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March 6 2006 at 3:55 AM
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ARMENIANOW.COM
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AN ARMENIANOW SPECIAL REPORT

MEAN STREETS: A RARE LOOK AT ARMENIA'S CAPITAL CLANS

By Vahan Ishkhanyan

Editor's Note: The matter of clan rule is accepted, respected in the 11
districts that make up Yerevan. It is a peculiarity of life in the capital
that is as real as reckless traffic and ineffective water delivery. It is not,
however, an issue that can be "officially" documented. Veteran award-winning
journalist Vahan Ishkhanyan is a student of the history of Yerevan, his home.
This report is based on knowledge he has accumulated over many years of
reporting about the city, and on information that, though far from official
documentation, is nonetheless maintained as fact. It is an understood, but
rarely public, account of how the city really works.

Who owns Yerevan?

Like many matters concerning life in Armenia, the question has more than one
answer. . .

Officially, legally, constitutionally, the capital belongs to its residents,
who through elections choose eleven prefects (the mayor of Yerevan is
appointed by the President).

In reality, and in ways that matter most to average citizens and especially to
small business owners, the city belongs to organized, sometimes criminalized,
clans - "akhperutyuns", or brotherhoods, that assert their power through their
position or connections.

Like the fantasy of Hollywood gangster films, or an episode of "Sopranos",
this capital is owned by factions that sometimes battle for their turf; for
their share of the income that is to be had from doing business the old
fashioned way - through power and intimidation. They travel the city in
convoys of the most expensive SUVs. Restaurants are cleared to seat them,
while thick-necked body guards flank tables, pistols tucked into the fold of
their sizeable waistlines.

The bosses have nicknames by which they are known, but not called to their
faces. Many, too, are Members of Parliament, affording themselves the power to
make the very laws by which their businesses are governed. (Recent changes in
the Constitution have also yielded separation of powers that gives more
autonomy to the National Assembly.)

Clans get shadow incomes from communities, mainly from markets and fairs (and
usually do not pay taxes), allocating lands and selling business spaces.
Depending on the territory, the prefects of communities take from $4,000 to
$25,000 for the allocation of lands. They also get bribes for issuing licenses
and other documents.

Clanship is expressed in varying measure throughout the capital. By large
degree, no unified government system works in the city, as the leadership of
each community is accountable to a clan of the power system. To be elected a
prefect, a senior community member or a deputy, one needs to have "prakhod"
(in Russian slang, "pass") that is, permission from some clan or official, to
be elected. And, for business, you need "dabro" (confirmation).

The main figures who grant "prakhod" and "dabro" are the President,
Prosecutor, Minister of Defense. In the second echelon are the Prime Minister,
Speaker of Parliament and Local Government Minister. The prefects in their
turn grant "prakhod" or "dabro" to businesses and territories.

Clans are based on certain ideology. The roots of akhperutyuns are elements of
criminal law and the tradition of Armenian family life (ojakh). Still during
the Soviet years there were criminal authorities in Yerevan's districts
including criminals and kharoshis (in Russian slang, "good guys"). They are
guided by the underworld laws brought from Russian prisons.

Ethno-sociologist Svetlana Lurie writes about the 1960-70s: "Those returning
from prisons brought with them not only the jargon of gangsters and the style
of establishing mutual relations, but also the notions of
thief 'interest', 'work'... thief clashes were the bloodiest. A yard came out
against another yard, a neighborhood against neighborhood, even town against
town."

Then Lurie writes (in "Yerevan, the Mythology of a Modern City") that,
nevertheless, Yerevan became one of the most peaceful cities where crime
against an individual all but disappeared. In Soviet times gangsters were
limited to their subculture, under constant persecution from authorities.
After the collapse of the Soviet Union, when competition for sources of income
became ungovernable, gangsters quickly began to penetrate the government
system.

The subculture spread to broader domains - the army, education, government
structures.

"People's groups must be managed. If they are not managed, informal ways of
management are created," says Head of the Sociology Chair at the Yerevan State
University Lyudmila Harutyunyan, explaining the emergence
of "akhperutyuns". "Thus, the laws of closed structures (prisons) are
transferred to open structures (districts, schools)."


THE CLAN FROM APARAN

The clan of Aparanyans (officially the "Nig-Aparan" compatriotic union, which
is headed by Aghvan Hovsepyan, the republic's Prosecutor General, one of the
closest associates of President Robert Kocharyan) seized power in Yerevan's
Ajapnyak community after a long battle. (In the 1950s several villages were
relocated here from the town of Aparan.)

Hovsepyan was first appointed Prosecutor in 1998. After the October 27, 1999
Parliament assassinations, Kocharyan (under pressure, some say, from
influential opposition members) dismissed Hovsepyan.

In 2004, when the political opposition was attempting a revolution, the
President reinstated Hovsepyan as Prosecutor General. Hovsepyan immediately
instituted criminal proceedings against the opposition and arrested dozens of
citizens in an act that drew widespread international criticism.

Hovsepyan is one of the owners of the "Shant" factory operating in Ajapnyak
and of a restaurant complex bearing the same name, which is one of the biggest
complexes in the republic.

The struggle for domination in Ajapnyak increased in 1999 when the Republican
Party and the Aparanyan clan clashed. The candidates for the community's
prefect were Republican Party member Ashot Aghababyan (nicknamed "Burnash")
who is the director of Hrazdan Stadium and the owner of the adjacent fair, and
Artsrun Khachatryan (known as "Tsivo").

On July 11 that year, the day of community elections, Aghababyan's people
assaulted polling stations, beat proxies of the opponent, firing automatic
weapons. Artsrun Khachatryan's brother was wounded in the melee.

Aghababyan was not tried, but members of his groups stood trial instead of
him. The election was declared invalid. Some time later, Prime Minister Vazgen
Sargsyan made his man, Rafik Mkrtchyan, prefect of the community. After
October 27, when the Prime Minister was murdered, the Aparanyan clan forced
Mkrtchyan to resign. In one interview he said: "One of the parties taking part
in the well-known events, about a month after October 27 already began to drop
hints that the people who brought me to power do not exist anymore."

In 2000, Khachatryan became the head of the community. In 2003, Khachatryan
and Arman Sahakyan, from the Republican Party, were nominated as candidates
for the prefect of Ajapnyak. (Sahakyan is the son of Galust Sahakyan, the
leader of the Republicans' parliamentary faction, and the relative of Ashot
Aghababyan, already a deputy of the National Assembly). Khachatryan won the
election. This struggle was widely viewed as being between the Prime Minister
and the Prosecutor General in which the Prosecutor won and proved that he was
more powerful than the Prime Minister. However, the Prime Minister appointed
Arman Sahakyan deputy mayor, to show that his position is strong.

Analysts say that the cause of the loss of the Republicans is that they were
not able to take care of the Mafioso of the area and to protect them from
arrests. As a result, the criminals sided with the Aparanyan clan and helped
secure Khachatryan's victory. Ashot Aghababyan didn't stand for National
Assembly election from Ajapnyak in 2003, but was elected to represent a remote
region.

In a manner with no apparent development plan, Khachatryan's new term saw
private allocation of property with no attention to location or community
necessity. On Leningradyan and Shinararneri streets, for example, property was
privatized that had for years been public green space.

Once full of green, Shinararneri Street became one of the ugliest streets
where sidewalks on both sides had been turned into corridors between shops.
Even the Presidential Surveillance Service paid attention to the situation in
Shinararneri Street, but, as is widely believed, any department in Armenia is
powerless against the Aparanyan clan.

"Shinararneri Street is an outrage," says Armen Lalayants, deputy to the
city's chief architect. "Neither construction nor environmental norms are
observed. It is a bright example of how one should not build."

TAKEOVER IN DAVIDASHEN

The Aparanyans also established their control over the district of Davidashen,
which is adjacent to Ajapnyak. In the past Davidashen was a village of
Aparanyans next to the city outskirts. In the 1980s, a large district of high-
rise buildings was built there. The village and the buildings together became
a separate community.

Until 2002-2003 the community belonged to Ruben Gevorgyan (also known
as "Tsaghik [Flower] Rubo"). Convicted of murder during Soviet times,
Gevorgyan was commander of the "Sasna Tsrer" detachment during the Karabakh
War. He was Davidashen's prefect until 1999 when he was elected to the
National Assembly (despite the fact that in 1995 he was not allowed to run for
office because of his criminal past).

After becoming a Member of Parliament he made one of his associates, Surik
Ghukasyan, his replacement as prefect. But still, the king of Davidashen was
Ruben "Tsaghik Rubo" Gevorgyan. His star began to fade when the ruling
Republican Party was split. One part led by Prime Minister Andranik Margaryan
remained in power, and the other became opposition.

Gevorgyan joined the opposition wing of the split party. On July 13, 2000, his
nephew Artyom Gevorgyan and an associate made an armed assault on a carpet
shop on Komitas Avenue to rob it. The nephew was arrested. To secure his
nephew's release, Ruben Gevorgyan agreed to step down from the opposition
hierarchy. During the latest parliamentary elections he was defeated, however
he continued to wield power in Davidashen.

One of the richest businessmen in Armenia, Samvel "Lfik Samo" Alexanyan began
to intrude into Davidashen. Alexanyan is the main importer of sugar, grain,
pharmaceuticals, and owns several production plants. In 2003, he was elected
to the National Assembly.

BLOOD FOR TURF

In 2002, Alexanyan wanted new territory in Davidashen, but his application was
turned down, supposedly because of an order given to Prefect Ghukasyan by
Ruben Gevorgyan. A clan clash ensued, during which five people were killed.

The bloodiest clan war happened on June 25, 2003, near a city dump in the
district of Nubarashen. Ruben Gevorgyan's nephew Arkady Gevorgyan, his friend -
deputy head of the healthcare department of the Ministry of Defense Garik
Harutyunyan, and the driver of the car in which they were riding were killed
by men firing Kalashnikovs. Another nephew received serious wounds.

Ruben Gevorgyan was arrested five months later on suspicion of masterminding
an attempt on Samvel Alexanyan's life. Later Alexanyan and Gevorgyan signed a
peace deal and Gevorgyan was released from custody.

Ruben Gevorgyan's authority declined and the community slipped out of his
control. The incumbent prefect became independent and does not submit to his
former boss. To restore his authority Gevorgyan again tried to become prefect.
However, in the last election he lost to Surik Ghukasyan, who is backed by the
republic's Prosecutor through the Nig-Aparan compatriotic union. Thus, the
second community passed under the (perceived) influence of the Prosecutor.

Although his main business interests are in Sebastia-Malatia district, "Lifik
Samo" Alexanyan has recently expanded his territory into Davidashen, where he
owns a supermarket, and is now constructing a multi-storied building.

Observers of clan rule speculate that Alexanyan's expansion into Davidashen is
evidence of the fact that - though Alexanyan is a sure heavyweight - the real
boss of Sebastia-Malatia is Hakob "Lady Hakob" Hakobyan, owner of the
agricultural produce marketplace and one of the largest fairs in the republic.
Hakobyan has been a member of the National Assembly since 1999. He is a
Karabakh war veteran. He gained his authority through bravery and being a
close associate of the late Prime Minister. Now he is in good rapport with
Defense Minister Serge Sargsyan (who generally has influence on many other
communities).

There are arguably few authorities in the republic who can solve issues with
Hakobyan on equal footing. He has no intention of becoming a prefect, since
the incumbent prefect Aghvan Grigoryan (who was reelected for a second term in
the last election, June 5) is under his influence and he can decide who will
become the prefect in the community.

Samvel Alexanyan had run out of territory to claim under Hakobyan's hold in
Malatia-Sebastia, so he is now expanding to Davidashen, where clan power has
seemed to be weakened.

Until May, Davidashen was under the influence of Avan authority Ruben "German
Rubo" Hayrapetyan. Like Ruben Gevorgyan, Hayrapetyan was also prefect. He was
elected to the National Assembly in 1999 and made his appointee the prefect.
He was one of the shareholders of the "Armtabak" companies until he sold his
stake last year. Hayrapetyan is also president of the Football Federation of
Armenia.

When he was fighting for ownership of the tobacco plant in Yerevan, he
survived an attempt on his life. Thereafter he prevailed over one of the most
powerful people of Armenia from 1995-2000, Karabakh Defense Minister Samvel
Babayan, and Hayrapetyan's authority drastically increased. The press twice
wrote about how Hayrapetyan, assisted by his bodyguards, publicly beat Members
of Parliament, one of whom is today's Minister of Nature Protection.

THE GIFT OF POWER

In the spring of last year, it was decided by the upper echelons of power to
give the district of Avan to the clan of the Prime Minister. The residing
prefect resigned, and, with the cards on the table as to the movement afoot,
the Prime Minister's son, 27-year-old Taron Margarian was elected on May 22.
Other opponents dropped out of the election, leaving junior Margaryan as the
only candidate.

(Some political observers believe the community was given to the Prime
Minister's clan, as patronage, in case he should be removed from office.)

The community of Erebuni is widely considered the most clan-dominated. Prefect
Mher "Tokmakhi Mher" Sedrakyan has been in power there since Soviet times.
Sedrakyan enjoys the sanction of the Minister of Defense. He also controls an
enterprise that seems straight out of Hollywood, as he is the authority over
Tokmakh Gyol, the city's most prestigious cemetery, where to make a
reservation six feet under costs $25,000.

In July 2003, a Mercedes in which Sedrakyan was sitting at a gas station he
owns, exploded, apparently from a bomb. Sedrakyan was severely injured. It is
believed the attempted murder was related to business rival Misha Kalantaryan,
who, in the presence of several witnesses murdered businessman Hovhaness
Manukyan. A court found him not guilty on the basis of "diminished
responsibility". The defendant didn't even attend his own trial.

Last year Sedrakyan was re-elected Prefect of Erebuni. He ran unopposed.

An "independent" prefect like Sedrakyan, Gagik "Chorni" (Black) Beglaryan runs
the Kentron district, in the center of Yerevan, and is known for his ties with
Russian authorities and underworld.

During his time as prefect he has become owner of Armenia's largest market,
GUM. Beglaryan is not known to be subject to any clan authority, but is
believed to be directly influenced by the country's political elite. He has
close relations with the Minister of Defense and Local Government Minister
Hovik "Muk" Abrahamyan.

The most lucrative businesses are situated in the center (hotels, a winery,
etc.) whose owners are among the country's authorities. It is said that
because of Beglaryan's connections the properties are exempt from tax.
Beglaryan is also said to exert power over the media that guarantees only
positive publicity about his activities. He is said to have aspirations to
become Mayor of Yerevan.

RUMBLE FOR A ROUTE

Family, friendship, brotherhood (akhperutyun) are sacred ideology. From school
age, youth who accept the ideology mock education, believing that wealth and
position in Yerevan are achieved not through intellectual abilities but with
the aid of clan force and money. Those guided by criminal-clan ideology
eventually enter akhperutyuns and obtain certain positions and sources of
income.

One of the most powerful, most infamous and famous "akhperutyuns" of Yerevan
is Gagik "Dodi Gago" Tsarukyan, who is a close associate of the President's
family, and a Member of Parliament since 2003.

Members of Dodi Gago's akhperutyun clashed with another akhperutyun in the
spring of last year at "Tetsi Krug" for control over a minibus route. A mob
estimated at about 200 fought in a planned rumble that left one man dead and
at least two injured.

Charges were filed, but not upheld against the main men of the "razborka"
(rumble). The same "main men" Hrair "Artashatsi Hro" Harutyunyan and
Ashot "Bangladeshtsi Hamo" Avetisyan led their "akhperutyun" in attacking
photo journalists, and beating participants in a rally on April 5, 2004,
during a demonstration organized by oppositional politician Artashes Geghamyan.

Gagik Tsarukyan's power extends to Yerevan's satellite town of Abovyan and the
village of Arinj. He also has territories in Yerevan. Two years ago he became
the President of the National Olympic Committee of Armenia. During the Soviet
years he was convicted for rape. But three years ago Armenia's court expunged
his conviction.

Recently "Prosperous Armenia", a political party founded by Tsarukyan has
become more active and is predicted to claim several spots in the 2007
parliamentary elections.

The system of clans is so widely accepted in Yerevan that "Haykakan Zhamanak"
newspaper even has a regular column entitled "Akhperutyun" reporting
on "rumbles" and distribution of spheres of influence.

Social analysts often comment that the clan-brotherhood system has diverted
the country into feudalism. One of the expressions of this is that unofficial
authorities such as Tsarukyan are called kings in their territories. He is not
elected, but is given power and his authority is not disputed.

"An early capitalist-feudal system has emerged in Armenia," says sociologist
Harutyunyan. "The country did not outlive other eras. A slave has become a
slave owner. No other model works. The layers that remained in people's sub-
consciousness woke up and at once they restored the feudal order."

(A portion of this article originally appeared in AGBU magazine.)

 

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