Euromoney, Trade transactions are governed by Global Trade Review, Trade and rules published by the International Forfaiting Review, The Banker and Established in Hong Kong and Chamber of Commerce (ICC.) The Trade Finance Magazine. Shanghai back in 1865, trade rules are universally applicable and finance forms a part of HSBC’s Using Trade Finance Solutions must be observed by all financial foundation as it financed the growing institutions and by all parties which The full chain of a simple import/ trade between Asia and Europe. For apply for bank services to facilitate export deal in international trade more than 150 years we have been their trade business. involves multiple participants from promoting this essential service both private and public sectors, Trade finance solutions are cost- to make international trade more such as exporters, importers, effective and provide comfort efficient for our customers. We’ve logistics (transporters), customs, to parties when embarking on been developing trade finance tax authorities, banks, regulators, commercial relationships, expanding solutions to meet the challenges insurance companies, etc. globally, controlling risks, better of different geographical markets. managing the cash flow, and Blockchain platform establishment is Here it is critical to have in place negotiating mutually beneficial a clear example of our commitment structured solutions that would trade terms without increasing the towards investing in developing identify and cover the risks associated cost of goods. It’s also important to modern trade finance techniques with cross border deals. Thus, to acknowledge that trade finance is an and solutions. some extent, we may perceive that attractive field for investors, since it trade finance solutions are the by- Being one of the strongest banking offers low risks and positive yields. product of such risk considerations. partners globally, HSBC is a modern HSBC Bank Armenia’s Trade and leading provider of international Trade finance solutions are very Finance Agenda trade and supply chain finance diverse in their application of various solutions. HSBC is an international commercial transactions. Parties to In the volatile, uncertain and complex conglomerate with over 5,800 trade trade may not necessarily only be world of today, global trade is finance professionals supporting traders of physical goods and may challenging the accepted norms of over 40 million customers across consist of state bodies, financial traditional trade at a fundamental more than 50 countries in the world. institutions, and international level and bringing opportunities to It`s global footprint grants access organizations. Trade solutions leverage trade finance solutions on a to around 90% of the world's trade include import/export finance, larger scale. flows, processing over USD1 million receivables finance, supply chain As one of the largest trade banks in the trade turnover every minute. finance, commodities finance and world, we recognise the importance guarantees. Therefore, economic HSBC operates in different territories of this challenge. Our priority now and market specifics shape the and economies and deals with is to help our clients understand the

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opportunities – and the threats – of our customers for imported goods/ of trade transactions independently. this increasingly complex business services for an agreed period of time. They are called “digital islands”, environment. For this purpose, since they still need to be bridged International guarantees and standby "HSBC Bank Armenia" CJSC (HSBC by using paper. On the other hand, letters of credit of our customers Armenia) has organised several distributed ledger technologies, can be confirmed and re-issued workshops directed at increasing called Blockchains, are consortium- by HSBC Group member banks trade finance literacy among market led platforms with multiple banks, worldwide with very competitive players and creating a buzz around companies, technology vendors rates that are defined only for trade finance solutions. joining effort to collectively develop HSBC customers. These are unique an industry-wide solution. Demand for trade finance services solutions that HSBC Armenia can in Armenia encompasses almost all offer both to the customers who have The current pace of innovation in sectors of economy- starting from long-term capital financing needs technologies drives the necessity service providers and ending with such as equipment import and to to gradually include all modes of long-term capital projects. However, the customers who have short-term trade finance into the digital agenda. the degree to which the demand is working capital financing needs. Technology will definitely help utilised varies. The reality is that in not only bigger entities, but also Financial and non-financial risks are Armenia the share of trade finance SMEs to have access to cheaper growing expeditiously, thus making products compared to the overall and faster trade finance services. businesses remain disciplined on assets of the banks is very low, We.trade is a good example of a risk considerations. It is now more amounting up to 5% on average for pan-European open account vital than ever to set common all product types. Blockchain-based platform for standards that will govern the trade SMEs, where all participants can HSBC Armenia supports trade finance structure. In HSBC we have real-time single source of finance as it helps our clients capture have developed common standards information. the opportunities that it presents. enabling cross border trade to When two HSBC Group member happen comprehensively across The potential for global trade remains banks are present at both ends of the network, thus encouraging fundamentally strong. HSBC GTRF the deal, costs and transaction times connectivity and eliminating trade has been recognised by customers are reduced. Being an international deals to happen in a fragmented and the industry’s most prominent financial institution, HSBC Armenia manner. publications for its strength in has leveraged its global network in combining innovation and service Digitizing Trade five continents and has relationships excellence with end-to-end customer with more suppliers and buyers than The digital agenda is becoming solutions. By sharing information, any other trade services institution in increasingly important for our clients. knowledge and expertise with local Armenia. It is this unique positioning Technology is dramatically reshaping businesses, HSBC is a world- that provides us with unlimited trade by dictating what, how and recognised advisor on global and opportunities to shape tailored where we trade. Digital solutions local market developments and end-to-end import/export financing may be present in different aspects industry-impacting trends. solutions for our customers. HSBC Armenia’s Global Trade and Receivables Finance (GTRF) service possesses a broad suite of products, which are available for all countries. Even if there is no such precedent in the Armenian market, our structuring teams worldwide will assist our clients to make transactions in a less risky and cost- effective manner. HSBC Armenia’s opportunities in trade finance are not limited either in value or in volume. We can on-board our customers’ trade flows with different countries in the world and manage them from a single point – Armenia. Our trade solutions are cheaper than term loans because we can utilise funds of HSBC Group member banks worldwide to provide financing to suppliers of our customers in their home countries. In the meantime, we can defer the payment obligations of

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BUILDING THE BLUE DOT NETWORK

Originally announced at the Network will be completely voluntary, Indo-Pacific Business Forum in and Blue Dot principles will not create Bangkok last year, the Blue Dot new regulations or standards. The Network builds upon internationally certification process for projects will recognized, established principles not be onerous. Certification criteria of project excellence agreed to as will be clear and transparent. They part of the G20 Buenos Aires Call to will promote quality infrastructure that Action, G20 Osaka Summit Principles is open and inclusive; transparent; for Promoting Quality Infrastructure financially, economically, and Ms. Lynne M. Tracy Investment, discussions around socially sustainable; compliant with US Ambassador to Armenia the G7 Charlevoix Commitment, international standards, laws, and and the Equator Principles. These regulations; and mindful of debt principles provide a clear vision sustainability. on issues such as strengthening For countries that embrace the Blue infrastructure governance, integrating Dot Network, they will demonstrate environmental considerations in to local communities and businesses infrastructure investments, and raising that the government values high- economic efficiency and best value quality infrastructure that benefits according to life-cycle cost. The Blue local communities while minimizing Dot Network also directly advances harm. The Blue Dot Network gives efforts to achieve the Sustainable countries clear project standards Development Goals, including those against which governments, aimed at ending poverty, supporting businesses, and communities can gender equality, providing for decent hold each other accountable in work and economic growth, building implementing investment projects resilient infrastructure, and reducing in line with good practices and with inequalities. respect to clear environmental and Mr. Christopher C. Ellis Certification of infrastructure social safeguards. This will be a projects by the powerful branding tool that can unlock Economic and Commercial Officer Blue Dot Network will serve as a globally recognized tremendous potential in developing US Embassy in Yerevan symbol of high-quality development. and emerging economies around the Using a common standard for world. project excellence, the Blue Dot Infrastructure projects in Network will help attract private developing countries can capital to infrastructure projects experience significant delays and in developing and emerging poor planning. Poor infrastructure Certifying high-quality As part of efforts to promote high- economies. investment choices can diminish projects will give greater confidence quality, trusted standards for global economic gains and have secondary and information to private and public infrastructure development, the effects in the form of environmental financing institutions as they consider United States, Australia, and Japan burdens, social costs, and hazardous whether to provide funding for have launched a multi-stakeholder living and working conditions. As development projects. Developing initiative called the Blue Dot populations continue to increase countries will have a better ability to Network. The purpose of the Blue around the world, particularly in make decisions about projects that Dot Network is to evaluate and urban areas, it is critical to get best meet their needs and support certify infrastructure projects infrastructure right. their national interests. It will also based upon adherence to put quality at the front and center Efforts to develop the Blue Dot commonly accepted principles of development projects, improving Network are ongoing. Blue Dot and standards to promote market- value-for-money and delivering more Network participants will form driven, transparent, and financially effective and long-lasting results. a steering committee to further sustainable infrastructure refine the initiative and its global development around the world. The process for obtaining a Blue infrastructure standards, and invite Governments, the private sector, Dot Network certification will partners representing sovereign and civil society will all be key be straightforward and credible. governments, economies, the private partners in this initiative. Participation in the Blue Dot sector, and civil society to join the

40 FEATURED ARTICLES I AMCHAM effort and support the development effort. Likewise, civil society and government, civil society, private of the initiative’s permanent governing the private sector will be critical sector, and American Chamber of structure and processes. The Blue to the success of the Blue Dot Commerce in Armenia members Dot Network will have an open and Network, and we have reached out to make our vision of the Blue Dot inclusive framework that does not to key stakeholders throughout the Network a reality. We believe that exclude any country from supporting world to encourage their participation. the Blue Dot Network can have a its mission. Their positive feedback has been an transformative effect in Armenia encouraging sign that we are on the as it seeks to unlock broad- As the United States continues to right track. We also look forward to based, inclusive, and sustainable build the Blue Dot Network, we are seeing the multilateral development economic growth that can secure engaging directly with developing banks lend their expertise and a more prosperous future for all countries, civil society, and the perspective as part of our efforts to Armenians. private sector. Developing countries build the Blue Dot Network. will play a pivotal role in the Blue For more information about the Blue Dot Network, and we look forward We appreciate the opportunity Dot Network, please visit www.state. to their participation in this important to work with the Armenian gov/blue-dot-network/.

41 AMCHAM I FEATURED ARTICLES

A COMPREHENSIVE ACTION PLAN

services, bridges the investors and the public sector, as well as opens up new markets for local producers in the foreign markets. The Center is also preparing site visits, organizing business forums and missions, B2G and B2B meetings. Given the current situation with the COVID-19 outbreak, Mr. Levon Ohanesyan in response to the crisis, the General Director Government of Armenia approved This program aims to establish strong a Comprehensive Action Plan to relations with the foreign investor counter the adverse coronavirus community in Armenia, identify their impact and measures to offset its needs and problems caused by the economic consequences, and ISC outbreak and as a result to ensure is in charge of implementation of investor’s satisfaction. Regular the Action 3 and 19 approved by the meetings and consultations with the Government. business community is planned to “Investment support Center is a The aim of the Action 3 is to be arranged based on the frequency to the single window service ensure business entities’ temporary and complexity of the obstacles domestic and foreign investors.” access to finance to respond to the investors face. Identified issues Just from the beginning of 2020 changing conditions of demand, will be submitted to the appropriate Investment support Center (ISC) to resist external challenges and authorities, and the process will be was established within the Ministry thus, to continue their operations monitored by special unit created for of Economy to provide a “single or to reposition themselves to this purpose within ISC. window” services to the domestic the changing economic situation Considering aftercare as one of and foreign investors. As a national and take measures to refine their the core functions of our Center, authority for the Investment and SME economic development strategies. the program will be designed and development, is responsible for The program addresses liquidity- ISC delivered in cooperation with the the following core functions: related risks and is aimed to support SMEs by providing loans on public sector organizations and • Foreign direct investment preferential conditions. international partners. attraction and promotion, Action 19 program seeks to support The Government pays special • Investment facilitation and entrepreneurs and businesses to attention to the investors and aftercare, by providing support overcome the pandemic’s negative entrepreneurs by providing necessary to foreign investors to ensure impact. The purpose is to support the support and establishing favorable their “soft landing” in Armenia, startups by providing entrepreneurial conditions for their activities. creating preconditions knowledge and facilitating access to ISC continues to provide support for investment retention, funding sources, which will help them to investors with all its resources to encouraging reinvestments by to develop and implement innovative ensure their satisfaction. It should be responding to investors needs, business plans. also noted that services provided by • Country’s image building, by At the same time, in the long run, ISC to foreign and domestic investors fostering the positive image of to effectively combat the economic are comprehensive, reliable and free Armenia and branding it as a impact of the pandemic, it is of of charge. lucrative investment destination, paramount importance to design aftercare program based • Policy advocacy, by identifying ISC’s on the specific needs of investors. bottlenecks in the investment Currently, in cooperation climate and providing ISC with the International Finance recommendations to the Corporation and the World Bank Government. is developing a comprehensive Aiming to become a focal point and investor aftercare program. This key partner for the foreign investors, work is conducted within the scope ISC provides comprehensive of “Economic Growth” Advisory information on investment Project, implemented in partnership regulations, business opportunities, with the UK Government’s Good tax incentives, conducts aftercare Governance Fund. 42 FEATURED ARTICLES I AMCHAM

ASSISTANCE TO BUSINESS COMMUNITY IN ARMENIA DURING THE COVID-19

the top Armenian consulting goods and / or services (priority goods companies and individual & services) consultants with more than 1,000 2. Identify the critical assets & inputs free event tickets available for SMEs required for the production and / or during May-June, 2020 period. service of the company's priority The Coaching Initiative offers products. many areas of counseling, from 3. Depending on the level of urgency, financial planning to legal advice, indicate the company's operations- Mr. Gevorg Poghosyan crisis management and the use of (urgency-based operations marketing tools for small businesses. Head of Business Support Office- 4. Map internal and external risks As the initiative is currently ongoing, Armenia that may impair the company's future all the available business free operations - risk mapping consulting topics are http://www.bso. am/. 5. Prepare threat scenario mapping By registering on one of the available 6. Develop and validate a business topics, the businessman acquires a continuity plan. free ticket with the contact details of AmCham Member Companies had The Business Support Office the consultant, contacts the latter and the opportunity to participate in the in Armenia (BSO) funded by receives the consultation. series of webinars, as well as to use the EBRD, in cooperation with Stepping forward, the BSO in the BSO other services. the RA Ministry of Economy and cooperation with the Ministry of the Investment Support Centre The BSO continues directing its Economy of the Republic of Armenia carried out an innovative initiative efforts to facilitate the challenges of developed a guideline Business the Armenian Business Community #ԲիզնեսնԸնդդեմCOVID19 to Continuity Plan Development assist the business community in during COVID-19, as well as continues Amid COVID19. The guideline Armenia to tackle with an unexpected leading a platform of public and private has been developed to help the range of problems businesses faced dialogue under the patronage of the businessman design the business because of the pandemic. Government of Armenia and the continuity plan with appropriate Ministry of Economy of Armenia. In April, 2020 BSO organized 23 free scenarios and assessments. The 6 The Business Support office Armenia webinars for the local businesses steps of the guide include: led by renowned Armenian business is supported by the EBRD and 1. Determine the company's priority consultants and advisers offering financed by the UK Good Governance advice on topics such as cash-flow Fund management, business strategy, force majeure and contractual obligations, how to use government loans and grants, bankruptcy risks, digitization, planning after crisis in times of crisis, etc. which are currently available in the BSO You Tube channel. The Government support and appreciation as well as the feedback from the business community has so far been significant, highlighting the importance of such an initiative at this period. During such a hectic period, taking into account the necessity to assist the businesses individually as well, the organizers have launched the second phase - #BusinessVSCOVID19 coaching initiative, with individual consultancy opportunity from

43 AMCHAM I FEATURED ARTICLES

HOW BRANDS CAN

FIND THEIR MEANINGFUL ROLESUPSIDE IN A WORLD DOWN TURNED

At a time when we are being physically distanced, unity has never mattered more than it does today!

Facing our own challenges in response to Coronavirus, both personally and professionally, all of us were forced to rethink to re-evaluate everything we used to do before COVID-19, it made us to carefully change the order of our priorities and REFOCUS on WHAT MATTERS, in a short period of time. Thus, we started Discovering the “Human Truths” in a time of Coronavirus. Truth is a platform used in McCann Worldgroup to have possibility to conduct global researches and studies through the large network we have in the world. Our Network studied every recession for the last 100 years. Our clients have weathered natural and man-made disasters of every Ms. Irina Chaltikyan kind and always came out stronger. It taught us few fundamental Truths! Deputy CEO It is ALL about Treats and Opportunities in our Actions and Feelings.

Quarantine massive disruption to people’s lives. On-going quarantine Declining infection rates, School, office and restrictions. People solve lifting of some restrictions. shop closures. Panic for daily life and seek But some working and Low but rapidly buying. Health services ways to pass the time. New consuming habits changed Actions rising infection rate overwhelmed. habits and memes emerge. for good.

New Denial Outbreak Recovery Normal

Denial of growing Panic, distancing, Generosity, reciprocation, Adaptation, reintegration, Feelings crisis resistance protection, insurance, innovation sacrifice

I believe we will see rapid change, across society, that will be driven by 4 key drivers 1 2 3 4 A focus on the basic needs Heightened concern Rapid change in the speed Brands businesses of individuals and families on wellbeing of digital transformation and organizations across in all industries all categories will need to reframe their value to their customers and to their CSR activities.

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We will emerge from self-imposed isolation with a changed view on family, connections, work, friends and an appreciation for the simple things we used to do before it. During Pandemic all of us saw that the brands which 81% protect personal health and sanitation had a rapid growth in demand, even in some cases shortage in supply and artificial of people worldwide speculation. believe global brands All these brands which belong to mentioned categories have the power to make will continue the growth in case they use innovations and highlight the key benefits of their products. Personal care, the world better. pharma and household cleaning products will meet their global repositioning. Healthy food brands and traditional brands within this category will need to increase the healthy ingredients and reduce unhealthier elements. #1 Grocery brands promptly reacted to the changed situation and started to provide their customers a remote access to Thing a brand should do: their goods. The beneficial point here is that this opportunity “Help me stay happy, gave many customers to get used to new purchasing healthy and physically methods, which will stay active after the Pandemic. active.” The world and the brands will focus their attention on their CSR activities, to mitigate their impact on the climate, and adopt rapid innovations in sustainable energy, packaging and delivery of their brands to consumers. 72% In the post-pandemic world, consumers will avoid to be too splashy, a designer bag or a bigger apartment or a luxury of people worldwide car will feel less important than the wellbeing. Brands will are open to brands re-evaluate their role they play in customers’ life, like we playing a broader already witnessed how LVMH, L’Oréal responded with converting their perfume manufacturing lines to produce role in society. sanitizers, or Prada donated intensive care units to the Italian hospitals, The Coca-Cola Fund, which stopped all Source: McCANN Truth Central commercial advertising and donated 120 million dollars to support COVID-19 relief efforts in the affected communities.

Below are the demand stages the brands/categories are Long-Term Demand: Air travel, cruises, sport events, music going through during Pandemic? events could be eroded even years after the Pandemic, as vast majority of consumers will keep social distancing, Maintained Demand: For foods, drinks, pharma brands, avoiding to join crowded events, preferring the confined toiletries, and the supply and consumption won’t suffer. environments. Delayed Demand: If you were planning to buy a car, but you As a result of all above mentioned we’ll be witnesses of how will not go to the salon because of the Lockdown. Instead of Maslow Hierarchy’s every layer meets these all forms of new April you will delay it till September for e.g. values, needs and meanings. Destroyed Demand: You cancelled all your upcoming vacations!

What should the brands do?

Make researches 24/7 to Adapt marketing and Always leave room for All those businesses rapidly answer the needs communication materials a manoeuvre, give the which increased their CSR and attitudes of their according to the NEW brand and the team activities, will build a long- customers in this normal, by answering to the a chance to adapt term trust with customers NEW normal world. questions: Are you helping as things change. and bring the added value and guiding or are you just after people start living their trying to sell? NEW normal.

45 AMCHAM I FEATURED ARTICLES

ARMENIAN MARKET: A POSITIVE ENVIRONMENT FOR FOREIGN INVESTORS

(“the Law”) which was adopted back in provides a number of guarantees 1994. Armenia has also entered into 44 which correspond with internationally bilateral investment treaties. Besides, recognised standards for the protection it is a member of International Centre of the rights and lawful interests of for Settlement of Investment Disputes the investor. Notably, the investors (ICSID) convention, allowing foreign have protections against the change investors to bring claims against the of legislation (stabilisation clause), country on breaches of the protections nationalisation and expropriation, right provided to the investors. to recovery of damages (including Ms. Lilit Karapetyan non-material/moral damages by illegal Senior Associate, Attorney actions of state officials). The foreign Foreign Direct Investment: Ground investors are entitled to freely use their Rules profit and other means as well as export their property, profit (income) and other The law defines the “foreign means (guarantee of repatriation). investment” as follows: foreign investment shall mean any type of Firstly, one of the most significant property, including financial resources protections for foreign investors is the and intellectual values, which is being guarantees against the change of directly invested by a foreign investor legislation (stabilisation clause). in commercial and other activities Particularly, in case of change of law implemented in Armenia with the within five years after the investment purpose of gaining profit (revenue) or any has been made, the legislation in Introduction other beneficial result. The law further force at the moment of investing may establishes a broad and non-exhaustive be applied to the investor should the In Armenia, the state policy towards scope of manners through which an investor wish so. This regulation allows the investors is rather liberal. On the investment can be made. And finally, the the investor to mitigate risks connected one hand, through the legislation the law is entitling investors to make their to the change of legislation that may country offers its investors a wide investment in the way not prohibited have served as the material rationale range of protection mechanisms in under the law, and there are very few for entering the Armenian market. One correspondence with international such limitations. of the most common examples is the best practices and on the other hand, tax legislation which is reasonably an generally, does not set any harsh pre- The evaluation of the investment is integral part of economic evaluations requirements or bans for entering into conducted based on the national dram and predictions made by the investor. the Armenian market and carrying out of Armenia or any convertible exchange After the adoption of the new Tax Code business activities in Armenia. rate as the investor may choose. of Armenia (even before it would enter The primary source of legislation State Guarantees of Protection of into force) the code has had over 30 specifically applicable to the investors Investment amendments. Undoubtedly, this shows is the RA Law on Foreign Investment how the protection would be vital to As noted above, Armenian legislation provide predictability and stability to the investment allowing the investors to rely on the legislation which was in force when the investment was made, and due diligence for entering into the Armenian market was conducted. Moreover, there is a relevant court practice, and the Court of Appeal has confirmed that the investor may announce that it wishes to rely on the respective regulations either immediately after the legislative amendment has entered into force or at least within five years upon investing. The law further determines protections against nationalisation and expropriation.

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and nationals of the other state by the have a permanent physical existence, International Centre for the Settlement of physical address or office in Armenia (a Investment Disputes (“ICSID”). postal address is sufficient). Business can easily be recognised in proxy, starting Evidently, ICSID currently hears a case from the process of establishment of against Armenia initiated based on the a company to day-to-day activities. Armenia-US BIT, where the country Government is keen to implementation participates in the procedure in full of e-governance mechanisms and compliance with its obligations. mostly has capacities to organise the Restrictions (and the lack thereof) for administrative procedures in a proxy—a Namely, it is established that foreign Entering Armenian Market fact which was well proven during the COVID-19 pandemic. investments cannot be nationalised in the The nature of state policy towards foreign Republic of Armenia. The state bodies investors can be observed both from Foreign entities are also allowed cannot expropriate foreign investments. the perspective of protection provided and welcome to participate in state Confiscation, as an extraordinary and from the perspective of restrictions procurement tenders. As established measure, can be implemented only applicable to such investors. It is safe under the respective law, any person, during the emergencies based on the to say that Armenia is very open in this irrespective of being a foreign citizen or decision of the court and provided that a respect as well. company or a stateless person, shall full compensation has been made. have an equal right to participate in the Foreign individuals and legal entities are procurement process. The free disposal of the profit (income) of free to establish a legal entity in Armenia. the foreign investor is another protection There are very few sectors where it A (quasi) restriction related to the foreign guaranteed by law, entitling the investor is required to have a local content/ investors is established under the to freely manage its profit (income) after participation. As a rule, foreign entities Constitution of Armenia and the Land the taxes and other duties established can be the 100 % owner of a local entity. Code, which determines that a land (of under the Laws of Armenia have been There is no requirement to appoint a local agricultural purpose) cannot be owned duly paid. Moreover, the law allows director or hire local staff only (of course, by a foreign individual or a stateless the foreign investors to freely export provided that the regulations applicable person. Yet, no such restrictions apply their property, profit (income) and other to work permit and residence permit are to companies with foreign holding or means which have been legally gained duly complied with). One of such few foreign legal entities. Moreover, the as a result of the investment. restrictions is established under the Law foreign entities can have any other rights Protections provided under BITs: on TV and Radio, which requires that the (lease, right of use and property rights foreign ownership in a company holding towards specific types of land – e.g. land Bilateral Investment Treaties (BITs) are a TV and Radio companies shall not under the buildings) toward the land, and a significant source of protection of the exceed 50%. those rights are fully protected under rights and lawful interests of foreign Armenian legislation. investors. Armenia has entered into 44 Moreover, there are no requirements to BITs with countries including the United States, Japan, United Kingdom and Switzerland. These treaties protect the interests of foreign investors from the contracting parties in Armenia and vice versa. As an example, the protections determined under BIT concluded with the United States include the National Treatment and Most-Favoured-Nation Standard /MFN/ (requiring the party to treat the nationals of the other party on a basis no less favourable than that accorded in like situations to investment or associated activities of its citizens or companies, or of nationals or companies of any third country), the requirement of Fair and Equitable Treatment (FET); prohibition of arbitrary and discriminatory measures. The BIT further prohibits expropriation (including direct and indirect) or nationalisation, as well as determines standards for the free transfer of property in a freely usable currency. Finally, the BIT allows settlement of disputes between the State

47 AMCHAM I FEATURED ARTICLES

COVID-19 VS. FOREIGN INVESTMENTS

As already predicted by the United Macedonia, Ukraine and Uzbekistan Nations Conference on Trade adopted policy measures to simplify and Development, the COVID-19 investment procedures, such as an pandemic will heavily reduce investment portal, a one stop-shop (30-40% in 2020-2021) the flow mechanism or the adoption of new of foreign direct investments at a legislation on special economic global level. When the global zones. emergency is over, states will Armenia declared a state allegedly face arbitration claims by of emergency, allowing the foreign investors under applicable government to take steps to Bilateral Investment Treaties, while minimize risk of infection during Mr. Sargis Grigoryan arbitral tribunals will be confronted the outbreak of COVID-19. Actions Partner, GPartners with one of the most difficult balances included the closure of schools and to be stricken between sovereign universities, prohibition of events with powers and private economic more than 20 persons in attendance, interests. restrictions on movement within the States have been taking emergency country, screening and quarantine measures to seek to limit the impact measures, and restriction of entry into of the virus (e.g. social distancing, Armenia. The activities of the foreign travel restrictions, restrictions on the companies were not prohibited. The export/import of goods, temporary Armenian Government designed lay-off of the businesses, closure specific packages providing state aid of the borders, etc.). The economic to businesses, sole entrepreneurs impact of these measures has already and physical persons to overcome resulted in a significant slowdown in the economic difficulties through the global economy. loans or lump sum facilities for paying salaries, importing and purchasing Numerous countries have adopted a raw materials, paying state and series of foreign investment policies communal fees, buying necessary to facilitate and promote investment. Ms. Susanna Amirkhanyan equipment, etc. Associate, GPartners Greece has partially privatized the natural gas sector. India, Indonesia Tips for States took some liberalization steps in Of the six available defences coal mining and the financial sector (“circumstances precluding respectively. China, the UAE and wrongfulness”) established in the Vietnam have eased some entry Articles on Responsibility of States for barriers for foreign investors. North

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Internationally Wrongful Acts (2001), was the ‘only way’ to safeguard the lockdowns or classification of a the most likely grounds to be invoked interest from that peril. business as “non-essential” might by the States in relation to COVID-19 constitute indirect expropriation would The tribunal in Philip Morris vs. related claims are (i) force majeure need to be considered; Uruguay, in assessing whether (Article 23), (ii) distress (Article 24) tobacco control measures constituted 2) the right to fair and equitable and (iii) necessity (Article 25). The an expropriation, reaffirmed that ‘the treatment – the COVID-19 measures law on necessity is relatively well- State’s reasonable bona fide exercise may be challenged by some investors developed, having been a core defence of police powers in such matters as the on the basis of their proportionality, or of Argentina during its economic crisis. maintenance of public order, health or on whether such measures may have Force majeure and distress have been morality, excludes compensation even been implemented unfairly, having invoked far less frequently as a matter when it causes economic damage a disproportionate effect on certain of international law. to an investor’. In 1903, the Claims investors, or unfairly favoring some 1) To successfully plead force Commission in the Bischoff Case sector players while disadvantaging majeure must fulfil five conditions: held that ‘during an epidemic of an others; and 1. there must be an unforeseen event infectious disease there can be no 3) the right to national and most- or an irresistible force; 2. the event or liability for the reasonable exercise of favored nation treatment – for force must be beyond the control of police power". example, tribunals may be called on to the State; 3. the event must make it Tips for Investors consider whether State aid packages ‘materially’ impossible to perform an offered to companies in cer tain sectors, obligation; 4. the State must not have Before bringing any claims, investors or to certain host-State companies, contributed to the situation; and 5. the should never take loans they cannot created an uneven playing field. State must not have assumed the risk afford to pay, should diversify their of the situation occurring. investment portfolio to mitigate risks, 4) the right to full protection and plan crisis management mechanisms, security – requires host states 2) A strong argument for defence apply for the State aid or any other to provide a secure investment of distress, the State must show: 1. financial support available, restructure environment and to protect investments threat to life; 2. a special relationship debt, review corporate structure and from harm by its entities and third between the author of the act, whether governance of the company, hold parties. this is a State organ or an individual remote shareholder meetings, etc. whose acts are attributable to the In the context of investor-state State and the persons in question; 3. They should carefully consider whether disputes, corporate restructuring that there was no other reasonable the measures taken by States have the is the key. It refers to decisions to way to deal with the threat; 4. that it did potential to give rise to a breach of any incorporate companies in certain not contribute to the situation; and 5. of the protection standards commonly jurisdictions to benefit from more that the measures were proportionate. found in investment treaties. The favorable conditions, most commonly protection standards that investors related to tax matters but also to 3) To successfully argue the defence might seek to invoke include, among investment treaty protections. There of necessity, a State must fulfil others: are different methods of corporate four requirements: 1. a grave and restructuring under investment law, imminent peril; 2. that threatens an 1) the prohibition on expropriation i.e. transfer of shares, assignment of essential interest; 3. the State’s act without compensation – as well as any claim, assignment of debt, assignment must not seriously impair another outright requisition or nationalization, of award proceeds, etc. essential interest; 4. the State’s act issues such as whether enforced

49 AMCHAM I FEATURED ARTICLES

ARMENIAN TELECOM SECTOR OVERVIEW

region. Market players continue to provides internet access, fixed contribute to the development of the telephone and new generation Smart sector by offering a wide range of IP TV services to both individuals and improvement programs, upgraded corporate clients since December services and opportunities to their 2012. customers. Two major factors that drive the growth of the industry, are the Market Portion by Operating Revenue (in th’ AMD) use of modern technology and market competition. Currently, 4 main players Rostelecom of telecommunication industry exist in the country, which are VEON Armenia, VivaCell-MTS (only mobile), Ucom and Beeline Rostelecom (only fixed). VivaCell-MTS Mr. Alexey Rusanov History and Development Managing Director, PwC Armenia VivaCell-MTS is the largest operator of mobile communications in Armenia, Ucom having 53.19% of market share by total number of users and 59.12% of market share by total operating revenue as Market Overview: Fixed of the end of 2019 Q4. The company was introduced to the mobile market in VEON Armenia has been the ultimate 2004, when the government selected leader in the market of fixed line them as the second mobile operator services providers up until the end of of Armenia alongside with ArmenTel in 2016 when Ucom entered the market order to eliminate the monopoly in the and took over considerable market telecom market. share. Operating revenue of VEON Armenia from fixed services started VEON Armenia (previously to decrease, radically, mainly because Armenian Telecom Company, the technological modernization has trademark “Beeline”) is one of the led many subscribers to switch from largest operators of fixed and mobile fixed line services to mobile services communication in Armenia and a market. subsidiary of a multinational telecom OIBDA - Fixed (in th’ AMD) group called VEON. The share of the Company Beeline Rostelecom Ucom company as of the end of the 2019 Q4 4M Mr. Aram Vardanyan was 32.87%, constituting the second Senior Consultant, PwC Armenia place in the market by the number of users and 24.08% of market portion by 3M operating revenue of sector. 2M Ucom received a license to provide public mobile Internet services in 2013, and in 2015 Company entered 1M the mobile communication market of By PwC Armenia team: Armenia by acquiring 100% stake in 0M Orange Armenia (Armenian branch Author: Mr. Aram Vardanyan, Senior of French mobile network operator -1M Consultant established in 2009). As of the end of 2014 2016 2018 Co-authors: Ms. Lilit Nersisyan, Q4 2019, Ucom represents 13.79% of In 2018 Ucom has already got the Mr. Arman Babasyan, Mr. Hayk the market share by total users and leading position in revenue from Vardanyan, Ms. Yevgenia Karapetyan 28.66% by operating revenue of sector. fixed line services, the major portion Reviewers: Mr. Alexey Rusanov, Rostelecom Armenia (GNC-ALFA of which was represented by the Managing Director, PwC Armenia CJSC, brand - Rostelecom, member of revenue from the internet services. Rostelecom PJSC group of companies) The main driver of this growth was Sector overview represents 1.35% of market share the introduction of a new high-speed The Armenian market of by total users according to 2019 Q4 fixed line internet modems, which telecommunication is considered to data and 5.52% of market share by was incomparably less loaded, more be one of the most dynamic in the operating revenue. The Company efficient and could provide internet at

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the speed of up to 600 mbps to more WhatsApp, Facebook Messenger, are tightly interconnected with devices simultaneously. etc. started to replace mobile voice sub-industries such as cloud services, services. Internet of Things (IoT), FinTech, Digital Operating income before the Media, and Information Technology, depreciation and amortization (OIBDA) In 2019, the total revenue from the which give high potential for further is one of main indicators of operational mobile internet was practically aligned growth and modernization. Outlook of efficiency of a company. with revenue from the mobile voice telecom industry will be driven by the services OIBDA - Fixed (in th’ AMD) focus on creating business efficiencies 4M OIBDA - Fixed (in th’ AMD) and streamlining processes, Company Beeline Rostelecom Ucom monetization of investments in new 3M technologies and artificial intelligence 30M (AI). 2M Growth opportunities will be noticed 20M 1M in consolidations and partnerships, vertical and horizontal integration 10M 0M of subindustries with one another, cable companies augmenting pay- -1M -1M 2014 2016 2018 TV businesses with communications 2014 2016 2018 services, 5G network launch, mobile health and mobile payments services and according to the market trends it It can be observed that OIBDA is development. A special focus will be will experience continuous growth in usually lower in the fourth quarter of a placed on data security and privacy, parallel to decrease in revenue from year, which is explained by the fact that and regulations pertaining to net mobile voice services. the maintenance expenses are usually neutrality, which is a principle that limits higher during wintertime rather than in Future Developments companies to exercise control over any other season. individuals’ actions on the Internet. The Armenian telecom market is a Market Overview: Mobile many-sided industry comprised of Since consumers have shown increasing preferences in data-heavy The three main players of the networks, wireless communications, applications in their daily lives, it is Armenian mobile market are: Beeline, entertainment media, content evident that they demand higher data Ucom and VivaCell-MTS. In 2015 generation and other consumer limits, giving rise to a need of a higher Ucom Armenia bought 100% shares of technologies. Due to its very and more efficient network. Orange Armenia, thus Ucom entered technologically advanced nature, this the market of mobile services by using sector is evolving rapidly in order to The 5G mobile network boasts the stations and technology previously fit the global telecom trends and the high data speeds, while low latency used by Orange Armenia. changing demands of the customers. connectivity has the potential to completely change areas such as A clear cyclic trend of higher operating More and more customers today are mobility, healthcare, manufacturing, revenue during Q3 and lower during switching from the fixed and mobile and almost any industry where constant Q1 is observed when analyzing the 3 voice services to the Internet services. connectivity is important. Following its Companies’ operating revenues over Thus, to adapt to these emerging commercial launches in the US and the period from 2013 to 2019. The market changes and to sustain the South Korea towards the end of 2018, favorable cycle in Q3 is explained by revenue and profit, telecom companies 16 more major countries will finalize the the short-term increase in the use of put more and more emphasis on launch of 5G networks until the end of roaming services as consumers leave modernization of currently available 2020. Armenian telecom players have for holidays during summertime. The technologies and on the integration of highlighted the importance of insetting adverse trend in Q1 stems from the new ones to their businesses. 5G network and, in fact, have included low general economic activity in the Key developments of this sector the launch of network in Companies’ country during the early periods of the 2020 strategy. calendar year. MTS Armenia is the leading player in the market, having the highest operating revenue from mobile services. Revenues from fixed line voice services are continuously decreasing due to an increase in mobile voice services. Starting from 2016, revenues from mobile internet services increased dramatically because of the introduction of 4G and 4G+ mobile internet services to the market. Internet calls and applications such as Viber,

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BUSINESS AND LABOR MARKET IN TIMES OF CORONAVIRUS: HOW TO FIGHT AND OVERCOME

Credible Information and To efficiently cut costs, my advice is to Awareness take every process, measure its effect against profit and income, and then To take the right steps in time, you calculate the self-cost of this process. should keep up with the news and As a result, you will find out that in the be informed. The events unfold on case of many processes business an hourly basis and it is hard to find won’t suffer essential losses. During credible information, especially, in “unclouded” times we just usually do rapidly changing situations. not pay attention to it. If guided by this At such lightning speed, one may find logic, you will cut costs at the same out that even an expert opinion can be time retaining the relative sustainability flawed. In any case, it is important to get of your business. Mr. Sevada Baghdyan information from verified sources and However, optimization shouldn’t be the CEO and Founder, Relevant LLC reputable media outlets. Media literacy only way of realizing the potential of the nowadays is a must for any business. “untapped” profit. Those responsible Consequently, the planning of our life for the business should also find and business should be based on the opportunities for an increase in sales, analysis of the information. e.g., develop online sales of products However, the planning should not be or services, or, in other words, enter long-term as we are living in swiftly the e-commerce domain. Besides, in The world is nowadays in the “waiting changing and uncertain times. We the case of semi-closed borders, there mode” due to COVID-19 pandemic. should be more flexible and responsive is an excellent opportunity to offer During this global hiatus, all the to the situation, changing and adjusting products to the market which were efforts are directed to preventing the the long-scheduled plans and formally imported. spread of the virus and saving as decisions if needed. many lives as possible. It’s hard to Besides, within anti-crisis measures, Game-Changer CEO currently judge whether this is the the state comes up with business Nowadays, much will depend on the nature’s way of self-cleansing or it’s support programs which number is ability of leaders and managers to the unexpected emergence of yet increasing; the number of beneficiaries make prompt and relevant decisions, another “black swan”. However, one of these programs is also going up. which are, however, not so common thing is certain: the global economy On the other hand, various legal qualities among them. Leaders should won’t be the same after the pandemic. and consultancy companies provide take risks and responsibility. And if Many insurance companies won’t free online consultancy to help you there are such soldiers among the reimburse the losses of businesses overcome the situation with minimum legions of the senior management it’s based on the force majeure provisions losses. their prime time. in respective contracts. Business Processes and Irrespective of whether all this Optimization will last a few months or years, business owners and labor market Due to the decline in turnover representatives should immediately businesses may be operating at a loss, start thinking about steps towards as not all the expenses can be cut self-development and changes to quickly. However, almost all businesses be competitive both during the long- have the so-called “untapped” profit, lasting pandemic and after it. After which could perhaps be neglected in all, every crisis brings about not only the carefree “pre-coronavirus” times. problems and challenges but also To serve this profit to the interests of the new opportunities. business, you will first need to clarify all the business processes, after which it In this regard, I have outlined a few will be easier to analyze, optimize and points which may serve a quick perhaps reduce each process in every guide for businesses and the labor business management phase. There market for finding solutions during the are a few useful business automation coronavirus (and, why not, during any tools that will come in handy for this other) crisis and post-crisis period. process.

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The first step of a leader should be to take the business out of the “death zone”. This term is commonly used by alpinists to denote the altitudes of 8,000 m and higher, extremely unfavorable for human life. Staying in the zone for long may cause death, which means getting out of the zone becomes a challenge of a vital importance. Effective and efficient communication is no less important for leaders. CEO’s unavailability or unwillingness to take responsibility may become lethal for a business. Business partners, clients, and employees should see and feel that the leader fulfills his/her responsibilities and controls the situation. Thus, ideally, a leader should often communicate with employees of the company and business partners even will still be relevant. A professional’s salary, among other if he/she hasn’t done it before. It is, components, is formed of his/her especially, in times of crisis that people Parallel to the decline in sales knowledge and experience and now are more inclined and willing to trust volumes skilled sales managers and we all have an excellent opportunity a person and human relationships result-oriented marketers may become to get enough new knowledge to be than business processes, automated a rescue belt for all the businesses. able to negotiate a better salary for systems or contracts. Programmers having job experience future positions. Professions, Relevant at Present in online gaming and remote Remote Work and Need for an Office and Demanded in Future communication platforms development may also rest assured: their profits Inspired by the successful or In the labor market, flexibility and high won’t be affected. somehow successful organization responsiveness are also crucial. During of work in the remote mode, many a crisis, employees and managers who Based on all this, the specialists who’ve executives may perhaps think will be able to quickly adapt to the fast- lost their jobs and have the above- whether or not they need an office changing situation and find the best mentioned skills and experience should space or whether all the employees solutions, as well as crisis managers try to get recruited in these fields. need to work from the office. In the will be highly demanded. Optimization However, no one knows how long the post-crisis period, many companies and automation specialists will also be crisis will last and what impact it will are likely to decide to have no offices highly needed. have, which is why it’s a bad tactic to or reduce their sizes which is a tangible Given the importance of delivery during idle around in search of a dream job. saving. the quarantine, the delivery personnel, So, if you still have free time you should However, remote work will bring call center associates, digital marketing use it to acquire new knowledge and about issues which of course can specialists and e-commerce managers skills through various online courses. be addressed. For instance, how to motivate an employee, enhance the team efficiency, etc.: in this case, an employee will be assessed by the result as the control over the process is reduced in case of remote work. To organize distance work, control the processes and assess performance you should indeed glimpse into the IT sector which has long been successfully using such tools as Clickup, Loom, Trello, Calendly, etc.. Irrespective of whether the crisis will continue for months or years, you shouldn’t be inert. Instead, you need to take active steps, reduce losses, increase profits and see yet another “black swan” off with more strength and developed skills.

53 AMCHAM I FEATURED ARTICLES

ARMENIAN INVESTMENT FUNDS

The Law regulates both public non-public funds are subject to “light” and private funds and essentially reporting requirements. The fund represents a lighter version of may raise money by allocating units experience of a number of EU and attracting debt financing1 (e.g. member states that have implemented attraction of loans and allocation of UCITS and AIMF Directives. Both bonds). the regulatory regime and taxation Taxation regime made available for the funds registered in Armenia have become One of the key “selling points” of the quite appealing. Of particular “Armenian structure” is the taxation interest for foreign and local fund of the funds and investments and managers is the regulation of non- divestments into the fund. Particularly, public contractual funds. Indeed, the pursuant to Article 108(1)(13) of the exemption available under Article 1(2) Armenian Tax Code, any income of the Law and a follow up regulatory received from the holding of securities infrastructure put in place by the of an investment fund is not treated as Mr. Aleksandr Khachaturyan Central Bank of Armenia open up corporate income and, thus, is exempt Partner tremendous opportunities for fund from taxation2. A similar exemption is TK & Partners Legal and Advisory managers operating worldwide. available for the individuals (Article 149) (except for dividends, which are Non-Public Funds taxable for individuals). At the same Non-public funds are defined as funds time, the fund itself is taxed at an the shares/units of which cannot annual rate of 0,01% on the fund’s be distributed publicly. In order to net asset value.3 The management of qualify for the non-public regime, the the fund, as well as custodial services Over the past few years, there has fund investors should not exceed 49 provided to the investment funds, been an increased interest towards (once the threshold is exceeded, the are exempt from the value added tax the regulatory regime applicable to fund will have to re-register with the (Article 64). Management fees (as well investment funds in Armenia. This regulator as a public fund). The Law as the carried interest) are taxable at article provides a quick overview of only applies to nonpublic funds to a the manager level of an 18% corporate the key reasons for such interest. very limited extent, mainly focusing on tax rate. the registration process. A non-public Registration Overview fund is required to have a manager, The Law on Investment Funds (in which, however, is not subject to Registration of the contractual non- effect from January 2011) (the “Law”) mandatory licensing requirements. public fund (registration of its rules) sets out a long-awaited regulatory The registration of the fund is carried is relatively straightforward and does regime for the registration and out with the Central Bank of Armenia not require having a licensed fund operation of investment funds and and generally takes around 30-45 manager and custodian. In addition, a fund managers in Armenia. days. Starting from August 2018, new procedure for online registration of contractual investment funds was introduced which simplifies the procedure and provides for a set of important advantages (e.g. the possibility to denominate the fund shares/units in foreign currency and to choose foreign law as governing law applicable to relations between the fund and its investors). The total fees to register a contractual non-public fund online is AMD 240,000 (around USD 500).

1 The Central Bank is cautious about the leverage of funds. 2 Similarly, any expenses related to acquisition of securities of an investment fund are not excluded from the tax base (Article 112). 3 The calculation of the fund’s net asset value is carried out in accordance with regulations of the Central Bank of Armenia.

54 MEMBER NEWS I AMCHAM

International Women’s Day: Empowering Women to Become Environmental Change Makers

We at FINCA UCO believe that women are a powerful force that can initiate and drive positive changes. All we need to do to tap into this immense potential is to equip them with knowledge and means to start setting examples in their communities. Having this in mind, FINCA UCO launched an initiative to celebrate Women’s month by surprising our female clients and empowering them to trigger positive changes in their communities. On March 9, our female customers in several regions and in Yerevan, who came to a branch for various transactions received gifts in the form of eco tote-bags and flower seeds. The initiative is in line with FINCA UCO’s commitment to environmental responsibility. It is aimed to highlight how women can contribute to minimizing the environmental threats created by single-use plastic and how they can help create a better environment for their children. We couldn’t imagine Women’s Day without flowers. However, instead of giving our customers flower bouquets that would perish within a few days, we opted for a more environmentally friendly option of giving them seeds to grow their own flowers and to enjoy them much longer. The seeds can be planted both outdoors and indoors and once they bloom, they will become beautiful reminders of our clients’ commitment to taking care of our environment.

55 AMCHAM I MEMBER NEWS

Concern Dialog a Law Firm in the First Row of International Rankings

For years now, the quality of Concern Dialog’s services Further information on these rankings can be found here: and its role in the Armenian legal market has been highly https://bit.ly/3dvUCis and here: https://bit.ly/2YJUhV7 appreciated by practically all major international rankings. Lexology publishes the note on Foreign Investment The firm was the leader of the award season this year as Review in Armenia authored by the team of Concern well. In the “movie terms” the firm has won many Oscars Dialog law firm. and Golden Globes. Concern Dialog law firm continuously contributes to The Guides Chambers Europe 2020 and Chambers publications on different matters of Armenian legislation Global 2020 of lawyers and law firms was published published by internationally recognised platforms and recently by the Chambers & Partners widely famous in the provides an opportunity to the international community and international legal community. This year, Concern Dialog the local market, to find responses to various questions Law Firm was again honoured to be in the first ranking about Armenian law in the respected field. group in both rankings. Concern Dialog Law Firm’s Director Mr. Sedrak Asatryan was ranked as an Eminent One of such pieces, which is also in line with the main topic Practitioner, and Senior Partner Mr. Aram Orbelyan was of this AmCham magazine issue, was published very listed in the highest group. Our firm is steadily strengthening recently by Lexology-Getting the Deal Through. Authors, its position in this high-ranking scale. Managing Partner of the firm Mr. Sedrak Asatryan, Senior associate Ms. Lilit Karapetyan, and Junior Associate Ms As a professional and experienced team, Concern Dialog Lilit Shahinyan, have prepared responses to the cross was also ranked by The Legal 500 Europe, Middle jurisdictional questionnaire on Foreign Investment East and Africa 2020 to the first-tier assessment. The review. Check out the article to find answers to the Managing Partner of the firm Mr. Sedrak Asatryan, Senior question related to the Foreign Investment law and policy, Partner Mr. Aram Orbelyan, Partner Ms. Narine Beglaryan market-entry requirements for foreign investors, National and Counsel Mr. Arthur Hovhannisyan (now partner) were interest clearance and post-closing authorities of the also highly rated individually. state. The cherry on the top is three case studies of using relevant tools in real disputes: those are discussing the The testimonials of our valued clients speak for themselves: beneficial experiences of foreign investors in Armenia that “The Concern-Dialog Firm does an excellent job. we have witnessed. The firm formulates an effective strategy for each case that is assigned to them. Concern-Dialog You may find the article here: https://bit.ly/35OwtRl and keeps confidentiality and gained our trust to go from should reach out to the authors if you have any further short-term assignments to a long-term partnership.” questions on the publication at: [email protected].

56 MEMBER NEWS I AMCHAM

Warmer Homes, Richer Neighborhoods

How USAID and Habitat for Humanity united neighbors to heat their homes, reduce their energy bills, and strengthen their communities. USAID works with Habitat for Humanity in Europe and Eurasia to help create the financial mechanisms, public awareness, organization and local government buy- in needed to empower residents to organize for better, healthier, more affordable neighborhoods. This is done through the implementation of “Residential Energy Efficiency for Low Income Households” project. USAID’s partnership with Habitat for Humanity is its efforts in developing sustainable financial models far from traditional development. Directly retrofitting for scaling up the renovation and energy upgrade of every apartment block would have been prohibitively residential buildings. expensive. It would also have taken decision-making out of the hands of the residents. “I could not afford to heat our house last year. After thermal insulation of sidewalls of balconies of our USAID and Habitat for Humanity chose a different residential building it is enough to turn on the stove course. Habitat reached out to homeowners to inform for 20 minutes in the kitchen to make it possible them about how much money they were losing per month for everyone in the family to sit around the table on unnecessary energy bills. Those who expressed for breakfast”, — says Nona Nalbandyan, Yerevan, interest in retrofitting their homes found a partner in Armenia. Habitat. “The difference is obvious after the windows The key to success turned out to be a combination of installation in the lobby. Most of the day the boiler community organizing and burden sharing. Residents is switched off. This year it was very warm in the had to pool their own resources, request a loan from a winter”, — says Alaverdi Toumasyan, Yerevan, Armenia. bank through homeowner association and consistently pay down that loan as a community. Habitat helped Residential Energy Efficiency for Low-income neighbors to organize and agree on a refurbishment Households project is one of the many assistance plan. Now they only needed a financing partner. projects supported by the American people through the United States Agency for International Development In Armenia, Habitat worked directly with banks to craft (USAID). Since 1992, the American people through loans tailored for homeowner’s associations. So far, 13 USAID has provided more than $1 billion in programs buildings (710 housing units and 2,000 residents) have that support Armenia’s democratic institutions, social been repaired in Armenia. Habitat Armenia continues sector and economic growth.

57 AMCHAM I MEMBER NEWS

Kan-Tor & Acco Armenia

We are pleased to announce the establishment of Kan- • Accounting and Financial Services Tor & Acco Armenia, bringing more than 25 years’ • Administrative Services experience in corporate and family based immigration. Our local team will guide you throughout the entire legal • Formalities (police, municipality) process and provide top-of-the-line service and support • Residence, housing (finding and renting) in the areas of employment and family based visas. We will assist in developing successful “relocation plans” • Shipping (cargo and customs) taking into account the needs of the company and the • Bank Accounts (credit cards) requirement of your investors. Moreover, we also deal with the resolution of consular processing issues, with an • Medical Services (health and life insurance) emphasis on “options” after a denial. • Social Security Legal Services in Armenia • License and Certification Our team of professional, legal and administrative staff Spouse employment, schools and kindergartens, provides our clients with the best service possible. mentality, language and shopping, repatriation, The team can support the complete cycle involved in localization. changes of status: from tourist to business work permits or permit based upon family relationship, from temporary Kan-Tor & Acco unifies the global marketplace by resident to permanent, and from permanent residence to facilitating the swift and efficient transfer of personnel to citizenship. the Republic of Armenia and all over the world. Local Ground Services As a member of the Kan-Tor & Acco Group we can offer ground services, which is one of our most important priorities. We are the only Group which provides such ground services which may be purchased as part of a special package or separately. In addition to legal services, we are able to offer:

58 MEMBER NEWS I AMCHAM

Tufenkian Heritage Hotels - we are socially responsible

At the beginning of 2020, the world was hit by a COVID-19. care workers. Tufenkian Avan Dzoraget Hotel offered Health systems collapsed in many countries and the all rooms to our country for accommodating people in epidemic took more than 500,000 lives. Armenia was not quarantine, while Tufenkian Kharpert Restaurant cooked 3 an exception, and despite taking the necessary measures, course daily meals for health care workers in the hospitals. we are continuing to confront it. For protecting the safety We are grateful that we were capable of aiding our country of our customers and staff, Tufenkian Heritage Hotels had in the fight against COVID-19, and now, by taking all the to close its doors to the guests until further developments. safety measures, we have opened doors of our regional However, as a socially responsible organization we decided hotels and are ready to host local tourists. Hopefully soon to help our country by providing a shelter for quarantined the world will celebrate its victory against it and we will be people, and by providing lunches and dinners for health able to host travelers from every corner in the world.

We should all do our part in this tough fight against Covid-19.

#StayHome

59 AMCHAM I MEMBER NEWS

World Vision “We bring together ordinary people to make extraordinary impact on poor children’s lives”

When the world faced COVID-19, World Vision’s focus Starting from 17 March, World Vision in Armenia launched around the globe and in Armenia remained on the lives a massive fundraising campaign to provide children and of the children. “In World Vision we know that with their families with food and hygiene packages. The call every emergency and crisi, children’s lives are hugely also was launched on the AmCham platform. Immediately, affected; their well-being and health is at utmost risk” after the first call, World Vision received a significant -, says Mr. Zhirayr Edilyan, Country Director, World Vision. response from both companies and individuals. “Ordinary people, as well as big, medium and small companies World Vision closely works with 4,000 extremely poor responded to our call. We received both food packages and vulnerable families in Armenia. During the state of and cash donations",- shares Mr. Edilyan. emergency, the organization’s social workers identified those families whose needs were especially severe. As the World Vision’s fundraising campaign continues Moreover, from the very first week of the state of emergency, many ordinary people and local companies joined the World Vision was daily receiving hundreds of requests World Vision initiative securing food hygiene items for across Armenia to support children with food. 801 extremely poor families in Shirak, Tavush, Lori, Gegharkunik, Aragatsotn, Syunik regions and in Yerevan. Each of these families was hardly getting their daily food World Vision is accountable and provides regular reports even before the emergency state. If previously, at least to all its supporters both through e-mails and on the social one family member was able to take up some odd jobs media. with payment per day (working in construction, providing cleaning services, etc.), during the emergency this turned “I am thankful for every dram donated to World Vision to be nearly impossible. Moreover, many grocery stores as it allowed to reach out to the needy children across in rural communities would not sell them food on credit, Armenia”,- says Mr. Edilyan. because with the current levels of high demand and price rise, they prefer selling the products to those who are able to pay in cash.

60 MEMBER NEWS I AMCHAM

USG Alumni Conference: Entrepreneurship, Innovation & Networking

From 13-14 December 2020, AmCham Member Company First place was awarded to a Waste American Councils for International Education Management Smart Bin Eco-tool, designed to solve issues launched the USG Alumni Network: Entrepreneurship & related to hygiene, as well as to polluted air and environment Innovation Conference in Yerevan, an event that gathered through the separated waste collection. Smart bins are around 100 alumni of U.S. government exchange programs. specifically designed for Yerevan-based households, and As a result of their U.S. student or professional experience, private offices with a sensibility towards environmental these alumni set themselves apart from their peers. issues. Funded by the U.S. Embassy in Armenia, the two-year Second place was awarded to a Unified Payment System USG Alumni Network initiative aims to harness the unique project, to simplify e-commerce between member states perspectives of alumni leaders to maximize their contribution of 13 customs unions in developing countries. This project to the business community, educational system, and civil aims to guarantee secure money transfers and successful society across Armenia. integration into the global e-commerce market. During the two-day event, alumni of the Future Leaders Third place took the project of an Online Platform Dubbed Exchange Program, Professional Fellows Program, 4C21 to bridge the 21st century skills knowledge gap through Fulbright, Muskie, Junior Faculty Development Program and Armenian-language video tutorials, guidance and support to other U.S. government exchange programs reconnected boost soft skills. and multiplied their professional networks. Global trainer As an Audience favorite the Alumni peers selected the Ms. Eileen Brewer, from Silicon Valley, led discussions Smart Trash Can with an online dashboard. on 21st century skills and technology trends and perspectives on developing networking and branding. “The ecological situation in our country has been of my great In TED-style talks, alumni delivered inspiring stories on their concern during the last two years, and At the conference, it entrepreneurship paths. turned out that my team members shared the same concerns and we were motivated to look for creative solutions together. Closing out the event, alumni gathered into ten teams to From this perspective, the alumni conference inspired and generate ideas for a social enterprise to solve a global or triggered us to brainstorm around different ideas and find local problem in tourism, water management, job creation, innovative solutions”, says Ms. Zaruhi Harutyunyan, whose technology, food production and other key sectors. Using team won an admission ticket for the the Sevan Startup Lean Model Canvas, a startup creation tool, the teams Summit as a first prize. pitched their new social enterprises to a panel of judges (Ms. Karine Sarkissian, AmCham in Armenia; Mr. Hakob Through 2021, the U.S. Government Alumni Hakobyan, Startup Armenia Foundation; Mr. Andranik Entrepreneurship and Innovation Network will continue Manukyan, U.S. Embassy in Armenia), who selected three to provide ample networking opportunities for alumni of U.S.- winning teams. sponsored international exchange programs to connect,

1st Place Winners: Ms. Irene Danielyan, Mr. Gnel Khachatryan, 2nd Place Winners: Mr. Ruben Amiryan, Mr. Arsen Mazmanyan, Ms. Nune Sakanyan, Ms. Narine Avagyan, Mr. Karen Ms. Diana Zakaryan, Ms. Marina Ghazaryan, Ms. Liana Hovhannisyan, Ms. Zara Harutyunyan, Ms. Marina Aghbalyan Manusajyan with Ms. Karine Sarkissian (AmCham Armenia) with Karine Sarkissian (AmCham Armenia) and Mr. Hovhannes Yeritsyan (Startup Armenia).

61 AMCHAM I MEMBER NEWS

share and learn how they can be involved in alumni mentoring, understanding through excellence in academic, professional professional development seminars, grants opportunities and cultural exchange, language acquisition, education and other upcoming alumni activities. Alumni who are part of development and research to empower individuals the AmCham network are encouraged to download the new and institutions to address challenges in a diverse and U.S. Exchange Alumni app to find upcoming networking interconnected world. The American Councils’ office in Armenia opportunities and events. was established in 1996. Since then American Councils, has implemented more than a dozen programs for around 1,500 The mission of American Councils for International alumni in Armenia funded by the U.S. Government and other Education is to strengthen international ties and mutual donor organizations.

3rd Place Winners: Ms. Marina Poghosyan, Ms. Hripsime Khanzadyan, Ms. Lusine Shahnazaryan, Ms. Gayane Audience Favorite Winners: Mr. Davit Sahakyan, Ms. Hasmik Vardanyan, Ms. Seda Tarjumanyan, Ms. Serine Ayvazyan, Ms. Harutyunyan, Mr. Arman Ayvazyan and Ms. Anush Arsenyan Ani Ghukasyan and Ms. Narine Mkhitaryan

FINARM Latest News

FINARM and Mr. Artak Manukyan and Mr. Varazdat Karapetyan, National Assembly of Armenia Members continue their successful and productive cooperation. As a result of such cooperation on 14 April, 2020 the team introduced the draft law on stipulating amendments and addenda to the Law of Armenia on “Currency regulation and currency supervision”. It is envisaged to clarify: • that those coupon payments on foreign currency denominated bonds admitted to trading in the regulated market can be done in the same foreign currency, • the possibility to make payments on repo contracts and financial derivatives in the same foreign currency in which the liability was assumed. It is expected the Parliament can discuss the proposed amendments already in Q2,2020 and, hopefully, adopts it.

62 AMCHAM BOARD MEETING WITH RA PRESIDENT ARMEN SARKISSIAN

President Armen Sarkissian received the Board of Directors Tomorrow, which is aimed on the development of science members of the American Chamber of Commerce in and technologies in Armenia. Armenia. The President also highlighted the Armenian Summit of Members of the American Chamber of Commerce Minds to be held in Armenia this year and dedicated mostly presented activities, key plans and upcoming projects. to artificial intelligence and geopolitical risks, as well as to the They also shared the issues and challenges that the Horasis-China international conference. In the framework of businesses face and are being lobbied. President Sarkissian this event dozens of Chinese companies will visit Armenia welcomed any proposal that would be aimed at the country’s for cooperation opportunities. development and expressed readiness to support them It was agreed that AmCham Member interested companies within his limits. can become partners and participate in the mentioned President Sarkissian spoke also about one of Presidential projects. initiatives, pointing out the ATOM project - Advanced

Meeting with President Sarkissian

Meeting with President Sarkissian Meeting with President Sarkissian ADVOCACY & NETWORKING

AmCham and Armenian Institute of Directors AmCham and AIօD Meeting AmCham and AIօD Meeting (AIօD) Meeting

AmCham and AIօD Meeting AmCham and AIօD Meeting

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AmCham and AIoD MOU Signing ADVOCACY & NETWORKING

AmCham and FINARM Joint Seminar on AmCham and FINARM Joint Seminar on AmCham and FINARM Joint Seminar on Tax Incentives in the Capital Market Tax Incentives in the Capital Market Tax Incentives in the Capital Market

AmCham and FINARM Joint Seminar on AmCham and FINARM Joint Seminar on AmCham and FINARM Joint Seminar on Tax Incentives in the Capital Market Tax Incentives in the Capital Market Tax Incentives in the Capital Market

AmCham and FINARM Joint Seminar on AmCham and FINARM Joint Seminar on AmCham and FINARM Joint Seminar on Tax Incentives in the Capital Market Tax Incentives in the Capital Market Tax Incentives in the Capital Market

66 AmCham and FINARM Joint Seminar on AmCham and FINARM Joint Seminar on AmCham and FINARM Joint Seminar on Tax Incentives in the Capital Market Tax Incentives in the Capital Market Tax Incentives in the Capital Market for a better business environment

AmCham New Year Party 2020 AmCham New Year Party 2020

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AmCham New Year Party 2020 AmCham New Year Party 2020 AmCham New Year Party 2020

67 AmCham New Year Party 2020 AmCham New Year Party 2020 AmCham New Year Party 2020 ADVOCACY & NETWORKING

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68 AmCham New Year Party 2020 AmCham New Year Party 2020 AmCham New Year Party 2020 for a better business environment

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AmCham New Year Party 2020 AmCham New Year Party 2020 AmCham New Year Party 202069 ADVOCACY & NETWORKING

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AmCham New Year Party 2020 FMCG Sustainable Waste Managment Webinar

DE Committee Meeting DE Committee Meeting

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FMCG Committee Meeting

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GM Breakfast Meeting at Tufenkian Historic Yerevan GM Breakfast Meeting at Tufenkian Historic Yerevan

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TCuFP Committee Meetings

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80 Be My Guest with Fine Cars of Armenia Be My Guest with Fine Cars of Armenia Be My Guest with Fine Cars of Armenia AUDIT, TAX & ADVISORY

KPMG Armenia services

AUDIT AND ASSURANCE ADVISORY TAX AND LEGAL • Audit of IFRS Financial • Business Performance • Corporate & Business Tax Statements Improvement • International Corporate • Audit of Reporting • Strategy and Operations Tax Packages • HR Advisory Services • Indirect Tax and Customs • Review of Interim • IT Advisory Services Services Financial information • IFRS 9 – Financial • Tax Dispute Resolution • Review of Reporting Instruments Accounting • Corporate Tax Packages Change Compliance • Agreed upon Procedures • Forensic • Tax Management Services • Internal Controls and • Tax Audit Compliance • Mergers & Acquisitions • Transaction Services • Transfer Pricing • Due Diligence • Global Tax Outsourcing • Valuation, Financial • Legal Services Modelling • Taxation Services to Individuals

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