Foreign Investment in Armenia - Returns Since 1997

Ever wondered how much Armenia's largest investors have profited in the past decade? What about foreign investors? This article gives us a glimpse in the ultra-secret world of investing in Armenia.

In 1999, 50% of the company was purchased by Canadian Global Gold Mining Company for $3 million (WB data). In the same year, the latter sold its stake to First Dynasty Mines Ltd (Canada) for approximately $22.1 million.

It is 7 times return on investment.

In December 2004, it [Zangezour Copper Molybdenum combine] was privatized to consortium of companies for $132 million. The major one is Cronimet (German) which purchased 75% controlling skate.

By using data of State Tax Service of paid taxes for year 2005 and I semi-annual period of 2006, internal rate of return is about 84% annually.

Frighteningly amazing, isn't it? Of course, these are only estimates and of course many were conducted with extralegal means.

Hetq's article does a great job of explaining the methodology of the numbers, as well as painting a probably accurate picture of how these huge sums are made in our little country.