Month: November 2006

AGHAJANOV THINKS FOOLISH TO SELL SHARES OF GOVERNMENT IN ARMENTEL
Panorama.am
16:16 09/11/06
Telecommunication is very profitable and it is foolish from the side
of Armenian government to sell 10% of its shares in ArmenTel, Edward
Aghajanov told reporters today. He thinks if the government wants to
sell its shares, it better sell it to a local company.
“I was generally against the sale of ArmenTel to Greek OTE and
always supported that it was owned by local entrepreneurs,” he
said.

PARLIAMENT APPROVES BILL ON ALIENATION OF PROPERTY
Panorama.am
16:37 09/11/06
Parliament extraordinary session approved several government
proposed bills, among them already famous bill on alienation of
property for public and state needs. The package was approved on 61
in favor and 11 abstained vote. Arshak Sadoyan, who boycotted the
bill, said that Armenian Revolutionary Federation (Dashnakcutiun)
which abstained in the vote, in fact, pushed it forward by ensuring
minimum quota. If Dashnakcutiun did not participate, the bill would
be rejected. Everything was taken into consideration, Sadoyan said.

GOVERNMENT DECISION REQUIRES AUCTION FOR MINING INDUSTRY
Panorama.am
16:55 09/11/06
“Efficient use of mining industry will promote our economy,” Vardan
Aivazyan, minister of nature protection, told a briefing followed by a
government session. The government issued a decision according to which
a tender will be announced for processing the bowels of the earth.
According to the new order, the government announces starting amount
of the auction and the participating companies invest as much or more
to win the auction.
Aivazyan said the starting capital for 5 tones of gold may be “380
million drams.” Aivazyan said these auctions may fill the budget with
big sums.
From: Emil Lazarian | Ararat NewsPress

NGOS SAY NEW GOVERNMENT ORDER BOOSTS CORRUPTION RISKS
Panorama.am
19:28 09/11/06
Some environment organization complain about the order issued by the
government on management of forests. The government decision says
state forests will be accredited to companies if forest economies
cannot manage them on their own or work on losses.
Public organizations in environment believe that this will boost up
corruption risks. Nazely Vardanyan, Armenian Forests NGO Director,
believes the order is underdeveloped and does not include expert
opinions.

HUNGARIAN APPEALS COURT JUDGE: RAMIL SAFAROV’S MOTIVES EXTENUATING
Azeri Press Agency, Azerbaijan
Nov 9 2006
The motives that made Ramil Safarov to act this way are not ordinary.
The court should pay attention to them and consider as extenuating
circumstances,” the judge of Hungary Court of Appeal Andrash Braqyova
who is on visit to Azerbaijan told the journalists. Hungarian judge
said that Hungary press gives enough information about lifer Ramil
Safarov. Braqyova stressed that Armenian Diaspora’s interference to
the court affairs is inadmissible.
“I do not rule out any political declaration after court’s decision.
These declarations can even be made by Azerbaijani President.
According to the Hungary Legislation Ramil Safarov’s being granted
amnesty or pardon is possible only after trial will over,” he said.
It should be noted that the court will consider Ramil Safarov’s appeal
in spring next year.

NKR FM DISCUSSED KARABAKH SETTLEMENT IN GREECE
DeFacto Agency, Armenia
Nov 9 2006
Early November the Nagorno-Karabakh Republic FM Georgy Petrossian
visited Greece to participate in the measures devoted to the 10th
Anniversary of the Armenian Genocide’s recognition by the Greek
Parliament.
According to the information DE FACTO got at the NKR MFA Press Service,
November 7 RA Parliament vice Speaker Vahan Hovhannisian and NKR FM
had met with the Greek Parliament vice Speaker Georgios Surlas.
The RA and NKR officials expressed their gratitude to the Greek
Parliament for the recognition of the Armenian Genocide in 1996. In his
turn Georgios Surlas dwelled on the policy of the ethnical cleansings
of Armenians and Greeks being pursued in the Osmanian Empire.
In the course of the meeting the parties also considered the issues
referring to extending friendly ties between Armenia and Greece and
the current stage of the Nagorno-Karabakh conflict settlement process.
From: Emil Lazarian | Ararat NewsPress

OKTAY EKSI: THE EU COMMISSION’S “SHAMEFUL” REPORT
Hurriyet, Turkey
Nov 9 2006
The EU Commission’s progress report on Turkey, which had been prepared
for months, delayed once, and whose contents everyone was curious
about, was finally released yesterday. What the report revealed was
nothing too surprising, in fact, it went over things which were already
known. Like that we need ot bring our military-civilian relations in
line with EU standards.
It’s true-but in order bring about these standards in that arena,
the current political administration must leave off its policies which
carve away at the foundation of the secular republic. Unfortunately,
these policies continue. The main opposition CHP, which should be
the first in line to protect secularity, is content instead to stand
back and just regard secularity with love and respect. Which is why
the military steps in, saying “secularity is not a political matter,
but a basic part of life.”
Let’s hope the EU excuses us but…..in Turkey, with things the way
they are, there is no way military-civilian relations can be brought
to any level which is going to please the EU. And so, what will happen
if they don’t? Well, maybe Turkey won’t be able to get into the EU,
due to the role its military plays, but at least, and more importantly,
its secular order will stay in place.
Yesterday’s EU progress report on Turkey also issues a complaint about
the 301st article from the Turkish Penal Code, saying “it is being used
to limit expressions of thought which do not contain any violence.”
Maybe the EU has a free pass to comment on every matter there is,
but it was the EU itself who ignored Turkish protests on this 301st
article when it was first accepted in its current form. And now the
EU is ignoring the fact that even some of its member countries have
similar laws on their books. Most EU countries, including Austria,
France, Germany, Holland, and Belgium all have laws calling for jail
sentences for people denying the Holocaust, or who publish anti-semitic
work. Add to this the new tilt towards making it a crime to deny the
Armenian genocide allegations. Don’t all these things also fit into
the category of “limiting expressions of thought which don’t contain
any violence”? Which is why I say, let the EU first clean up its own
house before it takes on Turkey in this arena.
By this, I do not mean that we should protect the mistakes we have in
our own legal system. Of course we need to straighten them out. All
I’m saying is that those who can’t see the speck in their own eyes
should really look in the mirror before criticizing us.
The EU progress report also contains an expression of the EU desire for
Turkey to open up its air and sea ports to Southern Cypriot airplanes
and ships.
This desire is understandable, since Turkey, in order for the EU
accession talks to start up in December 2004, gave its word to follow
the 1963 Ankara and 1996 Customs Union agreements as they pertain to
Southern Cyprus. It gave its word, true, although before that point,
there was a promise from the EU that isolationary measures against
Northern Cyprus would be lifted with a resounding “yes” to the Annan
Plan. And now the EU, which was not able to keep its previously
made promise, wants Turkey to keep its part of the promise, also
previously made.
Do these Europeans think they are the smartest people in the world?
A person can want demand certain things, but only if they are in the
right position…..

GEORGIA NOT TO YIELD GAS PIPELINES TO RUSSIA
Kommersant, Russia
Nov 9 2006
Gazprom proposed to Georgia to purchase some of its gas pipelines and
cut by half gas prices for Georgia in return for it. It also warned
to terminate gas supplies January 1, 2007 if no contract is made.
Georgia responded by calling the proposals political blackmail and
its prosecutors set to arresting local gas traders.
Yesterday, a raft of high-ranked bureaucrats of Georgia, including
State Minister Kakha Bendukidze and Parliament’s Speaker Nino
Burdjanadze, emphatically denied the proposals of Alexander Medvedev,
deputy chairman of Gazprom’s management committee. Medvedev suggested
cutting by half future gas prices for Georgia, from $230/ths cu meters
to today’s $110/ths cu meters, if Georgia agrees to sell some portion
of gas pipeline infrastructure to Gazprom.
We were ready for surprises, but it is the political blackmail and
we won’t yield to it, vowed Georgian Premier Zurab Nogaideli.
Of all CIS countries that faced such proposal of Gazprom, only Armenia
has agreed to it. According to news service of Armenia’s government,
by late this year, they will elaborate procedures for transferring
Iran-Armenia’s gas pipeline under control of Armrosgazprom. Gazprom
will own 58 percent in this company once it buys out new stocks for
a total worth of $118.8 million.
The asset will allow Gazprom to control gas supplies to Georgia from
Iran. When the gas monopoly of Russia fixes a single basic rate of
$230/ths cu meters for Transcaucasia, it will be able to present it
as an economically reasonable price.
Further aggravating the energy clashes, Georgian prosecutors set to
detaining traders of Russia’s gas. Revaz Urushadze, general director of
Georgian National Gas Transport Co., and Alexander Dolidze, an employee
of this company, were arrested Wednesday on charges of corrupt deals,
which led to material damage to Georgia’s budget.

DEMOCRATS WIN CONTROL OF HOUSE OF REPRESENTATIVES ARMENIAN CAUCUS MEMBER REP. PELOSI SET TO BECOME SPEAKER
DeFacto Agency, Armenia
Nov 9 2006
The balance of power shifted in Washington yesterday as Democrats
took control over the House of Representatives, paving the way for
Armenian Caucus Member Rep. Nancy Pelosi (D-CA) to become the first
female Speaker of the House. Pelosi’s anticipated rise, coupled with
the likelihood of numerous Caucus Democrats picking up important
leadership positions, will expand the scope and influence of this
important body in the next congressional session.
According to the information DE FACTO got at the Armenian Assembly of
America (AAA), as a part of that power shift, House Speaker Dennis
Hastert (R-Ill) will pass the Speaker’s gavel to Pelosi, making
her the first Armenian Caucus Member to hold that position. Pelosi
has a strong record of support on Armenian-American issues and has
regularly called on the Administration to properly acknowledge the
Armenian Genocide. She is currently a cosponsor of H. Res. 316 – a
bill that affirms the attempted annihilation of the Armenian people as
genocide. Last year, Pelosi participated in a Capitol Hill observance
of the 90th anniversary of the Armenian Genocide and in April 2001,
spoke on the floor of the House saying that “the Armenian Genocide
is a historical fact. The Republic of Turkey has adamantly refused to
acknowledge that the Genocide happened on its soil, but the evidence
is irrefutable….We must learn from the past and never forget the
victims of the Armenian Genocide.”
Additionally, Minority Whip Steny Hoyer (D-MD) will run for Majority
Leader, and if elected, will be another Caucus first. Like Pelosi,
Hoyer has co-sponsored legislation reaffirming the Genocide and has
given commemoration addresses to Congress during the month of April.
In total, some 50 Democratic Armenian Caucus Members are positioned
to take over important leadership positions and full committee
chairmanships including Representatives Charles Rangel (NY) House
Ways and Means, John Dingell (MI) Energy and Commerce and others.
The majority of Armenian Caucus Members were re-elected including
Co-Chairs Joe Knollenberg (R-MI) and Frank Pallone, Jr. (D-NJ).
“The Assembly congratulates Armenian-American supporters in the Senate
and House on their victory and looks forward to reaching out to new
members in the coming year,” said Assembly Executive Director Bryan
Ardouny. “To that end, we also encourage Armenian Americans to join
us in our outreach efforts and build on our advocacy successes in
the current Congress.”
When Congress returns next week for the lame duck session, several
outstanding items remain including the rail legislation, appropriations
funding for Armenia and Karabakh, as well as the confirmation process
for Ambassador-designate Richard E. Hoagland.

CONSTRUCTION OF THE STRATEGIC KARS-AKHALKALAKI RAILWAY TO START IN 2007
By Taleh Ziyadov
Eurasia Daily Monitor, DC
Nov 9 2006
For almost a year, officials from Azerbaijan, Georgia, and Turkey
have been engaged in intense discussions about ways to finance the
construction of the strategic Kars-Akhalkalaki railway system. This
rail link will bridge the gap between the Georgian and Turkish rail
networks, permitting an uninterrupted flow of cargo from markets in
Asia to Europe or vice versa.
Earlier this year, a Turkish firm completed a feasibility study of the
Kars-Akhalkalaki project. Soon after, Turkey announced that it would
finance the construction of the 68-kilometer portion of the railway
on its territory ($200 million). Azerbaijan also stated its readiness
to allocate funds for the project, while Georgia remained undecided.
It took several high level-meetings and intense negotiations among
the three countries to hammer out the remaining differences. The
major problem has been the source of funds for the construction and
rehabilitation work in the Georgian segment of the railway.
A 220-kilometer (137 mile) portion of the railroad (from the
Georgian-Turkish border to Tbilisi) runs through in Georgia. Some 30
kilometers (18 miles) of this rail link will be built from scratch,
while the remaining 190 kilometers needs modernization. The estimated
cost of the Kars-Akhalkalaki project is $450 million, of which $220
million will be spent for work in Georgia.
In a September 25 interview with a local newspaper, a high-ranking
Turkish diplomat complained that Tbilisi “intentionally delays
the construction of the [Kars-Akhalkalaki] railroad” (Azeri Press
Agency, September 25). “Georgia is posing bureaucratic obstacles to
the construction of the railway. We cannot understand [Georgia],”
stated the unnamed diplomat.
The reason for delay, however, is related to negotiations between
official Baku and Tbilisi. Because the major construction and
rehabilitation work is to take place in Georgia and Turkey, the
Georgian government had to bear at least half of the cost of the
project. This created financial problems for Georgia, which does
not have vast natural resources like Azerbaijan or a strong economy
like Turkey.
The issue became more complicated when the Georgian government’s
major financial donor, the United States, was taken out of the
funding picture.
On September 30, Armenian lobbying groups managed to include a
prohibition provision (Section 11) in the U.S. Senate resolution S.
3938, the Export-Import Bank Reauthorization Act of 2006. The bill
prohibits the U.S. ExImBank from extending a credit or participating
in “any railway connection or railway-related connection [project]
that does not traverse or connect with Armenia,” thus eliminating
any possibility of credit from the U.S. government to Georgia.
Nonetheless, on September 12, the general director of JSC Georgian
railways, Irakly Ezugbaiya, declared that Azerbaijan had agreed
to allocate a credit in the amount of $220 million to the Georgian
government.
Confirmation of this offer came after Georgian Minister of Economic
Development Irakli Chogovadze visited Baku on October 12-14. After
trilateral discussions with Turkish and Azerbaijani officials,
Chogovadze confirmed that the Georgian government would finance the
project using long-term and zero-interest credit from Azerbaijan
(Trend, October 13). The funding will come from the International
Bank of Azerbaijan and the Azerbaijani government. The amount of the
credit will be determined in early 2007 (Sharg, October 14).
In addition to Azerbaijan’s credit to Georgia, China has offered a
13-year loan with a 5.5% interest rate to Turkey. But Ankara declined
the offer, stating that it has sufficient funds to finance the project
by itself (Trend, August 28).
The construction of the railway is scheduled to begin in 2007 with
an expected completion date at the end of 2008. Georgia alone is
expected to earn $150 million annually from the cargo shipments via
the Kars-Akhalkalaki rail connection (Today.az, September 7).
According to Turkish Minister of Transportation, Binali Yildirim,
the railway system could accommodate a transfer of as much as 20
million tons of cargo per year (Trend, August 28). Other estimates
put the volume of cargo in the initial stage at 2-4 million, with a
potential to increase up to 8-10 million in the following three years
(BakuToday.net, April 20).
Besides the strategic importance of the Kars-Akhalkalaki rail
connection, linking the railway networks of Azerbaijan, Georgia, Turkey
— and potentially Europe, Central Asia, and China — the project
has a great significance for the development of the regional economies.
Due to the landlocked geography of the Caspian Basin, strengthening the
non-oil economies of countries like Azerbaijan, Georgia, Kazakhstan,
and Turkmenistan depends on increased volumes of intercontinental
container trade via their territories. Moreover, initiatives
such as creating free-economic zones in Azerbaijan, Georgia, and
other countries along the Caspian Sea coast will also depend on the
successful development of the infrastructure and interstate rail and
highway systems in these countries.
From: Emil Lazarian | Ararat NewsPress