Armenia: Fugitive Businessman Comes in From the Cold

One of Armenia's most prominent entrepreneurs, who also happens to be a major supporter of opposition leader Levon Ter-Petrosian, is now in custody after spending more than a year in hiding. The fugitive businessman, Khachatur Sukiasian, has expressed a desire to clear his name of charges that he helped instigate political violence in March 2008.

Sukiasian, who is also a member of parliament, surrendered to authorities on September 2. He had been wanted by police since March 4, 2008, when authorities issued a warrant for his arrest in connection with his alleged involvement in post-presidential election political violence. [For background see Eurasia Insight archive]. At least 10 people died during the street fighting in early March 2008. [For background see the Eurasia Insight archive].

It is expected that Sukiasian will now face trial on charges that he organized "mass disorder." If convicted, he could face up to 10 years in prison. Sukiasian is not covered under an amnesty adopted by the Armenian parliament in June. That measure gave opposition suspects until July 31 to surrender.

In a statement issued in early July, Sukiasian insisted that he had "committed no crime." He went on to say that he would vigorously contest the charges against him. "I'm ready to consistently fight for restoration of the rights and freedoms of myself and my people and I believe justice will finally triumph," the statement said.

Until 2007, when he became active in opposition political causes, Sukiasian was considered one of the most influential entrepreneurs in Armenia. He led a conglomerate known as the SIL group, which encompassed a wide variety of businesses, including a pizza parlor chain, a tobacco distributorship, an insurance agency and a mineral water bottling plant. Sukiasian built his commercial empire from scratch during the early years of Armenia's post-Soviet existence, a time when Ter-Petrosian was the country's president.

Starting in the fall of 2007, Sukiasian's business empire became embroiled in a variety of tax disputes with the government. "They [authorities] have been trying to paralyze the work of the whole [SIL] concern," said Anna Mkrtchyan, a spokeswoman for the conglomerate. "And it's continuing right up to today."

Attention in the continuing tax dispute centers on the Bjni mineral water plant. After being subjected to numerous audits and environmental inspections, the plant was declared bankrupt in late 2008 and auctioned by the government after SIL could not, or would not, pay roughly $14 million in fines. The government's actions prompted SIL to sue the state in the European Court of Human Rights. Ara Zohrabyan, an attorney representing the Bjni plant, said SIL was seeking roughly $300 million in damages, adding that the case could take years to resolve.

Stepan Safaryan, a prominent figure in the opposition Heritage Party described the criminal case against Sukiasian as "political punishment." The cases against him and his business empire are designed to have a chilling effect on other entrepreneurs who might want to support opposition parties.

"He is not an accidental target," Safaryan said, referring to Sukiasian.