Month: October 2006

KOCHARYAN URGES PUTIN TO USE BILATERAL CONTACTS IN FUTURE

ITAR-TASS, Russia
Oct 30 2006

MOSCOW, October 30 (Itar-Tass) – Armenian President Robert Kocharyan
called on his Russian counterpart Vladimir Putin to work out mechanisms
on using contacts between the two countries during Year of Armenia
to Russia.

Kocharyan said, "During Year of Armenia to Russia we implemented
everything. In addition, we’ve been made interesting proposals from
regions. We’d like these contacts to be effective in the future. It
would be pity if they did not yield concrete results."

President Putin said Year of Armenia to Russia was successful. "In
general, we maintain humanitarian contacts at the highest level,"
he said.

LAVROV INFORMS PUTIN ON VISITS OF PRESIDENTS, UN SECRETARY GENERAL

ITAR-TASS, Russia
Oct 30 2006

MOSCOW, October 30 (Itar-Tass) – The presidents of Armenia, Angola
and Egypt, as well as the South Korean foreign minister elected UN
secretary general will visit Moscow this week, Foreign Minister Sergei
Lavrov told President Vladimir Putin on Monday.

"We shall have full top level political contacts," he said.

The agenda of the president’s talks with the Armenian leader on Monday
would centre on trade and economic contacts, energy and transport.

"We expect that issues of Nagorno-Karabakh settlement within the
framework of the proposals put forward by you at the meeting with
the presidents of Armenia and Azerbaijan will be discussed," Lavrov
said, adding that the "situation in the Transcaucasus as a whole will
be reviewed".

"Tomorrow is a main day of the Angolan president’s visit. It is
planned to sign a whole number of bilateral documents at the level
of the government between ministries and companies. We hope that
this visit will help a more active implementation of the policy of
interaction with Africa that you have laid down by the recent visits
to this continent," Lavrov said.

The state visit of the Egyptian president to Russia this week is
expected to have a "rich bilateral agenda".

"You visited Egypt a year and a half ago, and the regular contacts with
the leader of this leading Arab country will allow paying attention
to problems of Middle East settlement in the light of Russia’s latest
initiatives," Lavrov said.

He said that "the foreign minister of the Republic of Korea, who has
been elected UN secretary general and will take office on January 1,
2007, will visit Moscow this week".

"We know him well, and it is important that he visits Moscow among
first capitals," Lavrov stressed.

He said the visit "will provide a possibility to discuss the role
of the UN as a centre of collective decision making and collective
actions to resolve international problems".

EUROPEAN UNION IS READY TO JOIN ACTIVE PARTICIPATION IN SETTLEMENT OF NAGORNO-KARABAKH CONFLICT
Author: I.Khalilova

TREND, Azerbaijan
Oct 30 2006

The next meeting of the EU-Azerbaijan Co-operation Committee took
place in Brussels within the Partnership and Co-operation Agreement.

The meeting focused on the interaction between Azerbaijan and European
Union in political, economical, humanitarian and other areas,
Trend reports with reference to the Economic Development Ministry
of Azerbaijan.

Azerbaijan was represented at the meeting by the Deputy Foreign
Minister, Mahmud Mammadguliyev, to discuss the political aspects
of co-operation and by the Deputy Economic Development Minister,
Mikayl Jabarov, to discuss economical issues. The delegation included
representatives of the Foreign Ministry, Economic Development Ministry,
State Customs Committee, State Committee on Management of State
Property and Azerbaijani Embassy in Brussels.

The event is held annually in Summer, but due to the continuation of
negotiations regarding the European Neighborhood Policy, the Azerbaijan
Government had abandoned the meeting until such time as the settlement
of the dispute was included in the National Plan. As was reported
by Trend previously, the European Union had refused to acknowledge
the territorial integrity of Azerbaijan within the document, and
therefore the decision was made not to hold the committee meeting
until the issue was settled.

The agenda of the meeting for the political block included the
development of human rights in the country and the development of
democratic institutions. The parties exchanged views on the solution
of the Nagorno-Karabakh conflict. "EU inactively participates in
resolving this conflict. However, during the meeting, it was stated
that the EU is prepared to actively participate in the settlement of
the conflict," the same source told.

The meeting also included economical topics on the macro-economical
situation in Azerbaijan and EU and bilateral co-operation with
regards to the trade. During the meeting, debates were organized on
the National Action Plan within the European Neighborhood Policy. The
Plan was proposed to be confirmed at the meeting of the EU-Azerbaijan
Co-operation Council on November 14 in Brussels.

ECOLOGICAL SITUATION IN TERRITORIES OF FROZEN CONFLICTS TO BE DISCUSSED IN VIENNA
Author: A.Ismaylova

TREND, Azerbaijan
Oct 30 2006

The representatives of the Azerbaijani Embassy in Austria will
participate in the meeting of the Consultation Council of the
Organization for Environmental & Security Initiatives (ENVSEC) that
will focus on the ecological situation in the territories of frozen
conflicts of South Caucasus. The meeting will take place on 31 October
in Vienna, Trend reports quoting the Azerbaijan Embassy in Austria.

This initiative was made by the UNO, OSCE, NATO, U.N. Environmental
Program, European Commission and Center for Environment. The meeting
will be opened by the

OSCE Co-ordinator for Economical and Ecological Activities, Head of
ENVSEC, Bernard Snoy. Thereafter, the representatives for Eastern
Europe, Southern-Eastern Europe, Central Asia and South Caucasus will
be presented.

The OSCE International Expert Group headed by Bernard Snoy arrived
in Nagorno-Karabakh to assess the ecological damages inflicted by the
fires started by Armenians in occupied Azerbaijani territories. After
a 10-day of monitoring, the mission confirmed that the fires covered
a large territory and had inflicted significant damage. The expert
group considers that it is necessary to strengthen the efforts to
prevent the fires within regional and international co-operation.

TO RUSSIA GEORGIA IS CLOSER AND MORE FRATERNAL, THAN ARMENIA – VICE-SPEAKER

TREND, Azerbaijan
Oct 30 2006

(PanARMENIAN.Net) November 6 the next session of Armenian-Russian
Interparliamentary Commission on Cooperation will be held in Yerevan,
Armenian Vice-Speaker Vahan Hovhannisyan stated at a news conference
in Yerevan. In his words, at the session the Armenian party intends
to discuss the situation Armenia is in due to the tension in
Russian-Georgian relations, reports Trend.

"Georgia’s actions are aimed at withdrawal of Russia from the region
at any price," the Armenian Vice-Speaker said. In his words, Armenia’s
actions should be aimed at reduction of economic threat within the
period of Russian sanctions against Georgia.

At that V. Hovhannisyan underscored that to Russia Georgia is a closer
and more fraternal people, than Armenia. "Not Armenia, but Georgia
is Russia’s advanced post. Georgian leaders want to turn the Georgian
people towards the West," he said. He said that if Abkhazia and South
Ossetia do not want to live with Georgia it is their business. "I
do not think Armenians should interfere with internal affairs of
neighboring states," Hovhannisyan added.

PVDA TAKES A STEP BACK; IMMIGRANTS CAUTIOUS
By Basri Dogan

Kitsap Sun, WA
Oct 30 2006

The Dutch Social Democrat Labor Party (PvdA) has backpedaled about
genocide allegations; this after it had removed the names of Turkish
deputies from its electoral lists prior to general elections on Nov.
22 on the grounds that they did not recognize an Armenian genocide.

In a notice distributed to party members, the PvdA administration
termed the 1915 incidents as a "massacre" admitting that no legal
genocide had taken place.

However, Turkish immigrants in the country found party’s attitude
insincere, feeling that the party acted out of political concerns.

In a letter to Amsterdam and Rotterdam party groups, PvdA leader Michel
Van Hulten said there had been massacres following the events in 1915;
however, there had been no legal genocide.

Van Hulten wrote the letter after he met with Turkish origin members
in the party and indicated that there had been a change in the party’s
opinion about an Armenian genocide.

When asked about the party’s opinion, Hulten quoted Turkish origin
candidate Nebahat Albayrak who said, "There were massacres; however,
there is no genocide in legal terms."

Hulten’s letter also mentioned that historians and jurists should
discuss this issue, and added that as the PvdA, they are against the
adoption of the Armenian bill the French National Assembly passed
earlier this month.

RUSSIA’S COMSTAR ACQUIRES ARMENIAN TELECOM GROUP

RIA Novosti, Russia
Oct 30 2006

MOSCOW, October 30 (RIA Novosti) – Comstar United TeleSystems [RTS:
CMST], one of Russia’s largest telecommunications operators, said
Monday it has acquired a controlling stake in Armenia’s CallNet and
its 100% subsidiary Cornet.

Comstar has purchased 75% plus one share, with an option to acquire
the remaining stake in the group.

CallNet, which provides transit operator services between networks,
and Internet service provider Cornet, comprise the second largest
telecommunications group in Armenia. Cornet has a fast-growing customer
base, including 76% of the banking sector in Armenia. In 2005 the
group’s consolidated revenue doubled year-on-year to $4.3 million.

Eric Franke, CEO and President of Comstar UTS, said that the purchase
was part of an investment and expansion plan announced by the company
earlier in October. It follows a June 2006 agreement between Comstar
and Ukraine’s Neotel to set up a Comstar subsidiary in Ukraine.

Comstar UTS, formed in November 2004 through a merger of Comstar,
MTU-Inform and Telmos, said its strategic vision was focused on further
growth of its top line using the group’s resources, cross-selling to
existing and new customers of the whole range of products and services,
accelerating regional expansion, and introducing performance-based
compensation systems.

Comstar’s main shareholder is AFK Sistema [RTS: AFKS], which holds
a 54.58% stake.

COMSTAR-UTS HAS ACQUIRED 75% AND ONE SHARE OF CALLNET, AN ARMENIAN TELECOMMUNICATION COMPANY

Analytical Information Agency, Russia
Oct 30 2006

Comstar-UTS OJSC has acquired 75% and one share of Callnet, an Armenian
telecommunication company, with a possible exercise of an option to
buy out the remaining share, Comstar says.

"This is the first deal of the planned and declared in October 2006
acquisitions that will enable us to use the funds raised during the
IPO to realize our investment program in regions," Comstar’s General
Director Erik Franke said.

Callnet is one of the four Armenian operators holding a traffic
transit license. Its 100% subsidiary – Cornet – is the only Wi-Max
supplier in Armenia.

In 2005, Callnet’s proceeds doubled y-o-y to $4.3 mln.

Comstar-UTS holds fixed-line telephony assets of Sistema JSFC. They
are 53.04% shares of MGTS, 100% shares of MTU-Inform CJSC , 100%
shares of Telmos CJSC, 100% shares of MTU-Intel CJSC (including its
100% subsidiary Golden Line).

In 2005, Comstar’s net income under US GAAP grew by 39.% to $106 mln.

Proceeds rose by 30.6% to $907.6 mln.

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RAILWAY IN ARMENIA: RUSSIA READY TO CONTROL RAILWAY INFRASTRUCTURE OF ARMENIA

Railway Market Magazine, Poland
Oct 30 2006

The talks of Russia’s President Vladimir Putin and his Armenia’s
counterpart Robert Kocharian begin in Moscow onOctober 30th, 2006.

The key issue of agenda is the last lucrative asset of Armenian
infrastructure – its railway facilities.

Moscow that just half a year ago, persuaded Armenia to buy Russia’s
gas at $110/ths cu meters instead of $54/ths cu meters and insisted
on transferring to Gazprom a portion of Iran-Armenia’s gas pipeline
and Razdan Thermal Station is eyeing Armenian railway system now.

Three weeks ago, Armenia announced the intention to grant on concession
its railways and is currently preparing a tender, which successful
bidder will control the railways in the following 40 years. But Moscow
has been long craving for reviving the through railway service via
Sukhumi to Erevan, the capital of Armenia. In future, it may turn
into a key component of North-South transport corridor, where Iran
will participate.

The interest is so high that Moscow will probably urge Kocharian
to suggest the name of the winner to arrangers or to transfer the
facilities to Russian Railways (RZD) with no tender at all.

Georgia could become another delicate issue to be raised at the
talks. In the Kremlin, they are continuously looking for the methods
to pressurize Mikhail Saakashvili. Georgia fears one of the options
could be halting electric energy deliveries from Russia and Armenia
in winter.

Another concern of Georgia is its Samtshe-Dzhavakhetia region,
which is the whereabouts for around 200,000 ethnic Armenians. There,
the atmosphere is rather heated as many locals used to work at the
Akhalkalaki base, of which Russia’s military are pulling out today.

So, Moscow may prompt Armenia to stage some turmoil there.

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From: Emil Lazarian | Ararat NewsPress

FINANCIAL INTELLIGENCE ORGANIZATION TO BE ESTABLISHED IN AZERBAIJAN

Azeri Press Agency, Azerbaijan
Oct 30 2006

A seminar "Legal framework of fighting the laundry of dirty money,
contribution to terrorism and other financial crimes" organized by the
US embassy in Azerbaijan and Council of Europe began in Baku today,
APA reports.

Claudio Sroligo, the experts of CE gave 30 recommendations about
main and additional functions of the organization. He said that
the organization is set up in three forms all over the world:
administrative, police and hybrid. The expert talked about the
experiences of Slovenia, the country he represents, and said that
Azerbaijan has opportunity to use the experience of different
countries.

Anne E. Derse, US ambassador to Azerbaijan said that international
terrorism is a problem of world importance and dirty money cause
serious dangers in all countries. The ambassador also said that
there are strong organizations fighting the laundry of dirty money
and contribution to terrorism in the US and CE member states.

Fuad Aleskerov, the chief of the President’s Office Department
on work with law enforcement bodies said that Nagorno Garabagh is
under Armenians occupation, and Azerbaijan fights both local and
international terrorism. He also noted that the government makes some
legislative and institutional reforms for this.

The seminar will continue tomorrow.