
By John Helmer, Moscow
Samvel Karapetyan (lead image) had a fortune last week of $4.6 billion. This, according to profiles in Forbes Russia, he made all by himself from Russian property development. The dollar number puts Karapetyan at No. 26 on the ladder of fortunes in Russia, where he lives and works; number 1 in Armenia, Karapetyan’s motherland and the location of his family’s alliance with the President of Armenia, Serzh Sargsyan, and his ruling Republican Party.
Karapetyan’s importance and visibility have recently leaped because of a deal in which Inter RAO UES, the large Russian power utility, has sold its 100% stake in the Electricity Networks of Armenia (ENA). The sale and purchase are reported to have taken place at a fraction of ENA’s asset value which Inter RAO reported on December 31, 2014, following a year in which ENA’s earnings tripled. Karapetyan appears to be the buyer, but through a spokesman at his Tashir Group in Moscow, he is refusing to say so. Inter RAO – the fifth most transparent power company in Russia in 2009, according to the company website — is also not confirming the sale. “We are not commenting,” the company spokesman said this week, “on the Armenia subject.”
The deal is exceptionally sensitive in Armenia, because ENA’s attempt between June and August to raise its electricity tariffs triggered countrywide protests. These have obliged Sargsyan and his ministers to back down, announcing last week that the 16% hike is being abandoned. At the same time, Gazprom has agreed to lower its gas supply price for Armenia’s power plants. Other financial sweeteners following from the Kremlin have included a $200 million military loan. According to Armenian commentaries and those of US and European political analysts, the ENA transaction, the protests, and the Russian reaction are the latest moves in the geopolitical contest between Russia, which controls most of the country’s energy sources through Gazprom, and the US, which is encouraging Armenia to reduce its dependence on Moscow, and taking over the big Vorotan hydroelectric combine through the World Bank and a New York-based company called Contour Global. What then is Inter RAO selling, and what is Karapetyan buying, if neither of them will say?
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by Editor - Monday, September 28th, 2015
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