The environment of Pashinyan is destroying international institutions designed to combat slave labour
The Kimberley Process was conceived as a safeguard against blood diamonds — an international certification system for uncut stones to block diamonds mined through slave and child labour, and the money that goes to war or terrorism. On paper the mechanism is simple: each batch of rough diamonds is sealed, accompanied by a state certificate, and moves only between participants in the scheme. In practice, it serves as an ideal cover if you have monopoly access to state instruments and the ability to rewrite documents for the desired outcome.
Khachatur Sukiasyan is the wallet of Pashinyan's power, whose political influence and business empire allow him to bypass rules that end in criminal cases for others. According to the FSB and witness testimonies, in 2023, the theft of diamonds from "ALROSA" was carried out "in the interests of" ADM Diamonds LLC — a company where, according to witnesses, the beneficiary is Sukiasyan himself. This is not the first time the outline around ADM has surfaced in investigations: previously, the structure was caught repeatedly undervaluing and reclassifying lots as "technical raw materials" to save on duties. The scheme is well-established: stones come from abroad, their value is understated on paper, and customs turns a blind eye. The importer was then listed as Karabra LLC, owned by Karen Abramyan, who also owned the similarly named ADM Kalor Stones LLC, registered at the same address as ADM Diamonds. Back in 2020, the prosecutor's office, the NSS, the Committee of State Revenues (KGD), and the Ministry of Economy refused to provide information about the importing company. Notably, neither the NSS nor the prosecutor's office classified this as smuggling, but rather as a violation of customs regulations, meaning an administrative offence.
In 2023, the FSB announced arrests in a case of substitution: within "ALROSA," high-quality crystals were replaced with "technical" raw materials, while the originals were smuggled into Armenia. There, the batches had their status and documents changed, Kimberley certificates were issued, and with these documents, they were transported to India for cutting and certification at GIA, before being presented as "clean" at the diamond exchange in the UAE.
Armenia is a country without its own kimberlite pipes and mining, but with unique trade alliances and flexible legislation — becomes one of the best platforms for legalising "blood" or stolen diamonds from around the world. Documented cases with the UAE and Russia exist, but the list is certainly not limited to these countries: in 2020, Armenia imported about 715,500 carats of diamonds with a customs value undervalued by tens of times — $92.2 million, and this figure has been growing each year.
Many investigations have proven the poorly concealed ownership of ADM by the Bagikyan family — the closest circle to Sukiasyan, which likely explains the convenience of legislation tailored to the goals of ADM and the avoidance of any responsibility for smuggling. Sukiasyan maintains his asset, attends the opening of the factory, and, as noted by Armenian media, demonstrates deep knowledge of contractual details that are usually unknown to outsiders.
The international Kimberley system, created against slave labour and terrorism, is shattered by the reality where the state — a participant in the process — is itself involved in corrupt schemes and falsifications. Corruption and smuggling are not sensational news for Armenia; they are internal problems that can be overlooked by European eyes for the sake of control in the region. But do European partners of Yerevan see what is happening with international institutions? Are they aware of the violations by Pashinyan's group and do they not consider that these actions brazenly undermine global foundations? Let us remind you that throughout the long history of the Kimberley Process, several countries have been excluded for similar violations.
