Comments on: Sold to the Highest Russian Bidder http://oneworld.blogsome.com/2007/09/16/sold-to-the-highestrussian-bidder/ Journalism and Photography from Armenia and the Surrounding Region Thu, 24 Jul 2008 14:14:36 +0000 http://wordpress.org/?v=1.5.1-alpha by: Bruce Tasker http://oneworld.blogsome.com/2007/09/16/sold-to-the-highestrussian-bidder/#comment-4654 Thu, 20 Sep 2007 05:49:55 +0100 http://oneworld.blogsome.com/2007/09/16/sold-to-the-highestrussian-bidder/#comment-4654 Armenia's booming economy is built on Foreign Direct Investment (FDI), with the value of the Dram kept artificially high to overfill the pockets of those monopolizing imports, including in the telecoms sector, and with little concern for local manufacture and export. Of course, construction is another booming sector, but what is behind that seemingly bumbling enterprise will soon become apparent. The sale of the telecoms companies to 'Russian' buyers is simply the next stage in this booming economic bubble. Has anybody asked if there is actually any collateral behind these latest maneuvers, or are they yet more worthless paper transactions? At the end of the day, the companies will stay in the hands of the very same Armenian owners (a number of the above messages allude very nicely to who they are), seemingly with re-arranged Russian front companies. The FDI bubble will very soon be bursting - there are no more worthwhile opportunities to maintain the FDI impetus, which demands larger deals every year. The multi-million dollar question is: Where next after these very impressive deals? Maybe there is a plan? Armenia’s booming economy is built on Foreign Direct Investment (FDI), with the value of the Dram kept artificially high to overfill the pockets of those monopolizing imports, including in the telecoms sector, and with little concern for local manufacture and export. Of course, construction is another booming sector, but what is behind that seemingly bumbling enterprise will soon become apparent.

The sale of the telecoms companies to ‘Russian’ buyers is simply the next stage in this booming economic bubble. Has anybody asked if there is actually any collateral behind these latest maneuvers, or are they yet more worthless paper transactions? At the end of the day, the companies will stay in the hands of the very same Armenian owners (a number of the above messages allude very nicely to who they are), seemingly with re-arranged Russian front companies.

The FDI bubble will very soon be bursting - there are no more worthwhile opportunities to maintain the FDI impetus, which demands larger deals every year.

The multi-million dollar question is: Where next after these very impressive deals?

Maybe there is a plan?

]]> by: Onnik http://oneworld.blogsome.com/2007/09/16/sold-to-the-highestrussian-bidder/#comment-4643 Mon, 17 Sep 2007 21:38:53 +0100 http://oneworld.blogsome.com/2007/09/16/sold-to-the-highestrussian-bidder/#comment-4643 From today's <a href="http://www.armenialiberty.org/press/press/en/2007/09/8718AC47-3D01-4E2A-AC47-4A04B0343AD3.ASP" rel="nofollow">RFE/RL Press Review</a>: <blockquote>“In effect, yet another sector of the Armenian economy, telecommunications, has fallen under Russian control,” writes “168 Zham,” commenting on the sale of Armenia’s largest mobile phone operator, VivaCell, to Russia’s MTS. “As is known, the ArmenTel company already belongs to another Russian firm, Vimpelcom. To recap, the Russians also own Armenia’s energy facilities, the nuclear plant, the newly built Iran-Armenia pipeline, many industrial enterprises, a number of large Armenian banks and other strategic facilities.” The only thing they don’t yet own, it says, is the Armenian government.</blockquote> There's also a <a href="http://ditord.wordpress.com/2007/09/17/vivacell-sold-to-russians-after-all/#respond" rel="nofollow">related post</a> over at The Armenian Observer. From today’s RFE/RL Press Review:

“In effect, yet another sector of the Armenian economy, telecommunications, has fallen under Russian control,” writes “168 Zham,” commenting on the sale of Armenia’s largest mobile phone operator, VivaCell, to Russia’s MTS. “As is known, the ArmenTel company already belongs to another Russian firm, Vimpelcom. To recap, the Russians also own Armenia’s energy facilities, the nuclear plant, the newly built Iran-Armenia pipeline, many industrial enterprises, a number of large Armenian banks and other strategic facilities.” The only thing they don’t yet own, it says, is the Armenian government.

There’s also a related post over at The Armenian Observer.

]]> by: nazarian http://oneworld.blogsome.com/2007/09/16/sold-to-the-highestrussian-bidder/#comment-4641 Mon, 17 Sep 2007 06:16:46 +0100 http://oneworld.blogsome.com/2007/09/16/sold-to-the-highestrussian-bidder/#comment-4641 The Russians treat Armenia as if it was their underdeveloped province. I wonder how much of the Armenian GDP they own. The Russians treat Armenia as if it was their underdeveloped province. I wonder how much of the Armenian GDP they own.

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