After weeks of speculation, Armenian law enforcement confirmed on Wednesday that a criminal investigation is underway regarding potential financial irregularities in the launch of Armenia’s first satellite, ArmSat-1, in May 2022.
The satellite, carried into orbit aboard a SpaceX rocket from Cape Canaveral, Florida, was reportedly purchased from the Spanish company Satlantis, which specializes in small satellites and their imaging equipment. At the time, Prime Minister Nikol Pashinyan hailed the project as a significant achievement, highlighting its intended applications in border security, natural disaster management, and geological research.
However, the satellite’s operational impact and cost-efficiency have since been called into question. Recent media reports claimed the project has failed to deliver its promised benefits, consuming millions of dollars in public funds. These allegations prompted the launch of a criminal investigation.
Minister of High-Technology Industry Mkhitar Hayrapetyan defended the initiative last week but refrained from directly addressing the failure claims. Sharing images captured by ArmSat-1 on his X (formerly Twitter) account, he emphasized the project’s potential. Meanwhile, Deputy Minister Gevorg Mantashyan reported that Armenian specialists had received training to operate a newly established satellite operations center. Mantashyan also dismissed claims by Satlantis CEO Juan Hernan that Armenia is mismanaging satellite data.
The Prosecutor-General’s Office confirmed the investigation, which is being conducted by the Anti-Corruption Committee. However, citing national security concerns, it withheld details. The investigation centers on allegations of waste or embezzlement of government funds allocated for the satellite program.
The satellite project was developed under Vahagn Khachaturyan, who led the Ministry of High-Technology Industry at the time and now serves as Armenia’s president. It remains unclear whether Khachaturyan has been questioned by investigators. His office declined to comment on the matter.
The total cost of the ArmSat-1 initiative remains undisclosed. In April 2022, a month before the satellite launch, the government allocated approximately $7 million to Geocosmos, an Armenian company that contracted with Satlantis for the project.
In December 2023, SpaceX launched another Armenian satellite, a small cube-shaped device developed by Yerevan’s Bazoomq Space Research Laboratory and the Armenian Center for Scientific Innovation and Education.
For context, neighboring Azerbaijan launched its first communication and observation satellite in 2013. During the 2020 Artsakh conflict, Azerbaijani forces reportedly utilized satellite imagery for military operations, underscoring the strategic value of space technology.
This ongoing investigation raises questions about the accountability and effectiveness of Armenia’s investments in space technology, a sector viewed as vital for national security and development.
