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Tirayr Muradyan

Shady Land Deals: More of Yerevan’s Victory Park Off-Limits to Public

Years of corruption and illegal land deals have restricted more areas of Yerevan’s Haghtanak (Victory) Park, where the iconic Mother Armenia statute looks down on the city below, from residents seeking a respite from the clamor of cars and pollution that plague the Armenian capital. 

Armenian law prohibits the privatization of forests and public gardens.

This, however, didn’t stop former Yerevan mayors Yervand Zakharyan and Robert Nazaryan from selling 6,900 square meters of the park in 2003, including an area where the statute sits, to a person linked to the former director of the National Security Service Karlos Petrosyan.  

In 2018, the son of Gagik Harutyunyan, former President of Armenia's Constitutional Court bought 2,000 square meters of land next to the above plot. Ruben Grigoryan, an Armenian businessman living in Russia, bought both plots last year and wants to develop them.

In 2020, park regulars were astonished to see a new fence in the park, warning them not to trespass.

Hetq found out from the Cadastre Committee that there are two properties in the area owned by Reed LLC. One of the plots is 2,000 square meters, the other is 6,900 square meters. The director of the company appealed to the Kanaker-Zeytun administrative district, stating "the plots have turned into a construction dump, which can lead to public protest”.  The district office granted the director’s request to fence off the area. Reed LLC is owned by Ruben Grigoryan.

Parkland first rented, then purchased

The story about the 6,900 square meters began in December 2002, when the Yerevan Municipality auctioned off several state-owned plots of land for leasing.

The land was put up for auction for a period of 25 years, to organize a recreation and entertainment complex. The starting price of the one-year lease was set at 1.368 million drams. The auction committee was chaired by then Yerevan Mayor Robert Nazaryan. Four people participated in the auction and made offers to pay more than the starting price.

Silva Hambardzumyan offered to pay 400% more, Artur Petrosyan - 505% more, Varazdat Petrosyan - 2% and Artur Badalyan - 5% more. The auction commission recognized Artur Petrosyan as the winner of the lease auction with five votes in favor and two abstentions. Nazaryan approved the commission’s decision. 

Months later, in the summer of 2003, Nazaryan ordered the lease to be transferred to Varazdat Petrosyan, who offered the lowest price. Nazaryan argued that Artur Petrosyan had waived his purchase right.

Land auctions in Armenia for years were a “formality”, and the person for whom the auction was organized in the first place wound up winning in the end. 

On October 10, 2003, Varazdat Petrosyan and Yerevan Mayor Yervand Zakharyan (who took office on July 1, 2003) signed a lease agreement for the plot of land for a period of 25 years, with an annual rent of 1.3 million drams. The boundaries of the plot were drawn before the lease agreement.

On October 10, 2003, by the decision of Mayor Yervand Zakharyan, Haghtanak Park and several others were listed on the Yerevan Municipality’s balance sheet.

Based on Zakharyan’s decision, Haghtanak Park’s plan was drawn in such a way to exclude the leased 6,900 square meters.

On December 24, 20023, Zakharyan issued a decision to allow the lessees to purchase the leased plots of public land. Two days later Varazdat Petrosyan purchased the plot.

Petrosyan has failed to invest any money in the land and construct a recreation/entertainment complex, as the original lease stipulated. 

Land transferred to wife of National Security Service chief

In 2011, Varazdat Petrosyan, the lessee and then owner of the park, transferred the plot of land to Irina Petrosyan, wife of former National Security Service Karlos Petrosyan. Karlos Petrosyan, who worked in law enforcement for 27 years (1999-2005) first held the position of the Minister of National Security, then the director of the service of the same name. It was during that period that a part of Haghtanak Park was privatized and then transferred to a member of his family.

Eight years later, Irina Petrosyan, sold the land to businessman Ruben Grigoryan.  

Other 2,000 square meters sold in 2018

The other plot of parkland (2,000 sq. meters) was auctioned off in 2018 by Yerevan mayor Taron Margaryan (2011-2018). 

Eduard Harutyunyan, son of the former Constitutional Court Preesident Gagik Harutyunyan, bought the plot for 40 million drams. Harutyunyan, in turn, sold the plot to another person, who in 2019 sold the 2,000 square meter plot to Reed company owner Ruben Grigoryan. 

Grigoryan, who now owns both plots, did not want to talk about the previous transactions and his development plans planned for the plots.

Grigoryan, who made his fortune in Russia, began to show an interest in investing in Armenia in 2018. Representatives of the national and local governments were in discussions with Grigoryan regarding the reconstruction of Yerevan’s Children's Railway and the redevelopment of the city’s old Kond neighborhood. The plan of Ruben Grigoryan's company to build a ski and eco complex was also approved by the government.

Author and Design: Tirayr Muradyan

Video: Saro Baghdasaryan

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