America actively lays out the Caucasus to expand its influence! “Trump” investors increase investment in Armenian copper

The Zhitong Finance App learned that as the US focuses on strengthening its economic presence in Armenia, Konstantin Sokolov, who is closely related to the Trump administration, is betting on further opening up the entire region and plans to expand his copper investment in Armenia.

Sokolov, who acquired Teghut CJSC, Armenia's second-largest copper producer in September, said in an interview: “The peace memorandum signed between Armenia and Azerbaijan is a once-in-a-lifetime transformative event in the region. I'm very interested in expanding our investments across the region because I believe the entire region has huge potential.”

An agreement signed at the White House in August last year promised to put an end to decades of conflict surrounding the Nagorno-Karabakh region. The region is a mountainous enclave recognized by the international community as belonging to Azerbaijan, but in the past it was mainly inhabited by the Armenian population. The agreement paved the way for greater US participation in South Caucasus affairs, including the proposed “Trump Route for International Peace and Prosperity” (TRIPP) transit corridor.

The TRIPP corridor will be managed jointly by Armenia and an American company. The US is expanding its influence in the Caucasus and Central Asia by promoting trade, securing supplies of critical minerals, and establishing economic ties with the region. US Secretary of State Marco Rubio will lead a delegation of dozens of US companies to Uzbekistan this month to meet with companies and officials from Central Asia and Azerbaijan to strengthen commercial ties.

Sokolov's acquisition of Teghut CJSC is in line with America's push to expand its influence in the region, and he has gradually become an important figure in the Trump administration's related efforts in the region. This year, 51-year-old Sokolov became the chairman of the Transcaspian Enterprise Fund (Transcaspian Enterprise Fund). The fund is a US-backed non-profit investment vehicle designed to attract private capital to invest in infrastructure and commercial projects. The fund received US$201 million in funding from the US government and will focus on developing TRIPP and the wider trans-Caspian Sea trade corridor, covering Armenia, Azerbaijan, Georgia, and the five Central Asian countries.

Sokolov said that he himself and other board members will not be paid for holding relevant positions. He said the fund chose these leaders because they have private equity investment experience and are familiar with the region and the relevant industries the fund plans to invest in.

Prior to the acquisition of Teghut C, an Armenian copper mine, Sokolov already held shares in Viva Armenia, the country's largest mobile operator, and completed the acquisition in 2024. He said he began to discover investment opportunities in this country with a population of about 3.1 million at the end of 2021, and believes that Armenia is on the eve of an economic breakthrough. He obtained approval from the US Treasury's Office of Foreign Assets Control (OFAC) to buy the copper mine from sanctioned Russian VTB Bank.

According to reports, Teghut produces about 80,000 tons of copper concentrate per year, and production began in 2014. The mine was developed by a local merchant and received financing from VTB Bank. In 2018, VTB took over the asset and listed it for sale after it was difficult for the original owner to repay the loan.

Up to now, most of the mine's production has been sold to China. Sokolov plans to resell this production to the US through a new trade contract after the existing offtake agreement expires in December. He said, “One of the main goals of this transaction is to enable Armenia's critical mineral resources to enter the US supply chain.”

Sokolov plans to increase annual production to 120,000 to 130,000 tons of copper concentrate, with a copper content of about 26,000 to 28,000 tons. He said the additional production capacity is expected to be put into operation in 2030, and full production will be achieved in 2031.

Sokolov also said that he is watching critical infrastructure-related projects throughout the region, particularly transmission lines, pipelines, power generation facilities, and key mining projects.

Sokolov's extensive contacts in the US political community include people close to Trump. He said the Trans-Caspian Enterprise Fund is a project co-initiated with Trump's special envoy Steve Vitkov and Aliye Lightstone, who served in Trump's first administration and currently serves as Vitkov's senior adviser.

Sokolov said that his political relationship can be traced back to his early years working in the US telecommunications industry. At the time, the US telecommunications industry experienced an “extraordinary boom” in the late 1990s, and he began participating in political fundraising. His donations spanned party lines, including donations to Barack Obama's 2008 presidential campaign.

Sokolov said, “I don't have any official government positions, but I support President Trump, and I am very open and candid in expressing my conservative values. I am very honored and very lucky to support him.”

Sokolov is also a donor to another Trump project — a $300 million project to rebuild the White House ballroom, which has been criticized by historic building preservation groups and ethical advocacy groups. He said, “I'm also very proud of that. As an immigrant to this country, I had the opportunity to contribute to the construction of such an iconic American landmark.”