ArmInfo. Sitronics Group, a leading Russian company, has assumed control of the Yerevan Research Institute of Mathematical Machines (ERIMM). The transaction took place on January 19 of this year, according to data from the State Register of Legal Entities of the Republic of Armenia.
The institute itself is not commenting on the transfer of YRIMM to Sitronics. The relevant Armenian ministries and agencies are also not commenting on the transfer of the institute's management to a large Russian holding company. The specifics, details, and price of the YRIMM transaction under Sitronics' control are not yet clear.
The share capital of the state-owned YRIMM is 67,780,000 drams (approximately $178,300). According to the latest data for 2022, Sitronics Group's revenue exceeded 37.5 billion rubles.
YerNIMM, known as Armenia's Soviet "Silicon Valley," was founded in 1956 by the distinguished Soviet scientist Sergei Mergelyan. Over the years, the institute has accumulated extensive experience in the design and production of computer technologies and systems, remaining a center of innovation and technological progress. YerNIMM is one of the key pillars of Armenia's scientific and technological development.
Today, the Institute primarily works on highly complex cryptographic devices that ensure the protection of confidential communications and data security. According to experts, it is this area of Mergelyan Institute's work that has attracted significant interest from Russian investors, particularly Sitronics Group, a multidisciplinary Russian IT company with extensive experience in digitalizing strategic economic sectors and implementing large-scale projects for businesses and the government.
Sitronics Group is a key integrator and provider of communications and video surveillance solutions. The company implements digitalization projects for government infrastructure customers and modernizes operator communications networks using equipment from leading domestic manufacturers, including backbone network equipment based on DWDM technology. Sitronics Group manufactures its own modular data centers, certified by the international industry center Uptime Institute for TIER III reliability. The company's product portfolio also includes proprietary solutions for shipping, navigation, and maritime logistics, intelligent transportation systems, industrial safety platforms, and science-intensive solutions. The company is ranked among the world's largest IT service providers. It should be noted that Sitronics Group (JSC Sitronics) is part of the diversified investment group AFK Sistema (Joint-Stock Financial Corporation Sistema), whose founder and majority shareholder until 2022 was Russian entrepreneur and investor Vladimir Yevtushenkov. After being placed under UK sanctions in April 2022, he transferred a portion of his shares to his son, Felix Yevtushenkov, reducing his stake to 49.2%, and resigned from AFK Sistema's governing bodies.
It is noteworthy that the day after the transaction was registered, Armenian Prime Minister Nikol Pashinyan met with Vladimir Yevtushenkov, owner of AFK Sistema. According to a government statement, "during the meeting, the parties exchanged views on general issues of Armenia's economic development, as well as cooperation between the public and private sectors." As of April 2024, according to Forbes, the Russian businessman ranked 81st on the publication's list, with his net worth estimated at $1.7 billion.
AFK Sistema previously had a presence in Armenia until 2024 as the controlling shareholder of the Armenian telecom operator MTS Armenia (branded as VIVASell
