The Teghut copper and molybdenum mine in Armenia has a new owner following a sale finalized by VTB Bank. The shares of Teghut LLC were transferred to the Russian bank due to unpaid credit obligations over the past eight years. In spring, the Russian side announced that it was close to selling the copper-producing facility. A former representative of Armenia's banking system recently inherited the debt of Teghut from the bank and sold it to another unnamed individual.
Teghut mine is the second largest in Armenia in terms of copper and molybdenum reserves, with estimated reserves reaching 450 million tons of ore. The site also includes a processing plant that was put into operation more than ten years ago. The mine was previously operated by Vallex Group, owned by businessman Valeri Mejlumyan. In 2018, it became known that Vallex Group was unable to repay its debts to VTB, and the mine was transferred to the Russian state-owned VTB bank for a debt of $380 million. Currently, according to the declarations of the actual beneficiaries, 49.95% of Teghut LLC's shares belong to VTB, with other shareholders including Norik Petrosyan and Russian citizen Pavel Korichnev. During this time, VTB had expressed intentions to sell the company, as the former director stated that the bank could not operate the mine.
On April 22 of this year, VTB's CEO Andrey Kostin announced that the bank was in the final stages of selling the copper mine. According to information from Azatutyun radio, Konstantin Sokolov, better known in Armenian business as the owner of the telecommunications operator Viva Armenia, was interested in acquiring shares of Teghut.
The Competition Protection Commission Approved the Teghut Deal
On June 11, the Competition and Consumer Protection Commission received an application from Kuprare RA for permission to acquire shares of Teghut LLC. On July 7, the commission approved the application and allowed the concentration of Kuprare RA and Teghut. The commission did not disclose information about the shareholders of Kuprare RA, the company's assets, or revenue size.
According to the registry, the company was established this year in February by Sergey Virabyan, who was also the director of the company and until June 5 was the sole shareholder of Kuprare RA. Virabyan worked in the government from 2011 to 2014, heading the Office for the Implementation of Economic Development Programs for Rural Areas.
Virabyan Inherited VTB's Debt and Sold It
Azatutyun asked several questions to Sergey Virabyan. He confirmed that he was the director of Kuprare RA but refused to disclose who currently owns the company.
The volume of Teghut's unpaid credit obligations to VTB, according to the 2024 report, exceeds 162 billion drams (equivalent to $440 million). In March 2022, following the onset of Russia's aggression against Ukraine, the operation of the mine was suspended due to sanctions and logistical disruptions, and was then partially restored. By the end of 2024, the company had increased copper concentrate production to 88,000 tons, exporting the concentrate to China, Russia, and Switzerland.
