Armenia`s authorities consider forming auction market of cultural  values 

ArmInfo.  The Armenian authorities want to form and develop an auction market for cultural values in the country. The draft law "On the Organization of Cultural Auctions" and a package of related laws are being discussed at the plenary session of the National Assembly of the Republic of Armenia on May 7.

As Deputy Minister of Education, Science, Culture and Sports of the  Republic of Armenia Alfred Kocharyan noted in his speech, the  development of the draft is conditioned by the requirement of the  program of measures to ensure the implementation of the strategy for  the preservation, development and popularization of the culture of  the Republic of Armenia for 2023-2027. The main goal of the presented  document is to modernize the cultural and creative spheres, promote  the development of the activities of authors in the field of culture  and creativity, and form and develop an auction market for cultural  values.

The Deputy Minister emphasized that there is no law on cultural  auctions in Armenia, nor is there a system of expert assessments. For  this reason, the banking system does not perceive art as a stable  value and does not perceive the owner of a cultural monument as a  borrower. Due to the lack of legislation, industry participants are  unable to ensure financial turnover and develop, as well as form a  business environment.  "There is not even a definition of a cultural  auction in our cultural policy or in any state document. Steps are  being taken in Armenia to organize art management, so this project is  also important, otherwise the actions of an art dealer, investor and  market maker will not be effective. This project will facilitate the  sale of creative works. If the law is adopted, an objective pricing  policy will be carried out and a pricing system will be established,"  the official noted.

He added that in the case of Armenia, an opportunity will be created  to participate in the world market of cultural auctions. All  opportunities will be used to establish a dialogue between Armenian  and foreign artists and critics, a dialogue and associations will be  formed, which is currently lacking. In developing the document, the  international experience of France and Great Britain was studied, as  well as the procedures for organizing auctions of the international  auction houses Sotheby's and Crispi.

The package contains specific proposals to improve the situation. The  existing rules do not contribute to the development of the industry,  moreover, they can cause serious harm to it. The logic of the draft  being developed is to expand the capabilities of cultural  organizations, which will contribute to the formation of a culture of  holding cultural auctions, simplifying the rules for their conduct.  When developing the law, the obligations assumed in accordance with  international treaties in this area were taken into account. At the  same time, if the law is adopted, administrative liability will also  be established for violating the procedure for organizing cultural  auctions, and the relevant provisions will be enshrined in the  charters of the bodies as part of measures to ensure the  implementation of the law.

Cultural auctions occupy an important place in the world auction  system, ensuring the development of transparent mechanisms and tools  for the sale of works of art, the formation of the art market. In  this regard, cultural auctions are flexible platforms that shape and  reflect the changes and dynamic development of the art market.  Currently, the sphere of cultural auctions in the Republic of Armenia  is not developed, which negatively affects the formation of the  general market of works of art. In particular, the processes of  buying and selling works of art are not regulated, there is no  ecosystem of cooperation between art galleries and auction houses,  which is of great importance for the dynamic development of the  general art sphere, enhancing the artist's reputation and forming new  trends in art. At the same time, open flows and transparent movement  of works of art create opportunities for the state to control and  acquire cultural values that are important for the state.