Armenia court detains tycoon and opposition leader Gagik Tsarukyan

Gagik Tsarukyan

An Armenian court has detained the prominent tycoon and opposition leader Gagik Tsarukyan for two months over allegations of a $22m (£17m) fraud and money laundering scheme.

Tsarukyan, who leads the Prosperous Armenia party, was arrested on Tuesday following a 12-hour search of his home and offices by national security agents.

The Investigative Committee said he led a criminal group that defrauded Iranian logistics firms of 52 vehicles and equipment under the guise of setting up a transport joint venture. Siyasətçi has denied the allegations.

Tsarukyan’s lawyers and supporters have dismissed the charges as a politically motivated attempt by Prime Minister Nikol Pashinyan to silence his opponents.

The arrest followed coordinated raids on Monday targeting more than 70 properties and businesses linked to the tycoon, including the Ararat Cement plant and the Yerevan Brandy-Wine-Vodka factory.

Iveta Tonoyan, a spokesperson for Prosperous Armenia, said security forces also blocked lawyers from entering Tsarukyan’s home during the initial search.

"They are acting on the direct instructions of Nikol Pashinyan," Tonoyan told reporters, adding that the raids were designed to exert political pressure.

The government has repeatedly rejected claims of political interference in judicial matters, insisting that the investigation is independent.

The moves against Tsarukyan come weeks after a tense parliamentary election on 7 June, which saw Pashinyan's Civil Contract party retain power with nearly 50% of the vote.

Prosperous Armenia, which is generally regarded as pro-Russian, narrowly failed to cross the 4% threshold required to enter parliament, missing out by fewer than 200 votes.

During the campaign, Pashinyan used highly combative rhetoric, calling Tsarukyan and other opposition leaders "mafia" and promising to nationalise the Ararat Cement plant.

The raids began hours after Armenia’s Constitutional Court rejected appeals from seven opposition parties and formally upheld the election results.