As distributed with

PAGE 01. BILATERAL PAGE 03. A LEADER’S RELATIONS PERSPECTIVE US- Relations Continue Eduardo Eurnekian to Blossom CEO and President of PAGE 02. INTERVIEW Corporacion America Interview with , PAGE 04. AGRICULTURE Armenia: Investing PAGE 03. BUSINESS in Agriculture Armenia Prioritizes Development PAGE 04. TOURISM and Reform: Business Q&As ArmeniaAn ancient nation; a modern republic The Next Big Thing: Tourism

OVERVIEW Q&A A Long Past and Bright Future Armenia continues to develop into over the centuries – each seeking to cultural hub, the capital city, , ogy, and research are emerging as a stable and democratic state, reso- incorporate these beautiful lands into bustles. Theaters, cafes, galleries and key future-drivers of the economy. lute in its march toward prosperity empire and dynasty. live music halls dot its boulevards. Meanwhile, the banking sector con- Edward Nalbandian and confident in both its people and With the outbreak of the First World Visitors can expect a warm welcome tinues to reform, gaining acclaim Minister of Foreign Affairs its place in the modern age War, the country suffered terrible and the finest Armenian hospitality in for the risk management protocols tragedy. One-and-a-half million this most ancient of cities. implemented as a result of the 2008 were slaughtered by Displaying diplomatic maturity, the global financial meltdown. Barriers “Armenian-American This nation of just over 3 million Ottoman Turks in the deserts of Mes- country has fostered strong part- to foreign trade and investment are bilateral meetings have people continues to thrive, emerg- opotamia; many more were scattered nerships with countries around the minimal and the country experiences ing as a modern, democratic state around the globe in the face of the globe, particularly the United States, high levels of economic freedom. increased significantly in sure of its identity and determined to onslaught. Acknowledged by schol- which is home to a large, patriotic Ar- Its tourism industry shows largely number and their content succeed, despite the discrimination ars and many countries as a state- menian diaspora. It enjoys a healthy untapped potential, and efforts to that Armenians have faced during sponsored campaign of genocide, the and continuing relationship with the develop this crucial sector’s infra- has become richer” their long, traumatic history. events of 1915 remain permanently European Union, allowing for wide- structure are ongoing. Armenia is Armenia’s foreign affairs minister Edward Nalbandian Sitting landlocked in the South etched into the consciousness of Ar- ranging cooperation in the areas of increasingly seen as a prime and un- talks about US-Armenian relations and his country’s Caucasus, with fast-flowing rivers menians around the world and are political dialogue, trade, investment, spoiled tourism destination, catering foreign policy and iconic mountain landscapes, remembered on April 24 each year. economy, lawmaking and culture. to discerning travelers and backpack- Armenia has a history stretching Armenia achieved independence in Meanwhile, its democratic traditions ers alike. High-walled forts, ancient How would you define the relationship between the US back into the Bronze Age. Its strategic 1991 following the collapse of the continue to evolve. Women occupy churches and monasteries are found and Armenia? location at the crossroads of Eastern , which had annexed it prominent positions of political pow- throughout the country, which was Armenian-American relations over the past few years Europe and Western Asia meant it in 1922. Since then, this young na- er and, compared with many other the first to adopt Christianity as a have developed significantly. The numerous visits and was invaded by Greeks, Byzantines, tion has carved a steady path, despite former Soviet republics, its human state religion. Its valleys, dotted with meetings at all levels of our administrations are proof of Mongols, Arabs, Persians and Turks formidable hurdles. Its economic and rights record is strong. The presi- quaint villages and Jewish cemeter- that. These meetings have not only increased in terms of number, but their content has become richer with dential elections of 2008 were widely ies, and pristine mountain scenery praised by international observers as riven with long hiking trails, offer every meeting. free and fair. unique, limitless touristic potential. We interact closely across the international arena, At a Glance Traditionally an agriculture and in- What other country can boast having covering regional and international security, non- proliferation of weapons of mass destruction, the fight Population: 3,060,631 (July 2014 est.) Georgia dustry-based economy dependent discovered the world’s oldest leather against all forms of terrorism, peacekeeping operations Ethnic groups: Armenian 98.1%, Yazidi (Kurd) Black Sea Azerbaijan on large remittances from the dias- shoe, immaculately preserved 5,500 Armenia and other global challenges. 1.1%, other 0.7% (2011 est.) pora – which also facilitates interna- years after it was made? After years of supporting peacekeeping in Kosovo and GDP growth rate: 4.5% (2013) tional trade and capital flows – Ar- Armenia’s march toward prosperity Iran the International Security Assistance Forces in Af- GDP composition by sector: Turkey menia is seeking to diversify, rich as seems undeniable, while its people – ghanistan, Armenia is going to continue its contribution Agriculture: 20.6% it is in human capital. indomitable, proud of their country, in supporting global security. Industry: 37.3% Iraq Precious-stone processing, informa- history and culture – move steadily Services: 42.1% (2013 est.) tion and communications technol- into the future. 2015 marks the 100th anniversary of the Armenian tragedy. How important is it to your ministry to raise awareness of the event? BILATERAL RELATIONS Raising awareness of not only the Armenian genocide, but of other crimes against humanity and genocides is vital for the prevention of such crimes. As a nation that survived the first genocide of the 20th century, we feel US-Armenia Relations Continue to Blossom a strong moral responsibility to contribute to interna- tional efforts in prevention of such crimes. The US and Armenia – two natural Denial and impunity paves the way for the repetition of allies – continue to enjoy a close new crimes against humanity. Independent of geopo- relationship, supporting each other litical or other interests, the international community across multiple platforms should stand together in the recognition, condemnation and punishment of past genocides, for the sake of their future prevention. Relations between these two proud The commemoration of the 100th anniversary of the nations, one a global superpower, the Armenian genocide is an important step toward its other a young state emerging as a international recognition and condemnation, but it is not vibrant, investment-friendly business an endpoint. It marks a new beginning in the context of environment, continue to blossom. joint efforts to prevent history repeating itself. Characterized by close cooperation, they are intertwined by the large What possibility do you see of normalizing relations numbers of diaspora Armenians with Turkey? living in the United States. The Armenian-Turkish normalization efforts, initiated The US has supported Armenia since by the president of Armenia in 2008, were summarized it achieved independence, opening five years ago in Zurich, when we signed the Armenian- an embassy in Yerevan in 1992. Turkish protocols. But soon Turkey backtracked, return- Since then, the countries have co- ing to its initial language of preconditions. operated on wide-ranging issues, If the Turkish side considers that it could reanimate with the US actively acting as a but- today obstacles to the normalization process, it acts in tress for Armenia’s democratic, eco- vain and without perspective. This is something I told nomic and social reforms, as well as the Turkish foreign minister in Yerevan in December efforts to promote regional peace 2013. Our position, shared by the entire international community, is the normalization of relations without and prosperity. any preconditions. “Due to our joint efforts, we have raised the relations between our two What opportunities will open up in Armenia as it joins nations to the highest point ever in US President Barack Obama meeting with President Serzh Sargsyan of Armenia on the sidelines of the Nuclear Security the Russian-led Customs Union? the history of Armenian-American re- Summit at the Washington Convention Center in 2010 Armenia’s approach on this issue is pragmatic. We lationships,” said Armenian minister hope the Customs Union will grant new opportunities of foreign affairs Edward Nalbandian. ing to democracy, the US and Arme- Armenia’s potential, making substan- Armenia continues to emphasize its to Armenia in terms of boosting competitiveness in our “We reciprocally characterize those nia maintain strategic dialogue on tial investments in information tech- role in supporting the global interests main export markets and increasing our export volumes, relations as a friendly partnership.” economic issues and regularly meet nology, hotels, carpet and furniture of the US, particularly in the areas of further enhancing and deepening our economic rela- Emerging as natural allies in a re- to discuss mutual cooperation in production, construction, beverage security and counter-terrorism, while tions with the member states of the Union, as well as gion still struggling to overcome the energy, trade and investment. bottling, jewelry and textile produc- the two countries belong to a range encouraging direct investments from those states into obstacles associated with transition- The US has traditionally recognized tion and mining in the country. of shared international bodies. our country.

1 - ARMENIA As distributed with

BUSINESS AN INTERNATIONAL EDUCATION

Q&A John Puddefoot Armenia Prioritizes Development and Reform Head of United World College Dilijan Private investors and government geographical investment restrictions, Yet the initial goal is to support Ar- Near East with North America. bodies are working around the clock free and unrestricted repatriation of menia’s greatest asset – its best and The government has implemented an to develop this nation. Opportunities assets and profits, no restrictions on brightest minds. “open skies” policy, whereby the avi- abound, and with business reform at staff recruitment.” “The biggest challenge for us, and for ation sector will be liberalized, boost- the top of the agenda, a sound and Meanwhile the government ensures the country, is to keep young profes- ing tourist numbers and establishing varied investment environment is investors are well looked after, as sionals in the country,” said Jorge del Armenia as a regional aviation hub. materializing Robert Harutyunyan, head of the Ar- Aguila, head of Armenian operations “This policy will support the es- What is the significance of the Dilijan school to Armenia? menian Development Agency, points at Corporacion America, which has tablishment of new air carriers in United World Colleges (UWC) makes education a force to The buzzword in Armenia is develop- invested robustly in Armenia. “They Armenia and will provide an oppor- unite people, nations and cultures for peace and a sustain- ment, and there is a steely resolve bring new ideas to the table and add tunity for carriers to compete with able future. The Dilijan school is one of the largest capital to develop the country and improve “Armenian legislation value to their own country,” each other, ensuring the best ser- investment projects in Armenia to date: by the time the the life quality of its citizens through provides security for To that end, attempts to super- vice for passengers,” said Artyom project is completed the total investment will reach around agriculture, aviation and advanced foreign investors” charge the technology and research Movsesyan, Armenia’s civil aviation US$135 million. education. sectors are underway, attracting director. “Today, we already have How is this school going to encourage economic Policymakers have aggressively re- Robert Harutyunyan high-profile companies such as real results.” development? duced red tape, providing a simple Head of the Armenian Synopsys, Microsoft, National In- Meanwhile, the agricultural sector We are part of a worldwide educational movement, so business environment while creating Development Agency struments and Oracle. is being strengthened, notably its whenever the UWC is mentioned, Armenia will automati- an attractive and laissez-faire invest- Additional efforts to capitalize on production of boutique wine. cally be mentioned. Armenia needs more interaction with ment environment. out. “The legislation of Armenia pro- Armenia’s strategic location form “I am confident in the quality wines the international community, and the school brings the “The Republic of Armenia has one of vides security for foreign investors. a central part of the government’s we are producing in Armenia.” said world to Armenia. We currently have 96 students from the most open investment regimes This is stated in the constitution, plan. Civil aviation is emerging as Eduardo Eurnekian, of Corporacion about 48 different countries. The faculty is from 12 different among the CIS countries and has which means the protection of in- a core economic driver: Armenia America, an Armenian-Argentinian countries. Our curriculum encourages the engagement announced an ‘open door’ policy,” vestments cannot be changed by sits at the intersection of routes who is Argentina’s second-richest of our international students with the local students as said economy minister Karen Chsh- the parliament.” connecting Southeast Asia and the man. “We will attract further invest- much as possible. The long-term effect of this interaction is maritian. “That means the absence of Countless opportunities abound. Middle East with Europe and the ments in this area.” intended to raise the bar in Armenia.

FINANCE An IDeA for Development Industry Voices

With a small but well-regulated financial sector and a vibrant, highly competitive banking environment, Armenia represents a unique opportunity for investors. The Central Bank carefully oversees the entire financial sphere, from banking to insurance and pensions. Meanwhile Converse Bank, owned by diaspora Armenian-run Corporacion America, is one of the country’s top banks, innovating constantly to keep ahead of the more than 20 other banks in the sector

Q&A Q&A Initiatives for Development of Armenia (IDeA) is a chari- Interview with Serzh Sargsyan, President of Armenia table foundation established by philanthropists Ruben Arthur Javadyan Tigran Davtyan Vardanyan and Veronika Zonabend. The foundation fo- Governor of the Central Executive Director Turkey for decades. Our other neighbor, tions by Azerbaijan. I have announced on ognized in 40 US States. In the 1980s, world is moving toward the establish- cuses on promoting social entrepreneurship by investing Q&A Bank of Armenia of Converse Bank Azerbaijan, demonstrates a hostile at- many occasions that there is no alterna- the Reagan administration recognized ment of common economic zones, when in long-term and sustainable commercial projects. titude toward Armenia and the Nagorno- tive to the negotiated settlement of the and condemned the Armenian genocide. interstate economic borders lose their IDeA projects ultimately aim to bolster socio-economic President Serzh Sargsyan discusses the Karabakh Republic. For a long period of conflict. A proof to this is the constant Sooner or later, Turkey will have to come importance, when free trade areas are development, assist the country in its transition to pros- dynamic and vibrant young nation he time we have been living in “a no war, no willingness of Armenia to maintain dia- to terms with its own past and free itself established among different continents, perity and revitalize the Armenian nation as it positions itself in the modern world, while preserving its history. leads, its history, economy and inter- peace” situation. logue in the framework of the formats by restoring justice. to speak about confrontation between The foundation’s projects include its flagship United national relations. As Armenia asserts Armenophobia, militant rhetoric and proposed by the OSCE Minsk Group co- different integration structures makes no World College Dilijan. With students from over 50 itself on the international stage and armed provocations along the border chair states, as opposed to Azerbaijan. In How can Armenia act as a bridge be- sense. In this regard, through joining the What opportunities are there for Armenia recently raised US$700 million How would you appraise Armenia’s What sets Converse Bank apart from its countries and located symbolically on 88 hectares (217 seeks to continue its development, the have become an inseparable part of our this regard we attach great importance to tween the West and Russia as well as EEU, Armenia will be able to become an strengthening the ties between Armenia from its first sale of Eurobonds. How banking sector? competition? acres) of land on a former Silk Road staging post – where president explains his country’s identity daily life for 20 years. Today, the fragile its continuous engagement and balanced the CIS countries? important link for the business communi- and the USA? important are bond sales in increasing The establishment of the independent We are somewhere in the middle when you East meets West – the college aims to bring the world and outlines the wide range of opportu- peace in Nagorno-Karabakh is the lynch- position on the issue, based upon the Since its independence, Armenia’s for- ties of the EEU and Western countries. In The United States is one of Armenia’s Armenia’s appeal to foreign investors? banking system in Armenia really began look at all the rankings of banks in Armenia. to Armenia while developing the country’s educational nities that this investor-friendly nation pin of peace in our entire region, and we principles of international law and in line eign policy has been balanced between this context, we are concerned by the re- leading economic partners. Our economic The first Eurobond issuance has paved in 1993. In the short time since then, I feel What makes us unique is that we are one infrastructure to the highest international standards. presents to the wider world defend the very peace of the region from with the co-chair statements. the different systems and interests of the cent tensions between the West and Rus- ties are diverse and comprehensive. The the way for Armenia to finance itself in that we have established a very good of the most flexible banks; and we strive to Meanwhile, IDeA seeks to revamp Armenia’s historic the trespasses of our neighbor dictator- Despite the fact that each conflict is powerful stakeholders of the region, as sia. We are interested in the reconciliation Americans of Armenian origin are the glue the future on the international markets. banking system. It’s not big, but it’s safe provide the highest quality services in the buildings. The Tatev Revival Project, to be completed in ship, which is blinded by petrodollars. In unique in its historical, legal and political opposed to drawing divisive lines. While of discrepancies between our partners connecting our two countries. They are not This success helped our country gain and very well regulated. We have 21 com- market. Customer satisfaction is some- 2017, has seen the ancient 1,000-year-old Tatev monas- How would you appraise the relationship my opinion, our number one priority has context, recent dynamics of international it is a member of the CSTO (Collective because small countries like Armenia are only a source of remittances, investment recognition on the capital markets. This mercial banks and they are all strong and thing else that we take very seriously: our tery undergo restoration work, with an aerial tramway between Armenia and the United States? been and will remain the security of the conflict resolution prove that fundamen- Security Treaty Organization), Armenia very sensitive to such ups and downs. and tourism; they are also a vital vehicle for also provoked increased interest in our stable, and this is a result of good regula- customers feel they are part of the Converse – the US$40 million Tatev Ropeway – constructed, Relations with the USA comprise an im- Republic of Armenia and the Nagorno- tal human rights and freedoms, including has simultaneously developed enhanced the transfer of knowledge through business country from many big investors, in both tory oversight by the Central Bank. We Bank family, and this is the type of relation- servicing the building. portant part of our foreign policy agenda Karabakh Republic. Fragile peace is better free expression of will and self-determi- cooperation with NATO and participates What is your government doing to chal- and academic interactions. Western and Eastern markets, and we could even say that regulations are too ship we want to have with our clients. We “All of our projects aim to be sustainable,” says IDeA on both bilateral and multilateral dimen- than victorious war. The maintenance of nation of peoples, are a priority. In the in peacekeeping missions which contrib- lenge misperceptions about the country Current economic cooperation includes have received quite positive reactions strong, but as a result, we’ve not had any are focused on becoming one of the most Foundation chief executive officer Artak Melkonyan. sions. Historical close interactions as well peace is our greatest achievement, and words of former US President Woodrow ute to international peace and security. and the region in general? sectors such as metal manufacturing, from them. crises. In my opinion, the only challenge innovative banks in the market. We are con- “They are philanthropy projects, but they have to have a as the common ideas of independence, in the upcoming years we will continue Wilson: “National aspirations must be Our country has developed and continues We have always presented the challenges energy, education and IT. However, This first issuance served not only debt we are facing at the moment is too much stantly offering new products to the market revenue generation element involved, to keep the proj- that create comfort for our clients. democracy and freedom have contributed to prioritize security along with economic respected; people may now be dominated to develop strategic allied relations with to our country and to the region to dif- although our countries enjoy high levels management purposes, but was sup- competition. ects running after our initial investment.” greatly to the deepening and widening of development, the promotion of democ- and governed only by their own consent. the Russian Federation at the same time ferent organizations and at bilateral for- of cooperation, I think that we are yet to posed to, and did, become a price refer- the relations between the two nations. racy, education and health. ‘Self-determination’ is not a mere phrase; as consistently promoting a European mats. The international community itself embrace our full potential across many ence for existing and potential investors We have reached a qualitatively new level We seek a peaceful settlement to the it is an imperative principle of action.” It agenda. Today we remain committed to has witnessed how the adventurism of fields of human endeavor. in the country. of partnership with the USA thanks to Nagorno-Karabakh conflict based on is no coincidence that fundamental ele- that principle. Armenia has made a deci- Azerbaijan has resulted in violence in the joint efforts. The continuous assistance international law, particularly on the ar- ments of the right to self-determination sion to join the Eurasian Economic Union region, marking the deadliest period in provided to Armenia and Artsakh has rangements achieved within the frame- are rooted in the formation and develop- (EEU) taking into account our national, the conflict since the ceasefire took effect. A LEADER’S PERSPECTIVE played and continues to play an essen- work of the format of OSCE Minsk Group ment of the American nation. Today, we economic and geopolitical interests. How- Everyone witnessed the “Twitter diploma- tial role in the democratization of the two co-chairs. To this end we continue our see that the right to self-determination is ever, as I have stated in my speeches and cy” of Azerbaijan’s president. Years-long Armenian republics. Our interests coin- active cooperation with the co-chair the civilized and legal solution to current interviews on several occasions, this has continuous threats at the highest level cide with those of the United States in a countries – the USA, Russia and . ethno-political conflicts. not been done at the expense of our rela- were transformed into real actions, when “There is always variety of spheres: the establishment and I regret to say that so far we have not tions with the West. civilian objects – kindergartens, schools, enforcement of regional security and sta- achieved tangible results because of the 2015 marks the 100th anniversary of the This is expressed through our active ef- hospitals, as well as the peaceful popu- a search, a special bility and, within this context, the peace- maximalist and often provocative stance Armenian genocide. What would you forts to consistently advance our relations lation – were under fire. Where I see a ful settlement of the Nagorno-Karabakh of Azerbaijan at odds with both the spirit like the US public to understand about with separate European countries and misunderstanding by the international spirit that goes conflict; the democratization of our coun- of the entire process and our joint efforts the event? the EU as a whole, as well as with the community is in the equality accorded to try; the liberalization of the economy and with the international community. Even today, mankind still witnesses simi- west in general; these relations form some both the aggressor and the victim of ag- the rule of law. From this perspective lar horrific crimes. History will continue of the essential components of our coun- gression. For more than 20 years, Armenia and looks beyond we attach great importance to the open What role can the Armenian-American di- to repeat itself until the crimes of the past try’s prosperity. The Armenia-EU joint dec- has warned about the military intentions government partnership (OGP) initiative aspora play in the country’s development? have been unambiguously evaluated. laration from November 2013 reaffirmed of Azerbaijan, without proper response. the material” in cooperation with the US that Armenia In the 21st century, public diplomacy Today, as a nation that survived genocide, our mutual commitment to develop and This is either a misunderstanding or in- is actively engaged in. plays a major role in the development we feel obliged to a certain extent, since strengthen comprehensive cooperation. difference. We have constantly presented At the same time, within the framework of of bilateral relations. In this regard, Ar- we carry a unique mission to ensure no We have agreed upon and applied visa the objective situation of our region to the the “Millennium Challenges,” the United menians worldwide, many of whom are further recurrence of genocides. To this facilitation mechanisms that are among international community; the rest is up to States has made a substantial contribu- descendants of survivors of the Arme- end, we seek the recognition and con- the tangible outcomes of our partnership. the international community. tion to the regional development of our nian genocide, are an inalienable and demnation of past crimes. We are committed to continuing our ef- country through the implementation of important component of Armenian public We believe that the whole of mankind forts toward seeking effective cooperation What gives you confidence about your a number of regional infrastructure proj- diplomacy. A vivid example thereof is the should be consistent in the recognition, mechanisms with the EU. country’s future? ects. We attach great importance to the Armenian community in the US. Indeed, condemnation and exclusion of denial- Thanks to EU and Western assistance, our Independence itself was a significant activity of the US-Armenia Task Force, to the current level of Armenian-American ism of this crime of crimes. This is our country has carried out important reforms event in the history of our nation. Today, the growing American presence in the relations is also conditioned by this fac- message to the international community, in the spheres of democracy, human rights, Armenians all over the world are provid- Armenian economy and to the close co- tor. At the same time, this community including the government and society rule of law and liberalization of the econ- ed with an opportunity to build an inde- operation with the USA in the energy contributes to the development and pros- of the United States, on the eve of the omy. We clearly realize that these reforms pendent Armenia on part of its historical Q&A the airport business, which for the past from an investor’s point of view, has sector, for example the support we have perity of both the USA and Armenia. The centenary of the Armenian genocide. The are not aimed at integration in this or that homeland – a centuries-old dream for Eduardo Eurnekian 15 years has been the core flagship yet to be tested. There is no doubt that received from the US to extend the life Armenian-American community regularly Armenian genocide is an indisputable our people. Today, Armenia is a country CEO and President of Corporacion business of our holding group, Corpo- major investments are due to come of the operating reactor of Metsamor makes its voice heard in issues of pan- fact, documented by the international developing according to the rules of the America racion America. from the former Soviet sector and they nuclear power plant. This is also impor- Armenian importance, such as the peace- community when it provided refuge to “We attach great civilized world through effective state To begin with, we laid out and started will be geared toward the infrastruc- tant from the perspective of balanced ful settlement of the Nagorno-Karabakh the hundreds of thousands of Armenians building, an open society and a competi- Born in 1932 to Armenian immigrants operating Zvartnots, Yerevan’s new ture sector. regional development. conflict, the recognition and condemna- that fled the massacres carried out by the importance to the tive economy. in Argentina, Eduardo Eurnekian, airport, as the international gate to We firmly believe that the trade and in- tion of the Armenian genocide and the Ottoman Empire. Mindful of this, I am really confident the CEO and president of Corpo- landlocked Armenia, but also as an As a member of the Armenian dias- growing American racion America, began his career important hub connecting the Cau- pora who has come to Armenia to vestment framework agreement (TIFA) lifting of blockades. Today, even educated circles of Turkish about the future of my country and this presence in the Arme- in textiles, before diversifying into casian region with Europe and the do business, what challenges do signed between Armenia and the United society have reconciled with their own confidence first of all stems from our multimedia and communications, Middle East. you face? States will boost economic ties. Another What support do you expect from the past, opposing the official denialist posi- nian economy and to wonderful young generation. A new gen- establishing Argentina’s first cable We later invested in 2,000 hectares The major challenge is succeeding in essential achievement is the launch of the US in the settlement of the Nagorno- tion of their state. the close cooperation eration of Armenian citizens has grown television company and founding of land which is now Armavir, Tierras the development of a multi-faceted visa liberalization process. Karabakh conflict? As human rights and fundamental free- which is even more patriotic than my popular television networks, such de Armenia, the vineyards and win- culture in which both the diaspora’s The United States is our largest donor As an OSCE Minsk Group co-chair, the doms have become of absolute value in the energy sector” generation was and with more educa- as America TV. ery in the area, where wine has been and the homeland’s visions can merge. state. Since Armenia’s independence, the US has exerted consistent efforts toward for the international community, subor- tional opportunities. Along with being He made it big in the early 1990s, when crafted for more than 6,200 years. We This objective will not be achieved if United States has provided about US$2 the peaceful resolution of the Nagorno- dinating the recognition of the Armenian institution. First of all, these reforms are real devotees to their country, they have he secured a 30-year concession then added the banking business, with the gap between the different visions billion of humanitarian and technical as- Karabakh conflict and the strengthening genocide to political interests contradicts carried out for the benefit of our country been brought up as world citizens. to build and operate Argentina’s Converse Bank, and started operating is not reduced. Both time and will airports, and is considered one of Haypost, the Armenian postal service. are required. sistance. Our two nations also cooper- of stability in our region. Unfortunately, the moral and legal norms of the current and our people. I am sure that our Western For the last four to five years, approxi- Latin America’s most successful, dy- ate to fight challenges to global security, the efforts made in the past 20 years by world order. The strength of the US is also partners share this view and will continue mately 100 young Armenians have gradu- namic businessmen. What made you choose to invest in What misconceptions do Americans such as terrorism and the proliferation of the international community toward the conditioned by its commitment to these their efficient support to the democratic ated every year from the world’s top ten His holding company, Corporacion Armenia’s agricultural sector? have about Armenia? weapons of mass destruction. peaceful resolution of the conflict are be- absolute values. reforms in our country. universities. We will therefore pass on our America, controls interests in air- You need to be successful in what you Armenian Americans tend to imagine ing undermined, endangering the peace The US legislative body has adopted At the same time I cannot but mention modern and secure country to safe hands ports, construction, energy, mining, are doing. There is no better appeal that Armenia is America. The day that What issues does Armenia face today? and stability in the region due to the con- eight decisions recognizing the Arme- that in the 21st century, when intense and I am confident that they will make it nanotechnology and microchip pro- for investment than success. We have they can overcome that misconcep- Armenia has been illegally blockaded by stant provocations and ceasefire viola- nian genocide. It has been officially rec- globalization is in progress, when the much more prosperous. duction and wines. been producing excellent wines in our tion, they will look at Armenia in a Presently, the savvy entrepreneur vineyards in Patagonia, in southern different way and see it for what it has a portfolio of 53 airports, spread Argentina. We are in the process of really is. Q&A across numerous continents and doing the same in Armenia, but with generating annual revenues of more the added personal value of produc- What convinced you to come to than US$1.2 billion. Eurnekian has ing wine in the land of my ancestors, Armenia? Karen Chshmaritian nities for development? from growth toward a development well-established institutions and mostly based on exportable an estimated net worth of US$1.9 bil- where wine has been produced for In order to understand the precise feel- Minister of Economy The 2008-2009 global financial agenda with the aim of boosting developed infrastructure. sectors. If we speak the language lion, making him the second-richest more than 6,000 years. ings behind the decision to invest in a crises definitely had a significant resilience to external shocks. In this In this sense, the need to further of statistics in GDP, agriculture person in Argentina. I am certain that good, high-quality country, particularly one that is in a His focus is now on his ancestral wines, like the ones we are produc- state of conflict, you have to take into The Armenian minister of the impact on Armenia’s economy. regard, it is obvious that significant develop and accelerate reforms to and industry have the prevailing homeland, Armenia, where he op- ing in Armenia’s Armavir, will attract account that there is always a search, economy, Karen Chshmaritian, After independence, Armenia went investment flows into the real sec- improve the business environment shares. Moreover, more rapid erates the main airport, postal ser- further investments in the agricul- a special spirit that goes and looks be- tor of the economy are needed. is strongly emphasized, which development rates are recorded discusses his country’s economic through a serious path of reforms, vice, a bank and vineyards, and he ture sector. yond the material. prospects following the 2008 global the results of which emerged to We consider investments not only also guarantees having a competi- in the technology-based and is convinced by its potential. His All the regions in the world that are credit crunch, while underlining the be a solid foundation for further as financial resources, but also as tive economy. skilled-labor requiring industries. investments into its wine and agri- What sectors of the Armenian econ- experiencing conflict share the same numerous opportunities in sectors sustainable development. In the efficient mechanisms of transfer- cultural sector already show promis- omy are most in need of investment? basic ailment: unemployment. I cannot such as technology, communica- post-crisis period, our economic ring advanced technology and Growth sectors in Armenia include ing growth. Armenia is going through a transition. do much in many of those regions and tions and infrastructure available to recovery has created room for more knowledge. In order to expand the agriculture, infrastructure and During a great part of the last century, countries, because I do not know them. investors in his country optimistic growth expectations. ability of the economy to absorb communications. In which sectors What operations do you currently Armenia was under the influence of the However, I do know, and I am involved Similar to the rest of the world, such investments, it is becoming are there opportunities for foreign “Significant investment have in Armenia? Soviet Union and it is now joining the with, Armenia. And that is what we What is your government’s Armenia has reviewed its priorities, more important to create a favor- investment? flows into the real We started investing in Armenia 15 Customs Union of Russia, Kazakhstan have been aiming at and doing: creat- approach to creating new opportu- shifting the development vector able business environment with Currently, economic growth is economy are needed” years ago. We disembarked through and . This new partnership, ing new jobs. 2 - ARMENIA 3 - ARMENIA As distributed with SPOTLIGHT ON AGRICULTURE

Yerevan : The Armenian Spirit Armenia: Investing The Yerevan Brandy Company (YBC) produces 4.5 million liters (4.75 million quarts) of brandy, Armenia’s most famous beverage, each year, in Agriculture exporting its world-renowned product, known as ArArAt, to 30 countries around the globe. international film festival – the Drawing on brandy manufacturing traditions Golden Apricot, held annually that date back to 1887, the company drives since 2004 – is named. Armenian grape cultivation, cooperating with Armenia additionally produces thousands of grape growers and providing peaches, pomegranates and wal- fertilizers and the know-how to ensure the nuts, meat products and cheese, grapes’ quality. figs and olives, while its cognac is Its brandy is iconic, aged as it is between six and 20 internationally renowned. Its fish- years, and owes its exceptional taste to the unique eries also post impressive figures. microclimate of the Ararat valley, the endemic grape varieties and the gentle sun of Armenia. The grape vinifi- “Fisheries are doing extremely cation, fermentation, distillation and aging take place at two different branch sites, with the blending and bottling carried out at the company’s Yerevan headquarters. Sergo Karapetyan Today, the company makes a substantial impact on Minister of Agriculture Armenia’s economy as one of the top taxpayers and its biggest grape buyer, while on the international front, “We have developed YBC joined the Pernod Ricard Group – producing: Chivas, programs that have Absolut, Martell – in 1999, highlighting the value of the Armenian spirit around the world. allowed the agricultural sector to progress” YBC’s are exported to the US, where they have a growing well here. We produce 12,000 tons customer base of fish each year and export 68 of it,” said Karapetyan. “By 2020, we expect to have 20,000 tons of BRANDING ARMENIA fish per year, along with process- ing facilities for canning and fish Fabled Fruit fillets.” production bene- fits from the country’s 6,200-year- Policymakers in Armenia seek to link velopment potential, is not only frastructure at the same time. old winemaking traditions. With rural development to the country’s a branch of our economy,” said “We have developed programs that 15 large processing factories and agriculture sector, which is grow- Karen Chshmaritian, minister of have allowed the agricultural sector 40 factories overall, the appealing ing impressively, driving exports. economy. “It is instead considered to progress,” said Sergo Karapety- sector attracts large investments: Ambition and opportunity permeate in the context of rural develop- an, Armenia’s minister of agricul- Tierras de Armenia invested over the sector, and continuing growth ment, with a view to increasing ture. “After consultations with the US$40 million in Armenian vine- is forecast agricultural productivity and, in president and prime minister, we yards, while ArmAs made invest- parallel, creating comfortable liv- reached the conclusion that agri- ments in excess of US$15million. Armenia’s agriculture sector rep- ing conditions for our citizens.” culture should be one of the areas Meanwhile, policymakers are seek- resents a strong investment op- Officials expect the sector’s suc- of priority for the country.” ing robust development across The apricot, or to give it its scientific name, prunus portunity, holding the prevailing cesses to blossom over the com- Agriculture is based in Armenia’s multiple agricultural platforms, armeniaca – the Armenian plum – has been an Arme- share of the country’s exports ing years and have consistently valleys and on its mountainsides. imbuing the sector with both pur- nian national symbol since the Middle Ages, when while expanding rapidly. The sec- implemented projects to devel- Its fertile soil allows for the culti- pose and opportunity. knights and kings would go to battle wearing apricot- tor grew by seven percent last op irrigation systems – meaning vation of grains such as wheat and “We are also developing organic colored ornaments. year, with Yerevan linking agricul- farmers can produce crops with a barley, while improved irrigation gardening in the country, to meet As well as being one of the colors used on the Armenian ture to the country’s development greater cash yield – improve land has led to the increased produc- market demand,” said Karapetyan. tricolor, the apricot is used copiously in Armenian cui- more generally. quality and control pests, while tion of fruits, notably delicious “We want to make all of our pro- sine, which uses the fruit in jellies, jams and compotes, “Agriculture, despite its vast de- bolstering the country’s rural in- apricots, after which the country’s duction organic.” stewed with lamb, steeped in pilafs and stuffed into meats. The fruit also gives its name to the annual “Golden Apricot” Yerevan International Film Festival, which AVIATION made its debut in June 2004 and showcases Armenian contributions to cinema as well as featuring a multitude of international films that collectively depict the full Opening Armenia’s Skies richness of the human experience. In 2013, in a move set to boost all obstacles for local and The government says it Accounting every year for well over half of the country’s competition in Armenia’s civil foreign air carriers who wish expects this “Open Skies” The Armenian fruit and vegetable exports, in 2013, Armenia’s apricot aviation sector, the country’s to operate in the market. So policy to speed up economic government exports hit a record high, with 23,240 tons of the fruit government liberalized the air far, numerous international growth by up to 1-2 percent, is working to going to foreign markets, an 84 percent jump from 2012. transportation market. Aiming airlines such as Spain’s and the results so far look build links to increase the number of Vueling Airlines, UAE’s Etihad promising: in the year since airline passengers, reducing Airways and Russia’s Ak Bars the policy was put in place, between air The apricot is Armenia’s most widely air travel costs and lifting Aero have already taken passenger numbers have risen carriers and exported agricultural product. service levels, it has removed advantage of the initiative. by over 25 percent. travel agencies

TOURISM The Next Big Thing: Tourism

With its mountain ranges and pristine mountain getaways. tential for development in Armenia. It landscapes, Armenia is asserting Armenia is an ideal vacation spot, with is based on the country’s rich cultural itself as a tourist destination. The the Caucasus and its ancient secrets heritage, unique and diverse nature, government is actively seeking to emerging more generally as the next unique customs and traditions,” said develop this sector, and opportu- big thing in tourism. Travellers quickly economy minister Karen Chshmaritian. nities for investment are many and find friends among the gracious, “Through our targeted tourism support varied – from hotels and restoration humble and refined Armenians. policy, we expect to ensure 5-10 per- projects to boutique wineries and “The tourism industry has serious po- cent annual growth in tourist visits.”

1

1. Noravank Monastery This 13th-century Armenian monas- tery is located 76 miles from Yerevan 2. Overlooking the capital Yerevan from a hilltop, the statue symbolizes peace through strength 3. Armenian Genocide Memorial Located at the hill, Yerevan, its 12 slabs represent the 12 lost provinces in present-day Turkey 3 4. In Armenian mythology, Mount Ararat is the home of the Gods 5. The Cascade Decorated by statues, this giant stairway links downtown Yerevan with the monument neighborhood

2 4 All the photos in this report were provided by the Goverment of Armenia, Cordon Press, d-maps.com and Serouj Ourishian

5

DOING BUSINESS

Q&A has a very talented and qualified low-volume production in Arme- workforce. This is the reason why nia. A very interesting sector for Robert Harutyunyan we experience over 20 percent investment is agriculture. There is Director General of the Armenian Development Agency growth each year in the ICT sector. incredible, untapped potential in It is because of our people and their this area. At the moment, only 30 What brings investors to Armenia? knowledge in this area. percent of Armenia’s land is being One of the first things investors used for agriculture. There are look at before investing in a coun- Where do you see opportunities opportunities for greenhouses, fish try is the talent of their workforce. for growth? production, food processing and We are happy to say that Armenia We want to target high-value-added, wine production.

4 - ARMENIA