Armenian tycoon pays debt after CivilNet inquiry

By Gevorg Tosunyan

Armenian tycoon Gagik Tsarukyan’s company paid part of its overdue obligations to Yerevan’s municipal budget on the same day that CivilNet formally asked city authorities for clarification about the debt, according to official records.

The company, Multi Wellness Center, transferred about $18,000 (6.8 million drams) on January 16, the day CivilNet sent a written inquiry to the Yerevan municipality regarding the firm’s outstanding payments. Tsarukyan is one of Armenia’s wealthiest individuals and the leader of the Prosperous Armenia party.

CivilNet has previously reported that the company received construction rights in 2016 for a plot of more than 12,000 square meters in the Yerevan Circular Park, a centrally located public green zone. The project, promoted as a private investment, replaced a section of parkland with a large-scale complex of concrete, steel and glass, drawing public criticism over the loss of green space and the privatization of a protected urban area. 

By August 2025, the company’s accumulated obligations to the community had reached nearly $80,000. Municipal officials said the company had been repeatedly notified of its debts and had made periodic payments, though larger transfers have often coincided with periods of heightened public scrutiny.

As of Jan. 29, the company still owed about $44,000 to the city budget, most of it penalties rather than principal. The remaining principal debt stood at roughly $6,000.

The scale of the arrears contrasts sharply with Tsarukyan’s declared wealth. According to his 2024 annual asset declaration, his yearly income exceeded $31 million, largely from interest on loans. He also reported cash holdings of roughly $9.5 million, an amount analysts say would be sufficient to cover similar municipal debts hundreds of times over.

Yerevan Mayor Tigran Avinyan has said the city will pursue tougher measures, including bankruptcy proceedings, against major debtors who fail to settle obligations or propose investment plans, stressing that enforcement would apply regardless of the company or individual involved.