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Kristine Aghalaryan

By Owning Shares in an Armenian Bank, Azerbaijan Has Interests in the Country's Mining Sector

It appears that there’s  an Azerbaijani connection to the banking sector in Armenia.

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) owns a 3% share in VTB Bank JSC, which in turn owns 100% of VTB Bank (Armenia) CJSC.

VTB Bank (Armenia) was founded in March 2004 when Russia’s Foreign Trade Bank – Vneshtorgbank (formerly VTB Bank) acquired 70%+1 of the shares of HayKhnayBank. In 2006, the bank was rebranded as VTB Bank (Armenia). In 2007, VTB Bank JSC acquired the remaining shares (30% minus one).

So who are the other shareholders of VTB Bank JSC? According to the published list on the bank’s website, the largest shareholder is Russia (61%), followed by Norges Bank (the Central Bank of Norway) with 4.3% and SOFAZ (2.9%)

The SOFAZ was established by Decree № 240 of Azerbaijani President Heydar Aliyev on December 29, 1999 and has reserves of over US $30 billion.

VTB Bank has extended loans to Teghout CJSC, the company which operates the Teghout mine in Armenia. According to a 2011 financial loan agreement, 100% of the shares of Teghout CJSC were transferred to Teghout Investment Limited, registered in Cyprus. The Vallex Group subsidiary owns 50.05% of Teghout Investment Limited and the remainder is owned by VTB Group.

As a result, Azerbaijan, via VTB Bank, is financing the mining operation at Teghout.

Comments (6)

Լիլիթ
փաստորեն ադրբեջանը կարա աշխարհի բոլոր բանկերի մեկական բաժնետոմս գնի, ու վսյո, մենք էլ չենք կարա վարկ վերցնենք ոչ մի տեղից, տենց? ա դուրս գալիս
armdkny
Kristine, Azerbaijan is not financing Teghut. 39% of VTB stock is publicly traded. SOFAZ owns 3% of VTB's outstanding shares. You and I can buy these shares on the open market. Does that mean we are financing Teghut? No it does not. As a shareholder in any publicly traded company, the holder receives dividends and any capital gains once they sell there shares. If you owned British Petroleum shares, does it mean that you are financing Azeri oil production? No, it does not. This is how the capital markets work and the world we live in.
Vrej
@Commentator #4 - What a bunch of mumbo-jumbo. Have you ever heard of the concept of responsible corporate investment? Of course not. The simple answer to the question you posed is YES. If one invests in BP then then you are DIRECTLY financing Azeri Oil Production. No matter the % of the total shares you have purchased. The investor has a choice! Have you ever heard about municipalities disinvesting their shares in pension funds that once were invested in companies in South Africa and thus abetting the apartheid regime? Probably not.
Vrej
More mumbo-jumbo in an attempt to circumvent responsible investing. Sounds like an investment banker with dirty laundry to hide. Ask yourself this - would someone concerned about the environment actually buy shares in BP or any other similar corporation? You sound somewhat delusional. Wouldn't that person divest any shares they had in Exxon Mobil after the 1989 Exxon Valdez oil spill in Alaska?
Karen
Հայաստանյան ՎՏԲ-ը մինչև 2007թ. էր 30% ադրբեջանական.. իսկ ինչ որ գրել եք, եփած հավի ծիծաղը կգա:
Վիկտոր Սիմոնյան
անիմաստ բան է, անտրամաբանական... վարկը տվել են ԱՄՆ դոլարով, ուրեմն՝ ամերիկան էլ է խառը, վտբ-ի պաշտոնյաների ծառայողական մեքենաները նիսաններ ու մերսեդեսներ են, ուրեմն՝ գերմանիայի ու ճապոնիայի մատն էլ է խառը էս գործում... հետո՞ սա դառավ հոդվա՞ծ

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