Thursday, February 21 2019 18:09

ArmInfo. Mining companies of Armenia are obliged to indicate the names of all owners of these companies. The amendments to the Subsoil Code and the package of  related laws were approved at the February 21 sitting of the RA  Government.  

Introducing the draft amendment, Acting First Deputy  Minister of Energy Infrastructures and Natural Resources of the  Republic of Armenia Garegin Baghramyan stressed that the innovation  is related to the country's international obligations under the  Extractive Industries Transparency Initiative (EITI), of which the  republic has become a member since March 2017. It is envisaged, in  particular, that the mining companies of Armenia undertake to  indicate the names of all the owners of these companies. This  legislative initiative, as Garegin Baghramyan reminded, is not new.  Last year, the package was submitted to the country's parliament, but  due to the lack of a quorum, it was never adopted. The application of  the new mechanism, the deputy minister stressed, will allow  increasing the level of transparency and openness of the mining  industry. The package includes, for example, the concept of "real  owner", the procedure for owner's registration and the submission by  him/her and members of family of income and property declarations. In  case of violation of these provisions, sanctions can be imposed,  including the revocation of a license or the termination of company's  activities.

To note, the Extractive Industries Transparency Initiative (EITI) is  an international standard for ensuring transparency and  accountability in the extractive industries, oil and gas. Armenia  became the 52nd country that will follow the path of implementing the  standards of the Initiative - on March 9, 2017, the candidacy of  Armenia was approved in Colombian Bogota, after which, over the next  18 months, it pledged to submit the first EITI report, which will be  approved according to the standards of the international initiative .  The Government of the Republic of Armenia cooperates with the United  States Agency for International Development (USAID), the World Bank  (WB), etc. in developing the policy of transparency in the Armenian  mining industry.

The Extractive Industries Transparency Initiative (EITI) is the  global standard to promote the open and accountable management of  oil, gas and mineral resources. Established in 2002 and guided by the  belief that a country's natural resources belong to its citizens, the  EITI has established a global standard to promote the open and  accountable management of oil, gas and mineral resources. The EITI  Standard requires the disclosure of information along the extractive  industry value chain from the point of extraction, to how revenues  make their way through the government, and how they benefit the  public. By doing so, the EITI seeks to strengthen public and  corporate governance, promote understanding of natural resource  management, and provide the data to inform reforms for greater  transparency and accountability in the extractives sector.