Billionaire on trial in Azerbaijan who risks being left behind by peace deal

Importance Score: 82 / 100 🟢


Ruben Vardanyan Trial: Armenian Tycoon Faces Potential Life Sentence in Azerbaijan

Once celebrated as one of Armenia’s wealthiest individuals, businessman Ruben Vardanyan now confronts the stark reality of a potential life imprisonment in Azerbaijan. His fortune offers little solace as he stands accused in Baku, amidst ongoing tensions between the two Caucasus nations despite a tentative peace agreement to resolve the Nagorno-Karabakh conflict.

Vardanyan, along with fifteen other former ethnic Armenian leaders from Nagorno-Karabakh, is currently on trial in a military court in Baku. The charges against them include alleged war crimes purportedly committed in prior decades.

The 56-year-old, a dual citizen of Russia and Armenia and formerly a prominent entrepreneur, faces a litany of accusations – 42 in total – spanning from initiating and conducting warfare to engaging in mercenary activities and terrorism.

Concerns Arise Over Vardanyan’s Treatment and Trial Proceedings

Images emerging from the courtroom depicted Vardanyan with visible bruising on his forehead, prompting allegations of mistreatment during his detention. While Azerbaijan has refuted claims of torture, asserting that Vardanyan’s rights are being upheld in custody, the visual evidence has fueled concerns about his well-being and the fairness of the judicial process.

This situation marks a dramatic reversal of fortune for Vardanyan, who previously navigated elite circles in Russia and internationally. He had established Russia’s inaugural investment bank in the early 1990s and founded the esteemed “Skolkovo” business school, cultivating a reputation as a forward-thinking figure and a pro-Western voice within Russia’s business sphere during the 2000s.

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However, an investigation in 2019 by the Organized Crime and Corruption Reporting Project cast a shadow over his past, alleging that employees at his investment bank orchestrated a financial scheme involving billions of dollars in illicit money transfers in the mid-2000s. Vardanyan denied any awareness of these purported illegal operations and was never formally charged.

Philanthropic Ventures and Transition to Nagorno-Karabakh

Prior to his current predicament, Vardanyan dedicated substantial funds to philanthropic endeavors in Armenia. Notably, he spearheaded the transformation of Dilijan, a tranquil town nestled in Armenia’s northern mountains, establishing an international school aimed at attracting students from across the globe.

“This institution was envisioned as a bridge, connecting Armenia to the wider world and bringing the world to Armenia,” explained Adam Armanski, head of the United World Colleges (UWC) of Dilijan.

Shift in Focus and Detention in Nagorno-Karabakh

A significant turning point occurred in September 2022 when Ruben Vardanyan relocated to Nagorno-Karabakh. This mountainous territory, historically inhabited by ethnic Armenians, was internationally recognized as part of Azerbaijan during the Soviet era and post-Soviet period.

Armenia and Azerbaijan had previously engaged in two large-scale wars over Nagorno-Karabakh. The initial conflict in the 1990s resulted in the displacement of hundreds of thousands of ethnic Azeris.

In 2020, Azerbaijan, with Turkish backing, regained control over considerable portions of territory surrounding Nagorno-Karabakh, while the enclave itself remained under the control of ethnic Armenian separatists until recent events.

Shortly after Vardanyan’s arrival in the region, Azerbaijani authorities initiated a blockade of the sole road linking Nagorno-Karabakh to Armenia, leading to critical shortages of essential supplies for the local population.

Vardanyan relinquished his Russian citizenship and assumed the position of de facto prime minister of Nagorno-Karabakh, referred to as Artsakh by Armenians. Leveraging his public profile, network, and English fluency, he actively sought to raise international awareness concerning the hardships faced by Karabakh Armenians.

“My father conducted more interviews with international news outlets in three months than all previous Nagorno-Karabakh leaders combined over three decades. The extensive attention from Western media demonstrably angered Azerbaijan,” stated his son, David Vardanyan.

Speculation arose suggesting Vardanyan’s relocation was motivated by a desire to circumvent international sanctions imposed on Russian billionaires with ties to the Kremlin, though this remains unconfirmed. Conversely, Baku regarded his assumption of political office in the region as illegitimate.

His son maintains that Vardanyan’s motivations were altruistic: “We argued during our last family vacation; I strongly opposed his decision, citing the risk to our family. He countered that he could not reconcile himself with inaction in the face of the plight of Karabakh Armenians.”

Military Operation, Arrest, and “Show Trial” Allegations

Arman Jilavian, a long-time associate of Vardanyan, suggested that even a slim chance of aiding ethnic Armenians in their ancestral homeland was sufficient motivation for him.

“Some might label it irrational, others a calculated political maneuver. I believe neither explanation fully captures his motivations,” Jilavian commented.

In September 2023, Azerbaijan launched a swift military operation, seizing complete control of Nagorno-Karabakh within 24 hours. The leadership of Nagorno-Karabakh surrendered, and a mass exodus ensued, with over 100,000 ethnic Armenians compelled to abandon their homes.

Vardanyan was apprehended by Azerbaijani forces as he joined the mass displacement toward Armenia.

According to his family, Vardanyan has spent a significant portion of his detention in solitary confinement. He has reportedly undertaken two hunger strikes to protest perceived deficiencies in the legal proceedings and to highlight allegations of torture.

The trials of Vardanyan and the fifteen other former Karabakh leaders in Baku’s military court are viewed by many in Armenia as politically motivated “show trials.” Only Azerbaijan’s state-controlled television channel has been granted access to film the court proceedings.

Azerbaijan insists on its adherence to international legal norms and its duty to prosecute individuals suspected of war crimes. However, Baku recently ordered the closure of the local offices of the International Red Cross, the sole international organization maintaining contact with Armenian detainees. This action has drawn international concern.

The European Parliament has passed a resolution condemning the “unlawful detention and sham trials of Armenian hostages,” calling for their immediate release.

Peace Deal and Concerns for Detainees’ Fate

Vardanyan is scheduled to reappear in court on Tuesday, but observers fear his case may be overshadowed by an emerging historic peace agreement between Armenia and Azerbaijan. While details remain confidential, reports suggest the draft text omits the issue of the imprisoned leaders and avoids addressing the right for ethnic Armenians of Nagorno-Karabakh to return to their residences.

This omission regarding the detainees has triggered criticism of Armenian Prime Minister Nikol Pashinyan’s administration both domestically and internationally.

However, Arsen Torosyan, a Member of Parliament from Armenia’s ruling Civil Contract party, argues for a segregated approach to these issues: “It is a peace treaty between nations with a deep-seated history of animosity. I personally believe that finalizing this peace treaty may pave the way to resolve the issue of political prisoners. I see no alternative path.”

Vardanyan, however, has cautioned against this strategy. In a voice message to supporters, he asserted, “This trial extends beyond myself and the fifteen others; it is a trial of all Armenians. Failure to recognize this portends a larger tragedy, signaling not the end of the conflict, but merely its next phase, for all parties involved.”


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