The question arises - how do international organizations react to these events? For example, the United Nations, the world's highest international organization does not look indifferently to a similar incident in the Middle East - the General Assembly's Human Rights Council (UNHRC) considers Israel's settlement in the occupied Arab territories a violation of the rights of the Palestinian people.

Are international organizations concerned about the illegal settlement in Azerbaijani lands and the violation of the rights of hundreds of thousands of Azerbaijanis expelled from there?

***

In fact, the question is rhetorical. These areas, which have become a "grey zone" out of control, are an ideal place not only for Armenia but also for international criminal circles, financial jugglers and illegal business.

In 2016, the Ministry of Foreign Affairs of Azerbaijan prepared a comprehensive report with the participation of foreign companies on the illegal exploitation of natural resources by Armenia in the occupied territories of Azerbaijan. Official Baku once again informed those companies and the countries they represent that any economic activity in these areas is prohibited by both Azerbaijani law and international law.

During these years, it has been possible to halt the activities of some foreign companies and businessmen in the occupied territories. For example, after the protests of official Baku in 2017, the Swiss mobile operator SWISSCOM suspended cooperation with “Karabakh Telecom”. However, unfortunately, some businessmen, who do not receive the necessary response from their countries or international organizations, continue to grossly violate the norms of international law.

Gold, silver, mercury, copper, coal, leaden ...

To understand the scale of natural resources in the occupied territories of Azerbaijan, it is necessary to pay attention to this figure - 160 different precious metal deposits remain in occupied territories. We are talking about gold, silver, mercury, copper, leaden, coal, coloured, decorative stones and other deposits in Kalbajar, Lachin, Zangilan, Tartar.

Armenia does not need any help to turn the occupied territories into ruins - they can do it alone. However, Yerevan has neither the technical nor the material resources to exploit so many natural resources on its own. Therefore, Armenia attracts wealthy businessmen of Armenian who have relations with the Armenian diaspora from France, the United States, Canada, Australia, Switzerland and Russia to large-scale robbery operations. And some fraudsters, who prefer illegal operations, start their work with great pleasure.

One of the members of such criminal business is Vartan Sirmakes, one of the founders of the world-famous Swiss watch brand “Franck Muller Group”.

"Patriotism" of the Swiss millionaire of Armenian origin

Simakes was born in Istanbul in 1956 and moved to Switzerland at the age of 18. Currently considered as a financial donor of the Armenian Diaspora in Switzerland, Simakes is the founder of ”ArmSwissBank”, which owns 7 brands and 14 manufacturing companies in the country. He invests heavily in various fields in Armenia. Franck Muller company, which was run by Simakes is the only company in the world with a representative office in Armenia. By the decree of former President Serzh Sargsyan, he was appointed Consul General of Armenia in France and awarded the Order of “Merit for the Fatherland”.

Today, V. Sirmakes provides funding for the "Old Yerevan" project, which aims to falsify the true history of the ancient city of Yerevan, where Azerbaijani heritage has been completely destroyed.

Another project founded by Sirmakes is the establishment of the “BUILD ARMENIA” Foundation, which will contribute to the resettlement of Armenians living around the world. Dozens of Armenian businessmen are ready to support this project. Sirmakes promised to allocate $ 100 million for this project. This project is especially noteworthy now when the issue of resettlement of Armenian families from Lebanon to Kalbajar, Lachin and Zangilan becomes more urgent.

Besides, “ArmSwissBank”, which was founded by him has invested $ 100 million in the construction of the “Sarsang” water channel in the occupied territories of Azerbaijan according to social media.

In fact, if V. Simakes' economic activity is related only to Armenia, it would not be taken seriously. However, his interests in the region are more focused on the occupied territories of Azerbaijan than on Armenia.

What does the watch magnate do in Karabakh?

Analysis of activities of Sirmakes and other foreign businessmen in the occupied territories shows that it is, in fact, a criminal union. While the mission of Armenia and the separatists, who have occupied their lands by force of arms, is to ensure military strength and security, the job of "shadow businessmen" like Sirmakes is to allocate resources for illegal economic projects in these territories. The common goal is the same - laundering stolen money.

By the way, the scale of the damage caused to the occupied territories is recognized by Armenia itself. For example, during the years when Bako Sahakyan led the separatists, the Armenian website Lragir.am reported that underground resources in Karabakh were constantly being conveyed, gold, copper and coal were being transported, and the incomes go to private pockets. The website wrote that " everyone in Karabakh is talking about the fact that the income from the Kalbajar mine belongs to Bako Sahakyan. "

To understand the scale of the robbery, it should be noted that not only foreign corporations but also the political leadership of Armenia participated in their exploitation by creating fake companies in offshore zones. Earlier it was R. Kocharyan and S. Sargsyan, former ambassador and current President Armen Sargsyan, now a new player has appeared in this process in N. Pashinyan’s name.

Armen Sargsyan's name was once associated with money laundering through “ArmSwissBank”, founded by Sirmakes. Also, there are rumours that he was one of the main intermediaries and even a shareholder in the British investment in the Amulsar gold deposit, which had a high reputation in Armenia, during Sargsyan's presidency.

Another important player of this system, one of the channels for the illegal extraction and legalization of gold from the occupied territories is Vardan Sirmakes , an active representative of the Armenian Diaspora. The Swiss millionaire is one of those people controlling the illegal financial turnover in Nagorno-Karabakh and surrounding areas. Sirmakes, which owns 43% of “Artsakhbank” established in the occupied territories of Azerbaijan has also invested in the construction of 350 black caviar ponds in Nagorno-Karabakh - including the construction of “Golden Fish” plants in the occupied territories of Tartar and a reservoir in Lachin. By the way, the Swiss businessman already plans to start exporting black caviar next year and promises to surpass (!) even Azerbaijan in this area.

Although the Armenian leadership and separatists present Sirmakes as a "great philanthropist," in fact, he is returning the money for this "charity" by looting the occupied territories of Azerbaijan. At the same time, the main focus is not on caviar or tourism, but on precious stones, specifically gold.

Greed for gold

The Swiss businessman has never hidden his main interest in precious stones, especially gold. For example, when Franck Muller opened a representative office in Armenia in 2001, a company representative said that 18-carat gold and 550-carat platinum will be used for golden frames of watches. Additionally, the company is engaged in the production of jewellery in Armenia.

In other words, "Franck Muller" in the interest in the region aims to gold. The source of gold is no longer a secret - the mines in the occupied territories of Azerbaijan!

V. Sirmakes's illegal business mechanism is very simple - gold stolen from the Vajnali gold deposit in Zangilan and Soyudlu gold deposit in Kalbajar regions of Azerbaijan is sold on Swiss stock exchanges, and the profits are deposited in the banks of that country.

It is no coincidence that Sirmakes is also a major investor in several programs selling 999.9-carat gold bars in the occupied territories of Azerbaijan.

Now the Swiss businessman is preparing for another large-scale fraud - the construction of a plant for processing precious materials in Armenia. Sirmakes announced the plan to build the plant six years ago, in 2014, and signed a relevant memorandum with the Central Bank of Armenia. In order to export the gold to the world market, it is planned to open a gold affinage plant in Armenia in 2020. The main investor is Vartan Sirmakes. It is noted that the necessary equipment for the plant has already been purchased. The head of the Central Bank of Armenia Artur Javadja said that companies engaged in production will be able to take full advantage of the services of the newly-opened enterprise.

The main purpose of the plant is to produce pure gold in the form of standard ingots and organize its sale abroad. Note that bullion production is a world-renowned and accepted means of payment, such as the printing of dollars and euros.

However, an international certificate is required for the production of gold bullion, which will be accepted on the London, Chicago, Tokyo stock exchanges, in investment funds, central and commercial banks of different countries. This document is available in London, Chicago, Dubai or Tokyo. Therefore, over the past period, Sirmakes has made every effort to obtain an international certificate and held lengthy negotiations in London. At the end of last year, the Swiss businessman unexpectedly decided that even if no agreement is reached on the certificate, Armenia will produce gold bars with its stamp: “It would be better if the product will be certified. However, we do not intend to delay the construction of the plant because of this. If necessary, we can open a laboratory for certification - for this, we can attract technology and specialists from Switzerland. Thanks to the reputation of Switzerland, it will not be difficult to obtain international accreditation to open such a laboratory.”

Note that there are 50 gold markets in the world. The largest of them in Europe is in London, Frankfurt and Zurich, and half of the gold imported here is later sold in other markets. Sirmakes's long-term negotiations in London are due to the city's special role between producers and consumers and the fact that prices are set here in London on the world market.

Note, the bulk of gold circulating in the market is in the form of ingots. A standard gold bar weighs minimum 350 fine ounces (approximately 10.9 kilograms) and maximum 430 fine ounces (approximately 13.4 kilograms) and has a minimum fineness of 995 parts per 1,000 pure gold (99.5% purity). The ingots bear the stamp of the company admitted to the London market. That is why Sirmakes held lengthy talks in London.

There are currently 60 banks and companies operating in the London market. The leading role in the London market is played by five banks and companies engaged in the purchase and sale of gold, which has long maintained a monopoly in the market. The oldest of these is "N.M. Rothschild & Sons". The company has interests in the Amulsar field. However, over the past two years, British investors have faced many serious problems here. One of the possible reasons for Sirmakes' fruitless efforts may not only the problems with the source of gold but also problems in ensuring the interests of the Rothschilds in Armenia

From this point of view, it becomes clear why Sirmakes is limited to Switzerland. Zurich is also one of the international centers for gold trade. The market is controlled by 3 banks: “Shweizerische Bankgeselschaft”, “Shweizerische Bankferein”, “Shweizerische Kreditanstalt”. In addition, HVS Holding has offices in many countries, including Switzerland. The "HVS Holding" which is managed by Vardan Sirmakes and registered in Luxemburg - one of the financial paradises - is the holder of ArmSwissBank shares (14.588), one of the channels for the legalization of dirty money of the Armenian elite, including gold extracted from the occupied territories. It is not ruled out that Armswissbank and HVS Holding have ties with banks that control the Swiss gold market.

Apparently, Sirmakes and his partners are eager to produce gold bullion at any cost and consider to start a business even without an international certificate. We wonder, where and why they are in a hurry?

Source of raw materials - Azerbaijani gold

The main reason for this haste is that although Sirmakes points to gold to be extracted from deposits in Armenia as raw material for the gold affinage plant, in fact, the businessman and his partners in Yerevan are thinking about the fields in Kalbajar and Zangilan. And as long as these territories are under the control of Armenia, as much raw material as possible should be plundered.

Although Armenia cites the Zod field as a raw material for the gold bars it wants to produce in the future, it is clear that it is referring to Kalbajar's Soyudlu field. In 1951 the Caucasus Gold Exploration Department revealed that only 7 out of 23 ore veins of this field (with the 112,5-ton deposit) are located in Armenia. As you may acknowledge, this is not enough for the planned adventure.

But then another question arises - how will Armenia cover up the theft of raw materials for the plant from the occupied territories of Azerbaijan?

Statistics also clearly state that today Armenia describes the natural resources it has plundered from Azerbaijan as "its product." For example, in 2019, almost 40% of Armenia's total exports of $ 2.62 billion fell to various ore products and precious metals.

According to the Armenian media, Armenia produces 3 tonnes of gold a year (after converted from ore to pure metal). However, Armenia's official export figures show 5-6 tonnes.

Armenia exports not pure gold, but Dore gold-silver alloys, which are then processed abroad. Approximately 6-7 of the 18 licensed fields in Armenia are large. The largest one is Sotk (Zod), an extension of the “Soyudlu” field in Kalbajar, and the second is Amulsar. According to the Armenian media, the initial gold reserve estimate in Armenia stands at 400 tonnes.

According to the estimates of the Soviet and post-Soviet period, Armenia had 41 tonnes in semi-processed gold reserves in its mining fields, while the semi-processed gold reserves in the mining fields of Azerbaijan’s occupied territories amounted to be about 134.7

Besides, it was confirmed that Azerbaijan has 205.3 tonnes in gold and 251.1 tonnes in silver industrial reserves in the fields of its occupied territories.

The information on the companies operating in Armenia and occupied territories of Azerbaijan and production volumes is still kept secret. However, it is possible to obtain some information from the reports periodically published on statistical data.

These facts prove that Armenia is illegally exploiting natural resources in the occupied territories. It is simply not realistic for Armenia to export so much ore and precious metals at the expense of its reserves.

The Swiss swindler has thought about this and intended to present Azerbaijani gold as a metal of another country. As the fields in Armenia would not be enough for the operation of the plant, Sirmakes already tried to throw off track. "Raw materials can be imported from other countries – from Georgia and even from Africa," he said. If we pay attention to the media's research on the processing of ore, which was stolen from the " Soyudlu" field in Azerbaijan’s occupied Kalbajar, at the Madneuli Gold Mining Complex in Georgia, it is no coincidence that Sermakes mentioned Georgia in his interview.

It should be noted that until 2002, the volume of gold production in Armenia did not exceed 2 tonnes, in 2002 it was about 3.2 tonnes. According to the GFMS Gold Survey 2019, the level of gold production in Armenia has increased significantly over the past 10 years. This is due to both rising gold prices and rising production costs.

In 2003, 3.2 tonnes of gold were extracted from the Soyudlu field, 2.5 tonnes in 2004 and 3 tonnes in 2006. According to EITI Report 2016–2017, the production volume and price of the Sotk (Zod) -Soyudlu field stood at 3.8 tonnes in 2016, 4.8 tonnes in 2017, and exceeded 4 tonnes in 2018. The remaining ore reserves are estimated at 87.5 and 165.6 tonnes. The remaining life of mine production is due to expire in 18 years.

Sotk (Zod) -Soyudlu field

It is clear that the volume of exploitation has increased many times over the past years. Gold extracted from the occupied territories of Azerbaijan is exported to foreign countries as Armenian gold.

Therefore, if Armenia exported 5.8 tonnes of precious metal ore worth $ 32.7 million (including 623 kg of gold to Switzerland) in 2014, that the number of exported gold increased by 5,825 tonnes that amounted to $ 223.7 million in 2019 and more than 96% of it ($ 214.96 million - an increase in the price of gold) was exported to Switzerland in 2019.

Azerbaijan accuses Switzerland, but it keeps silent ...

Official Baku has paid attention to Vartan Sirmakes' illegal activities in the occupied territories since day one. Five years ago, the General's Prosecutor Office of the Republic of Azerbaijan opened a criminal case against the Swiss businessman and placed him on the international wanted list. The investigation materials clearly show that the Azerbaijani side has received enough information about the illegal economic activities of Sirmakes and, in particular, his involvement in the illegal exploitation of gold mines. All these facts have been submitted to the Attorney General Office of Switzerland.

The result? There is no result!

Sirmakes are still looting our territories and natural resources. Also, it promises more investment in the "Karabakh economy" and plans for the future - a gold plant, caviar exports, etc.

What is the attitude of official Bern to the illegal activities of its citizen? Back in 2015, when a criminal case was filed against Sirmakes in Baku, Azerbaijani journalists sent a request to the Swiss Federal Department of Foreign Affairs. Let’s pay attention to the cynicism in the response from Bern: “Switzerland has never questioned the territorial integrity of Azerbaijan. However, the Swiss government has no legal basis to hinder the economic activity of its investors in the Nagorno-Karabakh region.

It is quite strange. On the one hand, Switzerland considers it necessary to comply with the Geneva Conventions, which are considered a basis of international humanitarian law. On the other hand, it turns a blind eye to the gross violation of these requirements by its citizens and companies. Why?

Hence the paradoxical situation that, although Swiss Government fails to find a "legal basis" to prevent its companies from operating in Nagorno-Karabakh, it managed to restrict its companies from operating in Crimea and Sevastopol, or even barring them from doing business in Crimea or establishing business relationships with Russian businessmen there. Why?

Switzerland is a country which reacted very quickly to the accusations against a tax evader NGO leader in Baku and gave him asylum at the embassy. However, now it does not react with the same "quickness" when it comes to its citizen who has been involved in illegal business in another country for five years. Why?

And most importantly, how many years does Switzerland need to answer these questions?

P.S. According to official statistics, most of the products exported from Armenia are exported to Switzerland, the homeland of Vartan Sirmakes. Switzerland was the second-largest exporter of Armenian products last year, after Russia. It is Yerevan's main economic partner and its share in exports amounted to 17.4% ($ 457 million).

What could a developed European country like Switzerland buy other than precious stones from Armenia, which does not produce any competitive products, does not have the technology, is not an oil and gas exporter? We have to agree that it is a very strange scheme: the precious stones illegally exploited from Azerbaijani lands are sold to Switzerland itself with the direct participation of a Swiss citizen, and a large part of the income is invested in Swiss banks.

Maybe this is the reason that makes the Swiss Government turn a blind eye to its citizen Sirmakes’ s criminal activities in Azerbaijan?

AZVISION.AZ

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