September 2020
JOINT STATEMENT 3 October 2020
We, American Chamber of Commerce in Armenia (AmCham), Armenian British Business Chamber – (ABBC), Belgian Armenian Chamber of Commerce (BACC), European Business Association (EBA), CCI France Armenia, Chamber of Commerce and Industry Portugal-Armenia, Hellenic - Armenian Chamber of Commerce and Industry and Union of Manufacturers and Businessmen of Armenia express our strong concern at the large-scale attack along the entire line of contact of Artsakh (Nagorno Karabakh) using heavy artillery, tanks, aircraft and missiles by the dictatorial regime of Azerbaijan, since 27 September 2020. We strongly condemn the aggression of the military-political leadership of Azerbaijan and Turkey targeting the peaceful settlements in Artsakh (Nagorno Karabakh) and Armenia, undermining the economic stability, free international trade and cooperation and civilian security and peace in the Caucasus, raising the risks of a full-fledged war with growing authoritarianism and with no exit plan for such interventions. On 1 October 2020, the Azerbaijani armed forces used artillery in the direction of the city of Shatvan, Gegharkunik region, Republic of Armenia, as well as launched a missile attack from a combat UAV at Mets Masrik settlement, city of Vardenis, Geharkunik region (on 29 September) and Abovian community – only 15 km far from the capital city of Yerevan. There are already over a hundred wounded and killed among the military and civilian population in Artsakh (Nagorno Karabakh), and a civilian was killed, two were wounded and a bus was burnt in the territory of Armenia. This is an outrageous violation of Armenia’s air-space by Azerbaijan and Turkey and a direct attempt to endanger the lives of our fellow citizens and our families. It is a direct violation of basic human rights to a free and peaceful life, economic activity and freedom of movement in our sovereign country. Current developments jeopardize not only economic stability in the region, but the physical security of the civilian population, already taking dozens of innocent lives. We believe that if the international community does not react in a timely and appropriate manner, the military operations may extend beyond the current conflict zone, resulting in serious atrocities, based on historical precedent and a humanitarian and economic crisis in the region, exacerbated by the situation related to the coronavirus outbreak. We call the international community, international organizations - the UN, the Council of Europe, the European Union, the OSCE Minsk Group Co-Chairs – to raise their voice and take urgent and effective immediate Action to stop Azerbaijani and Turkey aggression and to insist on the resumption of negotiations for a peaceful resolution of the conflict.
ՀԱՄԱՏԵՂ ՀԱՅՏԱՐԱՐՈՒԹՅՈՒՆ 3 հոկտեմբերի 2020 թ․ Մենք, Ամերիկայի առևտրի պալատը Հայաստանում (AmCham), Հայ բրիտանական բիզնես պալատը (ABBC), Բելգիա Հայաստան առևտրի պալատը (BACC), Եվրոպական բիզնես ասոցիացիան (EBA), Ֆրանսիա-Հայաստան առևտրաարդյունաբերական պալատը, Պորտուգալիա-Հայաստան առևտրաարդյունաբերական պալատը, ՀելլենիկՀայաստան առևտրի պալատը և Հայաստանի արդյունաբերողների և գործարարների միությունը համատեղ հայտնում ենք մեր խիստ մտահոգությունը 2020թ. սեպտեմբերի 27-ին՝ Ադրբեջանի բռնապետական ռեժիմի կողմից Արցախի (Լեռնային Ղարաբաղի) շփման գծի ողջ երկայնքով նախաձեռնած լայնածավալ հարձակման առիթով, որը ուղեկվում է ծանր հրետանու, տանկերի և հրթիռների գործադրմամբ։ Մենք խստորեն դատապարտում ենք Ադրբեջանի և Թուրքիայի ռազմաքաղաքական ղեկավարության ագրեսիան՝ ուղղված Արցախի (Լեռնային Ղարաբաղ) և Հայաստանի խաղաղ բնակավայրերին։ Այն խաթարում է տնտեսական կայունությունը, ազատ միջազգային առևտուրը և համագործակցությունը, ինչպես նաև Կովկասում քաղաքացիական անվտանգությունն ու խաղաղությունը՝ մեծացնելով լիակատար պատերազմի սանձազերծման վտանգը, որը կուղեկցվի աճող ավտորիտարիզմով և առանց կառուցողական ծրագրի: 2020թ. հոկտեմբերի 1-ին Ադրբեջանի զինված ուժերը կիրառել են հրետանի Հայաստանի Հանրապետության Գեղարքունիքի մարզի Շատվան քաղաքի վրա, ինչպես նաև մարտական անօդաչու թռչող սարքից հրթիռակոծել են Գեղարքունիքի մարզի Մեծ Մասրիկ բնակավայրը, Վարդենիս քաղաքը (սեպտեմբերի 29-ին) և Աբովյան համայնքը, որը գտնվում է մայրաքաղաք Երևանից ընդամենը 15 կմ հեռավորության վրա: Արցախում (Լեռնային Ղարաբաղ) արդեն կան հարյուրից ավելի վիրավորներ և սպանվածներ ռազմական և քաղաքացիական բնակչության շրջանում, իսկ Հայաստանի տարածքում զոհվել է մեկ քաղաքացիական անձ, երկուսը վիրավորվել են և այրվել է ավտոբուս։ Սա Ադրբեջանի և Թուրքիայի կողմից Հայաստանի օդային տարածքի խայտառակ խախտում է և մեր համաքաղաքացիների ու մեր ընտանիքների կյանքը վտանգելու ուղղակի փորձ: Դա մեր ինքնիշխան երկրում ազատ և խաղաղ կյանքի, տնտեսական գործունեության և տեղաշարժի ազատության մարդու հիմնարար իրավունքների ուղղակի ոտնահարում է: Ներկայիս զարգացումները վտանգում են ոչ միայն տնտեսական կայունությունը տարածաշրջանում, այլև քաղաքացիական բնակչության ֆիզիկական անվտանգությունը՝ խլելով արդեն տասնյակ անմեղ կյանքեր: Մենք հավատում ենք, որ եթե միջազգային հանրությունը ժամանակին և պատշաճ կերպով չարձագանքի, ռազմական գործողությունները կարող են ներկայիս հակամարտության գոտուց դուրս տարածվել, ինչը կհանգեցնի հումանիտար ճգնաժամի, որն ավելի կսրի կորոնավիրուսի համավարակի բռնկումների հետ կապված իրավիճակը։ Մենք կոչ ենք անում միջազգային հանրությանը, միջազգային կազմակերպություններին՝ ՄԱԿ-ին, Եվրախորհրդին, Եվրամիությանը, ԵԱՀԿ Մինսկի խմբի համանախագահներին` շտապ և արդյունավետ միջոցներ ձեռնարկել Ադրբեջանի և Թուրքիայի ագրեսիան դադարեցնելու և հակամարտության խաղաղ լուծման ուղղությամբ բանակցությունները վերսկսելու համար:
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.
DID YOU KNOW? The International Day of Peace The International Day of Peace (World Peace Day) is observed annually worldwide on 21st September. It was established in 1981 when The United Nations General Assembly passed a resolution and declared the International Day of Peace as a holiday. The first peace day was celebrated in 1982, and it was held on the third Tuesday of September until 2001, after 2001 until today, the date of the celebration is September 21st. The purpose of the holiday is to raise awareness about the necessity of peace, gather people to spread kindness despite their differences, and shape a Culture of Peace. Moreover, in 2001, The General Assembly voted and decided that countries should stop violence and cease-fire 24 hours during the holiday. Since September 21st is also Armenian Independence Day, and it is one of the main state holidays of the year, most of the events are dedicated to it. However, even though the main concentration is on Independence Day, some events are held in schools and organizations to celebrate Peace day. Ambassadors for Peace organize events in schools, to celebrate the Peace Day by dancing, singing, and organizing competitions.
FMCG COMMITTEE VIRTUAL MEETING WITH THE MINISTRY OF TERRITORIAL ADMINISTRATION AND INFRASTRUCTURE OF RA (MTAI) On 9 September, 2020 AmCham Fast Moving Consumer Goods (FMCG) Committee Waste Management Working Group and AmCham Executive Team held a virtual meeting with the Ministry of Territorial Administration and Infrastructure of RA (MTAI), and the Ministry of Environment of RA (ME) to discuss the planned Armenia Marketplace Waste Management Assessment – Survey and share the Terms of Reference (ToR) details. It is expected to have the assessment by 2021. Mr. Vache Terteryan, Deputy Minister, MTAI; Ms. Narine Avetyan, Department Head of Territorial Capital Programs Support and Solid Waste Management, MTAI; Mr. Sergey Sarukhanyan, Division Head of Solid Waste Management, MTAI, Mr. David Shindyan, Department Expert, MTAI; Ms. Mary Harutyunyan, Chief Specialist, Strategic Policy Department, ME; Ms. Irina Hakobyan, Chief Specialist, Department of Hazardous Materials and Waste Policy; ME, Ms. Elina Markaryan, Public Affairs, and Communications Director, Coca-Cola HBC Armenia, Chair of AmCham FMCG Committee; Mr. Harutyun Alpetyan, Circular Economy Expert, AUA Acopian Center for the Environment participated in the meeting. The meeting was chaired by Karine Sarkissian, Executive Director, AmCham in Armenia. During the meeting, it was agreed to form a working group with the participants of the meeting to continue the private and public sector dialogue and discuss the progress of the AmCham Sustainable Waste Management Project. It was proposed to include into the working group representatives from the RA Ministry of Finance and the RA Ministry of Economy, as well as from the Municipality, to effectively coordinate the work synergize on cross-cutting, and avoid of overlapping activities. Ms. Mary Harutyunyan informed that there is a proposal on legislative changes and after the alignment, within their department, the materials will be shared for review and as need be exclude the legal part from the planned ToR and survey. It was decided that the focal point and leading partner for the AmCham Sustainable Waste Management Project will the Ministry of Territorial Administration and Infrastructure of RA in close cooperation with the Ministry of Environment and other stakeholders. During the meeting, it was stressed that the Kotayk Waste Management pilot project could be a good example to replicate. However, due to COVID-19, the implementation has been postponed. The new implementation schedule was developed and submitted to the Prime Minister’s office for approval. Taking this opportunity we would like to thank Mr. Vache Terteryan, as well as the Ministry of Territorial Administration and Infrastructure of RA and the Ministry of the Environment for their time and active involvement, and continuous support to the AmCham FMCG Committee Waste Management Project. The AmCham FMCG Committee Waste Management Working Group’s objective is to raise awareness and encourage the Armenian business community to meet its environmental obligations, including the EU-Armenia Comprehensive and Enhanced Partnership Agreement (CEPA).
INTERNAL COMPLIANCE PROGRAM (ICP): BENEFITS FOR ARMENIAN COMPANIES On 9 September, 2020 AmCham Armenia organized a meeting by the support of the US Embassy and Non-Proliferation Center (NPC) NGO on INTERNAL COMPLIANCE PROGRAM (ICP): BENEFITS FOR ARMENIAN COMPANIES. An internal compliance system is an arrangement in which a company ensures that it is completing legal transactions, obeying the regulations enacted by the government, and fulfilling company export policies. Internal compliance systems typically include a set of procedures that company officials must satisfy before an item leaves the company. Such procedures include a thorough investigation of the buyer and end-user prior to the shipment of a purchased item off-site. During the meeting Dr. Karen E. Gasparyan, Director, Non-Proliferation Center (NPC) NGO, delivered a presentation on the benefits of adoption: • International ICP Practices • Armenian ICP History • Introduction of Current ICP Plans What are the goals of an ICP? • To develop contacts and good-standing relationships between the company and export agencies; • To remain informed of updates to the government’s export control laws and regulations; • To centralize export-related questions and issues; • To standardize procedures; • To provide early warning and screening of all inquiries and orders; • To generate coherent and complete documentation of all sensitive export transactions; and • To train all employees engaged, either directly or indirectly, with exports. For cooperation and information please contact: Mr. Karen E. Gasparyan, Director Non-Proliferation Center (NPC) NGO +374-10-532 772 +374-99-417 683 (mobile) Special thanks to Mr. Robert Pazos, Export Control and Related Border Security (EXBS) Advisor to Armenia, U.S. Embassy.
7th HARVEST FESTIVAL: RURAL LIFE AND TRADITIONS’ 2020 On 26 – 27 September 2020 7th Harvest Festival: Rural Life and Traditions’2020 was held organized by AmCham Member Green Lane NGO with the support of the Ministry of Economy of RA, GAIA Project, Caucasus Environmental NGO Network, and other partners. The participants enjoyed the natural and organic food directly from the farmers from all the regions in Armenia, as well as the great atmosphere in a green rural environment. Everyone relaxed with their family and friends and enjoyed the food. On 18 September 2020, Ms. Nune Sarukhanyan, President, Green Training Center LTD, AmCham Member company, Ms. Karine Sarkissian, Executive Director, AmCham Armenia, and Mr. Pascal Bokkers, Team Leader, EU and ADA GAIA project on green agriculture had an interview on the Aravot Luso Public TV show and called to participate in the Festival. During the Interview, the participants stressed the importance of green agriculture in the sustainable development strategy of Armenia and called for participation in the Festival. Through the festival, Green Lane aims to bring a positive change and contribute to the development of sustainable agriculture and rural development in Armenia. The Festival is a unique platform, where farmers, producers and buyers, processors, different organizations, and potential donors meet to find new business partners and share the experience.
FMCG COMMITTEE VIRTUAL MEETING On 22 September, 2020 AmCham Fast Moving Consumer Goods (FMCG) Committee Waste Management Working Group and AmCham Executive Team held a virtual meeting to update and decide on the next steps: • Update One to One call/meetings lead and company participation approximate skim • Final Terms of Reference document approval 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. 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.
HARVARD BUSINESS REVIEW PRESS LIVE VIRTUAL EVENT: CYBERSECURITY WITH TATARKLUBBEN On 28 September, 2020 AmCham Armenia in collaboration with Tatarklubben had a Harvard Business Review Press live virtual event on Cybersecurity. The participants learned how to lead their company to more sound and effective cybersecurity strategies. • Understanding cyber risks and how best to control them • Planning and preparing for a crisis--and leading in its aftermath • Making cybersecurity a companywide initiative and responsibility • Drawing attention to the nontechnical dynamics that influence the effectiveness of cybersecurity measures • Aligning the board, executive leadership, and cybersecurity teams on priorities
BRONZE ASSOCIATE MEMBER – ARIDES BARRY GROUP started its activity in the Armenian market in 2015, when “Barry” Company opened the first store of medical equipment, care products, rehabilitation aids, which then, in a very short time, turned into a network, operating not only in Yerevan, but also in other regions of Armenia and in Artsakh. The member-companies of Barry Group are specialized in production and manufacturing, retail and wholesale as well as rehabilitation and logistic services. “Arides” LLC was founded in 2016. It is a resident of the Alliance Free Economic Zone in Armenia. The current scope of the company includes manufacturing and export of more than 30 types of breathalyzers both for personal and professional use, as well as of functional medical beds, electric medical beds, commode chairs, wheelchairs, salt lamps, etc. The company plans to expand the range of products over the next 5 years and include production of crutches, canes, walkers, as well as medical furniture. The newest project of BARRY GROUP is “Luys Barry” LLC, an Innovative Rehabilitation Center for Prosthetics and Orthotics founded in 2019 in Yerevan. The operations of “Luys Barry” include preparation of prostheses and orthotics for the upper and lower limbs, as well as the process of the rehabilitation phase individually with each patient, adult or a child.
BRONZE ASSOCIATE MEMBER – THE INSTITUTE OF INTERNAL AUDITORS (IIA) Internal audit is one of the cornerstones of effective governance that aims to improve the effectiveness of the organization. It is an instrumental tool for the Board of Directors to exercise its oversight role. The Institute of Internal Auditors in Armenia (IIA-Armenia) was established in 2012 to promote and develop the internal audit profession in the country. IIA-Armenia is an affiliate of IIA Global and a member of the European Confederation of Institutes of Internal Auditing (ECIIA). Since 2012 IIA-Armenia membership has increased 5 fold reaching 160 members. The Institute has individual members from private, as well as public sectors, working for financial institutions, including banks, credit and insurance companies, telecommunication companies, consulting companies, ministries and other public organizations. Besides internal auditors, there are also risk managers, compliance officers, internal controllers, consultants, instructors and other professionals among IIAArmenia members. Every year IIA-Armenia organizes local and international conferences, trainings and seminars. During these events, famous industry experts are invited to share their experience with participants on topics of governance, auditing, risk management, IT and cybersecurity, etc. IIA-Armenia representatives also share their knowledge with students, presenting different topics at universities. IIA-Armenia provides many opportunities to its members to expand their network and become part of the global auditing community. IIA-Armenia has three committees: Nomination and Membership Committee, Committee on Education and Qualification Program and Audit Committee, as well as Financial Services task force. IIA-Armenia issues newsletter, and other publications about auditing, team performance, public sector internal auditing, etc. IIA-Armenia translated International standards for the professional practice of internal auditing, Code of Ethics, Core Principles, Mission and Definition of Internal Audit issued by IIA Global. IIA-Armenia promotes the only globally recognized internal audit certification among its members. There are 26 Certified Internal Auditors (CIA) in Armenia. For more information, please follow IIA-Armenia official website at: www.iia.am