A UAE Investor Plans to Establish an Oil Refinery in Armenia
One of the investors from the UAE plans to establish an oil refinery in Armenia. It is intended to be constructed near the border with Iran. The investment proposal has been submitted to the “Enterprise Armenia” investment support center, which facilitates the swift implementation of the project.
The project to build an oil refinery on the Armenian-Iranian border dates back to the Soviet era, particularly the 1960s when it was brought to the agendas of Moscow and Tehran. Preliminary research work had even begun. However, during that period and before the Islamic Revolution, Iran, especially regarding oil supplies, was heavily dependent on the United States. Consequently, Iran decided to withdraw from this initiative and strengthen its relations with Washington.
After the collapse of the Soviet Union, under new circumstances, when Armenia managed to overcome the energy crisis, the aforementioned project was revisited in the early 2000s with almost the same rationale. However, it has yet to be realized.
There was a precedent for building an oil refinery in 2015 in Yeghvard. “ArmOil” CJSC began the construction of the refinery. Residents of the Nato neighborhood expressed discontent with the project, claiming that the refinery would pose a threat to their lives and health. They demanded the cessation of the construction, which was located near residential homes and fruit orchards.
On July 28, 2021, Prime Minister Nikol Pashinyan issued a decision to establish an interagency working group to study issues related to the economic activities of “ArmOil” CJSC. In August 2021, “ArmOil” CJSC submitted an environmental impact assessment project for a bitumen and lubricants plant to the Ministry of Environment. If the Expertise Center gives a positive conclusion, the refinery will have the legal grounds to commence production.