SME Association Expresses Concern Over Inspections of Companies Linked to Tsarukyan
16.07.2026,
14:43
The Small and Medium Enterprises (SME) Cooperation Association of Armenia issued a statement expressing concern over the actions of law enforcement and regulatory agencies against several companies linked to Gagik Tsarukyan, leader of the Prosperous Armenia Party, emphasizing the need to uphold the rule of law and prevent negative impacts on business.
YEREVAN, July 16. /ARKA/. The Small and Medium Enterprises (SME) Cooperation Association of Armenia issued a statement expressing concern over the actions of law enforcement and regulatory agencies against several companies linked to Gagik Tsarukyan, leader of the Prosperous Armenia Party, emphasizing the need to uphold the rule of law and prevent negative impacts on business.
Tsarukyan was arrested on July 7 for two months in connection with a criminal case of fraud and large-scale money laundering. Effective immediately, the operations of the Yerevan Brandy-Wine-Vodka Factory, the Multi Grand Hotel, the Multi Rest House Hotel, the Multi Wellness sports and fitness complex, and other enterprises affiliated with Tsarukyan have been suspended.
In a statement, representatives of the Governing Board of the Association of Small and Medium-Sized Enterprises (ASMEs) noted their concern about the law enforcement and regulatory measures being carried out in parallel with the criminal proceedings against the chairman of the Prosperous Armenia Party. They noted that these actions have been accompanied by restrictions on the activities of several affiliated organizations, inspections, and, in some cases, the sealing of premises and the application of other administrative measures.
The Association believes that the coincidence of these proceedings with the aforementioned criminal proceedings raises questions in itself.
At the same time, the organization emphasizes that, regardless of the legal basis and necessity of the measures taken, it is imperative that all actions by state bodies be carried out in compliance with the principles of the rule of law, political neutrality, proportionality, legal certainty, and the continuity of economic activity.
"Any intervention that could negatively impact the normal operation of existing enterprises, employees' rights to work, supply chains, or the investment climate requires the utmost caution and a balanced approach," the statement reads.
The Association also noted that it has never had or continues to have any ties or collaborations with any political party or its leadership. The organization positions itself as a non-partisan structure whose activities are aimed exclusively at protecting the interests of small and medium-sized businesses, improving the business environment in Armenia, and strengthening the principles of the rule of law.
The authors of the statement note that an independent institution for the protection of business interests (a business ombudsman) has not yet been established in Armenia, and the Armenian Ombudsman, in his statement of July 8, only addressed the legality of the use of physical force and special means during detention.
"We, as one of the associations representing business interests in Armenia, consider it important to publicly speak out in defense of the business community and once again call on representatives of all government bodies involved in these processes to ensure that every action is not only legal but also transparent, justified, and inspires confidence in the public, including the business community," the statement notes.
In conclusion, the Association expressed hope that the statement will facilitate constructive dialogue between the state and the private sector and provide additional incentives for adherence to the principles of the rule of law, fair competition, investment protection, and sustainable economic development.
The statement was signed by Akop Avagyan, Chairman of the Board of the SME Cooperation Association.
Tsarukyan was arrested on July 7 for two months in connection with a criminal case of fraud and large-scale money laundering. Effective immediately, the operations of the Yerevan Brandy-Wine-Vodka Factory, the Multi Grand Hotel, the Multi Rest House Hotel, the Multi Wellness sports and fitness complex, and other enterprises affiliated with Tsarukyan have been suspended.
In a statement, representatives of the Governing Board of the Association of Small and Medium-Sized Enterprises (ASMEs) noted their concern about the law enforcement and regulatory measures being carried out in parallel with the criminal proceedings against the chairman of the Prosperous Armenia Party. They noted that these actions have been accompanied by restrictions on the activities of several affiliated organizations, inspections, and, in some cases, the sealing of premises and the application of other administrative measures.
The Association believes that the coincidence of these proceedings with the aforementioned criminal proceedings raises questions in itself.
At the same time, the organization emphasizes that, regardless of the legal basis and necessity of the measures taken, it is imperative that all actions by state bodies be carried out in compliance with the principles of the rule of law, political neutrality, proportionality, legal certainty, and the continuity of economic activity.
"Any intervention that could negatively impact the normal operation of existing enterprises, employees' rights to work, supply chains, or the investment climate requires the utmost caution and a balanced approach," the statement reads.
The Association also noted that it has never had or continues to have any ties or collaborations with any political party or its leadership. The organization positions itself as a non-partisan structure whose activities are aimed exclusively at protecting the interests of small and medium-sized businesses, improving the business environment in Armenia, and strengthening the principles of the rule of law.
The authors of the statement note that an independent institution for the protection of business interests (a business ombudsman) has not yet been established in Armenia, and the Armenian Ombudsman, in his statement of July 8, only addressed the legality of the use of physical force and special means during detention.
"We, as one of the associations representing business interests in Armenia, consider it important to publicly speak out in defense of the business community and once again call on representatives of all government bodies involved in these processes to ensure that every action is not only legal but also transparent, justified, and inspires confidence in the public, including the business community," the statement notes.
In conclusion, the Association expressed hope that the statement will facilitate constructive dialogue between the state and the private sector and provide additional incentives for adherence to the principles of the rule of law, fair competition, investment protection, and sustainable economic development.
The statement was signed by Akop Avagyan, Chairman of the Board of the SME Cooperation Association.
