Could Moscow Mayor Luzhkov's Ouster Impact Yerevan Real Estate Project?
The sacking of powerful Moscow Mayor Yuri Luzhkov has put a question mark on the future of a major development project in the Armenian capital, Yerevan.
Luzhkov, who is married to Russia’s richest woman, real estate empress Yelena Baturina, promised to help build a multi-billion dollar residential and office complex in the Yerevan district of Noraghyugh. But now, without a Moscow key in his pocket and caught in a fracas with the Kremlin, Luzhkov appears to have more important matters on his mind.
Yerevan city officials have been quick to give assurances that investor interest in the real estate complex is still strong. “It is not correct to tie this project with one particular person,” spokesperson David Gevorkian told the Armenian service of RFE/RL. Cooperation between the Moscow and Yerevan city governments on the project will continue post-Luzhkov, he said.
In the past, the Armenian economy heavily relied on the construction sector, which boomed until the worldwide economic crisis slammed the country in 2008. Massive international aid, including millions of dollars given by Moscow, have since helped restrain Armenia’s slide toward a potentially disastrous economic slump.
Giorgi Lomsadze is a journalist based in Tbilisi, and author of Tamada Tales.
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