Index of "1996 Country Commercial Guides"
Index of "Economic and Business Issues"
Electronic Research Collections Index
ERC Homepage

```

U.S. Department of State
Armenia Country Commercial Guide
Office of Coordinator for Business Affairs



                     EMBASSY OF THE UNITED STATES OF AMERICA
                                YEREVAN

                                ARMENIA

                        COUNTRY COMMERCIAL GUIDE


                              JUNE 1995



                           TABLE OF CONTENTS
Chapter 1. Executive Summary....................................
Chapter 2. Economic trends and outlook..........................
      2.1. Major trends and outlook.............................
      2.2. Principal growth sectors.............................
      2.3. Government role in the economy.......................
      2.4. Infrastructure situation.............................

Chapter 3. Political environment
      3.1. Nature of bilateral relationship with 
           the United States....................................
      3.2. Major political issues affecting business............
      3.3. Brief synopsis of political system...................

Chapter 4. Marketing U.S. products and services
      4.1. Distribution and sales channels.....................
      4.2. Use of agents/distributors. Finding a partner.......
      4.3. Franchising.........................................
      4.4. Direct marketing....................................
      4.5. Joint ventures/licensing............................
      4.6. Steps to establish an office........................
      4.7. Selling factors/techniques..........................
      4.8. Advertizing and trade promotion.....................
      4.9. Pricing products....................................
      4.10. Sales service/customer support.....................
      4.11. Selling to the government..........................
      4.12. Protecting your product from ipr infringement......
      4.13. Need for a local attorney..........................

Chapter 5. Leading sectors for U.S. exports and investment.....
 
Chapter 6. Trade regulations and standards
      6.1. Trade barriers, including tariffs and import taxes..
      6.2. Customs valuation...................................
      6.3. Import licenses.....................................
      6.4. Export controls.....................................
      6.5. Import/export documentation.........................
      6.6. Temporary entry.....................................
      6.7. Labelling, marking requirements and standards.......
      6.8. Prohibited imports..................................

Chapter 7. Investment climate
      7.1. Openness to foreign investment......................
      7.2. Conversion and transfer policies....................
      7.3. Expropriation and compensation......................
      7.4. Dispute settlement..................................
      7.5. Political violence..................................
      7.6. Performance requirements/incentives.................
      7.7. Right to private ownership and establishment........
      7.8. Protection of property rights.......................
      7.9. Regulatory system: laws and procedures..............
      7.10. Bilateral investment agreements....................
      7.11. OPIC and other investment insurance programs.......
      7.12. Labor..............................................
      7.13. Foreign trade zones/free ports.....................
      7.14. Capital outflow policy.............................
      7.15. Major foreign investors............................

Chapter 8. Trade and project financing
      8.1. Brief description of banking system..................
      8.2. Foreign exchange controls affecting trading..........
      8.3. General financing availability.......................
      8.4. How to finance exports/methods of payment............
      8.5. Types of available export financing and insurance....
      8.6. Project financing available..........................
      8.7. List of banks with corresponding U.S. arrangements... 

Chapter 9. Business travel
      9.1. Business customs......................................
      9.2. Travel advisory and visas.............................
      9.3. Holidays..............................................
      9.4. Business infrastructure...............................

Appendices

      Appendix A. Country data..................................
      Appendix B. Domestic economy..............................
      Appendix C. Trade.........................................
      Appendix D. Investment statistics ........................
      Appendix E. U.S. and country contacts ....................




                             CHAPTER 1
                         EXECUTIVE SUMMARY

Modern Armenia, a small rocky country settled on the southern fringes of 
the CIS, is in the midst of a rapid and painful transition from a 
Soviet-style planned economy to a democratic society with a market 
economy.  Political reforms are under way, and the appearance of small 
private businesses have already changed the economic landscape.  Armenia 
has just started its global privatization program for major 
manufacturing and servicing industries.  Economic development, however, 
has been significantly impeded by the continuing embargoes of Armenia's 
transportation routes by two of its four neighbors - Turkey and 
Azerbaijan - and Armenia's financial, material, and military support to 
Armenians of the Azerbaijani enclave of Nagorno-Karabakh.  During the 
present transition period, Armenia remains highly dependent on 
humanitarian and technical assistance provided by the United States and 
European Union.    

At the same time, the Armenia of today, is politically the most stable 
among its neighbors and the most market oriented, with some of the most 
liberal trade legislation in the CIS.  The need for investment in its 
idle research and manufacturing industries, its delicious agri-products, 
its large pool of underemployed and highly qualified specialists, its 
inexpensive labor force, its historically entrepreneurial spirit, and 
its close ties with the United States through its Diaspora and at the 
governmental level, offer attractive prospects for U.S. businesses 
interested in investmet and partnership opportunities in such areas as 
power generation, aviation, construction, electronics, apparel, tourism, 
food-processing, industrial property acquisition, banking and other 
areas. 

The Country Commercial Guide (CCG) on Armenia is an annually updated 
document aimed at providing U.S. businesses with information on existing 
and potential trade and investment prospects in Armenia; basic business 
legislation; information in the commercial, economic, and political 
environment; as well as useful contacts in all business-related areas.

The CCG for Armenia was prepared by the Assistant Commercial Officer 
Andranik Hovhannisyan, Commercial Section, American Embassy Yerevan, 
Department of State, Washington DC 20521-7020; tel:(374-2)151-144, 524-
461; fax: (374-2)151-138. 
  
Country Commercial Guides are available on the National Trade Data Bank 
on CD-ROM or through the INTERNET. Please Contact STAT-USA at 1-800-
STAT-USA for more information.  To locate Country Commercial Guides via 
the INTERNET, please use the following World Wide Web address: www.stat-
usa.gov.  CCGs can also be ordered in hard copy or on diskette from the 
National Technical Information Service (NTIS) at 1-800-553-NTIS.


                              CHAPTER 2 
                    ECONOMIC TRENDS AND OUTLOOK

2.1. MAJOR TRENDS AND OUTLOOK

Under the old central planning system, Armenia had built up a developed 
industrial sector, supplying machine building equipment, defense 
electronics and optics, textiles, and other manufactured goods to sister 
republics in exchange for raw materials and energy resources. Armenia is 
a large food importer and its mineral deposits (copper, molybdenum, 
gold) are small. 

The economic decline, which started with the 1988 earthquake and the 
disintegration of the USSR, has been particularly severe in the past 
five years (1991-95) due to the ongoing conflict over the Armenian 
enclave of Nagorno-Karabakh in Azerbaijan. Azerbaijan and Turkey have 
shut down pipeline and railroad traffic to Armenia for its support of 
the Karabakh Armenians. This has left Armenia with only sporadic 
deliveries of natural gas through unstable Georgia, while other fuel and 
raw materials are in short supply.  In 1992-1994, most industrial 
enterprises were either shut down or operating at drastically reduced 
levels.  At the same time, the conflict over Nagorno-Karabakh has forced 
the government to militarize many of its operating machinery 
manufacturers, and thus, put additional non-productive burden on the 
weak economy.  During winter months of 1993-1995, heat was provided to 
limited areas in a few large cities only.  Since being introduced in 
November 1993, the value of the Armenian national currency (the Dram) 
had been steadily eroded by inflation but by June 1994 it had 
stabilized. Electricity has been strictly rationed.  As a result, the 
standard of living has plummeted, and a virtually unprecedented 
outmigration of the population has occurred. 

The present Armenian government, since its formation in 1991, has 
demonstrated a firm commitment to turning Armenia from a centralized 
state with a planned economy into a democratic society with free market 
economic relations. In order to stabilize Armenia's negative trade 
balance, the government is working to improve operating industries' 
export performance.  Concentrated efforts are being made to develop the 
banking sector, to liberalize trade regulations and bring the business 
legislation to conformance with internationally recognized norms, to 
upgrade the energy industry infrastructure, to reopen the only nuclear 
power plant in Medzamor (June 1995), and to search for new 
sources/suppliers of energy and fuel.  The government pays special 
attention to the re-establishment of economic ties with the NIS states, 
and Russia in particular.  Iran, the only relatively neutral and stable 
neighbor, is rapidly becoming trade partner number one for Armenia.

The major privatization of national industries which started in 1994 is 
considered as one of the key steps to improve the economic situation and 
attract foreign investment.  At the same time, Armenia's strong 
determination to build a market oriented economy and democratic society 
has allowed her to engage in loan programs with IMF, World Bank, EBRD, 
as well as other financial institutions and foreign countries.  Total 
loans extended to Armenia in 1993-1995 are expected to exceed USD 
500,000,000.  These loans are targeted at eliminating the budget 
deficit; stabilizing the local currency; developing energy generation, 
agricultural, food processing, land and air transportation and social 
sectors; as well as continuing rehabilitation works in the zone damaged 
by the 1988 earthquake.  At the same time, Armenia is remaining heavily 
dependent on humanitarian  aid, mostly wheat, rice and fuel. The main 
suppliers are the United States, EU, and the United Nations.

By mid-1995, due to economic efforts and a strict fiscal policy, 
Armenia's economy started to show slight indications of improvement.  
However, a resolution of the country's economic problems is primarily 
connected with the ending of the regional conflict around Nagorno-
Karabagh, reestablishing normal relations with neighboring countries and 
lifting the embargoes.  It is expected that the end of the conflict will 
drastically change the economic picture in Armenia.  The country's 
existing industrial potential and highly educated and skilled human 
resources, will allow a rapid rehabilitation of its economy and 
establishment of normal trade and supply links. At the same time, a 
liberal foreign trade policy and numerous peacetime business 
opportunities could catalyze foreign investment.  Certain hopes are 
connected with a coming decision on the construction of transit oil 
pipelines by the Caspian Sea Oil Consortium.  If the Consortium decides 
to route the pipeline(s) via Armenian territory, the country will 
undoubtedly benefit economically. 

2.2. PRINCIPAL GROWTH SECTORS

The following sectors have shown indications of growth during 1994-1995:  
construction (earthquake zone); energy generation and distribution; 
agriculture and food processing; food imports; and international air 
communication.

2.3. GOVERNMENT ROLE IN THE ECONOMY

The government, through its specialized ministries, still controls most 
of the manufacturing industries scheduled for privatization in 1995-
1997.  At the same time, privatization is expected to lead to the 
elimination, reduction or merger of many ministries in 1996-1997 and to 
the change of their functions from direct management and control to 
general supervision and special support.  Through the Central Bank, the 
government exercises control over the banking system, and currency 
market.  The Supreme Council is developing and passing laws which will 
create the framework for a free market oriented economy   

2.4. INFRASTRUCTURE SITUATION

Geography and Environment

Location: Southwestern Asia, between Turkey and Azerbaijan
Total area: 29,800 sq km
Land area: 28,400 sq km
Comparative area: slightly larger than Maryland
Land boundaries: total 1,254 km, Azerbaijan (east) 566 km, Azerbaijan 
(south) 221 km, Georgia 164 km, Iran 35 km, Turkey 268 km.
Coastline: 0 km (landlocked)
Maritime claims: none; landlocked
Climate: highland continental, hot summers, cold winters
Terrain: high Armenian Plateau with mountains; little forest land; fast 
flowing rivers; good soil in Arax River valley
Natural resources: small deposits of gold, copper, molybdenum, zinc, 
alumina
Land use: arable land - 17%; permanent crops - 3%; meadows and pastures 
- 20%; forest and woodland - 0%, other -  60%
Irrigated land: 3,050 sq km (1990)
Current Environmental issues: soil pollution from toxic chemicals such 
as DDT; energy blockade, the result of conflict with Azerbaijan, has led 
to deforestation as citizens scavenge for firewood; pollution of Hrazdan 
(Razdan) and Arax Rivers; the draining of Lake Sevan, a result of its 
use as a source for hydropower, threatens drinking water supplies; air 
pollution in Yerevan
Natural hazards: occasionally severe earthquakes (25,000 people killed 
in major quake in 1988); subject to drought.

Industries

Traditionally diverse, including metal cutting machine tools, forging-
pressing machines, electric motors, tires, knitted wear, hosiery, shoes, 
silk fabric, washing machines, chemicals, trucks, watches, instruments, 
and microelectronics (mostly defense oriented). Currently, much of 
industry is either idle or operating at a fraction of its capacity.  The 
defense industry is being partially converted for civil purposes.    

Agriculture

Only 17% of land area is arable; residents increasingly turn to 
subsistence agriculture; fruits (especially grapes) and vegetable 
farming, minor livestock sector; vineyards near Yerevan are famous for 
brandy and other liqueurs

Ccommunications

Railroads: 840 km (does not include industrial lines); from four 
international rail confections (with/via Georgia, Azerbaijan, Turkey) 
only the connection with Georgia (to Black Sea ports) is presently used.
Highways: total- 11,300 km, paved - 10,500 km, unpaved - earth 800 km 
(1990); road connections with all neighboring states (only ones with 
Georgia and Iran are used presently).
Pipelines: natural gas 900 km (1991)
Ports: none; landlocked
Airports: total - 12, usable - 10; with permanent-surface runways -6, 
with runways over 3,659 m - 1, with runways 2,440-3,659 m - 3
with runways 1,060-2,439 m - 2; note:a C-130 can land on a 1,060-m 
airstrip.  From the six civil airports with artificial field surfacing 
only the largest ones - Zvartnots (in Yerevan), Erebuni (in Yerevan), 
and Shirak (in Gyumri) operate at present.  Zvartnots is a modern 
appearing international/domestic airport and can handle all types of 
planes, including the largest cargo aircraft.  Shirak can handle IL-76 
type cargo planes, and Erebuni - YAK-42 and similar small commuter 
aircraft.  Besides the regular flights to many NIS cities, including 
Moscow, regular weekly flights connect Armenia with Paris, Amsterdam, 
Athens, Thessaloniki, Burgas, Sofia, Beirut, Tehran, and Fujairah (UAE). 

Telecommunications

Progress on installation of fiber optic cable and construction of 
facilities for mobile cellular phone service remains in the negotiation 
phase for joint venture agreement; Armenia has about 650,000 telephones; 
average telephone density is 17.7 per 100 persons; international 
connections to other former republics of the USSR are by landline or 
microwave and to other countries by satellite and by leased connection 
through the Moscow international gateway switch;  broadcast stations - 
100% of population receives Armenian and Russian TV programs (some areas 
also receive Turkish, Iranian, Georgian, and Azeri TV broadcasts), 
private cable TV networks function in many cities; satellite earth 
station - INTELSAT.


                               CHAPTER 3
                        POLITICAL ENVIRONMENT

3.1. NATURE OF POLITICAL RELATIONSHIP 
WITH THE UNITED STATES

The United States Embassy has been operating in Yerevan since February 
1992.  The Armenian Embassy opened in Washington in the same year.  

In a move to assist the present Armenian leadership to strengthen the 
newly-born democracy in the country, the U.S. Government has been for 
several years extending significant humanitarian and technical aid to 
Armenia aimed at supporting the crisis-stricken economy and population 
of the country, and at providing institutional support. The U.S. 
actively participates as a member of OSCE in the attempts to negotiate 
an end to the Karabagh conflict.  Armenian and American government 
officials maintain satisfactory working relations.  During the winters 
of 1993-94 and 1994-95, the USG undertook unprecedented large-scale 
assistance to Armenia, providing kerosene and kerosene heaters to 
protect Armenians from the worst effects of the winter.         

In 1992, USAID established its office in Armenia. It grew rapidly, and 
in 1994 was granted a Regional Mission status. Mission activities cover 
all three Transcaucasian states - Armenia, Georgia, and Azerbaijan.

The U.S. Peace Corps has been operating in Armenia since 1992.  More 
than 50 U.S. volunteers work in Armenian cities and the countryside 
providing business consulting and English language training.

In 1992, Armenia signed three agreements with the United States 
affecting trade between the two countries.  The agreements hve not been 
ratified by the Armenian parliament:

- Agreement on Trade Relations Between the Republic of Armenia and the 
United States of America ("Trade Agreement").
- Investment Incentive Agreement between the Government of the Republic 
of Armenia and the Government of the United States of America ("OPIC 
Agreement").
- Treaty Between the Republic of Armenia and the United States of 
America Concerning the Reciprocal Encouragement and Protection of 
Investment ("Bilateral Investment Treaty - BIT").  

3.2. MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE

Involvement in the conflict around Nagorno-Karabagh, an Armenian-
populated autonomous enclave in neighboring Azerbaijan, has caused 
Azerbaijan and Turkey to embargo Armenia, which in turn affected the 
whole economy.  Though, after a series of violent border clashes with 
Azerbaijan in 1992-1994, a relative ceasefire has been observed by both 
sides for more than one year, there is no indication that the embargoes 
will be lifted in the near future.  

3.3. BRIEF SYNOPSIS OF POLITICAL SYSTEM

Name of the state in English:  Republic of Armenia (Armenia)
Local name of the state: Hayastani Hanrapetutyun (Hayastan)
Type: republic 
Capital: Yerevan
Flag: three equal horizontal bands of red (top), blue, and gold
Independence: 28 May 1918 (First Armenian Republic);  23 September 1991 
(from Soviet Union)
Constitution: A new, post-Soviet constitution was adopted by public 
referendum on July 5, 1995.
Legal system: based on civil law system
Suffrage: 18 years of age; universal

Executive branch:

The President of Armenia is elected every five years by popular vote.  
The President nominates, subject to Parliamentary approval, the Prime 
Minister who in turn appoints, with Presidential and Parliamentary 
approval, the Cabinet of Ministers which leads 22 national ministries, 
and the Chairmen of 10 State Administrations. 
Present President - Levon TER-PETROSYAN (since 16 October 1991), Vice 
President Gagik ARUTYUNYAN (since 16 October 1991); election last held 
16 October 1991; results - Levon TER-PETROSYAN 86%; radical nationalists 
about 7%; next election to be held in October 1996; Prime Minister Hrant 
BAGRATYAN (since 16 February 1993); 
The regional (district) governmental structure of Armenia closely 
mirrors the national structure.  Within the 37 administrative regions, 
there are both executive and legislative bodies which wield considerable 
control over the residents and businesses in the region.  The regional 
governments, however, do not have the authority to pass laws independent 
of the national legislation.

Legislative Branch
	 
The newly elected Parliament known as the National Assembly has 190 
members.  The National Assembly has standing committees which, along 
with ministries and state administrations, are actively involved in the 
development of draft laws.  Deputies to the National Assembly are 
elected by general election every five years. Elections last held 5 July 
1995.    

Major Political Parties 

- Armenian National Movement (ANM), Ter-Husik LAZARYAN, chairman;
- Communist Party, Sergey BADALYAN, chairman 
- Liberal Democratic (Ramkavars), Ruben MIRZAKHANYAN, chairman; 
- Armenian Revolutionary Federation (ARF, Dashnaktsutyun), Ruben 
HAKOBYAN, Chairman of the Central Committee chairman. The party's 
activity has been temporarily suspended by Supreme Court  
- National Democratic Union (NDU), Vazgen MANUKYAN, chairman; 
- Shamiram, Gayane SARUKHANYAN, chairman

Other minor parties and movements include:

- Democratic Party of Armenia (DPA; Communist Party), Aram
  SARKISYAN, chairman; 
- Christian Democratic Party, Azat ARSHAKYAN, chairman; 
- Greens Union, Hakob SANASARIAN, chairman; 
- Republican Party, Ashot NAVARSARDYAN, chairman; 
- Union for Self-Determination (UNSD), Paruir HAIRIKYAN, chairman
- Party of National Progress, Albert BAGHDASARYAN, chairman
- Scientific Industrial Civil Union, Aghasi ARSHAKYAN, chairman
- Constitutional Rights Union, Hrant KHACHATRYAN, chairman
- Liberal Democratic party of Armenia, Vigen KHACHATRYAN, chairman 
- Armenian Agricultural Party, Telman DILANYAN, chairman
- Heritage Club, Igor MURADYAN, Chairman 

Armenia is member of: BSEC, CCC, CIS, CSCE, EBRD, ECE, IAEA, IBRD, ICAO, 
IDA, IFAD, ILO, IMF, INTELSAT, INTERPOL, IOC, ITU, NACC, NAM (observer), 
UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WIPO, WMO, and GATT (observer).


                                     CHAPTER 4
                       MARKETING U.S. PRODUCTS AND SERVICES

4.1. DISTRIBUTION AND SALES CHANNELS

Currently, the emerging Armenian private sector enjoys a legal 
environment which allows the use of all types of distribution and sales 
forms available in the West.  However, in Armenia, all these forms are 
in the early stages of development.  At the same time, the still 
existing state sector is continuing to use remnants of the industry-by-
industry centralized purchase and distribution systems run by the 
appropriate ministries.    

4.2. USE OF AGENTS AND DISTRIBUTORS.  FINDING A PARTNER

These forms are not widely used in Armenia as of yet.  However, a few 
private companies have recently become agents/distributors for such 
companies as Proctor and Gamble, Pirelli, 3M, Federal Express, Seagram, 
General Food, Reebok, Adidas, Goldstar, and a few others. 

In order to find a partner, interested firms may contact the following 
organizations:

a). American Embassy Yerevan - Commercial section. Attn: Andrew 
Hovhannisyan or Armen Vahradyan, at Department of State, Washington DC 
20521-7020, or 18 Marshal Baghramyan Avenue, Yerevan 375019 Armenia; 
Tel: (374-2)524-661, Fax: (374-2)151-138. 

b). Business Information Service for the Newly Independent States 
(BISNIS) in Washington.  BISNIS is a unique state organization that 
explores business opportunities, accumulates and regularly publishes  
partnership, and agent/distributor leads collected by the its 
representative in Armenia.  Write or call to: BISNIS Information Center, 
Room 7413, U.S. Department of Commerce, Washington, DC 20230; Tel:202-
482-4655, Fax: 202-482-2293.

c). Armenian Chamber of Commerce and Industry (President - Mr. Hamlet 
Hovhannisyan) at 39 Hanrapetutyan St., Yerevan 375010, Armenia; Tel:  
(374-2) 56-54-38, Tlx: 243322 ALFASU, Fax: (374-2) 56-46-95.  The 
Armenian Chamber of Commerce covers more than 360 private and state 
member-companies throughout Armenia, and it can provide useful contacts 
for you.  Also, the Chamber can supply all necessary information on 
current business-related laws and regulations.

d). The Armenian Entrepreneurs Association (President - Ms. Hermine 
Haghdalyan) at 19 Kievian St.,Yerevan, 375033, Armenia; tel: 
(374-2)274-837, Fax:(374-2)566-468, or 151-069, Tlx: 243368 BASIS SU. 
The Association represents many Armenian private businesses and is open 
to international contacts. 

e). Union of Armenian Merchants (President - Mr. Makich Demiryan)
at 13 Vardanants St., Yerevan, Armenia; Tel:(374-2)570-321, Tel & Fax: 
(374-2)151-734.  The Union is a trade association of retailers and some 
wholesalers.  Majority of them (over 400) recently formed the 
Constellation Corporation - the biggest trading firm (same address, same 
president), which is actively looking for international trade contacts.   

f). Trade Point Armenia (Director - Mr. Vahram Hakobyan) at the Ministry 
of Economy, Floor 1, Room 30, Republic Square, Yerevan 375010 Armenia; 
Tel: (374-1)582-856, Fax: (374-2)151-736, E-mail:
[email protected].

g). Armenian Business Forum and Armenian Business Corporation (Executive 
Director - Mr. Gagik Poghosyan), 4 Tigran Mets Street, Floor 2, Yerevan 
375010; Tel; (374-2) 520-589, 520-967; Fax: (374-2)151-785.   


4.3. FRANCHISING

This is almost an unknown concept for Armenia. It is believed that 
franchising may become popular as soon as  Armenian businessmen see the 
first franchises open.  Despite the generally very low incomes of the 
population, some entrepreneurs have accumulated enough capital to 
provide start-up funds for franchising. 

4.4. DIRECT MARKETING

Is used mainly by state manufacturers (machinery, equipment, etc.).  

4.5. JOINT VENTURE/LICENSING

Joint business represents one of the most feasible forms of trade 
cooperation between local and U.S. companies.  Joint ventures are 
registered either as limited liability companies or joint stock 
companies. A joint venture with 30 or more percent of initial capital 
contributed by foreign partner(s) is entitled to special tax privileges.  
According to the Armenian State Register (May 1995),  more than 30 
American-Armenian Joint Ventures have been registered in Armenia, from 
which four were established in January-May 1995. 

4.6. STEPS TO ESTABLISH AN OFFICE

Registration

Foreigners have the same rights to establish business enterprises as 
Armenian citizens, except that they are not allowed, unless otherwise 
authorized, to participate in the following forms of endeavors: consumer 
(service) co-operatives, collective farms, state and local government 
enterprises, and state enterprises of special significance. It is 
illegal for enterprises or individuals to conduct economic activity 
without registering with the State Register. Registration procedures are 
as follows:

An enterprise, or an individual entrepreneur is granted the right to 
start his/her operations only after receiving a state registration 
certificate.  The law provides for two types of registration: initial 
registration when a state registration card is filed into the State 
Register for a business being registered, and current registration, when 
additions and amendments are made to the registration card.

Registration is conducted by a local division of the State Register for 
a fee.  The local division ensures that the completed registration card 
is sent to the central state registration body where it is assigned a 
state registration code, a registration number, and a registration 
certificate is issued. Registration may take up to 25 days. 

The documents needed to apply for the initial registration generally 
include:
- an application for registration
- enterprise founding documents compiled in accordance with  existing 
Armenian laws 
- license for a particular type of activity (if needed)
- other documents required by appropriate laws for state registration of 
an individual entrepreneur, or a particular legal type of the 
enterprise.  A foreign partner must also submit its incorporation 
certificate and a letter of solvency from its banks.

For more information on registration contact:
State Department of Statistics, State Register and Analysis
(Mr. Joseph Hordanyan, Head of the State Register Section)
3rd Government Bldg, room 616, Yerevan 375010 Armenia
Tel: (374-2)524-516 or 524-600; fax: (374-2)521-021  

Legal Forms of Businesses

An important distinction: Armenian law makes a special distinction 
between "juridical persons" and "physical persons".   An enterprise 
which is a juridical person is an independent legal entity separate from 
its owners.  This enterprise's property, rights, and liabilities are 
distinguished from its owner's other properties, rights and liabilities.  
The liabilities of an enterprise which is a juridical person are the 
responsibility of that legal entity.   Both juridical persons and 
physical persons have the same rights in areas of economic activity.  
All businesses - juridical persons - are subject to double taxation, 
e.g. they have to pay the so-called "profit tax" in addition to personal 
income taxes paid by their owners or employees. 

The Enterprises and Entrepreneurial Activities Law (passed February 
1992) establishes forth the following legal forms of businesses:

A. Individual Businessman 

Individual businessmen may engage in any legal form of economic 
activity, but may not hire employees.

A. Personal/family enterprise
   
This form is similar to the Western "Sole Proprietorship".
It is represented by one individual or his family.  The enterprise is 
not considered a legal entity (juridical person).  It can, however, have 
its own seal, company name (which should include the owner's name), bank 
account, and hire employees.  One example of a private business is an 
individual or family farm.

B. Economic partnership (full or limited)

This form resembles a western partnership, and represents an association 
of two or more persons, or organizations (except for state 
organizations) who carry on as co-owners of a business for a profit.  It 
is based on an "establishing agreement" ("Articles Of Co-partnership") 
to be registered with the state.  The document also establishes the 
share of each participant in the partnership.  The business does not 
possess the status of a juridical person.  In the limited partnership, 
there must be at least one full partner and one limited partner whose 
liability is extended to the amount of his investment share in the 
partnership.  

C. Production co-operatives

The so-called "co-operatives" are considered juridical persons and are 
based on collective property and obligatory work of their founding 
members (individuals only).  Co-operatives' liability includes any 
income received during the operation of the enterprise.  A co-operative 
has its "charter" registered with the state.  State organizations or 
other legal entities cannot be members of a cooperative enterprise.  
Profit sharing among the cooperative members is not proportional to 
their share in property and is decided by the assembly of its founding 
members. 

A collective farm is a separate form of co-operative enterprise. 

Another form of a co-operative, the consumer (service) co-operative, is 
established to render services to its members.  The members do not 
receive a share of the profit.  Only individuals or collective farms can 
be members of a consumer cooperative. 

D. Joint stock company

This form is similar to the western corporation.  A joint stock company 
is a legal entity founded on collective or mixed property. The owners 
must participate in the enterprise with property.  The starting capital 
is 50,000 drams or USD 116.00 for a closed company and 200,000 drams or 
USD 465.00 for an open company (as of June 1995).  The company needs a 
minimum of two co-founders, who must basically go through the following 
procedures, to start the company (in case of open company):

1. Organize advertisement of the future company, issue foundation 
prospectus, and register it with the Ministry of Finance.

2. Organize subscription for certificates, that will be replaced by real 
stocks (shares) after the company is registered. 

3. Deposit a minimum of 30 percent of the starting capital to a special 
bank account.

4. Register the company.

5. Convene a stockholders meeting to elect a board of directors and 
board o auditors. Have the board of directors elect the chairman of the 
board.

As in western corporations, the stockholders do not possess title to the 
company property, although in the event of liquidation, they would have 
a direct claim on the property after creditors, and preferred 
stockholders.   At annual meetings, stockholders vote to determine the 
composition of the board of directors, which in its turn selects the 
management or officers of the firm.  Stockholders may also vote for 
changes in the charter as well as specific changes in the structure of 
the company.  Stockholders also have rights to buy, sell, and transfer 
their shares, as well as receive dividends.  A stock company 
participant's liability is limited to the nominal value (as opposed to 
the market value) of the shares in his possession. 

E. Limited liability company (LLC)

This form of organization is basically the same as a closed stock 
company without stock. The LLC represents a joint business by no less 
than two partners, and initial capital of no less than 50,000 drams. The 
partnership has the status of juridical person.  Assets of the 
partnership consist of the partners' investments, and profits are shared 
according to the investments share ratio if another ratio is not 
stipulated in the charter.  The partnership is "limited" because 
liability of all partners does not exceed the amount of their 
investments.  

F. Public service enterprise 

A public service enterprise is an open or closed stock company with 
authorized state bodies regulating various aspects of its operation.  
Among the enterprises that fall within this category are utility and 
public transportation companies.

G. Joint venture status 

A joint venture is an enterprise founded on collective or mixed 
ownership with the obligatory property and/or hard currency investment 
by foreign citizens, enterprises or organizations. A joint venture must 
have at least one foreign partner. They must register as either a 
company (stock or limited) or a partnership (limited or general). 
Consequently, all rules and regulations applying to those types of 
business also apply to joint ventures.

H. Subsidiaries 

All enterprises/legal entities can have subsidiaries in Armenia.  These 
subsidiaries are also considered legal entities with their liability not 
transferrable to the parent enterprise.  However, all assets of the 
subsidiary belong to the parent enterprise.

4.7. SELLING FACTORS/TECHNIQUES

The present retail industry in Armenia is primarily based on the private 
sector, which has gradually replaced the state-run outlets and  
department stores.  In Yerevan only, there are about 3,500 retail 
outlets (mostly private), including food providers (41%), variety stores 
(35%), and a range of conventional and specialty stores.  Most of them 
employ from 1 to 5 people.  Many of these outlets, in their relations 
with wholesalers, operate on a consignment basis.  Some of the outlets 
are owned by importers themselves.  Since credit cards and checks are 
not yet accepted in Armenia yet, all retail sales are paid in by cash.

At the same time, domestic or international company to company sales are 
basically made by bank transfer (especially in the state sector), LC, or 
on barter basis.

4.8. ADVERTISING AND TRADE PROMOTION

Advertising in Armenia is rapidly gaining popularity. It can be arranged 
through local advertising agencies, or directly with TV, Radio, and the 
press.

Major advertising agencies:

Press, displays, stands, posters - Arina Ltd. (Director - Mr. Mher 
Mnatsakanyan), 2 Arshakunyants Ave., Floor 1, Yerevan 375023; Tel: (374-
2)565-822 

TV or Radio - Commercial Advertising Agency GUTR RA (Director - Mr. 
Nerses Arutyunyan), 5 Alek Manukyan Street., Yerevan 375025; Tel: (374-
2)551-249; Fax: (374-2)551-513.

Major Business Newspapers: 

Kommersant Armenii, P.O.Box 340, Yerevan 375010
Tel: (374-2)529-906, fax: (374-2)564-695

Express, P.O.Box 372, Yerevan 375005
Tel: (374-2)252-683, Fax: (374-2)254-995

GORTS, 19 Kievian St., Yerevan 375019
Tel: (374-2)274-539

Marketing Bolori Hamar, 5 Moscovian St., Yerevan 
Tel: (374-2)533-321 


4.9. PRICING PRODUCT

Private sector: current pricing policies are primarily affected by the 
following factors:

- low purchasing power  
- high cost of transportation   
- low competitiveness or absence of locally manufactured products
- limited convertibility of Armenian dram.  
- a high and growing corruption rate ("fees" paid to customs officials, 
road and district police, tax police, government officials, 
"controllers", and racketeers comprise as much as 20-30 percent of 
retail prices).   

State sector: Pricing policy of the state sector, is more and more 
determined by supply and demand.  The state continues to control prices 
for utilities, telecommunications and public transportation, keeping 
them artificially low.  From time to time, it conducts rationed sales of 
basic foods and other consumables (sugar, powdered milk, matches, soap) 
to the population or the most needy groups through its own food chains 
at prices much lower than market prices.


4.10. SALES SERVICE/CUSTOMER SUPPORT

With the break-up of the USSR, the old structures that provided warranty 
servicing or replacement of Soviet-made goods all across its territory 
ceased to exist.  However, state organizations of Armenia and the former 
USSR states in many cases continue to provide warranty servicing/support 
to their customers, especially if the purchases were made on a 
contractual basis.  At the same time, the majority of private vendors in 
Armenia do not provide any support or additional service to their 
customers.    


4.11. SELLING TO THE GOVERNMENT

Selling to the Armenian government, though nearly risk free, is strictly 
limited by the government's lack of funds.  Purchases of foreign goods 
and services by state enterprises are mainly conducted through their 
superior ministries or state administrations, often through the public 
foreign trade companies or through closed tenders offered to selected 
local private trading firms.  During the past two years the government 
purchased mainly food, fuel, raw and building materials, a very limited 
amount of machinery and electronic equipment for its industries, and 
almost no consumer goods.  Major sales contracts with state enterprises 
are normally approved by the appropriate ministries.  


4.12. PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT

An agreement on trade relations between Armenia and the U.S.A. signed in 
1992 states that the parties shall ensure that domestic legislation 
provides for protection and implementation of intellectual property 
rights on literary, scientific and artistic works, including computer 
programs and data bases, patents and other rights on inventions and 
industrial design, know-how, trade secrets, trade marks and service 
marks. The agreement also includes protection against unfair 
competition.  However, Armenia still has not fulfilled its obligations 
under the agreement (it was required to do so by the end of 1993). The 
following is the current status of IPR obligations: 

Patents and Industrial Designs:

Agency: Armenian Patent Office, Government Bldg. 3, Central Avenue, 
Yerevan 375010; tel:(374-2)520-673, fax: (374-2)561-125, 580-631.
Head: Prof. Sarkis L. Khantardjian, President.

Patent Legislation: Law on Patents of August 21, 1993.
Main features:
- form of protection: patent; provisional patent.
- filing of applications: request in Armenian. Other elements of the 
application can be in other languages; translation must be submitted 
within two months. Foreign applicants must act through patent agents 
admitted to practice by the Armenian Patent Office.
- grace period: 12 months prior to filing date.
- examination: formal requirements within 4 months. Conditions of 
patentability at request of the applicant or third party within 3 years 
from filing date.
- publication: after registration
- opposition: with the appeal board of the Armenian Patent Office, 
during term of protection
- duration: 20 years for patents, 5 years for provisional patents from 
filing date
- compulsory licenses: for reasons of national defense or in emergency 
cases, or in case of non-use or insufficient use, during 4 years from 
grant of the patent, upon decision by the government

Industrial Design Legislation: Law on Patents of August 21, 1993. Main 
features:
- form of protection: industrial design patent
- filing of applications: request in Armenian. Other elements of 
application can be in other languages; translation must be submitted 
within two months. Foreign applicants must act through patent agents 
admitted to practice by the Armenian Patent Office
- conditions of patentability: novelty, originality, industrial 
applicability
- examination: formal requirements within 4 months
- opposition: with the appeal board of the Armenian Patent Office, 
during term of protection
- duration: 15 years from filing date
- compulsory licenses: for reasons of national defense or in emergency 
cases, or in case of non-use or insufficient use, during 4 years from 
grant of the patent, upon decisions by the government

Trademarks: The draft law, which basically repeats the trademark law 
adopted by Russia, is to be considered by the Armenian parliament in 
1995.   

Copyrights:

Agency: National Copyright Agency (NCA), 19A Koryun St., Yerevan 375009; 
tel:(374-2)527-350, 529-492; fax:(374-2)151-502 
Head: Vladimir M. Kostandian, Chief. NCA was established by in December 
27, 1994

Legislation: not adopted yet.  A draft copyright law has been developed 
by the standing parliamentary committee on mass media with a few 
adjustments by the NCA.  The law will presumably be adopted on the first 
reading by the parliament by the end 1995.

Trade secrets: no legislation in this area is adopted or drafted as of 
yet. 

Enforcement: no special legislation is adopted or drafted as of yet.  

Membership in WIPO intellectual property treaties: WIPO Convention, 
Paris Convention, Madrid Agreement (Marks); PCT since December 25, 1991.  
Declaration of continued application in Armenia of the WIPO Convention, 
Paris Convention, Madrid Agreement (Marks) and the PCT deposited on May 
17, 1994.


4.13. NEED FOR A LOCAL ATTORNEY

A local attorney may be needed to insure that contracts are written and 
filed properly, to assist with dispute settlement, etc.  To hire an 
attorney contact:

Advocates Collegia (240 members)  
(Chairman - Mr. Suren Poghosyan)
3 Zakyan Street, Yerevan 375010
Tel: (374-2)583-442
 
ARMJURECS Company Ltd.
(Director - Ashot Hakobyan, lawyer)
24 Gulbenkyan St., Yerevan 375033
Tel: (374-2)276-050, 270-264; Fax: (374-2)276-050, Tlx: 243322 ALFA



                                  CHAPTER 5
               LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT


The Armenian economy is in desperate need of Western development 
assistance, investment, technologies, and management expertise. However, 
transportation problems, low local financing capabilities, combined with 
very low wages and often, the unwillingness of foreign lending 
institutions to take risks in Armenia, inhibit the scope of potential 
business opportunities.  At present, the most promising opportunities 
are concentrated in the following areas:

- construction and rehabilitation works in the zone damaged by the 1988 
Spitak earthquake 
- aviation development 
- improvement of the energy industry 
- food imports; food processing & packaging  
- use of an inexpensive but qualified local labor force for local 
research, development, manufacturing or assembly, and subsequent export 
of hi-tech hardware and software  
- tourism 
- banking services
- privatization of national industry and services 


Construction and Rehabilitation Works in the Zone Damaged by the 1988 
Spitak Earthquake 

The problem of the rehabilitation of the territory of Armenia severely 
damaged by the 1988 earthquake remains one of the prime tasks of the 
Armenian Government.  Funds for this work are mainly provided through 
project financing by the World Bank and a number of Armenian local and 
diaspora foundations.  Most contracts for construction or renovation of 
residential and public buildings, as well as industrial enterprises, are 
based on open tenders in which foreign companies are often welcome to 
participate.  The tenders are normally announced by the Ministry of 
Economy.  To obtain information on current or future projects, potential 
contractors may contact:

Ministry of Construction
(Minister - Mr. Felix Pirumyan)
3rd Government Bldg., Yerevan 375010
Tel:(374-2)589-080; Fax: (374-2)253-000 

Office for Rehabilitation of Earthquake Zone
(Director - Mr. Mickael Melkonyan)  
Ministry of Economy, 1st Government Bldg., Yerevan 375010
Tel: (374-2)528-532; Fax: (374-2)151-142


Aviation Development

In today's Armenia, aviation is the most reliable transportation link 
with the outer world.  It is one of the industries to which the Armenian 
government gives a special priority, and therefore, in which there may 
be potential business opportunities for foreign companies.   

The main Armenian airport, Zvartnots, is located 15 kilometers from 
Yerevan.  It is a modern structure and is capable of handling all modern 
types of passenger and cargo planes including super heavy cargo jets. 
The industry is presently state-controlled and is managed by the State 
Administration for Civil Aviation.  Armenian Airlines presently remains 
the only official carrier.  The industry is in need of modernization, 
including replacement of practically all airport equipment, and purchase 
or lease of passenger planes. At the same time, Zvartnots, due to its 
geographic location, may represent a good transit airport for 
international flights if an international-standard infrastructures 
(hotels, services, etc.) was to be built.

Under present circumstances, Armenia itself is unable to finance these 
projects and is actively seeking international loans to finance the 
projects, as well as suppliers of relevant aviation products and 
services, and partners for joint ventures (EBRD is presently financing 
the construction of a cargo terminal at Zvartnots).  Offers for 
arrangement of transit flights are also welcome.  

For more information on existing business opportunities in the aviation 
sector contact:

Mr. Shahen Petrosyan
Acting Chairman, Main Administration for Civil Aviation
Airport Zvartnots, Yerevan 375042
Tel: (374-2)282-066, 772-030; fax: (374-2)151-123

Mr. Vagharshak Mnatsakanyan
Director, Airport Zvartnots, Yerevan 375042
Tel: (374-2)773-439, fax: (374-2)151-123
  

Energy Industry 

In 1993, the difficult energy situation in Armenia forced the Armenian 
government to resolve to reopen the Medzamor Nuclear Power Plant, which 
was closed after the 1988 earthquake.  Although most of the testing, 
reopening, maintenance, as well as purchase of uranium is being done 
through the services of Russian nuclear companies, Armenia still needs 
investors to fund some parts of the project, including safety measures.  
The plant is scheduled for reopening in the second half of 1995.  

An International Conference on Armenian Energy Strategy which convened 
in Yerevan in May 1994, outlined potential business opportunities in 
this sector, some of which may be backed by USAID and international 
project financing (World Bank, EBRD).  These include modernization of 
existing, and construction of new, large thermal power plants, and more 
than a hundred small hydro-power plants; production of small hydro 
turbines; exploration of oil and coal deposits; exploitation of existing 
coal deposits; manufacture of insulation materials; introduction of 
energy saving technologies; modernization of the old and inefficient 
energy network infrastructure; construction of a refinery and a gas 
pipeline from Iran to Europe; development and installation of 
alternative energy sources; assistance in development of energy-related 
legal environment; personnel training programs; and others.  
For more information on existing business opportunities, interested 
companies may contact:

Armenian Ministry of Energy and Fuel
(Minister - Mr. Miron Shishmanyan)
2nd Government Bldg., Yerevan 375010
Tel: (374-2)521-964, Fax: (374-2)151-189

Energy Projects Support Office (IDEA Inc.)
(Energy Advisor/Caucasus - Mr. Harutiun Topsacalian)
U.S. Agency of International Development
28 First Alley of Aigedzor, Yerevan
Tel: 7(8852)22-66-21; Fax: 7(8852)151-389 


Use of Inexpensive but Qualified Labor Force for Local Research, 
Development, and/or Assembly, and Subsequent Export of High-tech 
Hardware and Software, and Other Goods

Before the break-up of the USSR, Armenia was one of the key developers, 
producers and suppliers of high-tech computer and other electronic 
equipment and parts for the Soviet defense and space industries.  The 
electronic industry included a significant part of numerous Armenian 
research and manufacturing enterprises hidden under "neutral" civil 
names - "Sirius", "Astro", "Kometa", "Bazalt", etc.  These have been 
also the best equipped enterprises in Armenia.  Accordingly, Armenian 
educational institutions and laboratories were, for many years, 
producing numerous specialists highly qualified in electronics, hardware 
and software development.

Now, as a result of the crisis of the last six years, many of these 
enterprises are on the verge of collapse, their links with former 
clients and suppliers in the NIS cut off, their expensive equipment idle 
and rapidly aging. Numerous scientists, engineers, and workers are 
underemployed and are receiving tiny salaries. Many of them are laid off 
and/or leaving the country for better opportunities elsewhere.   Some of 
these enterprises are attempting to undergo conversion, though without 
any noticeable success.  The industries, as the state itself, have no 
funds of their own, and badly need serious investors and partners.  
Presently, the government is considering which of these enterprises it 
should include in the privatization list.

At the same time, the availability of a local labor force skilled in the 
operation of hi-tech equipment, electronics and software programming, 
the low cost of labor, and the chance to purchase/privatize the idle 
enterprises and laboratories of the electronic or other industries, or 
to engage in joint ventures with them, may represent a good business 
opportunity for U.S. companies which would like to develop and/or 
assemble their products (televisions, VCRs, computers and their 
peripherals, etc.) in Armenia for subsequent export to third countries.  

In the apparel industry, inexpensive labor, and the presence of 
numerous, well-equipped enterprises also represent opportunities for co-
production of U.S. apparel.

For more information on business opportunities in these sectors contact:

Ministry of Industry of Armenia
(Minister - Mr. Ashot Safaryan)
2nd Government Bldg., Yerevan 375010
Tel: (374-2)521-877, 520-579; Fax: (374-2)151-084
(machinery, electronics, conversion)

Ministry of Light Industry
(Minister - Mr. Rudolf Teimurazyan)
4 Kochar Street, Yerevan 375033
Tel: (374-2)226-500, or 221-309; Fax: (374-2)226-417
(apparel)


Tourism

The tourism industry is considered by many local and international 
experts as one of the future best prospects for Armenia and for 
potential foreign investors after the conflict over Nagorno-Karabakh is 
settled.  

Armenia is a small, rocky country with splendid mountains and canyons on 
most of its territory, beautiful forest regions in the North (often 
called "Armenian Switzerland" by the residents), and the magnificent 
Lake Sevan located at more than 2,000 meters above sea level.  To the 
southwest of Yerevan, the rocky terrain gives way to the Ararat valley 
full of fruit plantations and vineyards.  From here one can observe a 
splendid view of the Biblical Mount Ararat, with its two year-round 
snowy summits towering high over the horizon.  The country enjoys a 
highly continental climate.  It is rich with ancient Armenian monuments 
- Christian churches and monasteries some of which date back many 
centuries.  Many of them are concentrated in the Holy city of 
Echmiadzin, where the residence of the  head of the Armenian church, 
Catholicos of All Armenians, is located.  Armenia also has a good 
Olympic skiing base in Tsakhkadzor - a Mecca for professional and 
amateur skiers.  Tourists to Armenia have always enjoyed very positive, 
hospitable and generous attitude from the local residents both in large 
cities and in the countryside.   

The country lacks a modern tourism infrastructure, however.  Existing 
hotels, motels and resorts (except for a few hotels in Yerevan) are in 
poor condition and poorly equipped.  Roads have not been maintained for 
the last 5-7 years, and the service industry is absent.  The years of 
conflict in neighboring Azerbaijan have diverted tourists from this 
formerly popular region.  Nevertheless, foreign businessmen have 
recently started to explore business opportunities in this area with the 
aim to rapidly establish their presence as soon as the conflict is over.  
In May 1994, Armenian Business Forum, an international business 
association with headquarters in Paris and in Yerevan, addressed the 
government of Armenia with a proposal to establish a Ministry of 
Tourism, for which the Forum developed a full project of the Ministry's 
responsibilities and activities based on known foreign examples.  It is 
expected that the tourism industry will potentially attract significant 
foreign investment, hopefully in two-three years.  In April 1995, CEPRA 
(Center of Economic Policy Research and Analysis, Armenia) prepared a 
research called "A Tourism Development Plan for the Republic of Armenia. 
1995-2001" which outlines possible strategy for tourism development in 
Armenia. 

For more information on business opportunities in tourism sector 
contact: 

ARMINTUR
Main Administration for Tourism of Armenia
(Director - Mr. Ara Petrosyan)
2 Khorhurdarani Street, Yerevan 375010
Tel: (374-2)529-748, 580-418, or 581-390; fax: (374-2)151-106

CEPRA
40 Mashall Baghramyan St., 375019, Yerevan
Tel: (374-2) 271-121, 271-732


Food Processing and Packaging

Armenia is famous for its fruits and vegetables, which due to specific 
soil and climatic conditions, high altitude of the terrain, and limited 
use of chemical fertilizers, acquire very rich and pleasant natural 
tastes.  It is believed that with modern processing and packaging 
technologies, Armenian fruit and vegetable products and sub-products can 
successfully enter international markets.  Most food processing plants 
and canneries in the country, however, are equipped with outdated 
equipment, cannot provide export quality products, and are looking for 
foreign partners.  This sector is already starting to attract U.S. 
investors.  Two Armenian-American joint ventures in this field  were 
registered in 1994-1995.

For more information on business opportunities in agri and food-
processing sectors contact:

Ministry of Agriculture
(Minister - Mr.Ashot Voskanyan)
2 Government Bldg., Republic Square, Yerevan 375010
Tel: (374-2)520-321, 524-641; fax: (374-2)523-793 
       
Ministry of Food and Provisions
(Minister - Mr. David Zadoyan)
48 Nalbandyan Street., Yerevan 375010
Tel: (374-2)529-611, 583-827; Fax: (374-2)564-683


Banking Services

In the long-term, the Armenian Government wants to turn Armenia into the 
financial nub of the region.  Now, the financial services market in 
Armenia remains greatly underused and unexplored due to a backward, 
slowly working, and unreliable local banking system (which is in the 
beginning of its development), artificially high interest rates on 
loans, and the absence of foreign banks (except for the newly 
established Mellat bank (Iran) and Midland Armenia (UK)).  No Armenian 
banks cash checks or use credit cards as of yet.    

It is believed that almost 60 percent of all transactions in the private 
sector, including export/import are made in cash.  Some experts indicate 
that up to 15 million dollars in cash enter Armenia every month (a 
significant part of it is assistance to local residents by their 
relatives living in the United States or Russia).  The money is 
transferred through private hands (tourists) or illegal "money transfer 
companies" and never enters the banking system.  On the other hand, more 
credits and grants are being extended for various projects in Armenia by 
foreign governments, international organizations and various foreign 
agencies.  Handling this money via the services of local banks often 
becomes a painful process, and there are cases when organizations are 
forced to bring cash to fund their endeavors.  Privatization of major 
industries in 1995-1997 is expected to boost foreign investment in the 
country, which will require adequate banking channels.  Construction of 
a heavy-capacity cargo terminal at Yerevan's main airport may turn 
Armenia in a significant transit point which could increase the cash 
flow.   

All these factors, added to the still weak local banking sector, may 
represent significant opportunities for U.S. bankers.  Moreover, 
establishing a bank in Armenia does not require significant capital 
investment.  The current minimum charter capital is USD 100,000 (May 
1995).  Banks are licensed and registered by the Central Bank of 
Armenia.  Existing communications make electronic money transfers 
technically feasible.  

For more information on business opportunities in the banking 
sector contact:

Central Bank of Armenia
(Chairman - Mr. Bagrat Asatryan)
6 Nalbandyan Street, Yerevan 375010 Armenia
Tel:(374-2)583-841, Fax: (374-2)560-441, or 151-107 



Privatization of State Enterprises

The government of Armenia views the implementation of its industrial 
privatization program as primary means to stimulate economic growth and 
attract foreign investment. In August 1992, Armenia adopted the "Law on 
Privatization and Denationalization of State-owned Enterprises" (SOE's). 
Under this law, small enterprises with less than 50 employees are being 
privatized (bought out from the state) by their personnel, or put on 
auction.  Medium and large state enterprises and being revaluated and 
converted to open or closed joint stock companies (corporations).  20 
percent of shares of most of these corporations are given free of charge 
to those employees who have worked at least a year at a particular 
enterprise.   

On March 1, 1995, the Armenian government announced the start of an open 
subscription for shares of the first ten large enterprises to be 
privatized in the course of the ongoing privatization program.  The 
subscription normally continues for two months, after which the 
stockholders convene their first meeting to elect the boards of 
directors, and resolve other corporate issues.  The shares (subscription 
stage) of the privatized enterprises are traded for drams or vouchers 
(so-called privatization certificates).  In the period of October '94 - 
March '95, the Armenian government distributed to the population over 
3,000,000 vouchers, one voucher per person, with a face value of 20,000 
drams each (USD 48).  At present, the vouchers are freely traded in the 
secondary market for less than 6-7 dollars per voucher  (note, that when 
subscribing to shares, the vouchers are nevertheless accepted at their 
full value of 20,000 drams).  This enormous discount is explained by the 
population's poor understanding of privatization, the present lack of 
multiple investment opportunities, and the general poverty of the 
residents, many of whom sell their vouchers to buy food.  

The Armenian privatization program offers significant investment 
opportunities to foreign businessmen.  First, the value that is set for 
the enterprises (Revalued Charter Capital) is very low by international 
standards.  So, the Revalued Charter Capital of the first ten large 
state enterprises/plants which were privatized in March-May 1995, ranged 
from 242,000 to 2,037,000 dollars only.  U.S. investors can participate 
in privatization with money, or through purchase of vouchers and their 
consequent investment in privatized SOE's.  Nothing prevents them from 
participating in in the voucher and stock markets to be formed in 
Armenia.  For those investors who want to save money by using discounted 
vouchers, the moment is critical.  With more enterprises going public, 
and an unfolding public awareness campaign, the market price of the 
vouchers is expected to increase -  as it did in Russia.     

If less than 25 percent of shares are sold in the open subscription, the 
subscription is considered invalid, and the State Privatization Board 
decides on the future of the enterprise (one option is to reduce the 
enterprise's charter capital and announce a new subscription).  
Moreover, the open subscription is not limited.  Subscribers may 
subscribe to a larger number of shares than was originally announced for 
open subscription.  After the subscription is over, the charter capital 
of the enterprise is revalued to match the number of shares sold (note, 
that the personnel will still be entitled to its 20 percent of the 
revalued enterprise).  Only after this, are the "real shares" to be 
printed and issued to the stockholders.  To request complete information 
on privatized enterprises, along with other privatization and 
subscription data contact:

State Subscription Center 
(Director - Mr. Armen Shamshyan)
10 Sayat Nova Street, Yerevan, Armenia 
Tel: (374-2)521-560

Information on privatization can be obtained also from the following 
organizations:

State Privatization Commission
(Acting Chairman - Mr. Boris Kocharyan) 
3rd Government Bldg., floor 2, Yerevan 375010 Armenia
Tel: (374-2) 589-101, Fax: (374-2) 151-794 or 565-962

Board of Privatization and Inventory of State Property of the Government 
of Armenia
(Chairman - Mr. Pavel Ghaltakhchyan)
4 Tigran Mets Ave, floor 3, Yerevan 375010 Armenia
Tel: (374-2) 589-101; Fax: (374-2) 587-103   
----------------------------------------
The Government of the United States acknowledges the contribution that 
outward foreign direct investment makes to the U.S. economy. U.S. 
foreign direct investment is increasingly viewed as a complement or even 
a necessary component of trade. For example, roughly 60 percent of U.S. 
exports are sold by America firms that have operations abroad.  
Recognizing the benefits that U.S. outward investment brings to the U.S. 
economy, the Government of the United States undertakes initiatives, 
such as Overseas Private Investment Corporation (OPIC) programs, 
Investment Treaty negotiations  and business facilitation programs, that 
support U.S. investors.



                                     CHAPTER 6
                          TRADE REGULATIONS AND STANDARDS

6.1. TRADE BARRIERS, INCLUDING TARIFFS 
 AND IMPORT TAXES

Customs Tariffs

All exports from Armenia are duty free. Import tariffs apply only to 
certain products (see table):

-----------------------------------------------------
code     product title               tariff calculated
-                                    as percentage of  
-                                    estimated cost 
-------------------------------------------------------
01.  Live animals                                  0
02.  Meat and meat products                        0
03.  Fish and marine invertebrates                 0
04.  Milk and meat products, eggs,
     honey, other food of animal origin            0
05.  Other substances of animal origin            10
06.  Live trees, other plants, 
     their parts, cut flowers                     10
07.  Vegetables                                    0
08.  Fruits                                        0 
09.  Coffee, tea                                   0
10.  Grain                                         0 
11.  Milling products                              0 
12.  Olives, herbs, technical plants               0 
13.  Resins, tars, and other plant
     substances                                    0
14.  Plants and products used 
     in sewing industry                            0
15.  Fat, oil and oil by-products                  0
16.  Meat, fish, poultry products                  0
including
16.04.30.100.  Caviar                             50
16.04.80.900.  Caviar substitutes                 30
17.  Sugar and candies made of sugar               0
including:
17.10.10.  Chewing gum                            30 
18.  Cocoa and cocoa products                      5 
19.  Cookies                                       0 
20.  Vegetable-based food                          0 
21.  Mixed food                                   10 
22.  Alcohol and non-alcoholic drinks,
     vinegar                                      10
23.  Food industry by-products and waste,
     food for animals                              0
including:
23.09.  Food for cats and dogs                    50
24.  Tobacco and tobacco substitutes              10
     including:
24.01.  Raw tobacco                                0
25.  Salt, acids                                   0
26.  Stone, ash                                    0
27.  Mineral fuels, oil products                   0
28.  Non-organic chemistry products                0
29.  Organic chemistry products                    0
30.  Pharmaceutical products                       0
31.  Fertilizers                                   0
32.  Paints, varnish, pigments                     0
33.  Essential oil                                 0 
33.03-06 Perfume, perfume oil                     10
34.  Soap, surface-active substances,
     cleaners, candles, polishers,
     dentist materials                             5
     including:
34.01.  Soap                                       0 
35.  Ferments, glues                               0
36.  Explosives, matches
     including
36.04. Fireworks, signal or rain rockets,
     counter fog signals, and other               10
37.  Photo and film materials                     10
     including:
37.01.20.000.  Photo plates, and                   0
37.02.10.000.  X-ray films                         0
38.  Other chemical products                       0
39.  Plastics and plastic goods                    0
     including:
39.24. Kitchenware and other household items      10
40.  Rubber and rubber goods                       0
     including
40.11,12,13.  Tires and innertubes                10
40.15.19.100.  Rubber decorations for clothes     10
40.15.19.900.
40.15.90.000.
40.16.91.000.  Rubber rags and tablecloth         10  
40.16.92.000.
41.  Leather                                       0 
42.  Leather products                             10
43.  Fur, pelts, artificial fur                    0
43.03.  Fur clothes                               30
44.  Wood and wooden products                      0
     including:
44.14.00.000.  Picture and other frames           10
44.19.  Kitchenware                               10
44.20.  Woodcraft items, 
        figures, boxes, etc.                      10
44.21.  Other wooden items                        10
45.  Ceramics                                      0
46.  Wicker-work                                   0 
47.  Cellulose,                                    0
48.  Paper, cardboard                              0
49.  Books, newspapers,
     other publications                            0    
50.  Silk and silk products                        0
51.  Wool and wool products                        0 
52.  Cotton                                        0
53.  Other natural textile threads and fabrics     0
54.  Chemical threads                              0
55.  Chemical staple fiber                         0
56.  Cotton knitwear, ropes                        0
including:
56.01.10.21.  Cotton hygiene items                 0
57.  Rags (factory made)                          10
58.  Special fabrics, tapestries                   0
59.  Covered textile goods                         0 
60.  Knitted fabric                                0 
61.  Knitted goods                                 0 
62.  Textile clothes (except knitwear)             0 
63.  Other ready textile products                  0 
64.  Shoes                                         0 
65.  Hats                                         10 
     including
65.06.92.000.  Hats from natural fur              30
66.  Umbrellas, canes                             10 
67.  Artificial flowers                           10 
68.  Stone, gypsum, cement, 
     and asbestos products                        10
69.  Kitchen cutlery and other household items    10 
70.  Glass and glass products                      0
     including:
70.13.  Tableware                                 10
70.16.  Glass tiles, bricks and other 
        decorative elements                       10
70.18.  Glass decorations                         10
71.  Diamond, precious and semiprecious 
     stones, precious metals, items
     and coins made from them                      0
     including 
71.13.71.14-18.  Jewelry, decorative 
                 jewelry, coins                   10
72.  Ferrous metals                                0
73.  Ferrous metal products                        0
74.  Copper and copper products                    0
     including
74.17.  Kitchen machines                          10
74.18.  Kitchenware                               10
75.  Nickel and nickel products                    0
76.  Aluminum and aluminum products                0
including:
76.15.  Kitchenware and other                     10
-       household items
78.  Lead and lead products                        0
79.   Zinc and zinc products                       0
80.  Tin and tin products                          0
81.   Other non-ferrous metals                     0
82.  Tools made from non-precious metals           0
82.15  Cutlery from non-precious metals           10
83.  Other items made from non-precious metals    0
84.  Nuclear reactors, boilers,                   0
     mechanical and other devices 
85.  Electric machines and devices,
     recording and tv equipment                   0
     including
85.09.  Electrical home machines                 10 
85.10.  Electric shavers                         10
85.17.10.000.  Telephones                        10 
85.18.  Microphones, loudspeakers                10 
85.19.  Audio playback devices                   10 
85.20.  Tape recorders and other 
        recording devices                        10 
85.21.  Video recording and playback
        devices                                  10 
85.22.  Components for items                     10 
        listed in 85.19-21
85.23-24.  Audio tapes                           10 
85.27.  Radio receivers                          10
85.28.  Television sets                          10
85.29.  Components of items      
        listed in 85.25-28                       10 
85.20.  Tv tubes                                 10 
86.  Trains, trams, rail cars 
     and other equipment                          0
87.  Means of transportation,                   
     (except for rail transportation)            10
including:
87.01     Tractors                                0
87.13.  Wheelchairs for disabled                  0 
88.  Flying devices, spacecraft, etc.             0
89.  Ships, boats and other floating devices      0
90.  Optical,photographic, cinematographic, 
-    control, therapy, and surgical equipment 
-    and tools                                   10 
     including:
90.20.90.19,21.   Medical devices                 0
90.22.
91.  Watches and their parts                     10
92.  Musical instruments and their components     0
93.  Weapons and ammunition                       0
94.  Furniture, bed linen, lamps,
     pre-fabricated building structures          10
     including:
94.02.  Medical furniture                         0
94.06.  Pre-fabricated building structures        0
95.  Toys, sports equipment                       0
     including:
95.04-08.  Games, side shows, shooting galleries  30     
95.04.10000  Video games                           0
96.  Different ready-to-use goods                 0
96.01  Items made from ivory                     10
97.  Works of art: import and export of art 
works is conducted in compliance with procedures 
adopted by the government.

No duties are levied on: 
- imports from the states with which Armenia has established customs 
unions. 
- goods imported temporarily under customs control and under an 
appropriate customs regime.
- imports for construction projects envisaged by inter-government 
agreements on investment cooperation.
- imports made on credits to the government, the state budget, and 
government funds.

There is no limit on hard currency imports to Armenia.  The customs 
processing fee for export/import transfer is 0.15 percent of the 
estimated cost of goods.  No fee is collected for deliveries made on 
credits to the Armenian government, countertrade clearing operations 
made on the basis of international agreements, or for humanitarian aid.  

All Armenian and foreign citizens when crossing the Armenian customs 
border can transfer in and out with them any quantity of items/personal 
belongings except for those for which the Armenian government has 
defined quantity limitations.  At the same time, the total cost of these 
controlled items must not exceed USD 1,000.  If the stated quantity of 
the items, or the total cost of USD 1,000 is exceeded, the items are 
considered  "goods for sale" and are subject to tariffs varying from 10 
to 20 percent of the item's cost in most cases.

For more information on customs tariffs and procedures contact:

State Customs Department
(Chairman - Mr. Yerjanik Abgaryan, 
Deputy Chairman - Ms. Teresa Dilanayan)
35 Moskovyan Street, Yerevan 375010
Tel: (374-2)533-538  


Value-Added Tax (VAT) and Excise Tax: (see para 7.6.).


6.2. CUSTOMS VALUATION

The value of imports is declared by the exporter.  The value declared 
should be based on reliable, countable, documented sources.  In the 
absence of these, the customs may use its own or comparable information 
sources and GATT valuation methods based on the following:
-  value of the particular contract
-  value of the contract for similar imports
-  value of the contract for uniform imports 
-  deduction from the cost
-  addition to the cost
-  reserve method


6.3. IMPORT LICENSES

In 1995, Armenia adopted a new decision on licensing procedures which 
simplified foreign trade deals by reducing the number of products for 
export/import which require licensing.  Specifically, the new decision 
provides that: 

The fee for obtaining an export/import license is equal to the current 
minimum monthly official salary in the country (475 drams or USD 1.11 - 
by June, 1995). The licenses are of two types: general and one-time. A 
general license requires governmental permission and is valid for more 
than one contract with more than one foreign firm.  The one-time license 
is valid for one contract only.  A separate license should be secured 
for every type of product mentioned in a contract.

To obtain a license, an applicant needs to submit the following 
documents: an application; documented evidence of the origin of the 
product, including a contract or other documents on the acquisition of 
the product from the producer or an intermediary  (if the product is 
produced outside of Armenia, all import documents must be presented), 
financial information regarding the acquisition of the product, and a 
certificate of quality either from the manufacturer or an authorized 
agency; and the export/import agreement and documents proving state 
registration of both sides.
A license is issued within 10 (ten) days after submission of the 
application, and is given for the period necessary to conduct the 
import/export operation, not to exceed one year.   

Import licenses are required for the following items:
------------------------------------------------------
item; code                        issuing body
------------------------------------------------------
import of wild animals            Ministry of Economy, 
and plants registered in the      upon approval of the
Armenian Endangered Species       Ministry of Nature
                                  and Environmental
                                  Protection

Import of medicines               Ministry of Economy, 
and raw materials for their       upon approval of the
production: codes 30, 13.02,      Ministry of Health
29.38, 29.41, 05.10, and 12.11 

Import of medicines: codes        Ministry of Health 
13.02, 29.38, 29.41, 30.03, 
And 30.04

Import of anti-insect chemical     Ministry of 
substances: 30.08                  Agriculture

Import of ammunition;              Government of Armenia 
army equipment; components; 
explosives; nuclear materials 
(including heat producers), 
technologies, equipment, stations, 
specific non-nuclear substances 
and related services, sources of 
ionized radiation, narcotics, and 
psychotropic substances 

IMPORTANT! The companies registered in Armenia with a 30 percent or 
larger foreign share in their charter capital do not need licenses when 
exporting their products from Armenia (except for textile exports to the 
European Union), or when importing materials necessary for filling the 
charter capital and/or the production itself.

The licensing authorities can be contacted at the following addresses:

Ministry of Economy (also applications to the government)
1 Government Bldg., Republic Square, Yerevan 375010
tel:7(8852)527-342, fax:7(8852)151-069

Ministry of Health 
8 Tumanyan Street, Yerevan 375001
tel:7(8852)582-413, fax:7(8852)151-097

Ministry of Nature and Environmental Protection
37 Moskovyan st., Yerevan 375002
tel:7(8852)530-741, fax:7(8852)534-902

Ministry of Agriculture
2 government bldg, republic square, yerevan 375010
tel:7(8852)520-321, fax:7(8852)523-793


6.4. EXPORT CONTROLS

Minimum Export Price Control 

The Armenian Customs Department is authorized to control export 
agreements for a short list of products, to make sure they are not 
exported from Armenia at prices lower than the minimum export prices set 
by the Ministry of Economy.  However, these products can be exported at 
lower prices if the exporter pays the difference to the state budget, or 
secures a special permit from the Armenian government, or if the exports 
are made according to international agreements entered by Armenia.  The 
controlled products include:  

- non-ferrous metals, including secondary ones; their alloys, powders, 
oxides, salts, semi-products; scrap and waste; products from non-ferrous 
metals (except for products manufactured in Armenia): 74.01-74.14, 75, 
76.01-76.14, 78, 80, and 81.01-81.13.

- products made from ferrous metals (except for products manufactured in 
Armenia): code 72.00.

- scrap and waste of ferrous metals (except for of products manufactured 
in Armenia): code 72.04.  


Munitions And Dual-Use Export Control:

Export of the following products must be licensed:

- munitions
- military equipment
- explosives
- nuclear materials, technology and equipment
- specific non-nuclear materials and related services
- sources of ionized radiation

A special governmental commission chaired by the Deputy Prime Minister, 
and an affiliated council of experts has been created to process export 
applications for these categories. Exporters are required to provide 
full technical specifications and supporting documentation with every 
license application before it is processed. Munitions and dual-use items 
can be exported only to prescribed destinations.   

On September 27, 1993, the Armenian government adopted an itemized 
export control list titled "List of Materials, Substances, Equipment, 
and Dual-Use Technologies Export of Which Must Be Licensed".  The list 
is accessible to government or non-government exporters together with 
the details of the procedures to be followed to obtain a license. 

The export control list includes four main divisions of materials, 
substances, devices and dual-use technologies which may be used in 
development of the following weapons:

a. Bacteriological and poisonous weapons 
B. Nuclear devices 
C. Rocket weapons 
d. Chemical weapons

All illegal exports of items listed in the export control list are to be 
viewed as illegal export of weaponry for which the acting criminal law 
envisages penalty from 3 to 8 years of imprisonment.
     

6.5. IMPORT/EXPORT DOCUMENTATION

All economic entities, regardless of the form of ownership, when 
conducting export operations must provide an invoice in four copies, 
which is registered with the Customs Department or, if advance payment 
or a letter of credit is used for payment, approved by the bank 
servicing the payment.  One copy of the invoice is kept by the Exporter.  
The second is retained by the Customs Department, which in its turn 
sends the two remaining copies to the servicing bank and the State Tax 
Inspectorate. 

A certificate of origin may be requested by customs for imported or 
exported goods.  The certificate of origin must be provided for imported 
goods when:

- imports are made from countries for which Armenia has set quotas or 
other foreign trade regulation measures.

- it is stipulated by international agreements joined by Armenia, or by 
Armenian legislation related to preservation of the environment and 
health, and protection of Armenian consumers' interests, public order, 
and national security. 


6.6. TEMPORARY ENTRY

No customs tariffs are levied on goods imported temporarily under 
customs control and under an appropriate customs regime.  Foreigners who 
temporarily enter Armenia can bring one vehicle with its trailer duty 
free on the condition that it must be taken with them when they leave.  
If the foreigner does not re-export the car, duties calculated for each 
1 cubic cm of the car engine's working volume as follows must be paid:

age (years)                   duty
-                             USD

0-2                            0.1
2-4                           0.15
4-6                           0.25
6-10                          0.30
More then 10                  0.40

The following items can transit Armenia only by special permission of 
the Armenian government:

- All types of weapons, ammunition, army equipment, components for their 
production, and explosives.

- Nuclear materials (including those in the form of heat producing 
materials), and sources of ionized radiation. 

Armenian customs is responsible for verifying the contents of transit 
loads when transit of prohibited items is suspected.  Customs has the 
legal power to inspect and seize suspect transit shipments. Dual-use 
items require an import certificate from the country of destination to 
guarantee that the imported items will not be used for military 
purposes.


6.7. LABELLING, MARKING REQUIREMENTS, AND STANDARDS

New labelling requirements have yet to be adopted by the Armenian 
government.  Most of the Soviet regulations still remain in force. 

Armenia uses the metric system of weights and measures.  The country 
inherited the USSR system of standards, and now is working to develop 
its own normative acts (about 100 acts have already been adopted), as 
well as participate in development of common CIS standards.   On July 1, 
1994, Armenia joined the International Standards Association (ISO) and 
is planning to join IEC.  At present, the ISO 9000 regulations package 
is being translated into Armenian.  After state approval, the system 
will be gradually implemented in Armenia.  

For more information on current standards and norms contact:  
State Administration for Standards, Metrology and Certification 
(Chief - Mr. Ghukas Mehrabyan, Deputy - Mr. Karlen Adamyan) 
49/2 Komitas Street, Yerevan 375051 Armenia
Tel: (374-2)235-600, Fax: (374-2)285-620


6.8. PROHIBITED IMPORTS  

List of items prohibited for import:
- weapons, explosives, army equipment, components for their production, 
and army uniforms.
- narcotics, psychotropic substances, devices intended for their use.

Note: importation of the listed items is implemented in compliance with 
special government regulations.



                                  CHAPTER 7
                             INVESTMENT CLIMATE

7.1. OPENNESS TO FOREIGN INVESTMENT

Basic provisions regulating the investment climate are set by the 
Bilateral Investment Treaty (BIT) signed by the USA and Armenia on 
September 23, 1992, and by the Law on Foreign Investment adopted by 
Armenia on July 31, 1994.  Under the term Foreign Investor, the law 
recognizes any foreign company, a citizen, a person without citizenship, 
an Armenian citizen permanently residing outside of Armenia, or an 
international organization which invests in Armenia.  Foreign Investment 
is any form of property including financial means and intellectual 
property which is invested by a foreign investor directly in the 
territory of Armenia in any economic or other area.  A Foreign 
Investment Company is a company of any legal form recognized under 
Armenian Law which is founded by a foreign investor, or in which he is a 
participant.   

Foreign investors are allowed to make the following types of investments 
in Armenia:

a. World currencies including the Armenian dram.
B. Real estate, other property and related property rights
C. Securities
D. Money orders or other orders for implementation of 
obligations/agreements that have defined value.
E. Any form of intellectual property rights 
F. Right to conduct any economic activity specified by legislation or by 
an agreement with the republic of Armenia.
G. Paid services
H. Other types of investment allowed by Armenian legislation.

The following legal forms may be used by foreign investors to make 
investments in Armenia:

A. Establishment of fully foreign-owned companies, or representations, 
affiliates, branches, or purchase of existing companies.
B. Establishment of new joint companies with participation of Armenian 
companies or citizens, or purchase of a portion of shares in an existing 
company.
C. Purchase of different types of securities officially recognized by 
Armenian legislation.
D. Procurement of a permission for use of land, or a concession 
agreement for use of Armenian natural resources with participation of an 
Armenian company or Armenian citizens.
E. Procurement of other property rights
F. Other allowed forms including those based on agreements with Armenian 
companies or citizens.

Foreign investors take responsibility for any violation of Armenian laws 
and regulations.  Foreign investors can use their property to satisfy 
their obligations in accordance with these responsibilities.


7.2. CONVERSION AND TRANSFER POLICIES  

Enterprises may convert currency via services of the Armenian banks All 
profits received by a foreign investor, after required taxes are paid, 
remain his property.  Foreign investors can open hard currency accounts 
in Armenian banks.  Their profits can be reinvested and used for 
purchase of goods/services, or currencies in Armenia.  Foreign  
investors can  freely repatriate their property, profits or other assets 
that result from their investment.


7.3. EXPROPRIATION AND COMPENSATION

According to the Foreign Investment Law, in the event of a change in 
legislation, foreign investments, in accordance with the investor's 
preference, may be subject to the laws existing at the time when the 
investments were made, for a period of up to 5 years.

Foreign investments cannot be nationalized.  They also cannot be 
confiscated/expropriated unless in exceptional cases in a state of 
emergency, upon a decision of the court and with full mandatory 
compensation.  Investors should be compensated for any damage incurred 
to their investment, or loss of profit resultant from the actions of the 
state bodies or state officials. 


7.4. DISPUTE SETTLEMENT

According to the Foreign Investment Law, all disputes that may arise 
between a foreign investor and the Republic of Armenia must be settled 
in the Armenian courts.  All other disputes to which the Republic of 
Armenia is not a party can be considered by the Armenian courts or other 
bodies entitled to settle economic disputes, or by intermediary courts 
unless otherwise provided for by international laws or by preliminary 
agreements of the parties involved.  Provisions for dispute settlement 
between the U.S. company and the government of Armenia are similarly set 
by the Bilateral Investment Treaty (BIT). 

Disputes between Armenian and U.S. businesses can be settled through the 
Armenian national courts, or appropriate international courts stated in 
a contract, including by the International Center for the Settlement of 
Investment Disputes.  Disputes between an Armenian and a U.S. party to a 
joint venture registered in Armenia may also be settled through the 
Economic Court.  For more information contact:

Ministry of Justice
(Minister - Mr. Vahe Stepanyan)
8 Khorhrdarani Street, Yerevan 375010
Tel: (374-2)582-157; Fax: (374-2)582-449


Economic Court
(Supreme Arbitrator - Mr. Henrik  Sarkisyan)
18 Paronyan Street, Yerevan 375015
Tel: (374-2)532-411; fax: (374-2)582-449


7.5. POLITICAL VIOLENCE

No political violence affecting international trade or invetsment is 
observed.


7.6. PERFORMANCE REQUIREMENTS/INCENTIVES

Foreign investment companies pay taxes and are subject to general tax 
privileges according to Armenian legislation.  Specific privileges are 
applied only if foreign investments comprise 30 or more percent of a 
foreign investment company at the time when the initial investments were 
made.  A newly formed joint venture between a foreign and a local 
Armenian entity is entitled to the general two year tax holiday.  
Additionally, from the third year until the tenth year of operation, JVs 
can deduct 50% of their tax liability if the foreign share is more than 
50%.  They can deduct 30% if the foreign share is 30%-50%.  Foreign 
owned companies have the same privileges.  

The taxation System in Armenia is based on the "Law On Taxes and Duties" 
which lists 14 different types of taxes.  These include a profit tax, 
income tax, value-added tax, excise tax, land tax, property tax, social 
security tax, local taxes and others.  However separate laws on only a 
few of these have been implemented as of yet.  Among the key taxes are: 
  
Profit Tax: is similar to the U.S. corporate tax, and is levied on the 
profits of enterprises which have the status of legal entity - Limited 
Liability Companies, Co-operatives, and Joint-Stock Companies.  General 
tax scale includes four rates: 12, 18, 25 and 30 percent.  Banks and 
insurance companies are subject to 45 percent tax.  

Income tax: is levied on wages/salaries, as well as the income of 
members of enterprises which are not considered legal entities.  The 
monthly tax scale is measured in minimum monthly official salaries.  A 
maximum tax is levied on incomes exceeding forty-fold the minimum salary 
(19,000 drams or USD 43.00 by June 1995) and is equal to 800 percent of 
the minimum official salary plus 30 percent of the sum exceeding the 
forty-fold minimum salary.  Resident foreigners (minimum stay -183 days) 
who receive incomes from sources on the territory of Armenia are taxed 
according to the same scale.  Income received outside of Armenia is 
included in the total amount taxable in Armenia.  However, the income 
tax levied in Armenia can be reduced by the size equal to the income tax 
paid to another country.  The tax for non-residents is 20%.  A double 
taxation treaty between the United States and Armenia is currently in 
the negotiation phase.   

Value-Added Tax (VAT): is levied on the circulation of goods and 
services, including import sales.  Urban transport, purchase of real 
property, medicines, milk and agricultural products, domestic 
electricity consumption, as well as imports of certain foodstuffs are 
tax exempt. The current VAT is 20%.
 
Excise Tax:  Taxable items include wine-vodka products, and hand-made 
carpets (tax rates - 50 %), as well as beer, grape wine, wine materials, 
tobacco products, jewelry, fur and fur products (except for work and 
military uniforms made from sheep fur), clothing made from natural 
leather, and tires (tax rates - 25 %).  The tax is the same for imported 
goods and is collected at customs upon entry.   

Social Security and Pension Tax: is paid by an enterprise from its 
taxable profit and is equal to 37 percent of the total sum of 
salaries/wages paid to employees (2% - goes to the state social security 
fund, and 35 % - to the state pension fund) 

For more information on these and other taxes and duties, contact:

National Tax Administration
Director - Mr. Pavel Safaryan
Deputy Director - Mr. Armen Alaverdyan
3 Movses Khorenatsy Street, Yerevan 375015
Tel: (374-2)538-101, 538-065 
Fax: (374-2)151-967

No duties are paid by a foreign investor for import of goods which 
constitute his investment in the enterprise or for materials to be used 
by the foreign investment company for production.  Personal use items 
imported by foreign personnel of companies with a foreign investment are 
also non-dutiable.  Nor are duties levied on export of products (goods, 
services) manufactured by foreign investment companies, or on import of 
products (goods, services) for internal use by these companies, except 
in cases specified by Armenian legislation and international agreements.


7.7. RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT

Foreigners have no right to own land - they can only lease it or 
temporarily use it by agreement.  However, foreigners have a right to 
own all other types of property and have equal rights with  Armenian 
citizens in establishment of different types of companies.  Exploitation 
of natural resources is to be made only upon concession agreements with 
the government of Armenia or other appropriate state bodies.
 

7.8. PROTECTION OF PROPERTY RIGHTS

Property rights of U.S. businesses in Armenia are protected by the 
Armenian law "On Property", by the Trade Agreement, the Bilateral 
Investment Treaty, and the Armenian Foreign Investment Law. 


7.9. REGULATORY SYSTEM: LAWS AND PROCEDURES  

Key business laws and regulations:

Date                  Legislation

6/4/64    Civil code (periodically amended)
10/31/90  Law on Ownership in the Republic of Armenia
1/22/90   Law on Farms and Collective Farms (amended 3/30/92)
1/29/91   Land Code
3/14/92   Law on Enterprises and Entrepreneurial Activity
3/19/92   Lithosphere Code
3/92/23   Water Code
4/19/92   Law on Taxes and Duties (periodically amended)
6/6/92    Law on Excise Taxes (periodically amended)
8/27/92   Law on Privatization and Denationalization of State Owned 
Enterprises and Unfinished Construction Projects (periodically amended)
4/27/93   Law on the Central Bank
4/27/93   Law on Banks and Banking
6/29/93   Law on Privatization of State and Public Housing Stock
6/30/93   Law on Value Added Tax
8/21/93   Law on Patents
8/27/93   Customs Code
8/31/93   Law on Commodities Exchanges
9/2/93    Law on the State Register of Enterprises
9/8/93    Law on the Circulation of Securities  
12/27/93  Individual Businessmen Law
4/27/94   Land Tax Law
6/17/94   The Law on the Status of Foreign Citizens
7/31/94   Foreign Investment Law
3/13/95   Law on Property Tax   
2/8/95    Law on Income Tax
5/19/95   Basic Principles for Retail Trade 
6/15/95   Bankruptcy Law


7.10. BILATERAL INVESTMENT AGREEMENTS

A Treaty Between the Republic of Armenia and the United States of 
America Concerning the Reciprocal Encouragement and Protection of 
Investment (BIT) was signed on September 23, 1992.  The treaty provides 
"MFN - Most Favored Nation" status for investment purposes. This Treaty 
has not been ratified by the Armenian Parliament. 


7.11. OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS

By now, OPIC represents the only reliable organization providing 
investment insurance programs for American businessmen doing business in 
Armenia. The "Investment Incentive Agreement between the Government of 
the Republic of Armenia and the Government of the United States of 
America" signed in 1992 provided a legal framework for OPIC's operations 
in Armenia.  By 1994, OPIC registered 7 potential projects in Armenia 
for insurance, representing a USD 400,000,000 investment. 


7.12. LABOR

The 1992 Law on Employment guarantees employees the right to form or 
join unions of their own choosing without previous authorization.  The 
Law prohibits forced labor.  The statutory minimum age for employment is 
16.  A standard working week has 4O hours.  The minimum annual pay leave 
is 15 working days. 
The minimum wage is set by governmental decree and was increased 
periodically during 1993.  Wages are normally paid every half-months.  
Female employees are granted privileges which include: prohibition of 
hard and hazardous jobs; prohibition of night shift- work (in certain 
cases); prohibition of overtime, work on holidays, and business trips 
for women with children under age of 2; maternity leave of a minimum of 
140 days, maximum one year partially paid, a further one year unpaid; 
prohibition of dismissal of pregnant women and women with children under 
the age of 18 months.

7.13. FOREIGN TRADE ZONES/FREE PORTS

None. 


7.14. CAPITAL OUTFLOW POLICY

Persons who leave Armenia are permitted to export a sum that exceeds USD 
500 (or an equivalent sum in other hard currency) only upon presentation 
of a document proving that the money was legally obtained (earned, 
exchanged, etc.).  

Export payments must be made only on a contractual basis through banks 
which, along with customs departments, verify the legality of actual 
exports transactions.  All government and non-government economic 
entities operating in Armenia must inform the Central Bank, State Tax 
Inspectorate, and the Administration for Statistics, State Register and 
Analysis about their business accounts, joint ventures, subsidiaries, 
affiliates, and representations established outside of Armenia.

Companies registered in Armenia must keep their business accounts in 
resident banks in Armenia only (Armenian citizens can open non-business 
accounts in foreign banks. However, all applications for money transfers 
exceeding USD 500 to these accounts should be accompanied by a document 
proving that the money was legally obtained (earned, exchanged, etc.). 


7.15. MAJOR FOREIGN INVESTORS

1. In 1990, John Huntsman (USA), built a prestressed slabs manufacturing 
plant in Yerevan - a unique high-tech production formed as a 50/50 joint 
venture (Huntsman-Armenian Concrete Corporation) with the Ministry of 
Construction of Armenia.  The American side provided all equipment and 
financing.  At present, Huntsman does not operate the plant for a 
personal profit - his 50 percent is reinvested in the plant or in other 
projects in Armenia.  

2. On May 17, 1995, the Government of Armenia and HYE-DRO Power, LLC. 
(USA), entered into a preliminary agreement under which HYE-DRO will 
finance, build and operate two hydroelectric power projects totalling 
135 MW in northern Armenia.  The total U.S. investment in these projects 
is estimated to amount to USD 200,000,000. 

3. In the early 1995, Mellat bank of Iran opened a branch office in 
Yerevan.  Mellat will serve the growing number of business transactions 
between Armenia and Iran.

4. On June 20, 1995, Midland Bank (UK) established its branch bank, 
Midland Armenia, in Yerevan.  The charter capital of the bank is USD 
10,000,000.  



                                     CHAPTER 8
                           TRADE AND PROJECT FINANCING

8.1. BRIEF DESCRIPTION OF BANKING SYSTEM

The Central Bank of Armenia is the Republic's governing bank. 
The bank conducts state monetary policy and licenses individuals or 
organizations engaged in banking and related activities.

At present, Armenia's banking sector consists of five major public 
sector banks and more than forty private banks. The five public sector 
banks are the Bank of Industry and Construction ("Ardshinbank"), the 
Agricultural Bank of Armenia (Agroardbank), Econombank, State Savings 
Bank ("Khnaybank"), and ArmimpexBank (successor to the Armenian branch 
of the USSR Central Foreign Economic Bank - VNESHEKONOMBANK).  Foreign 
banks are represented by branches of Mellat Bank (Iran) and Midland Bank 
(UK), both of which opened in 1995.

To open a business account in a local bank, an enterprise must present 
its registration documents and a completed application with notarized 
signatures. 


8.2. FOREIGN EXCHANGE CONTROLS AFFECTING TRADING

At present, currency exchange rates in Armenia are strongly influenced 
by currency auctions conducted three times a week by the Central Bank at 
the Yerevan Stock Exchange.  By using strict fiscal policy and dollar 
interventions, the Central Bank managed to  stop the high inflation that 
prevailed in 1993 and in the beginning of 1994.  Since June 1994, 
inflation remains low (1-3% monthly), making the Armenian dram one of 
most stable currencies in the CIS (exchange rate as of June 1995: 430 
drams to the dollar).   


8.3. GENERAL FINANCING AVAILABILITY

1. Corporate resources: a majority of Armenian state-run companies are 
experiencing a critical shortage of funds.  Newly emerging private 
companies, with a few exceptions, are too weak to provide serious 
financing for long term projects of their own. 

2. Lending from the government: the Armenian government is experiencing 
an extreme shortage of resources, making loans from state lending 
institutions almost impossible.

3. Lending from private banking institutions: this is limited by their 
low capacity (very few banks can provide loans exceeding USD 20,000).  
At present, many private banks limit their lending operations to short-
term loans in local or hard currency at a very high rate of interest (up 
to 3-5 percent/month).  These banks usually demand collateral in the 
form of collateral of adequate market value (homes, cars, gold, etc).


8.4. HOW TO FINANCE EXPORTS/METHODS OF PAYMENT

Few Armenian banks presently offer their services for administering 
payment for foreign trade operations.  Methods of payment include 
advance payment, a letter of credit, and other internationally accepted 
forms, except for credit cards and checks.  Payment in cash is also 
acceptable.  Transactions are made on the basis of a written contract 
between a seller and a buyer.   


8.5. TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE 

U.S. ExImBank is not open in Armenia as of yet. The local Armenian banks 
provide limited short-term or long-term financing to Armenian importers 
in local currency or dollars secured by a collateral.  Some procurement 
projects are being financed by the World Bank and EBRD (see para 8.5).  
No insurance companies in Armenia are capable of providing reliable 
insurance services as of yet. 

To insure their risks in dealing with Armenian partners, American 
businessmen are encouraged to contact the Overseas Private Investment 
Corporation (OPIC) in Washington (see also para 8.6).  OPIC is a 
government-affiliated agency which upon agreement with Armenia provides 
insurance (and reinsurance) coverage against three types of political 
risks: currency inconvertibility, expropriation, and political violence.

For more information contact:

Insurance Application Officer
Overseas Private Investment Corporation
1100 New York Avenue, N.W.
Washington, DC 20527
Tel: (202) 336-8620 
Fax: (202) 408-5142
Telex: 493-8219


8.6. PROJECT FINANCING AVAILABLE

At present, financing for projects in Armenia is being provided mainly 
by the World Bank, EBRD, USAID, OPIC, USAID and TDA (feasibility 
studies).  Most projects financed by international institutions, such as 
WB or EBRD are contracted on a tender basis.  Listings of sources of 
financing for projects in the NIS, including Armenia can be ordered 
from:

Office of Multilateral Development Bank Operations (MDBO)
Department of Commerce
International Trade Administration
14 & Constitution Ave., NW.
Room 1107
Washington DC 20230 - USA 
Tel: 202-482-3399
Fax: 202-273-0927
       
or 

International Executive Service Corps
PO Box 10005
Stamford, CT 06904-2005 - USA
Tel: 203-967-6000

The following are descriptions of some major programs being conducted by 
key financial institutions:


World Bank Programs

AGR. Irrigation Rehabilitation - This project will support the 
rehabilitation of the irrigation infrastructure throughout the country.  
Approved on December 8, 1994.  USD 43.3 million (IDA). Consultants will 
be required to: (a) design activities that would enhance the development 
of the water users associations (WUA) and repayment of water charges, 
(b) provide consultations to the water Planning Institute in improving 
and updating the Water Master Plan, and (c) organize training activities 
connected with implementation of the project for specific management 
systems and irrigated crop production.  Ministry of Agriculture * 
Department of Water Supply and Irrigation * Project Implementation Unit. 
Republic Square Yerevan 375010 Armenia. Tel: (374-2) 243-369, Fax: (374-
2)523-793. Contact: Mr. Yuri Javadyan, Deputy Minister of Agriculture.

POW. Power Rehabilitation - This project seeks to rehabilitate two 
thermal power and hydro plants and the electricity transmission and 
distribution network. It will provide technical assistance to policy and 
institutional reform.  Project preparation is underway.
USD 35.0 million (IBRD). Consultants may be required. ARMENERGO State 
Concern. 27 Abovyan Street, Yerevan 375009 Armenia; Tel/Fax:(374-2)151-
721 or 592-327. 

POW. Power Maintenance - The project will focus on critical maintenance 
of selected thermal and hydro power plants and electricity distribution 
and control systems. Approved on December 8, 1994.  USD 13.7 million 
(IDA). Consultant services will be required for technical assistance for 
project implementation and upgrading the electricity dispatch system.  
ARMENERGO State Concern. 27 Abovyan Street, Yerevan 375009 Armenia; 
Tel/Fax:(374-2)151-721 or 592-327.  Contact: Mr. Alexander Asvatsatryan, 
Project Manager.

PSR. Health and Social Sector - The project will strengthen 
institutional capacities of the Ministries of Health, General Education, 
and Labor and Social Problems and provide support to these ministries in 
the implementation of the first phase of reforming the social sectors. 
Project is being identified. Environmental assessment category to be 
determined. USD 30.0 (IDA). Consultant Services will not be required.  
Ministries of Health, General Education, and Labor/Social Protection.

RDS.  Highways -  The project will focus on: (a) periodic maintenance of 
the 1311 km of state highways and repair of bridges; (b) acquisition of 
spare parts and maintenance equipment; and (c) technical services for 
institutional strengthening and introduction of new methods and 
techniques.  Project preparation is underway.  USD 30.0 million 
(IBRD/IDA). Consultants will be required for project preparation and 
implementation. Armenian Road Union. 10, Zakyan Street., Yerevan 
Armenia; Tel: (374-2)561-275

REC. Rehabilitation - The project will finance essential imports to 
restore production in key sectors during the early period of economic 
recovery.  Project preparation is under way.  Retroactive  financing may 
be provided. About USD 50.0 million (IDA).  No consultants are required.  
Ministry of Economy. Republic Square, Yerevan 375010 Armenia; Tel:(374-
2)527-342; fax:(374-2)151-069    

SSE Social Investment Fund - The project will support the rehabilitation 
of small-scale infrastructure and the development of micro-enterprises. 
Project preparation is under way.  USD 10.0 (IDA). Consultants may be 
required for project implementation.

For more information on these and other World Bank activities in Armenia 
contact:

The World Bank Group (IBRD, IDA, IFC)
1818 H Street, N.W., Washington DC 10433
Jan Piercy, U.S. Executive Director: 
Tel: 202-458-0110, Fax: 202-477-2967
Thomas Kelsey, Director, Commerce Liaison Office:
Tel: 202-458-0118; Fax: 202-477-2967  


      European Bank for Reconstruction and Development

AIR. Air Cargo Terminal Project - the project is aimed at improving the 
efficiency of air cargo handling and the range of civilian air cargo 
related services at Zvartnots Airport; at introducing professional and 
market oriented management practices; proper registration, control and 
monitoring of imports and exports; and at implementing recognized 
procedures for the handling of civilian goods requiring special 
attention, such as fuel and chemical substances.  Proceeds will be used 
to finance construction of buildings, apron and taxiways and the 
procurement of equipment, as well as technical assistance services.  USD 
22.8 million (ECU 19 million equivalent).  
Zvartnots Airport * Air Cargo Terminal Project * Yerevan 375042 Armenia; 
Tel:(374-2)282-068, Fax: (374-2)283-643 or 151-123.

POW. Hrazdan Unit No. 5 Power Project - the project is aimed at 
constructing Hrazdan Unit No. 5, a 500 MW natural gas fired power 
generating unit. USD 57 million.  

FOOD. Food Distribution and Marketing - The project will: (a) identify 
investment needs in food marketing sector; (b) assess the technical and 
financial feasibility of the proposed investments;  (c) propose a 
financing structure and financing plans; (d) identify potential legal 
and institutional constraints and (e) assess the environmental impact of 
the proposed investments. Estimated Cost USD 324,000 (ECU 200,000 
equivalent).

To learn more on these and other EBRD projects in Armenia contact:

The European Bank for Reconstruction and Development (EBRD)
One Exchange Square, London EC2A 2EH, United Kingdom
James H. Scheuer, U.S. Executive Director: 
Tel: 011-44-71-338-6503; fax: 011-44-71-338-6487
Sarah Shakelton, Commercial Specialist: 
Tel: 011-44-71-338-6569; Fax: 011-44-71-338-6487


      U.S. Agency of International Development (USAID)

In June 1995, the Eurasia Foundation announced the opening of its Small 
Loan Program for private businesses in Armenia.  The program is aimed at 
supporting local businesses through more favorable loan conditions.  For 
more information contact:

Small Business Loan Program
Eurasia Foundation
22 Isahakyan Street, Suite 9, Yerevan
Tel: (374-2)522-495; 151-824
E-mail: [email protected].  

For more information on AID funded projects contact:

USAID/Caucasus Regional Office
10 Aigedzor Street, Yerevan 375019
Raymond Morton, General Development Officer
Tel: (374-2)227-448, 151-955; Fax: (374-2)151-131


     U.S. Trade and Development Agency (TDA)

TDA's primary activity is the funding of feasibility studies performed 
by American firms that examine the technical, economic, environmental, 
and financial aspects of major development projects.  TDA also funds 
reverse trade missions, specialized training grants, and various forms 
of technical assistants.   For more information on TDA programs and 
application procedures, contact:

Alison S. Koff, Country Manager
U.S. Trade and Development Agency
Room 309, SA-16
Washington DC 20523-1602
Tel: (303)875-4357
Fax: (703)875-7447


     Overseas Private Investment Corporation (OPIC)

OPIC is a U.S. government agency that encourages U.S. businesses to 
invest in developing countries and emerging market economies, creating 
U.S. jobs and exports.  OPIC assists American investors through three 
principal programs: (1) financing investment projects through direct 
loans and loan guarantees (project finance), (2) insuring investment 
projects against a broad range of political risks, and (3) providing a 
variety of investor services.  OPIC participation per project can range 
from as low as USD 2.0 million to as high as USD 200.0 million.

For further information on OPIC finance program, contact:

Finance Department
Overseas Private Investment Corporation
1100 New York Avenue, N.W.
Washington, DC 20527
Tel: (202) 336-8480 
Fax: (202) 408-9866
Telex: 493-8219


8.7. LIST OF BANKS WITH 
CORRESPONDING U.S. BANKING ARRANGEMENTS


Armimpexbank
2 Nalbandyan St., Yerevan, 375010
Tel:(374-2)589-906, 589-518, 564-617; Fax:(374-2)565-958
Chairman: Mr. Eduard Arabkhanyan
Corresponding Banks: Bank of America (Concord, CA), Bank of New York, 
Credit Lyonnais (New York); Creditanstalt Bankverein, 
Raiffeisenzentralbank A.G. (Vienna); Credit Lyonnais, Banque Francaise 
De L'orient, Deutsche Bank A.G. (Paris), Deutsche Bank A.G., Commerzbank 
(Frankfurt); Swiss Bank Corp., Union Bank of Switzerland, Credit Suisse 
(Zurich); Midland Bank, National Westminster Bank PLC (London); The Bank 
of Tokyo (Tokyo); Royal Bank of Canada (Toronto); ABN-Amro Bank 
(Amsterdam), Bank Brussels Lambert (Brussels); General Bank (Brussels); 
National Australia Bank (Sydney).
 
ArdShinBank (Industrial Construction Bank)
3 Deghatan St., Yerevan, 375010
Tel:(374-2)560-616, 528-513, Fax:(374-2)151-155, Telex:243349
Chairman: Mr. Karen Movsisyan
Corresponding Banks: Citibank, Bank of New York (New York).

ArmAgrobank (Agricultural joint stock commercial bank)
7a Movses Khorenatsu St., Yerevan, 375015
Tel:(374-2)534-342, Fax:(374-2)534-342
Chairman: Mr. Armen Arzumanyan
Corresponding Banks: The Bank of New York, Citibank, Republic National 
Bank of New York (New York); Deutsche Bank AG, Dresdner Bank AG, 
Commerzbank (Frankfurt); Credit Commerciale de France, Credit Agricole 
de France, Eurobank (Paris); Bank of Tokyo (Tokyo); Swiss Bank 
Corporation (Zurich); Bank Mees Pierson Amsterdam (Amsterdam); Bank 
Brussels Lambert (Brussels).
Visa Credit Card Service will soon be introduced.

ArmEconomBank
32 Garegin Njde, Yerevan, 375026
Tel:(374-2)440-511, 447-680, Fax:(374-2)562-705
Chairman: Mr. Vladimir Badalyan
Corresponding Banks: Banque Nationale de Paris (Paris); National 
Westminster Bank (London); Riggs National Bank of Washington, D.C. 
(Washington); Deutsche Bank (Frankfurt).

Aviabank
1 P.Sevak St., Yerevan, 375014
Tel:(374-2)288-857, Fax:(374-2)281-940, Telex:243113
Chairman: Mr. Harutiun Vardanyan
Corresponding Banks:Credit Lyonnais (New York); Barklays Bank (London); 
Swiss Bank Corp. (Geneva); Credit Lyonnais (Paris), Dresdner Bank 
(Frankfurt), ABN Bank Amro (Vienna), MMKB (Moscow).

Bank for Reconstruction and Development
31 Moskovyan St., Yerevan, 375002
Tel:(374-2)530-156, 530-094, Fax:(374-2)530-156
Chairman: Alexander Griroryan
Corresponding Banks: Citibank (New York); Los Angeles Bank (Los 
Angeles).

Lend Bank
21 Nairy Zaryan St., Yerevan 375051
Tel:(374-2)399-060 Fax:(374-2)340-273
Chairman: Mr.Anushavan Khachikyan
Corresponding Banks: ABN Amro Bank, City Bank, Bank of New York (New 
York).  Visa Credit Card Service via Incombank (Moscow).



                                     CHAPTER 9
                                  BUSINESS TRAVEL

9.1. BUSINESS CUSTOMS

Many Armenians, despite decades of Soviet rule, managed somehow to 
preserve their historically inherited entrepreneurial spirit.  However, 
foreigners working in Armenia, will encounter a layer of oriental 
traditions and approaches sometimes combined with remnants of the Soviet 
working mentality.  

In general, foreigners should be aware that in many cases, every stage 
of their contacts/negotiations with Armenian businessmen may be 
accompanied by much wining and dining.  The giving of gifts, home 
visits, and visits to historic sites in the countryside are also not 
unheard of.

Foreigners should not be discouraged by belated replies to their 
inquiries, letters, and faxes, or by the lack of a reply. Reliable 
international communication is very expensive and often not accessible 
for many Armenians.   This, along with the remnants of Soviet working 
habits, means that many Armenians answer only correspondence that is of 
vital interest to them.  The need to respond promptly is, however, 
gradually becoming accepted in the Armenian business community.  

Due to differences in interpretation and understanding of some business 
terminology (some of which is very new for Armenia), U.S. businessmen 
are strongly encouraged to make absolutely sure that the content of 
their communications/negotiations/agreements with an Armenian partner is 
adequately understood.  
 
Information resources in Armenia are mainly concentrated in the hands of 
state ministries and agencies, employees of which, below the top 
management level, have no incentive to work effectively.  Often, they 
are unwilling to provide necessary information.   

Corruption is a widespread and growing phenomenon in the majority of 
state organizations in Armenia, including such controlling bodies as the 
police and the customs department.  Though foreigners are largely 
exempt, there may be cases where officials will delay approval of your 
application to rent an office from a state agency, for transportation, 
licensing, and let you know directly or indirectly that a good "tip" may 
fix things immediately.  When this happens, U.S. businessmen should feel 
free to consult with the U.S. Embassy's Commercial Section.  


9.2. TRAVEL ADVISORY AND VISAS

Americans travelling to Armenia should obtain an entry visa from the 
Armenian Embassy in Washington or from the Ministry of Foreign Relations 
of Armenia immediately upon arrival. Visas are valid for the following 
periods:  

Visas obtained without an invitation.................21-days 
Visas obtained with an official invitation ..........period specified in 
                                                     the invitation
Transit visa........................................3 days
Multi-entry and multi-entry transit visas..........one year
 
Payment of the visa processing fee is from $20 to $200 depending on the 
type of the visa, and should be made with a certified check or money 
order to the Armenian Embassy.  For more information contact: Consular 
Department. Embassy of the Republic of Armenia., 1660 L Street. N.W., 
Floor 11, Washiungton DC 20036; Tel: 202-628-5766, Fax: 202-628-5769 
from 10 a.m. to noon, Monday through Friday.

Travellers to Armenia are strongly encouraged to bring with them as much 
cash as possible in crisp new bills. Credits cards and checks are not 
accepted. A few banks have started to cash travellers checks.


9.3. HOLIDAYS

Jan 1-2       New Year
Jan 6         Christmas
Apr 7         Motherhood and Beauty Day
April 24      Genocide Memorial Day
May 9         Victory Day (WW II)
May 28        Independence Day
July 5        Constitution Day
Sep 21        Referendum Day
Dec 7         Earthquake Memorial Day      


9.4. BUSINESS INFRASTRUCTURE

Language 

Armenian ("Hayeren") is the official language of the country and is used 
in documents.  The majority of the population and business circles 
speaks Russian as well.  English or French are mandatory third languages 
in the majority of schools, and local universities produce a significant 
number of English language specialists - finding an interpreter or 
translator does not represent a problem. 

Hotels:

Hotel Armenia ****
One Amiryan Street, Yerevan 375010 
Tel: (374-2)525-393, 560-844, 569-040; Fax: (374-2)151-802   

Hotel Hrazdan ****
72 Pionerakan St., Yerevan, 375002  
Tel: (374-2)535-332, 535-302; Fax: (374-2)537-095 
(reservations require governmental permission)
Hotel Ani ***
19 Sayat-Nova Ave, Yerevan, 275010  
Tel: (374-2)520-775, 582-638, Fax:(374-2)520-545
Hotel Dvin *** 
40 Paronyan St., Yerevan, 375002  
Tel: (374-2)536-343; Fax:(374-2)151-528

Hotel Erebuni*** 
26/1 Nalbandyan St., Yerevan, 375010
Tel: (374-2)564-943, 584-834


Restaurants & Clubs:

Dzoragyugh, 1 Paronyan St., Yerevan. Tel: (374-2)537-670
Krakov, 27 Tumanyan St., Yerevan. Tel: (374-2)562-020
Ararat, Republic Square, Yerevan. Tel: (374-2)527-382
Sunk, 11A Kievian St., Yerevan. Tel: (374-2)227-519
Kars, Tel: (374-2)635-596, 636-583
Armenian Kitchen, Tel: (374-2)480-303, 482-961
Downtown Jazz Club, 3 Pushkin Street, Yerevan
Tavush Music Club, 7 E.Kochar St., Yerevan; Tel:(374-2)553-366 

Telecommunications:

The regular Armenian telephone network currently belongs to the Ministry 
of Communication. Direct-dial long distance phone calls cannot be made 
outside of the NIS.  One must call the operator and reserve a call/fax 
transmission.   This telephone system is old and unreliable.

However, those who wish reliable international direct-dial telephone/fax 
communication have an opportunity to subscribe to a special, and more 
expensive, long-distance service which uses AT&T equipment and satellite 
connection via Washington with the rest of the world.  At present this 
service is primarily used by key government institutions, foreign 
missions and leading firms in Yerevan.

To subscribe contact: AT&T Service, Long Distance Telephone Exchange, 
Azatutyan Avenue, Yerevan, 375044, Armenia: tel:(374-2)288151, 151-002, 
fax:(374-2)151-333.  

To subscribe to international telex services contact the Ministry of 
Communication, 22 Saryan Street, Yerevan, 375022, Armenia; Tel:(374-
2)526-632, fax:(374-2)151-446 

E-mail services are rendered by two companies, based in Yerevan:

ARMINCO, 51 Mashtots Avenue, Yerevan, 375009, Armenia; tel:(374-2)526-
326, 281-425, Fax:(374-2)285-082; E-mail: [email protected] (Internet)

INFOCOM, 22 Saryan Street, Yerevan, 375022, Armenia; Tel & fax: 
7(8852)528-856, or 151-926; E-mail: x400 (c:armenia, 
admd:armmail,o:infocom, un:d.rostomian), or infocom.mgmt@alliance-
partners.sprintintl.net   


Public Transportation:  

Armenia has a quite developed public transportation system which 
includes buses, trolley buses, trams, vans - "route taxies", and a 
subway  (Metro) in Yerevan. Taxis are available in the capital and a few 
major cities.  The present rates in Yerevan are (June 1995):

Trolley, Tram, Metro - 20 drams/ride 
Urban Bus - 25 drams/ride (30-50 drams for private buses)
Mini-Van - 50 drams/ride (100 drams for private vans)
Taxi - 200 drams/km 


International Travel Agents

Besides a number of flights to many NIS cities, regular weekly flights 
connect Armenia with Paris, Amsterdam, Athens, Thesaloniki, Burgas 
(Bulgaria), Sofia, Beirut, Tehran, and Fujairah (UAE), through which 
further  connections are made with the rest of the world.  For 
reservations contact the following travel agents:

Levon Travel Yerevan 
(Director - Ms. Ahahit Torosyan)
10 Sayat-Nova Street, Yerevan 375001
Tel: (374-2)582-831, 525-909, 525-210
Fax: (374-2)151-133
American-Armenian Joint Venture. divisions in the USA: 

Saberatour-Sevan 
(Director - Mr. Ruben Avetisyan)
37 Hanrapetutyan Street, Yerevan 375010
Tel: (374-2)525-448, 528-548
Fax: (374-2)564-030
Branch of "Saberatour"(Paris) and "Sevan" (Lyon)

Sidon Travel & Tourism, Inc. (Armenian Branch)
(Director - Mr. Hrair Babayan)
19 Sayat Nova St., Hotel Ani, Floor 1, Yerevan 375001
Tel: (374-2)522-967
fax: (374-2)151-684

Continental 
(Director- Mr. Sergey Barsegyan)
1/3 Abovyan Street, Yerevan 375001
Tel: (374-2)533-852, 564-582, 582-726 
Fax: (374-2)
AEROFLOT agent - Russia


Business Facilitation Service/Travel Logistics

U.S. business representatives willing to visit Armenia may contact: 
ARAX Travel and Logistics Co., ltd., 
Hotel Yerevan, 14 Abovian Street, Suite 200, Yerevan 375001 
Tel: (374-2)529-418, fax: (374-2)151-048.  

Arax offers the following services: hotel and travel arrangements;
apartment rental, accommodations throughout the country, office space 
rental; car/van rental with driver; airport pick-up/delivery; 
interpreters and tour assistants/tour escorts; meeting arrangements and 
secretarial services; guided trips throughout Armenia; video services.  
Arax accepts all major credit cards, such as American Express, Visa, 
Eurocard, Mastercard, Diners Club International, and JCB.


Medical Services:

At present, most medical institutions in Armenia are supervised by the 
Ministry of Health. Many of them are in poor shape and the quality of 
service is not up to Western standards.  Two general profile hospitals 
have been designated to serve foreigners:

1. To serve foreign diplomats - The Hospital of the 4th Main 
Administration of the Ministry of Health, Proshyan Street, Yerevan, 
Armenia. Contact Person:  Mr. Karen Gulyan, MD. (speaks English). Tel: 
(374-2) 536-641.

2. To serve foreign travellers - The 4th Yerevan City Polyclinic, 13 
Moskovyan Street, Yerevan, Armenia. Contact Person: Chief Doctor Ruben 
Vardanyan, Tel: (374-2) 580-395.

For more  information on these and other hospitals, private doctors, and 
pharmacies contact International Relations Administration,  Ministry of 
Health of Armenia,  8 Tumanyan Street, Yerevan, 375001, Armenia; Phone: 
(374-2) 526-987, Fax: (374-2)562-923 or (374-2)151-097. 


SHIPPING TO AND FROM ARMENIA:

Rail transportation:

Of the four railroad routes connecting Armenia with the outside world 
via Georgia, Azerbaijan, and Turkey, only the line from Armenia to 
Georgia continues to operate.  From Yerevan, the line passes through 
Gyumri and Vanadzor, two major Armenian cities, enters Georgia and 
reaches the Black Sea ports of Batumi and Poti.  The port of Poti is 
suitable for handling container shipments. The port of Batumi is largely 
used for shipments of oil and oil products.    Average delivery time 
from Yerevan to these Black Sea ports is 4 days (700 km).  The railroad 
owns a number of warehouses located along its routes.  In Yerevan, it 
has six large warehouses, each 20 by 80 meters, as well as numerous open 
storage sites.  

For more information and to contract shipments directly, contact:
                                       
Cargo Transportation Department.  
State Railroads Administration
(Chairman - Mr. Vladimir Asryants)
50 Tigran Metsi St., Yerevan, 375005, Armenia
Tel: (374-2) 573-234 (cargo dept), 520-428 (chairman)
Fax: 7(8852)573-630


Air transportation:

Armenia has 6 civil airports with artificial field surfacing.   Armenian 
Airlines - the only official Armenian air carrier - does not possess its 
own cargo planes.  In 1992, the City Council of Yerevan purchased two 
Russian IL-76 cargo aircraft, which mainly serve the government export 
and import programs, and bring in humanitarian aid.  A few companies, 
however, lease cargo planes in Russia or Ukraine for international 
shipment of goods to and from Armenia.  Yerevan's Zvartnots Airport can 
handle all types of planes, including the largest cargo aircraft.  Under 
the EBRD loan, a modern cargo terminal is being constructed at Zvartnots 
Airport to handle international and national cargo shipments.

The following local companies can be contracted for cargo air shipments: 

Commercial Center of Civil Aviation Administration
Zvartnots Airport Admin bldg., Room 6, Yerevan 375042
Tel:(374-2)282-641, 774506, 772362
Fax: (374-2)282-641 

Yerevan Avia Corporation
1/3 Byuzandi Street, Yerevan 375010
Tel: (374-2)527-864, 580-121, 561-461
Fax: (374-2)567-511, 151-799

NAAVI Air Transportation Company
20 E. Kokhbatzu Street, Yerevan 375010 
Tel: (374-2)564-978, 582-653, or 562-809
Fax: (374-2)562-653   

IMAC Italian-Armenian Joint Venture
28 Isaahakyan Street, Floor 3, Yerevan 375009
Tel: (374-2)529-983, 529-740
Fax: (374-2)561-548


Motor transportation:

Armenia has 7,705 km of roads, of which 7,454 are paved.  International 
cargo routes in use are those connecting Armenia with the Georgian sea 
ports of Batumi and Poti, and a low-capacity pontoon bridge connecting 
the Meghri region of Armenia (in the South) with Iran.  A permanent 
bridge to replace the pontoon bridge is now under construction.  It is 
hoped that the new bridge will alleviate some of Armenia's international 
cargo transportation needs.  

For tracking/freight forwarding services (private sector), contact:

Apaven, Ltd.
(Director - Mr. Arsen Kazaryan)
P.O.Box 386, Yerevan 375010 
Tel:(374-2)350-160; Fax:(374-2)350-131, 151-502 
Telex: 243329 ROBOT SU

Zakinturtrans Joint Stock Company
(General Director - Mr. Henri Ter-Markossian)
I Paruyr Sevak St., Yerevan, 375044
Tel: (374-2)285-342, fax:(374-2)282-000
(international cargo transportation/freight forwarding)
	
For information on state companies which provide motor transportation 
services, contact:
 
Cargo Transportation Department
Ministry of Transportation
(Director - Mr. Ashot Stepanyan)
10 Zakyan Street, Yerevan 375010
Tel: (374-2)523-862, Fax: (374-2)525-268 




                                     APPENDIX A
                                    COUNTRY DATA

POPULATION: 3,742,000 by the end 19988 estimates.  A large number of 
Armenians have departed since 1988.  Exact population is uknown.
POPULATION GROWTH RATE:   N/A  
RELIGION: Dominantly Christian (Gregorian). 
GOVERNMENT SYSTEM: Presidential Republic
LANGUAGES:  Armenian is the official language of the country.  
The majority of Armenians speak Russian as well.   
WORK WEEK:  40 hours




                                      APPENDIX B
                                   DOMESTIC ECONOMY 


                              1992     1993     1994
Income, production and employment
(1992, 1993 - in billion rubles,
1994 - billion drams)

Real GDP (1991 prices)       7.593    6.469    6.391     
Real GDP growth (pct)        -52.3    -14.8     -1.2     
GDP (at current prices)     59.068  779.619    29.40   
By sector (pct):
Agriculture                   31.8     48.1     34.8 
Industry                      37.6     26.0     51.6
Construction                   4.3      3.7      2.6
Transportation                 1.3      0.6      1.5
Trade and catering             3.3      2.0      1.5
Other                         21.5     19.6      8.0 
Real per capita GDP ('91)    2,060    1,731    1,707
Labor force (million)        2.194    1.530    1.490 
Unemployment rate (pct)        3.4      6.5      7.0   

Money and prices
(annual percentage growth)

Money supply (M2)              n/a      n/a    700.0  
Base interest rate            8-10     46.5  360-210
Personal savings rate         9-10      n/a   60-180  
Retail inflation             728.7    930.0      900
Wholesale inflation            n/a    990.0      900
Consumer price index          28,7      940      900
Exchange rate (usd/nc)          
Official                     1/400   1/2020    1/350
Parallel                     1/400   1/2050    1/370
 
1994 figures are estimatesbased on six months data.




                                APPENDIX C
                                  TRADE

                            (in million U.S. dollars)

                              1992     1993     1994

Total exports FOB            74.52   108.01   129.98 
Exports to U.S.              1.426    0.227    0.387    
Total imports CIF           141.02   205.43   254.44   
Imports from U.S.  1/        1.015    1.991    2.298  
Aid from U.S.  2/             45.1     93.2   81.728 
Aid from other countries       n/a    112.5    113.0     
Trade balance  1/           -66.50  -97.417  -124.46     
Balance with U.S. 1/         0.409   -1.764   -1.991

1994 figures are estimates based on six months data.

1/ Grain, fuel and other assistance imports not included.
2/ Other U.S. assistance was available through regional programs for 
which a country-by-country breakdown is not available.
Figures are from the Armenian ministry of economy, the Armenian state 
statistical and analysis committee, and the Central Bank.


                                   APPENDIX D
                             INVESTMENT STATISTICS

As of May 1995, 215 foreign investment companies (joint ventures, and 
fully owned firms) were registered at the State Register of Armenia.  
However, there is almost no information on which ones are really 
functioning.  Foreign investments are concentrated mainly in the 
following spheres: wholesale and retail trade (41%); production of 
consumer goods (20%); construction, transportation and travel (19%).  
Armenian-American joint ventures and fully-owned subsidiaries numbered 
33 or 16% of all foreign investment companies.  Of these, 17 companies 
were active,  6 not operating yet,  2 closed operations on various 
reasons, and 5 never started and remained only on paper.  

The following is the contact list of these companies (the last survey 
conducted in June 1995 by Armen Vahradyan, BISNIS Representative, 
AmEmbassy Yerevan): 

ACTIVE:

1. HAITEX 
3 A.Hakobyan St., Yerevan, 375033, Armenia
Tel: (374-2)221-021, Fax:(374-2)151-073 
Mr. Levon Melikyan, Chairman of the Board
Production of electric home appliances, plastic goods, instant lottery. 
Established in 1990 as a joint venture.

2. Levon Travel Yerevan  
10 Sayat Nova St., Yerevan, Armenia
Tel: (374-2)525-210, 394-825, 151-133
Fax: (374-2)151-684
Mr. Anahit Torosyan, Director 
Travel agent. Joint Venture. Founded in 1991.

2. Sidon Travel Armenia  
19 Sayat Nova St., Yerevan, Armenia
Tel: (374-2)520-593, 522-967
Fax: (374-2)151-684
Mr. Vladimir Boryan, Manager
Travel agent. Joint Venture.

3. Armentoy 
12 Sevani St., Yerevan, 375023, Armenia
Tel: (374-2)342-411, 567-652
Fax: (374-2)567-652
Mr. Samvel Tumanyan, President
Toys mfg. Joint Venture.  

4. Huntsman Armenian Concrete Corporation 
49 Artsakh St., Yerevan 375021, Armenia
Tel: (374-2)471-217
Mr. David Horn, Chairman of Board
Mfg of prestressed slabs. Joint Venture between the Huntsman Chemical 
Corporation(USA) and the Ministry of Construction of Armenia. 

5. Vertex Ventures Ltd. 
3 Amiryan St., Floor 3, Yerevan, Armenia
Tel:(374-2)584-234
Fax:(374-2)583-197 
Mr. Assadour M. Ashdjian, President 
Publisher of Armenian Yellow Pages. Joint Venture

6. HPL Armenia  
44 Narekatsi Street, Avan 3
Yerevan, Armenia
Tel:(374-2)535-237 
FAX: N/A yet.
Mr. Zaven Nalbandyan, Director
Mr. Hovhannes Ghukasyan, Software Development Director
Software engineering. Registered on Feb 20, 1995, as a subsidiary of HPL 
Heuristic Physics Laboratories Inc. (David Y. Lepejian, President and 
CEO),1649 South Main Street, Milpitas, California 95035 USA; 
tel:(408)263-1475, fax:(408)263-1584.  

7. Tufenkian Armenia 
17 Aram Khachatryan, #74
Yerevan 375012 Armenia
Tel:(374-2)261-827, 270-826
Fax:(374-2)151-048 (AUA)
Mr. Hambartsum (Garik) Chilingaryan, Manager
Hand-made carpets and threads mfg & export. Registered in July 1995 as a 
subsidiary of Tufenkian Export Import Ventures, Inc., N.Y. President - 
Mr. James Tufenkian.

8. Hill International Armenia 
5 Nalbandyan Street, Second Floor
Yerevan Armenia
Tel:(374-2)529-871
Mr. Frederick Samelian, President 
Mr. Greg Kahwajian, Government & Public Affairs
Construction Management. Founded on April 21, 1995, as a subsidiary of 
Hill International, Inc., 4904 Petit Avenue, Encino, CA 91436-1131; tel: 
(818)981-1048, fax: (818)981-3421. 

9. GOLDEX 
21 Shoprony St., Yerevan, 375021 Armenia.
Tel:(374-2) 650-941
Mr.Ara Tonoyan, Director
Silver jewelry production.  Founded in 1990, as Joint Venture between 
the American company Garfield Fin. Corp., Director Michael Minasyan 
(85%) and the Yerevan Institute of Laser equipment (15%). 

10. Hailink 
24a M.Bagramian St.,Yerevan 375019 Armenia.
Tel:(374-2) 521-664, 273-418
Fax:(374-2) 521-664
Director:Mr.Gagik Evoyan
Research and development in natural sciences and architecture, wireless 
communication networks, software and hardware engineering. Founded in 
1992 as a subsidiary of CILINK Corp., Hermosa Court 910, Cunnyvale, 
California, tel: 735-58-00.

11. Andok 
20 Charentsy St., suite # 2-4, Yerevan 375025 Armenia.
tel: (374-2) 553-365, 564-746
Director:Mr.Martin Mirzoyan
Assembly and sell of optical equipments and glasses, biomedical 
services.  Founded in 1993 as a subsidiary of Armenian Relief Society of 
Western U.S.A. Inc., 80 Bigelow Avenue, Waterdown, MA 02172, U.S.A., 
tel:(617)926-5892,fax:(617)926-4855.

12. Hayshen 
5 Nalbandian St., apt.11, Yerevan 375010 Armenia.
tel: (374-2) 523-983, 583-543, 580-070
fax: (374-2) 151-678
Director: Henrik Tigranyan
Construction and civil engineering, design, CAD. Founded in 1992 as a 
Joint Venture between HAYARD Ltd., Armenia and HAYBUSINESS (USA), 
Director Vartkes Barsam.

13. Golden Pair Corporation  
13 Vram Sapu Arka Street, Yerevan, 375002 Armenia 
tel:(374-2) 582-243, 617-201
fax: (374-2) 526-821, 612-360.
President: Mr. Jirayr Shamilyan
Optical devices mfg, wholesale trade. Founded on November 6,1992, as a 
Joint Venture of Golden Pair Corp., 4659 Hollywood Blvd. Hollywood, CA 
90027, tel:(213) 665-2576, fax: (213) 665-0709

14. DHL Worldwide Express  
1 Charentsy St., Yerevan 375025 Armenia
tel: (374-2) 574-869
fax: (374-2) 574-686
Director: Michael Yukhanayev
Representative in Armenia by UMAX ltd. Founded in 1995.

15. Armako 
111 Raffu st., Yerevan Armenia.
tel: (374-2) 738-323, 151-724
fax: (374-2) 732-636, 151-724
Chairman: Stepan Demirchyan
Production of radio, video and other electronic devices.  Founded in 
1994 as a Joint Venture between ICT group (USA) and "MARS" plant 
(Armenia). 

16. Armenian Company of the International Lottery and Gaming 
50 Nalbandian St., apt. 103,Yerevan 375010 Armenia.
tel: (374-2) 589-913, 560-540, 587-289
fax: (374-2) 561-544
Director:Gagik Tchantchapanyan 
Instant Lottery. Founded in 1993 as a Joint Venture between the Armenian 
Trade Union Center (51%) and International Communication technologies, 
Inc., Executive office, 12555 W. Jefferson Blvd. #200, Los Angeles, 
California 90066, tel: (310) 301-7680, fax: (310) 301-7635, Robert 
Block, Chairman of the Board; SBU: International Lottery & Gaming, Corp. 
419 Greenleaf, Glencol, IL 60022-1907, tel:(708)835-0046, fax:(708) 835-
8861, Michael Siegl, President (49%).

17. Sina 
18 Vardanants St.,Yerevan 375010 Armenia.
tel: (374-2) 521-684, 647-600
fax: (374-20 647-600
President: Henrik Bakunts
Retail Sale of pharmaceutical, medical and orthopedic commodities.
Founded in 1995 as a Joint Venture between Armenian Disaster Neurology 
Research Center (50%), TECH insurance company (30%) and Sigl Export-
Import, 1248 S.Glendale Ave., Suite AA, Glendale CA 91205, President 
Gevorkyan (20%), 


NOT OPERATING YET

1. ESI Engineering & Construction Co., Inc.  
31 Moskovian Street, Apt. 29
Yerevan 375002 Armenia
Tel: (374-2)533-293
Ms. Karine Manukyan, Office Manager
Will build a hydro power plant in Amasia, Armenia.  Registered on 
February 29, 1995 as a branch office of ESI Engineering & Construction 
Co., 777 South Flagler Drive, Suite 650 East Tower
West Palm Beach, Florida 33401; Tel: (407) 833-4040; Fax: (407) 833-
0011; Mr. Thomas N. Swiatowski, Project Administrator

2. Armenian Tomato Company   
20 Tumanian St., apt. 11, Yerevan Armenia.
tel: (374-2) 583-322
Processing and cannery of fruits and vegetables.  Joint Venture.

3. Armenian Sugar Company 
Tel: (516) 667-9339 (U.S.A.)
Fax: (516) 560-0611 (U.S.A.) 
Mr. Peter Petrosian, President 
Sugar and fruit processing.  Joint Venture.
Newly established. Planning to start operations in 1995.

4. ARCO 
4. International Import Export-Mailing Address: P.O. Box 873, Glendale, 
CA 91209 - 0873, Corporate Office: 600 W. Broadway, Suite 355, Glendale, 
CA 91204, President Ashot Rostomian, founded in 1995, office is not 
available yet, intends to act in Moscow.

5. ARAMCO 
18 Vardanants St., Yerevan 375010 Armenia.
tel: (374-2) 521-684
fax: (374-2) 527-650
telex: 243280 MALG SU
President: Mr. Levon Gevorkyan
Wholesale distribution. Founded in 1995 as a joint venture between the 
Concern Sigl and Segl International Export-Import 1248 S. Glendale Ave., 
Suite AA, Glendale CA 91205, President Gevorkyan. 

6. Erebuni 
1 Charents St.,second floor, Yerevan 375025 Armenia.
tel: (374) 524-964
fax: (374) 524-964 or 151-789
Director: Hamlet Asryan
Import-export of food, construction materials and electronics, civil 
construction.  Founded in 1994 as a Joint Venture between Martin Co. and 
Champion International, 6233 Whittier Blvd., Los-Angeles, California 
90022, tel:(213)722-4085, fax:(213)72-0748,  Not operating yet due to 
financial/credit problems with the American partner.

OPERATIONS CLOSED

1. Gah
6 Saryan St., apt.2, Yerevan, Armenia.
Tel: (374-2) 585-477
Jewelry and Gem stones Production. Joint Venture. 

2. Armenian Wind Baron 
50 Isakov St., Yerevan, Armenia.
tel: NA
Production of generators, engines and transformers - Joint Venture.


OPERATIONS NEVER STARTED

1. Ahaton 
10 Hanrapetutian St.,Yerevan 357010 Armenia.
tel: (374-2) 563-832
fax: (374-2) 151-502
Director: Aharon Gabrelyan
Import-Export, production of lenses. Founded in 1994 as a Joint Venture 
with the American Resident Mr.Christopher Sahakyan, Washington DC. 5139, 
Yuma St. N.W. 20016 tel:(202) 966 6887, fax:(202) 966 6889. 

2. Lunar Travel 
10 Shahsuvarian St., apt.4, Yerevan 
Tel:(374-2) 231-814
Mail services - Armenian Representative. 

3. Medium 
6 Kasian St., apt.19, Yerevan 
Tel:(374-2) 277-361
Joint Venture. Repair of optical, photo and movie devices. 

4. Hayinform 
17 Gvardiakanery St., Yerevan
tel: (374-2) 235-161
Director:Mr. Ashot Sahakyan
Information service for the industrial network of NIS. Founded in 1991 
as a joint venture between MEMCO Ltd.(USA) and GOSSTANDART, Armenia.  
Never stared operations on various reasons including electricity 
shortages.

5. Amarak 
1a Zakyan St.,suite # 20 Yerevan 375002 Armenia.
tel:(374-2) 531-950
Director: Nver Pogosyan
Import/Export, Tourism - Joint venture.  Founded in 1993. 


STATUS INFORMATION N/A

1. Enterprise, Ltd 
39 Komeritmiutyan St., Ashtarak   Armenia.
Tel: NA
Cattle breeding

2. Rubin 
13 Mikoyan St., Yerevan, Armenia.
tel: (374-2) 633-561
Jewelry and Gem Stones production.  Joint Venture.



                                   APPENDIX E
                            U.S. AND COUNTRY CONTACTS


U.S. EMBASSY TRADE RELATED OFFICIALS


Country Address: 

Commercial Section * American Embassy
18 Marshal Baghramyan St., Yerevan 375019 Armenia
Tel: (374-2)254-4661, 520-791, 151-144, Fax:(374-2)151-138,
Telex: 234137 AMEMY

U.S. address: 

Commercial Section 
AmEmbassy Yerevan 
Department of State 
Washington D.C. 20521-7020 

attn: Andranik Hovhannisyan, Assistant Commercial Officer or 
Armen Vahradyan, BISNIS representative


ARMENIAN TRADE AND INDUSTRY ASSOCIATIONS 


Armenian Chamber of Commerce and Industry 
(President - Mr. Hamlet Hovhannisyan) 
39 Hanrapetutyan St., Yerevan 375010, Armenia 
Tel: (374-2) 56-54-38, Tlx: 243322 ALFASU, Fax: (374-2) 56-46-95.  More 
than 360 private and state member-companies throughout Armenia.  
Business information support and business facilitation services.

The Armenian Entrepreneurs Association 
(President - Ms. Hermine Haghdalyan) 
19 Kievian St.,Yerevan, 375033, Armenia 
Tel: (374-2)274-837, Fax:(374-2)566-468, or 151-069, 
Tlx: 243368 BASIS SU. 
The Association represents over 1,000 Armenian private businesses. Open 
to international contacts. 

Union of Armenian Merchants 
(President - Mr. Makich Demiryan)
13 Vardanants St., Yerevan, Armenia 
Tel:(374-2)570-321, Tel & Fax: (374-2)151-734.  
The Union is a trade association of of more than 400 retailers and 
wholesalers.  


COUNTRY INDUSTRY AND TRADE-RELATED GOVERNMENT OFFICES  

Ministries:

Ministry of Economy
Armen Yegiazaryan, Minister
I Government Bldg., Republic Square, Yerevan 375010
Tel:(374-2)527-342, Fax:(374-2)151-069

	Foreign Investments Department
	Aram Tarakhchyan, Director
	Tel:(374-2)527-351, Fax:(374-2)524-332, 151-069
	
Ministry of Interior Affairs
Vanik Siradeghyan, Minister
130 Nalbandyan St., Yerevan 375015
Tel:(374-2)560-908, Fax:(374-2)529-388

Ministry of Defense
Michael Harutyunyan, Minister
Ashtarak Shosse, Yerevan
Tel:(374-2)357-881 

Ministry of Health 
Ara Babloyan, Minister
8 Tumanyan Street, Yerevan 375001
Tel:(374-2)582-413, Fax:(374-2)151-097, 562-923
    
Ministry of Energy and Fuel
Miron Shishmanyan, Minister
2 Government Bldg., Republic Square, Yerevan 375010
Tel:(374-2)521-964, Fax:(374-2)151-089

Ministry of Industry
Ashot Safaryan, Minister
2 Government Bldg., Republic Square, Yerevan 375010
Tel:(374-2)521-877, 520-579, Fax:(374-2)151-084, 523-564

Ministry of Culture
Hakob Hakobyan, Minister
5 Tumanyan St., Yerevan 375001
Tel:(374-2)561-920, Fax:(374-2)523-922

Ministry of Light Industry
Rudolf Teimurazyan, Minister
4 Kochar St., Yerevan
Tel:(374-2)226-500, Fax:(374-2)227-363

Ministry of Education
Ashot Bleyan, Minister
13 Movses Khorenatsy St., Yerevan 375010
Tel:(374-2)524-749, Fax:(374-2)567-164

Ministry of Communication
Grigor Poghpatyan, Minister
22 Saryan St., Yerevan 375002
Tel:(374-2)526-632, Fax:(374-2)151-446, 538-645

Ministry of Food and Provisions   
David Zadoyan, Minister
48 Nalbandyan St., Yerevan 375010
Tel:(374-2)529-611, 583-827, Fax:(374-2)564-683 
                
Ministry of Finance
Levon Barkhudaryan, Minister
I Melik Adamyan St., Yerevan 375010
Tel: (374-2)527-082, Fax:(374-2)151-154, 523-745

Ministry of Justice
Vahe Stepanyan, Minister
8 Khorhrdaranayin St., Yerevan 375010
Tel:(374-2)582-157, Fax:(374-2)582-449

Ministry of Employment and Social Security
Ashot Yesayan, Minister
18 Isahakyan St., Yerevan 375025
Tel:(374-2)565-321, Fax:(374-2)563-075

Ministry of Construction
Felix Pirumyan, Minister
3 Government Bldg., Republic Square, Yerevan 375010
Tel:(374-2)589-080, Fax:(374-2)523-200

Ministry of Trade
Levik Khachatryan, Minister
69 Teryan St.,Yerevan 375009
Tel:(374-2)562-591, Fax:(374-2)583-521

Ministry of Material Resources
Vahan Melkonyan, Minister
5 Hanrapetutyan St., Yerevan 375010
Tel:(374-2)538-082, Fax:(374-2)538-321

Ministry of Transportation and Communication
Henrik Kochinyan, Minister
10 Zakyan St., Yerevan 375015
Tel:(374-2)563-391, Fax:(374-2)525-268

Ministry of Nature and Environmental Protection
Suren Avetisyan, Minister
37 Moskovyan St., Yerevan 375002
Tel:(374-2)530-741, Fax:(374-2)534-902, 538-613

Ministry of Agriculture
Ashot Voskanyan, Minister
2 Government Bldg, Republic Square, Yerevan 375010
Tel:(374-2)520-321, 524-641, Fax:(374-2)523-793

Ministry of Higher Education and Science
Vardges Gnuni, Minister
13 Movses Khorenatsy St., Yerevan 375010
Tel:(374-2)526-602, Fax:(374-2)525-317

Ministry of Foreign Affairs
Vahan Papazyan, Minister
10 Marshall Baghramyan St., Yerevan 375012
Tel:(374-2)523-531, 588-829, Fax:(374-2)151-042, 527-022

	Vartan Oskanyan, Director, US/Canada Desk
	Tel:(374-2)588-812, 588-814, 59-13

     Minna Gurgenyan, Chief, Consular and Legal Section
	Tel:(374-2)588-849


Natural Resources

State Administration for Natural Resources
Lasar Sargsyan, Chairman
46 Charents St., Yerevan 375025
Tel:(374-2)551-305, Fax:(374-2)550-488

State Administration for Minerals and Geology
Ashot Karapetyan, Chairman
46 Charents St., Yerevan 375025
Tel:(374-2)551-305, Fax:(374-2)550-822, Telex:243254

Customs:

Customs Department of Armenia
Yerjanik Abgaryan, Chairman
35 Moskovyan St., Yerevan 375010
Tel:(374-2)533-538, Fax:(374-2)533-538

Taxation:

State Taxe Administartion
Pavel Safaryan, Chairman
3 Movses Khorenatsy St, Yerevan 375015
Tel:(374-2)538-101, Fax:(374-2)151-967   

Protection of Intellectual Property 

ArmPatent (State Patent Office)
Sarkis Kantarjyan, Chairman
3 Government Bldg., Main Avenue, Yerevan 375010                   
Tel:(374-2)520-673, Fax: (374-2)580-631

Dispute Settlement

State Arbitrage (Economic Court)
Henrik Sarkisyan, Supreme Arbitrator
18 Paronyan St., Yerevan 375015
Tel:(374-2)532-411 

Supreme Court of Armenia
Tariel Barseghyan, Chief Justice
6 Khorhrdaranayin St., Yerevan 375010
Tel:(374-2)563-594, 583-231   

State Chief Prosecutor's Office
Artavazd Gevorgyan, Chief Prosecutor
6 Khorhrdaranayin St., Yerevan 375010
Tel:(374-2)580-001

Transportation 

Main Administration for Civil Aviation and Armenian Airlines
Shahen Petrosyan
Aviation Administration Bldg., Zvartnots Airport, Yerevan
Tel:(374-2)774-824, Fax:(374-2)151-123 

Zvartnots Airport
Vagharshak Mnatsakanyan, Director
Aviation Administration Bldg, Zvartnots Airport, Yerevan
Tel:(374-2)773-097, Fax:(374-2)151-123

State Administration for Railroads 
Vladimir Asryants, Chairman
50 Tigran Mets St., Yerevan 375005
Tel:(374-2)520-428, Fax:(374-2)573-630

State Administration for Statistics
Levon Davtyan, Director
3 Government Bldg., republic Square, Yerevan 375010
Tel:(374-2)524-213, Fax:(374-2)521-021, Telex:243497

Mass Media

State Administration for Television and Radio                
Tigran Hakobyan, Chairman
5 Alek Manukyan St., Yerevan 375025
Tel:(374-2)555-033, Fax:(374-2)551-513

Armenpress State Information Agency
Gevorg Hovhannisyan, Director
28 Isahakyan St., Yerevan 375015
Tel:(374-2)526-702, 526-702, Fax:(374-2)529-262

Architecture and City Planning 

State Administration for Architecture and City Planning
Romeo Julakyan, Chairman
3 Government Bldg., Republic Square, Yerevan 375010
Tel:(374-2)526-234, Fax:(374-2)583-869

COUNTRY MARKET RESEARCH FIRMS

The Center for Business Research and Development (CBRD)
Stephan Karamardyan, Director
40 Marshall Baghramyan St., Yerevan 375019
Tel:(374-2)271-602, 151-049; Fax:(374-2)151-048
E-mail: [email protected]

Transcom
Suren Shahinyan, Director
1/3 P. Byuzand St., Floor 6, Yerevan 375010
Tel: (374-2)271-827, 567-054; Fax: (374-2)151-048 	


	COMMERCIAL BANKS
	(last survey conducted in June 1995, by Armen Vahradyan, 
	BISNIS Representative, AmEmbassy Yerevan)

Armimpexbank
2 Nalbandyan St., Yerevan, 375010
Tel:(374-2)589-906, 589-518, 564-617; Fax:(374-2)565-958
Chairman: Mr. Eduard Arabkhanyan
Corresponding Banks: Bank of America (Concord, CA), Bank of New York, 
Credit Lyonnais (New York); Creditanstalt Bankverein, 
Raiffeisenzentralbank A.G. (Vienna); Credit Lyonnais, Banque Francaise 
De L'orient, Deutsche Bank A.G. (Paris), Deutsche Bank A.G., Commerzbank 
(Frankfurt); Swiss Bank Corp., Union Bank of Switzerland, Credit Suisse 
(Zurich); Midland Bank, National Westminster Bank PLC (London); The Bank 
of Tokyo (Tokyo); Royal Bank of Canada (Toronto); ABN-Amro Bank 
(Amsterdam), Bank Brussels Lambert (Brussels); General Bank (Brussels); 
National Australia Bank (Sydney).
 
ArdShinBank (Industrial Construction Bank)
3 Deghatan St., Yerevan, 375010
Tel:(374-2)560-616, 528-513, Fax:(374-2)151-155, Telex:243349
Chairman: Mr. Karen Movsisyan
Corresponding Banks: Citibank, Bank of New York (New York).


ArmAgrobank (Agricultural joint stock commercial bank)
7a Movses Khorenatsu St., Yerevan, 375015
Tel:(374-2)534-342, Fax:(374-2)534-342
Chairman: Mr. Armen Arzumanyan
Corresponding Banks: The Bank of New York, Citibank, Republic National 
Bank of New York (New York); Deutsche Bank AG, Dresdner Bank AG, 
Commerzbank (Frankfurt); Credit Commerciale de France, Credit Agricole 
de France, Eurobank (Paris); Bank of Tokyo (Tokyo); Swiss Bank 
Corporation (Zurich); Bank Mees Pierson Amsterdam (Amsterdam); Bank 
Brussels Lambert (Brussels).
Visa Credit Card Service will soon be introduced.

ArmEconomBank
32 Garegin Njde, Yerevan, 375026
Tel:(374-2)440-511, 447-680, Fax:(374-2)562-705
Chairman: Mr. Vladimir Badalyan
Corresponding Banks: Banque Nationale de Paris (Paris); National 
Westminster Bank (London); Riggs National Bank of Washington, D.C. 
(Washington); Deutsche Bank (Frankfurt).

Aviabank
1 P.Sevak St., Yerevan, 375014
Tel:(374-2)288-857, Fax:(374-2)281-940, Telex:243113
Chairman: Mr. Harutiun Vardanyan
Corresponding Banks:Credit Lyonnais (New York); Barklays Bank (London); 
Swiss Bank Corp. (Geneva); Credit Lyonnais (Paris), Dresdner Bank 
(Frankfurt), ABN Bank Amro (Vienna), MMKB (Moscow).

ArmSnundBank
4 Spendiarov Dr.,Yerevan, 375002
Tel:(374-2)536-220, Fax:(374-2)563-220
Chairman: Mr. Hovik Melikyan	
Corresponding Banks: Ukraina (Kiev), TverjuniversalBAnk (Moscow).

Anelik Bank
4 Hrachya Kochar St., Yerevan, 375033, Armenia
Tel:(374-2)221-451, 226-526 Fax:(374-2)226-581
Chairman: Mr. Samvel Tsmatcyan
Corresponding Bank: Swiss Bank Corp.(Zurich), Mos BusinesssBank 
(Moscow).
	
Akunk Bank
19a Koriun St., Yerevan, 375009
Tel:(374-2)520-792, 526-357 Fax:(374-2)526-867
Chairman: Mr. Grikor Vahanyan

Arminvestbank  
13 Vardanants St., Yerevan, 375010
Tel:(374-2)570-502, 570-350, Fax:(374-2)523-718
Chairman: Mr. Arthur Javadyan

Adana Bank
5 Nalbandyan St., Yerevan, 375010
Tel:(374-2)589-017, 597-358 Fax:(374-2)633-591
Chairman: Mr.Karen Nersisyan
Corresponding Banks: Credo Bank (Saint Petersburg).

Areg Bank
11 Yerevan St., Abovian
Tel:(374-2)558-951 Fax:(374-39)07-033
Chairman: Mr. Ashot Arakelyan
Corresponding Banks: IncomBank (Moscow)

Bank for Reconstruction and Development
31 Moskovyan St., Yerevan, 375002
Tel:(374-2)530-156, 530-094, Fax:(374-2)530-156
Chairman: Alexander Griroryan
Corresponding Banks: Citibank (New York); Los Angeles Bank (Los 
Angeles).

Capital Bank
38 Tamantsinery 4th Dr.,Yerevan, 375006
Tel:(374-2)484-610
Chairman: Mr. Kamo Poghosyan

Converse Bank
49 Komitas St., Yerevan 375051
Tel:(374-2)281-015, 235-993 Fax:(374-2)285-082,
E-mail:[email protected]
Chairman: Mr. Smbat Nasibyan

Credit-Yerevan Bank
2/8 Vramshapuh St., Yerevan 375002
Tel:(374-2)589-065 Fax:(374-2)580-083
Chairman: Mr. Martin Hovhanisyan
Corresponding Banks: Banque Nationale De Paris (Paris), Berlin Bank 
(Berlin).

David Bank
16 Kievian St., Suite 609A, Yerevan, 375028
Tel:(374-2)262-831, 262-882, 275-809, 391-140, Fax:(374-2)353-900
Chairman: Mr. Azat Shahbazyan
Corresponding Banks: Inko Bank, Rossisky Credit (Moscow).

Delta Bank
105 Raffu St., Yerevan, 375064
Tel:(374-2)533-924
Chairman: Mr. Arshak Karakhanyan

Erebuni Bank
13 Khaghakh Don St., Yerevan 375087
Tel: (374-2)536-220
Chairman: Mr. Ph. Gevorkyan

EchoBank
36 Avetisyan St.,Suite #31, Yerevan 375012
Tel: (374-2)271-500, 271-510 Fax:(374-2) 271-510, 262-900
Chairman: Ms. Tamara Hovakymyan

Elita Bank
16 Kievyan St., Yerevan 375028
Tel: (374-2)220-223, 223-478, 223-457, Fax:(374-2)226-163
Chairman: Mr. Sanasar Abazazyan
Corresponding Banks: Megeconomsberbank (Moscow).

Felix Bank
38 Saryan St., Yerevan 375002
Tel:(374-2)589-062, (8852)280-702
Chairman: Mr. Barsegh Peplozyan


Gladzor Bank
1/8 Charents St., Yerevan, 375025
Tel:(374-2)576-750, 551-515, Fax:(374-2)576-115
Chairman: Mr. Gagik Amaryan
Corresponding Banks: Stolichny, TverjunivesalBank (Moscow).

Garni Bank
40 Hakhtanaky St., Abovyan
Tel:(374-61)21-334
Chairman: Mr. Grikor Aghadjanyan

Gevorg Bank
11 Hanrapetutyan Ave., Abovyan
Tel:(88261)25-877
Chairman: Mr. Suren Grigoryan 

HaykhnayBank (Savings Bank)
28a Khorenatsu, Yerevan 375018
Tel:(374-2)520-458, 580-451, Fax:(374-2)560-766
Chairman: Mr. Hovhannes Mandakuny
Corresponding Banks: Banque Nationale de Paris (Paris), MegheconomBank, 
Sberbank (Moscow).

Haykap Bank
22 Saryan St., Yerevan, 375002
Tel:(374-2)532-080
Chairman: Mr. Hakob Terunyan
Corresponding Banks: Credit Lyonnais(Moscow), Sviaz Bank (Moscow)

Hrazdan Bank 
8 Spandaryan St., Hrazdan
Tel:(374-2)589-906
Chairman: Mr. Ashot Assatryan

Lend Bank
21 Nairy Zaryan St., Yerevan 375051
Tel:(374-2)399-060 Fax:(374-2)340-273
Chairman: Mr.Anushavan Khachikyan
Corresponding Banks: ABN Amro Bank, City Bank, Bank of New York (New 
York).  Visa Credit Card Service via Incombank (Moscow).


Litsk Bank
P2 Dipol St., Kamo
Tel: (374-2)285-991
Chairman: Mr. Samvel Amirkhanyan

Mets Bank
143 Artsakh St., Yerevan 375001
Tel:(374-2)525-310, Fax:(374-2)525-310
Chairman: Gagik Kafyan
Corresponding Banks: Commerzbank (Frankfurt)
 
Prometey Bank
19 Hracia Kochar St., Yerevan, 375012
Tel:(374-2)273-000, Fax:(374-2)274-818
Chairman: Emil Soghomonyan
Corresponding Banks: NevteGazStroy Bank (Moscow), Deutsche Bank 
(Frankfurt)

Ria Bank
12a Koriun St., Yerevan 375009
Tel:(374-2)560-132 Fax:(88539) 07057
Chairman: Mr. Viktor Virabyan
Corresponding Bank: Toko Bank (Moscow).

Sipan Bank
37 Mashtots Ave., Yerevan 375002
Tel:(374-2)532-601, Fax:(374-2)532-601
Chairman: Mr. Volodia Hovsepyan
Corresponding Banks: MosGorStroyBank (Moscow)

Spurk Bank
2 Zaryan St., Yerevan 375002
Tel:(374-2)257-004, Fax:(374-2)228-155
Chairman: Mr. Samvel Sargisyan
Corresponding Banks: TverjuniversalBank(Moscow)

Spitak Bank
2 Torosyan St., Spitak
Tel:(88269)4-58
Chairman: Mr. Boris Arakelyan

Sevan Bank
24 Azatutyan St., Yerevan 375014
Tel:(374-2)288-747, Fax:(374-2)565-263
Chairman: Mr. Karen Manvelyan

Space Bank
1 Komeritmiutyan St., Yerevan 
Tel:(374-2)533-419, Fax:(374-2)532-600, 240-985
Chairman: Mr. Armen Sukiasyan
Corresponding Banks: Alfa Bank (Moscow).

Transbank
27 Tigranyan St., Yerevan 375014
Tel:(374-2)234-718
Chairman: Mr. Hrant Zazyan
Corresponding Banks: NA

	INFORMATION ON INTERNATIONAL FINANCING

The Multilateral Develoment Bank Office
Brenda Ebeling, Director
14th & Constitutiona Avenue, NW
Washington DC 20007
Tel: 202-482-3399; Fax: 202-482-6179

AGRICULTURE - TRADE ASSISTANCE

U.S. Department of Agriculture
Foreign Agricultural Service
Trade and Promotion Office
Tel: 202-720-7420
```

To the top of this page