Court places Tsarukyan's cement company under state management

By Gevorg Tosunyan

An Armenian anti-corruption court has ordered AraratCement, one of the country's largest cement producers, to be placed under state management as part of ongoing illicit asset forfeiture proceedings against jailed businessman and opposition politician Gagik Tsarukyan, the Prosecutor General's Office said on Thursday.

The decision comes days after Tsarukyan was arrested on fraud and money laundering charges, further escalating legal pressure on the businessman following his return to frontline politics ahead of Armenia's June 7 parliamentary election.

According to the Prosecutor General's Office, prosecutors asked the Anti-Corruption Court on July 13 to impose an interim measure transferring the management and safekeeping of AraratCement's shares to the state while a broader asset forfeiture lawsuit is being considered. 

The underlying civil case predates Tsarukyan's arrest. Prosecutors filed the illicit asset forfeiture lawsuit in October 2023, seeking the confiscation of AraratCement's shares along with a broad portfolio of assets allegedly acquired through illicit means. The claim covers 75 real estate properties and the market value of 10 additional properties, 42 vehicles, stakes in 38 companies — including Multi Group Concern, Multi Autotrans and Onira Club — as well as 105.9 billion drams (about $286 million) in allegedly illicit assets, including cash, expenditures, loans and assigned claims.

While the forfeiture proceedings have been underway for nearly three years, the latest court decision effectively places one of Tsarukyan's flagship businesses under state administration pending the outcome of the case.

AraratCement suspended operations on July 6 after law enforcement authorities conducted searches at companies linked to Tsarukyan and his family members.

Later that day, Tsarukyan was arrested and subsequently ordered into two months of pre-trial detention. Armenia's Investigative Committee has charged him with organizing fraud and money laundering on an especially large scale. His lawyers have dismissed the accusations as politically motivated.

Tsarukyan re-entered politics ahead of Armenia's June 7 parliamentary election, leading the Prosperous Armenia party. The party narrowly missed the four percent threshold required to enter parliament after the Central Election Commission annulled the results from three polling stations, reducing its final vote share to 3.95%. Prosperous Armenia rejected the outcome, alleging widespread electoral violations.

Second high-profile state intervention

The move also marks the second time under Prime Minister Nikol Pashinyan's government that the state has assumed control over a major privately owned strategic asset amid legal proceedings involving a prominent opposition figure. In July 2025, parliament approved legislation enabling the government to take temporary control of Electric Networks of Armenia (ENA), the country's sole electricity distribution company, after its owner, billionaire Samvel Karapetyan, publicly criticized the government's campaign against the Armenian Apostolic Church. Karapetyan was arrested days later on charges of publicly calling for the overthrow of the constitutional order, which he denies.

The Prosecutor General's Office has not linked the latest court ruling to the criminal case against Tsarukyan. However, the decision to place AraratCement under state management follows within days of his arrest and the searches targeting his business empire, making it the latest in a series of high-profile state interventions involving assets owned by leading opposition figures.