February 2022
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AMCHAM BOARD MEMBER MR. MIHAEL SOLTER Please meet Mr. Mihael Solter, who joined AmCham Board as a Director in March 2021. Mr. Solter is the General Manager of Philip Morris Armenia since February 2021. During 24 years of experience in Philip Morris International, Mr. Solter advanced through a number of roles and international assignments, including Croatia, Macedonia, and South Africa. He developed wide business acumen and exceptional leadership skills, sharpened during his assignments while leading turnarounds, startups, and managing complex strategic projects. He has an exceptional performance track record as well as a strong portfolio of leadership skills. Mr. Solter has graduated from the University of Zagreb in Zagreb, Croatia. He enjoys spending time with his family, friends, and traveling.
Mr. Solter’s favorite quote: “It always seems impossible until it’s done.” - Nelson Mandela
COMPREHENSIVE HEALTH INSURANCE WG DISCUSSION WITH AMCHAM PARTNER NGOS On 3 February 2022, AmCham Comprehensive Health Insurance (CHI) Working Group had an online joint discussion with AmCham Partner NGOs and associations on coordinating the next steps regarding the advocacy campaign through the position paper prepared by AmCham CHI WG which was established from the members of AmCham TCuFP and Legal Committees members on a volunteer basis. AmCham President, 2nd Vice-President, 6 representatives from AmCham Community and the Executive Team were present at the meeting. 4 representatives from AmCham Partner NGOs participating in the meeting were Mr. Artavazd Yakhshibekyan, the Union of Manufacturers and Businessmen of Armenia (UMBA); Ms. Diana Sarumova, European Business Association Armenia (EBA), Mr. Martin Martirosyan and Ms. Diana Gaziyan, Armenian British Business Chamber. The Chair of the Meeting welcomed the participants thanked them for their interest to join the campaign, presented the participants and briefly reported about the work done so far. As already known the WG has thoroughly studied the Comprehensive Health Insurance draft law, defined its position on it and developed a Position Paper, which after the discussion and approval of other NGOs would be released and shared with the key stakeholders and relevant parties as a group position of NGOs on the topic. The participants of the meeting, who thoroughly studied the position paper prior to the meeting expressed their viewpoints and did some recommendations on tailoring the paper with acting health system and overall situation of the RA. As a conclusion of the meeting EBA and ABBC also confirmed their consent to advocate jointly for more effective results. As next steps it was decided: • To re-visit and review the document for possible changes • To share the Paper with the key stakeholders, specifically with the Ministry of Health of RA • To organize a joint media briefing with the NGOs/Associations to raise the Awareness of the document.
AMCHAM FMCG COMMITTEE SWM MEETING On 1 February 2022, AmCham held a hybrid Fast-Moving Consumer Goods (FMCG) Committee Sustainable Waste Management (SWM) Meeting in Chicago Hall, Double Tree by Hilton, Yerevan. Ms. Elina Markaryan, AmCham 1st Vice President and Chair of the FMCG Committee, Mr. Kyriakos Parpounas (online) and Ms. Anastasia Ellina (online) from Parpounas Sustainable Consultants Company, 6 FMCG Committee Members, and AmCham Executive Team were present at the meeting. The meeting was chaired by Ms. Elina Markaryan. Mr. Parpounas introduced the results of the studies PSC has done, presented the overall concept of Extended Producers Responsibility (EPR) and Deposit Refund System (DRS) - two collecting systems running in parallel, which were created in different periods and have poor cooperation. He focused on the DRS tool, introduced the international practices of the DRS stating it is a solution of 30-40% of the packaging in the EU market and explained the principle of the DRS model, its manual and automatic collection types. Mr. Parpounas shared experiences of countries that use only EPR and countries that use both simultaneously, such as Norway and Iceland. For a better understanding of the concept, the presenter introduced the DRS management in Lithuania taking into consideration that it is also a post-Soviet country having similarities with Armenia. He talked about the producer’s and retailer’s obligations and mentioned that if the DRS and the EPR systems could cooperate it would optimize their work and also decrease some of the industrial costs due to the distribution, which should be negotiated with the Government of the RA. Given the Lithuanian case of the DRS model, Mr. Kyriakos Parpounas presented the Cost/Benefit Analysis for the DRS options/models in Armenia. The Consultant suggested 3 Options of DRS in Armenia: • Option 1 “All in” - PET bottles, beverage cans and glass bottles • Option 2 “Plastic” - PET bottles • Option 3 “Combined” – PET bottles, beverage cans (aluminum and steel), glass bottles According to the countries market price acquisition of one Reverse Vending Machines (RVM) is approx. USD 24.000, depending on the manufacturer and the capacity. Therefore, the Cost/Benefit analysis shows that preliminary investments for Option 1 for RVMs in Armenia can be approximately USD 28 million, while for Option 2 can be approximately USD 22.000 and for Option 3 can be approximately USD 27 million. As a summary of cost and benefit analysis, it turned that the most cost-efficient DRS model is Option 1, where Net Present Value (NPV) is USD 13mln., Internal Rate of Return (IRR) is 37,97% and Equivalent Annual Net Direct Cost to Business (EANDCB) is USD 4.24 million. Mr. Kyriakos Parpounas also talked about the VRM points for collecting the packages, which is dependent on the population numbers. He confirmed in the end that in a months’ time, the industry will have the EPR report ready and will be in place to cooperate with the Government to clarify what are the options ahead. As immediate steps he proposed the following: • The country can inquire support from EU programs (i.e., EU4Environment to help in the drafting of the legal framework). Also, the state should clearly communicate the strategic direction. • The country needs to evaluate the options and whatever is the outcome to develop a strategy and an action plan, which should include the drafting of laws in 2022 (Waste Law and Packaging Law.) • Industry should evaluate the alternative options in undertaking the producer responsibility and decide which is the preferred route (EPR, DRS, EPR and DRS together.) After the presentation Q&A session was opened, during which further clarification on the topic was provided.
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FMCG COMMITTEE SWM WORKING GROUP ONLINE MEETING
On 17 February 2022, AmCham Fast Moving Consumer Goods Committee Sustainable Waste Management Working Group had an online meeting with the representatives from the Ministry of Environment of the RA and the Ministry of Territorial Administration and Infrastructure of the RA, World Bank, SIDA project and American University of Armenia Acopian Center for the Environment regarding the legislative framework of the Armenian Packaging Waste Management Assessment. The meeting was moderated by Ms. Karine Sarkissian, who greeted the participants, approved the agenda and gave the floor to members to introduce themselves and their positions in the project. Mr. Parpounas shared the steps taken thus far on the sustainable waste assessment project to understand the best model for Armenia and mentioned that there are certain bottlenecks that need to be further discussed with the Government and the Acopian Center for the Environment, AUA after the Final Report of the Waste Management Study is released. Mr. Parpounas presented the key points that need a focus from the Government to move the project forward: • Decision on EPR or Deposit Return Scheme (DRS) or a mixed system. • A strategic framework needs to be established to have a clear idea in the selected system - i.e., Strategy, Targets and Action Plans. • Legislation beyond the strategies and action plans. - changes in the law regarding waste, or possibly coming up with new laws. • Giving the responsibilities and possibilities, both financial and operational of packaging waste management to the private sectors. This creates a new dynamics between the state, local authority and the private sector in regards to waste management. • By the end of 2022, the legislation needs to be reviewed and revised to be available. • To understand the difference between Waste Law and Packaging Law. During the meeting, it was clarified that from 2024 the legislative system should be adapted to be ready for the implementation rather than the waste management system implementation. The target for the waste management system implementation in Armenia is committed from 2026. The SIDA Experts shared their experience on the waste management efforts and expressed their opinion regarding the legislative framework, suggesting that a new law rather than the old one adaptation/changes will be more efficient and applicable. Apart, the focus should be on the following: ✓ Understand the Regulatory impact for each of the systems before moving on ✓ Assessment of the different systems ✓ Take the right strategic direction ✓ Develop the system ✓ Pilot it and replicate it Kyriakos briefly updated what has been done so far leaving the presentation options of operational models with fee calculations for the upcoming meeting. Next steps: • A basic waste management system is required in order to mix different systems of waste management. After having set the system, it will be easier to implement the legislative part of the project for its succession. By having such a law, there will be a valid and maintained economic impact. • The representatives of the Ministries will double-check the legislative changes needed prior to the project implementation. • The SWM survey and implementation plan will be ready by the end of February and will be presented to the stakeholders. • To meet with the relevant Ministries for updates of the legislative framework as soon as the survey results are ready.
WORKFORCE DEVELOPMENT COMMITTEE MEETING On 15 February 2022, AmCham in Armenia held a Workforce Development Committee Meeting in The Alexander, A Luxury Collection Hotel, Yerevan. Ms. Haykuhi Gevorgyan, a special guest from the RA Ministry of Labor and Social Affairs, Professional Orientation and Capacity Development Center and Mr. Arman Udumyan, USAID Workforce Development project, Ms. Irina Dumanyan, AmCham Board Director, 18 WFD Committee members, 3 of them online and AmCham Executive Team were present at the meeting. The meeting was chaired by Mr. Dagen Valentine, AmCham Board Director, WFD Committee and Education, Training and Development (ETD) WG Chair. The Chair of the Committee welcomed the participants and gave the floor to the members to introduce themselves and moderated the meeting. As already known an overall goal and objective of the Committee, in general, is the qualified workforce development in the country. To have a qualified workforce the Committee members outlined some gaps and problems and one of the solutions to those problems they suggested a systematic internship project for the students. They talked about the paid internship, the need to increase monitoring and show outcomes of the internships, and the need to support different sectors of the industry in this regard. To address the problem the participants brought forward the need for profound research about the workforce among different sectors of industry. The members of the Committee talked about some approaches to fix the problem: • a paid internship with formally registering the intern-students in the companies, • a platform for both the intern and the employer to use, • the need to include onboarding and staff supervision/mentorship when doing an internship, • a guide on how to engage mentors, local NGOs, YSU career center, prepared internships for companies and students • Career centers establish relationships with businesses via NGO support In this regard, Ms. Karine Sarkissian, the Executive Director at AmCham, informed the participants about the USAID Workforce Development Project focusing on Hospitality, Agriculture and Information and Computer Technologies sectors and suggested to collaborate with them as the project will be running a study to understand the gaps and opportunities in the skilled workforce development including internship best practices. Mr. Valentine asked the participants to list the potential targets of the workforce development committee: • 90% of graduates get hired • Onboarding and registering are done smoothly • Educational institutions and businesses are working together • 100% of employees have soft skills and employability • Evaluation mechanism is well developed Next steps: • To have the White paper sent by Mr. Valentine by the end of February • To share the White paper in Google Docs with the Committee members and co-work on it altogether • To have a meeting with Mr. Sevak Hovhannisyan and Mr. Arman Udumyan to discuss the further cooperation of AmCham with the USAID Workforce Development project. • To decide the next Committee meeting date
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BRONZE MEMBER – ETERNAL NATION FOUNDATION `
The Eternal Nation Foundation is a Charitable Foundation that was established at the end of 2020 on the initiative of doctors who came from abroad during the 44-day Artsakh war and carried out emergency medical activities in Armenia and Artsakh. The Eternal Nation Foundation is committed to rebuilding the lives of injured Armenians in the new generation through restorative healthcare services, so as to be fully functional members of the society. The projects of the Foundation range from short-term actions in response to a specific urgent need to long-term restorative healthcare services. The projects implemented are in four main directions: ✓ Provision of state-of-the-art prostheses to servicemen who lost limbs in the result of military actions, provision of maintenance and insurance of prostheses; ✓ Performance of complex reconstructive surgeries on individuals injured in the result of military actions by missions of world-renowned surgeons coming to Armenia and Artsakh several times during the year; ✓ Provision of medical equipment and tools to medical centers in Armenia and Artsakh; ✓ Organization of scientific-practical seminars and symposiums to promote best practice and education in the medical sphere.
CYBER SECURITY AND PERSONAL DATA PROTECTION (PDP) COMMITTEE MEETING On 16 February 2022, AmCham in Armenia held a Cyber Security and Personal Data Protection (PDP) Committee meeting in Pomegranate A hall, Ramada Hotel & Suites by Wyndham, Yerevan. Ms. Irina Dumanyan from AmCham Board of Directors, 8 members of the Committee and Executive Team were present at the meeting. The meeting was chaired by Mr. Artashes Kalantaryan, the Chair of the Committee welcomed all the participants of the Committee, approved the agenda, and mediated the meeting. The members of the Committee briefly introduced themselves, expressed their interests and expectations from the Committee. Mr. Artashes Kalantaryan talked about the Committee mission, vision and long-term goals mentioning some concerns in 4 directions to focus on when talking about Cyber Security and Personal Data Protection: 1. Cyber education of all specialties. In the 4th generation of the digital economy, it is important to improve the education/knowledge of implementing tools & techniques of machine learning models of employees/specialists of all the sectors of the economy. 2. Digital transformation of businesses. There is big contrast among businesses. There are companies which are much digitalized and those who need to pass a long way toward machinery working mechanisms. 3. Confidence towards online/machinery services. The confidence towards using electronic/online services is growing currently in Armenia, however, there is still much to do in that regard. 4. Cyber Security and Personal Data Protection. As a means to this gap, the participants suggested training courses for both children in schools and for adults as well to raise awareness about Cyber Security and PDP. It was suggested by the participants to understand what the Committee needs to gain, put targets and achieve them. The participants mentioned that the Committee can collaborate with other external or AmCham Committee projects for faster and more effective results to gain. Karine Sarkissian informed the members about the USAID Workforce Development Project ICT component and suggested collaborating with them after checking what could be a common interest.
DID YOU KNOW? Yousuf Karsh Yousuf Karsh, a renowned photographer of the 20th century, has probably taken many pictures you are familiar with but did not know that the man behind the lens was a proud Armenian. Yousuf was a genocide survivor. He was forced to move to Aleppo, Syira in 1922. Karsh was sent to Canada by his family, where he established himself as a photographer by being trained by his uncle George Nakashian, and later and the most prominent Armenian photographer of America at the time; John H. Garo. The most striking aspect of Karsh’s photography was the dramatic lighting he used to create a story behind the expression of every subject he photographed. Karsh reached the epitome of his popularity by taking a portrait photo of Winston Churchill. The photograph is the “most reproduced portrait in the history of photography” according to The Economist. It was even printed on the new English five pound note. Some of his most famous portraits are the ones that include Winston Churchill, Albert Einstein, Audrey Hepburn, Ernest Hemingway and Queen Elizabeth II. Karsh has been recognized as Canada’s leading portrait photographer. Karsh was proud of his ethnicity, he once said “I am working with the world's most remarkable cross-section of people. I do believe it's the minority who make the world go around, not the majority." A bust by Armenian-Canadian sculptor Megerditch Tarakdjian was uncovered in front of Château Laurier, Ottawa. It presented Karsh with his camera, it was a gift from the Armenian people to Canada for the 25th anniversary for the establishment of the diplomatic relations between the two countries. You can see his famous photos below.