[Translation prepard by Business & Human Rights Centre]

A lawsuit filed with the Administrative Court of Armenia against the government's decision to provide a budget guarantee for the operation of Amulsar, 5 May 2025

The Transparency International Anti-Corruption Center, the Green Armenia and Community Consolidation and Support Center NGOs, and a group of citizens from communities adjacent to the Amulsar gold mine and various settlements in Armenia filed a lawsuit with the Administrative Court on April 28, 2025, demanding that RA Government Decision No. 220-A of February 27, 2025, on the provision of a budget guarantee be declared invalid...

The contested decision stipulates that the government guarantees Lydian Armenia's receipt of bank loans in the amount of up to USD 150 million for the operation of the Amulsar mine. According to the plaintiffs, this decision violates several provisions of Armenian law, in particular:

• A subsequent pledge, which does not guarantee the return of state funds and does not comply with budgetary legislation requirements, was established as a means of securing the repayment of the budget guarantee.
• At the time of the decision, there was no evaluation of the company's assets, which is necessary to ensure compliance with the statutory limits. Furthermore, the government is not authorized to establish a procedure for the subsequent submission of the necessary documents.
• The financial data used is outdated (one year old) and does not meet the requirement for an up-to-date assessment of the company's solvency.
• A positive opinion from the Ministry of Finance, which is a mandatory prerequisite for the issuance of a budget guarantee, is missing. "According to the Administrative Court's decision, which has entered into force, the administrative acts issued to Lydian Armenia to expand the subsoil area and change the permit's term have already been invalidated," the statement reads.
• According to independent experts, including ELARD, the project's implementation is associated with serious environmental risks, such as potential water pollution, the lack of a risk assessment for heavy metals and the use of sodium cyanide, and the threat of acid drainage...