Beneficial embargo

The Washington Times
June 17, 2004, Thursday, Final Edition

EMBASSY ROW

By James Morrison, THE WASHINGTON TIMES

[parts omitted]

Beneficial embargo

Turkey’s economic embargo on Armenia has had an unexpected positive
effect on the economy, said Armenian Foreign Minister Vardan Oskanian.

Turkey’s embargo is meant to force Armenia to relinquish land it
captured from Turkey’s ally, Azerbaijan, in the 1990s during a civil
war in the ethnic Armenian enclave of Nagorno-Karabakh, which declared
independence from Azerbaijan in 1988. One million Azerbaijanis were
displaced, and the conflict has yet to be resolved. An unofficial
cease-fire has held since 1994.

Although State Department reports say the embargo has devastated
the economy of landlocked Armenia, Mr. Oskanian said his country
has diversified.

“We are developing and developing well. We are more efficient, more
effective,” he told our correspondent Tom Carter in an interview at
the Armenian Embassy this week.

“We have strengthened our [information technology] industry. We have
diversified into diamonds and jewelry: things that can go out on
satellite or in small pouches on airplanes.”

Mr. Oskanian met with Secretary of State Colin L. Powell, National
Security Adviser Condoleezza Rice and a variety of senators during
his brief “working” visit.

He said that Armenia was gratified that it had met the qualifications
necessary to be a part of the Millennium Challenge Account, which
will give Armenia access to U.S. financial aid in the next three to
five years.

“There are billions of dollars available, which will be extremely
valuable to our economy,” said Mr. Oskanian, predicting that his
country will continue to liberalize the economy, invest in “human
capital” and improve human rights and the rule of law.

Mr. Oskanian said Armenia supported the U.S.-led effort to liberate
Iraq, although it did not provide troops. Armenia granted permission
for coalition planes to fly over its territory and is prepared to
send a specialist team to help remove land mines.

Mr. Oskanian also said Armenia’s relationship with the European Union
improved this week when the union welcomed Armenia, Azerbaijan and
Georgia under its “neighborhood policy,” which is aimed at encouraging
ties with the European bloc. However, he added that the designation
does not guarantee membership.

“This was a first signal saying, ‘Why not?’ It has not been ruled out,
but there is no firm commitment,” Mr. Oskanian said.