Armenia: Between cannabis tolerance and hemp field destruction

Armenia is proceeding cautiously between tolerating cannabis use, supported by the legalization of recreational use in neighboring Georgia, and a ban on hemp cultivation. A local industrialist learned this the hard way.

Entrepreneur Ruben Mkrtchyan has been committed for several years to growing industrial hemp to produce CBD oil. He announced Last August, he launched his company, «Armerika,» which he says is the first in Armenia to grow and process hemp varieties, with strong potential for international markets.

«This hemp is not the same type of hemp from which marijuana is derived. In many countries around the world, including the EU, the United States, and Russia, hemp cultivation is deregulated,» he said.

He added that he had received verbal authorization from the authorities the day before to conduct a hemp cultivation trial. «An agreement was reached with representatives from the office of Deputy Prime Minister Tigran Avinyan. The plan is to grow hemp in Dilijan, Vardenis, and Surenavan. Unfortunately, the authorization was granted three months later than necessary, because under Armenia’s climatic conditions, the crops can be harvested in September–October. The produce can be used for medical, cosmetic, textile, and other purposes.».

The entrepreneur claimed that if a permanent permit were obtained, his revenue could range from 5 to 50 million dollars, and the number of jobs—taking into account the ripple effects of production—could reach 10,000. «There are no problems with selling products, because there is unlimited and constantly growing global demand,» he concluded.

The Armenian government, which had accepted his proposal, nevertheless left the police to destroy his hemp crops. After initially attempting to deny any agreement, Deputy Prime Minister Avinyan stated that hemp cultivation is illegal in Armenia, and that the government simply could not approve such a project. «Armerika,» however, published its correspondence with Avinyan’s office, a security contract with the police, and a number of documents proving that its business had been very clearly presented to all interested parties and that the Armenian authorities were well aware of it.

In the end, the entrepreneur will have lost 170,000$—and any hope of continuing his business.