April 2021
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AMCHAM BOARD MEMBER AMCHAM 1ST VICE PRESIDENT MS. ELINA MARKARYAN Please meet Ms. Elina Markaryan who has been serving as AmCham First Vice President since 2017 and since 2019 she chairs the FMCG Committee Sustainable Waste Management project. Currently, she holds the position of Public Affairs and Communication Country Manager at Coca-Cola Hellenic Bottling Company Armenia and is responsible for Government Relationship, Stakeholders, Communication as well as Corporate Social Responsibility practices, design and implementation addressing local needs and priorities. She holds MSc in Public Policy and Administration from the London School of Economics and possesses project management and consulting experience in business development management. She also graduated executive education program at IMD Business School. Her career spans from working at the President’s Office in Armenia to German International Cooperation (GIZ) and United Nations. In her free time, Ms. Markaryan delivers public lectures and supporting charity programs. As a hobby, she prefers traveling, sports/ kickboxing.
DID YOU KNOW?
World Intellectual Property Day World Intellectual Property Day is observed annually on 26 April. The event was established by the World Intellectual Property Organization (WIPO) in 2000 to "raise awareness of how patents, copyright, trademarks and designs impact on daily life" and "to celebrate creativity, and the contribution made by creators and innovators to the development of societies across the globe". This year it shines a light on the critical role of small and medium-sized enterprises (SMEs) in the economy and how they can use intellectual property (IP) rights to build stronger, more competitive and resilient businesses. 26 April was chosen as the date for World Intellectual Property Day because it coincides with the date on which the Convention Establishing the World Intellectual Property Organization entered into force in 1970. In the Republic of Armenia, organizations are dealing with copyright and its cohesive rights. The State Intellectual Property Agency has a separate section for copyright and the related rights within the organization. The state agency bears the function of guaranteeing the protection of copyright and related rights in Armenia, the creation and modification of the legislative base in the selected fields, joining international agreements and conventions, and some other functions regarding the conduction of state policies.
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AMCHAM RESPONSIBLE BUSINESS NETWORK (RBN) PLATFORM After a long period, AmCham is revitalizing the AmCham Responsible Business Network (RBN) Platform events which aim to promote Corporate Social Responsibility (CSR) and facilitate the private sector companies and NGOs' cooperation for mutually beneficial projects. The first RBN meeting took place on 1 April 2021, where the Private Sector and NGO representatives shared a best practice experience and came up with Cooperation CSR plans and success stories. The meeting started with the opening remarks of Ms. Karine Sarkissian, Executive Director, AmCham Armenia, and Mr. Artur Martirosyan, Deputy Minister of Education, Science, Culture and Sports of RA who gave their welcoming speeches and thanked the attendees for their interest and participation. Mr. Artur Martirosyan gave a presentation on development programs and reforms in the spheres of education, sports, science, youth, and culture. The interested companies are most welcome to share with the Ministry their projects and discuss future mutual cooperation opportunities. During the RBN event the invited keynote speakers represented the following topics: Mr. Nazareth Seferian, CSR and Social Entrepreneurship Professional represented business and NGO Cooperation Benefits. Ms. Arpi Karapetyan, Founder and General Manager of Cascade People and Business, Founder and Chairman of Armenian HR Association represented “Nor Ej” Social Responsibility Program. Mr. Korioun Khatchadourian, COAF, Managing Director presented The COAF SMART eco-system in Lori, the story of starting such a plan and about their actions. Ms. Tatev Ayrumyan, Director, Apaga Charity Foundation gave a presentation on Building a Dignified Future topic. In the end, during the Q&A session, some questions were discussed and Ms. Karine Sarkissian gave closing remarks as well as highlighted the importance of upcoming RBN events.
INTERVIEW WITH THE MINISTER OF ECONOMY MR. VAHAN QEROBYAN On 22 April 2021 AmCham Armenia Executive Team had an interesting interview with the Minister of Economy of RA Mr. Vahan Qerobyan. The interview will be published in AmCham Business Magazine Spring/Summer 2021 issue on Business and Investment Environment/Banking and Finance, which will be published in June 2021.
AMCHAM LEGAL COMMITTEE MEETING On 13 April 2021, AmCham Armenia held its Legal Committee 2nd Meeting. The Committee Secretary and AmCham Executive Director, Ms. Karine Sarkissian, welcomed the participating members and announced the Committee's beginning. Along with Ms. Karine Sarkissian, the Chair of the Legal Committee, Ms. Lusine Mnatsakanyan, proposed the Meeting's agenda, which was consequently discussed and accepted by the Legal Committee members. Besides the Legal Committee permanent members, the AmCham President, Mr. Ashot Hovanesian, was also present and participated in the Meeting. Legal Committee's 2nd Meeting's agenda was primarily determined to consist of the recent survey - AmCham Legal Committee Survey on Identification Legal Issues and Processes results' evaluation and assessment. Ms. Karine Sarkissian expressed her gratitude to Mr. Ara Khzmalyan and other involved Legal Committee members for preparing the survey. The survey has been sent to AmCham member companies enrolled in the Legal Committee and consisted of twelve questions. Furthermore, in the meticulous discussion of each question and detailed commentaries left, the participant members came up with key focus areas and issues that require the Committee's attention. Among the central questions moved forward to the Meeting's table was the e-draft and the business sector's awareness about it. Mr. Ara Khzmalyan accentuated the main flaws of the e-draft as a Legal Drafts discussion platform both in terms of effectiveness and usability. Yet, it was commonly agreed that e-draft could fulfill an exceptionally significant role for the environment from the business awareness perspective. Additionally, Mr. Sargis Grigoryan mentioned the example of the Central Bank's practice on a similar matter in the banking sector and how the knowledge from a certain case can be fostered for the future benefit. Thus, it was decided to come up with a substantial feedback or suggestion package from the AmCham Legal Committee to enhance the efficiency of businesses' interaction with the e-draft in general. Moreover, it was concluded that a working group should be formed to notify, follow up, and facilitate the training programs on the legal domain for the business sector. Ms. Elina Markarian brought attention to the importance of pre-e-draft analysis and evaluation as a critical objective for the Legal Committee's activity. The latter was commonly agreed to be considered an objective that requires updates and meeting with government officials regularly. It is furtherly concluded that in the scope of the Legal Committee's activity target area, it is of primary importance to ensure the perpetual lobbying and preparatory works conduction using the available resources and channels. Apart from that, Mr. Sargis Grigoryan brought additional attention to the importance of the Legal Committee's contribution and facilitation to governments and Foreign Direct Investments (FDI) relationship balancing. Sargis highlighted the subtle connection between the state's investment security, reputation, and economic environment predictability ranking with the country's FDI inflow. It was decided to bring forward the development of a properly functional Investment policy document, which will also be included in the Committee's prioritized lobbying activities, assumingly in collaboration with the Ministry of Economics. Additionally, issues regarding the absence of credit/debit notes can positively impact the business environment and more precise issues such as "gift card" type of goods' inclusion issue in the businesses' monthly tax reports and arising corruption risks caused, respectively. Finally, the Labor law issues were discussed, and it was again agreed to come up with precise recommendations for optimizing the particular legal domain since the imperfection and outdatedness of the corresponding legal document causes various hurdles and barriers for the business environment. Not only that, but the overaccentuated anti-discriminatory policy adopted results in backward discrimination from the law to the business. NEXT STEPS: In the framework of the AmCham Legal Committee, the survey is once again going to be sent to the member companies and the substantial report production works is to be initiated. The discussed objectives in the direction of lobbying will be formulated and initiated. The formulation and lobbying of Mr. Sargis Grigoryan’s mentioned commentaries on the importance of investment’s protection and stimulation. Members from various AmCham companies participated in the meeting: Mr. Ashot Hovanesian, Synergy Armenia, Ms. Lusine Mnatsakanyan, Coca-Cola HBC, Mr. Hayk Malkhasyan, ADWISE Business and Legal Consulting, Ms. Elina Markaryan, Coca-Cola HBC, Mr. Ara Khzmalyan, ADWISE Business and Legal Consulting, Mr. Sargis Grigoryan, GPartners Law firm, Mr. Suren Ghalumyan, Deloitte, Ms. Irina Dumanyan, Mentor Graphics Development Service, Ms. Lilit Gevorgyan, Philip Morris Armenia, Ms. Gayane Markosyan, Synopsys Armenia, Mr. Karen Garaseferyan, JTI Armenia
EXTENDED PRODUCER RESPONSIBILITY (EPR) PAGER
Armenian Business Community
Take the lead and make your voice heard in the upcoming changes! With this letter, we encourage the Armenian business community to join the efforts in establishing transparent, efficient, and sustainable post-consumer waste management system to meet Armenia’s obligations to introduce Extended Producer Responsibility (EPR) system by 2023. This commitment is part of the EU-Armenia Comprehensive and Enhanced Partnership Agreement (CEPA) signed between EU and RA of Armenia in 2017: While Nature Protection Payments (Բնապահպանական վճարներ) aim to mitigate the damages caused to the environment, the Extended Producer Responsibility system ensures the proper handling of specific post-consumer waste products (tires, batteries, packaging, etc.) that producers or importers have put in the market. The models of Extended Producer Responsibility vary from country to country, and Armenia is yet to develop and adopt the best working model that would meet its environmental and economic needs. The global practice shows that the earlier the businesses engage in the initial stages of the strategy development, the better model the country adopts. While the RA Government is obliged to create the necessary legislative framework, the role of the private sector is to support this process through the following: ▪ ▪
Engage in a dialogue with the government and follow up on policy development, Co-finance the research/study of various scenarios for the introduction of an Extended Producer Responsibility (EPR) in Armenia and the development of an appropriate model according to international experience.
It is important that the private sector will take an active role in helping to create the best recycling system in the country. Municipal Post consumption waste (PCW) management is in a development stage in Armenia and we as a business community need to produce data and evidence on deciding the best case scenario to increase packaging waste recycling in the most effective and efficient way to create a win-win scenario that will meet compliance targets and at the same time mitigate potential tax implications on business. Together, we need to conduct research/study through a professional agency for the following purposes: • Analyze the current PCW situation, specifically volumes, types, collectors, recyclers, and opportunities; run SWOT to decide on the best waste collection and recycling practices, from the available alternatives, which will be the most suitable for Armenia and financially justified. • Develop the best case implementation plan/guidance scenario for taking actions with the best expert agency. • To engage with the government and negotiate the best case scenario of collaboration to drive the agenda and support the business interests. Join the initiative! American University of Armenia (AUA) American Chamber of Commerce of Armenia (AmCham) Fast Moving Consumer Goods (FMCG) Committee Waste Management Working Group European Business Association Armenia (EBA) Union of Manufactures and Business of Armenia (UMBA)
EXTENDED PRODUCER RESPONSIBILITY (EPR) PAGER
Q&A Question․ What are the start and end dates of the research? Answer․ The dates will be determined when the number of organizations interested in the initiatives is confirmed. The study process is planned to start in September 2020. Before starting the study, a tender will be announced with detailed Terms of Reference. The best agency selection criteria will be based on the the best technical implementation experience and price. Question․ Which organization will conduct the research and how will it be selected? Answer․ Even though there are experienced organizations, the selection will follow the tender procedure – preparation of Terms of Reference, announcement for tender, receiving applications and selection. Question․ What is the purpose of the research and what will be the result. Answer․ As a result of the research, the best waste management model for both the public and private sectors will be selected. The model will be justified by financial and economic analysis based on the current situation in Armenia. Question․ Which level specialist form an organization shall be involed? Answer․ The organization should provide the contact details of a technical manager who is involved in waste management and environmental issues. However, the process must be under the general director’s supervision.
SILVER REGULAR MEMBER – PIKASSO OOH LLC Pikasso OOH LLC was established in Armenia in 2018 and launched its activity by winning the exclusive advertising concession of Rossia Mall, and by acquiring in May 2019 the inventory of locations of Arabella, one of the leading Out-Of-Home operators in the market. The inventory is composed of Large Formats: Unipoles, Rooftops, and Billboards, all of them located in prime locations in Yerevan. Pikasso deployed state-of-the-art inventory composed of 75” LCD screens fitted with engagement tool and sold under the name of Rossia Mall Channel, as well as static and special displays. Founded in Beirut in 1986, Pikasso is the number one Out-of-Home advertising company throughout the Levant (Lebanon, Jordan and Iraq), leader in North Africa (Algeria, Tunisia and Morocco), and has extended its activity to West Africa (Senegal, Ivory Coast, and Mali) and the Caucasus (Armenia).