In 1991, we chose capitalism, is it any wonder then that the «electric networks of Armenia” had been sold into private hands? Didn’t we choose the «market economy»? When we chose the economy, did anybody think that not the local goods will be sold only but also natural resources of the country would also be auctioned, land, energy, and even the people? Under Capitalism it is not important what is being sold; it is he is interested in profit only; no moral values nor geopolitical interests. From this perspective, it is worth noting one important fact: the capital in the United States is acting mainly in the interest of its own State and is controlled by the government regulations. Large private companies, including social networks and the media actually pursue geopolitical interests of the United States. That is why the United States is no longer a capitalist country, because there the capital serves the State’s geopolitical interests and its own financial oligarchy. And what about Russia?
The case of the Russian capital is different. After it is robbed inside the country it is deposited in the Western banks, and becomes a Western capital, therefore serves the interests of the West.
We should note that the «Electric Networks of Armenia» are owned by the Russian “Inter RAO”. Thus, raising prices for electricity in Armenia is the action of that Russian company. The only question is whether the Russian company did not know that raising tariffs would lead to social unrest? Couldn’t the Russian company be unaware of that fact that certain elements would exploit the social discontent for supporting of geopolitical goals of other States, who are interested in shifting the foreign policy of Armenia towards the West and withdrawal of the Russian military bases?
Could that Russian company be so naïve so it did not understand the geopolitical interests of its own homeland, stand above its own economic interests? That economic loss can be recovered somehow, but another geopolitical blow like Ukraine will be fatal for Russia.
I would like to suggest that that Russian Company was well aware of that fact; in other words “the Russian Capital” all knew it. There couldn’t be a better gift to the pro-western elements in Armenia. For the Russian Capital and the Russian State are two opposite poles. Russian Government is trying to strengthen its position both politically and economically, while the Russian capital is trying to join the West, to run away and meanwhile to dismember the State itself. This is a completely opposite situation than in the USA. The dependence of the Russian business on the West is not just huge, but in fact, Russian big business is a part of the Western world. And for the Russian capital, a confrontation with the West is equivalent to death. Russian Capital looks at the Russian State, the Russian Government and Russia herself are a mere nuisance. That is why destabilizing Russia internally the allied countries is a «Holy Cause» for the Capital.
The Russian energy company, for Russia?
Excerpt from the text The former Deputy Energy Minister of Russia, Viktor Koudryaviy believes that management of the company operates very inefficiently: They build capacity in the Far East, to sell energy to China. While last year only 20% of new Russian consumers have been able to be connected to the electricity network. This is an enormous damage to the economy of the country! After all, this means that 80% of new businesses either receive no electricity, or get it irregularly. President Putin has estimated the damage at 1.5 trillion rubles . According to him: There are many ways covert funding of the URF1 by RAO «UES»2. It can be hospitality funds, and all sorts of other spending. No wonder that the so-called non-productive costs UES over the past seven years, rose by 39 billion.
URF can definitely be
1 Union of Right Forces : https://en.wikipedia.org/wiki/Union_of_Right_Forces
2 Unified Energy System of Russia https://en.wikipedia.org/wiki/RAO_UES
2 considered one of the richest political parties in Russia. I believe that the General Prosecutor’s Office and the Audit Chamber should be concerned about the financial status of the URF. After all natural monopolies such as UES are strictly controlled all over the world.
In the year 2002, a well-known Russian Economist Andrei Illarionov called the company as a “national shame».
What did the Armenian authorities gave their consent to? In response to the application of the daughter company of “inter RAO UES”, The Electric Networks of Armenia (ESA) the State Commission granted in part, allowing the tariff increase by only 17%. The current rate for Armenia population is 41.85 drams for 1 kWh/day and 31.85 drams at nighttime. The Commission considered that the total volume of the company’s debt (approximately $ 250 million) in only 24 billion drams (about $ 50 million) originated from adverse weather conditions and of devaluation of AMD against the dollar. The lion’s share of the debt, according to the Armenian authorities, accumulated as a result of inefficient management and aimless expenditure and it had to be covered by the Russian company itself. The Armenian authorities could refuse giving consent to the increase, but then company owner could stop the supplying its service.
Social protests directed against whom?
Social protest is a natural reaction of people encountering lawlessness in a country. The only question is, against whom should the protests held: the President, the private company, the State or the owner of the networks? For the average person actually it doesn’t matter. What is important is to lower electricity prices, but there are no protests, where some politicians haven’t not attempted to utilize for their political goals. And this social protest is not an exception.
Can protests resolve the issue with prices for electricity?
Imagine that the protests in front of the residence of the President has reached all possible scenarios. A successful coup has been carried out and activists came to power. A so-called “Armenian Maydan”. Judging by the slogans chanted by some activists it seems that the “polittechnologists” are trying to use this social protest for realization of totally different objectives. Thus, the new Government entering the Presidential Palace on a wave of protests, will, most likely, close the Russian military bases, replace them with NATO troops (in this case, Turkish) withdraw of Armenia’s participation in the EAEU, and start negotiations for membership in the EU, with all the «advantages», such as the final disassembly of the remnants of industry (for non-conformity with EU standards) and «charms» of juvenile justice.
Meanwhile, the most important issue, which agitated the impoverished people will not be resolved. Lowering electricity prices will not be realized, for «Electric Networks of Armenia» is a private company, and the only way to reverse the decision of that private enterprise is to nationalize it. But the issue of the nationalization of the company not sounded. However nationalization of the Company was not amongst the chanted slogans. Because if the electric networks are nationalized, then it will be necessary to raise the issue and the nationalization of other natural resources, as well as the Central Bank, which belong not to the «forever occupier» but “the free West». That is why the theme of nationalization is so taboo in ALL the rallies of the Armenian liberal opposition.
Still, even assuming that the nationalization is materialized, the private company Inter Rao could simply refuse to serve the Armenian energy sector that will create serious shortage of electricity in Armenia. Nobody forced us to sell everything that we could to foreign States. And today’s realities are such that the energy sector in Armenia depends entirely on the Russian capital, and not the Russian State.
A short introductory course
JSC «inter RAO UES» was founded in 1997 as a subsidiary of RAO UES of Russia». Initial specialization of the inter Rao was the international electricity trade.
In 2006 inter Rao Group acquired 100% of shares of JSC «electric networks of Armenia».
Contact Group — 27.63%;
Group of FGC UES is 18.57%;
JSC «INTER RAO (subsidiary of JSC» inter Rao)-19.00%;
Group Norilsk Nickel-13.21%;
Group Rushydro is 4.92%.
The company’s Board Chairman: Boris Kovalchuk.
The primary goal of Inter Rao consists of market development, otherwise it gives a damn about the people, its own country, decency and humanity. The only goal is profit.
And what about the Russian State?
Russian media’s relative silence on the recent events in Armenia is a clumsy attempt to cover up the Russian Government’s powerlessness in taking actions for equity. A country in which the capital serves the interests of the other states who have declared sanctions war to Russia cannot call itself a sovereign state. Celebrations of “Independence day» and lengthy speeches about “the special path” will remain empty slogans, until Russia swerves from the path of self-destruction imposed by the so called “Democrats and Reformers” of all stripes.
The aggressive action of the flight of the Russian capital from the country, offshorization and the auction of everything that can be sold are sad realities, in a country where national interests and the interests of capital are so distinct.
Whatever the outcome of the energy crisis, the sufferers will be the Armenian Nation and the reputation of Russia as a State. Capital cannot care less.
And the Armenians vote with their feet; they emigrate. That is how they are expressing their attitude toward «market economy of the new world order» during the last 24 years.
What is to be done?
Nationalization is essential. Because only this action of the Government of Armenia will serve the people of Armenian and the Armenian State. Politicians who are afraid to utter this word (nationalization in respect not only of electrical networks, but also blatantly everything that is being or will be looted by the Western companies, i.e. natural and financial resources of the country) should not be considered politicians at all. Nationalization is needed not only in Armenia, but also in Russia, Georgia, Ukraine, Latvia and many other countries of the so-called «developing» world.