Tsarukyan rejects allegations as authorities move to detain him

Gagik Tsarukyan was detained Monday evening after Armenian law enforcement agencies carried out more than 70 searches at various businesses linked to his extensive business holdings. The leader of the Prosperous Armenia Party rejected the accusations against him on Tuesday, calling the case “fabricated” and “false.”

Speaking outside the Investigative Committee of Armenia before being taken to court, Tsarukyan dismissed the charges, saying: “It is fabricated, false and a balloon… Former ambassadors were present and saw that it was fabricated; there is nothing there,” he said. 

At press time, a court hearing on prosecutors’ request to detain Tsarukyan was still ongoing at the Avan and Nor Nork Court of General Jurisdiction.

The Investigative Committee said Tsarukyan is accused of organizing large-scale fraud and money laundering. According to investigators, between 2022 and 2024, Tsarukyan and others allegedly established Armenian-Iranian business entities with the stated goal of developing trade and logistics links between the two countries.

Authorities allege that members of the group used this cover to acquire vehicles, machinery, fuel and other goods from Iranian companies by fraudulent means. The Investigative Committee said the alleged losses amount to approximately $21 million. 

Tsarukyan’s lawyer, Yerem Sargsyan, rejected the accusations and argued that the case has political motivations. He said the dispute concerns an Armenian-Iranian commercial project in which Tsarukyan and his affiliates should be considered victims rather than defendants. 

According to Sargsyan, Iranian business partners committed abuses, and materials submitted by Iranian citizens to Armenian law enforcement were later used as the basis for criminal proceedings against Tsarukyan.

“The organization with his participation should have been recognized as the victim, but instead they decided to make Gagik Tsarukyan the accused,” Sargsyan said.

Searches target Tsarukyan business empire

The investigation escalated Monday morning, when law enforcement officers searched Tsarukyan’s residence and at least ten of his companies, according to Prosperous Armenia spokesperson Iveta Tonoyan. 

These include the Ararat Cement plant, the Yerevan Brandy Company, and the Multi Wellness Sports Complex in Yerevan, where customers were asked to leave while investigative measures were carried out. 

Authorities also removed animals kept at Tsarukyan’s residence, including his signature lions, and transferred them to the Yerevan Zoo. Tsarukyan’s lawyer and Prosperous Armenia representatives said the animals had been kept in good conditions and questioned the timing of the decision. 

Case follows disputed election result

The case comes shortly after Tsarukyan’s unsuccessful attempt to return to parliament, where he served from 2003 until 2021. His Prosperous Armenia Party narrowly missed the electoral threshold, a result Tsarukyan and other opposition figures disputed, arguing that the invalidation of votes from three precincts prevented the party from securing representation in parliament. 

During the campaign, Pashinyan repeatedly criticized Tsarukyan and other leading opposition figures billionaire Samvel Karapetyan and former president Robert Kocharyan, accusing them of representing oligarchic interests and referring to them as part of a “three-headed war party.” He said his government would hold them accountable, including making statements that they would face imprisonment and be brought to their knees. 

The opposition Armenia Alliance led by Kocharyan condemned Tsarukyan’s detention, calling it “open political retaliation,” and accused the authorities of using law enforcement institutions as a political tool to pressure political opponents. The alliance also warned that what it called violations of property rights and “economic terror” could harm Armenia’s investment climate and economic security. 

The government has rejected claims that the case is politically motivated, saying the investigation concerns alleged financial crimes and is based on evidence collected by law enforcement agencies.