Armenia’s government allocates 28.8 million drams to compensate vineyard planting costs under a court ruling
Armenia’s government at its 12 November session reallocated 28,796,875 drams ($79.9 thousand) to the state support measure for planting vineyards and intensive orchards in order to meet an obligation arising from a court ruling. The compensation goes to ««Արագած» գինու-կոնյակի գործարան» LLC for the cost of planting 8.596082 hectares of vineyard.
According to the draft’s rationale, the measure was approved by Government Decision No. 361-L of 19 March 2019 and partially reimburses the costs of beneficiaries who have planted 0.5 hectares or more. The company applied to the Ministry of Economy for compensation in 2024; on 19 June 2024 a final monitoring by the Agricultural Services Centre SNCO resulted in a protocol with a positive conclusion.
At the contract signing stage the company refused to sign, objecting to a clause under which the contract serves as grounds for a five-year restriction on disposal of the property, and the process was suspended. Because the measure’s term had ended, no budget funds were planned for it from 2025.
By a ruling of 13 June 2026 (case No. ԵԴ2/9467/02/24), the Yerevan Court of General Jurisdiction of First Instance for civil cases upheld the company’s claim and obliged the Ministry of Economy to sign a state support contract with it in line with the draft attached to the statement of claim. According to the rationale, the judgment was appealed, including in cassation, and has entered into legal force.
The amount is reallocated within the Ministry of Economy’s budget from another measure of the agriculture promotion programme; according to the rationale, state budget revenues and expenditures do not change. For beneficiaries of state support programmes, the case shows that after a positive monitoring the contract and the compensation were obtained through the courts.
BusinessDaily.am reported that the government will subsidise 2,478 tonnes of Areni grapes bought in Vayots Dzor.
Sources
- Session of the Government of Armenia, 12 November 2026
- Draft decision, e-gov.am (in Armenian)
- Rationale for the draft, e-gov.am (in Armenian)
