Month: November 2006

KAZAKHSTAN, ARMENIA SIGN AGREEMENTS TO DEVELOP RELATIONS
RIA Novosti, Russia
Nov 6 2006
ASTANA, November 6 (RIA Novosti) – Kazakhstan and Armenia have
concluded a number of agreements to develop bilateral relations during
Armenian President Robert Kocharyan’s visit to Astana.
The two countries signed an intergovernmental agreement on citizens’
trips, a convention on avoiding double taxation, an agreement on
investment protection and a cultural cooperation agreement.
Kazakh President Nursultan Nazarbayev said bilateral trade turnover
does not meet the two states’ demands.
According to Kazakhstan’s statistics agency, bilateral trade turnover
in the first eight months of 2006 was $16.4 million, compared to
$45.2 million in the entire 2005.
“The trade level cannot satisfy either side, this low indicator does
not meet our states’ demands,” Nazarbayev told a press conference
Monday.
He partly attributed the situation to an insufficient contractual
base. “Documents signed today create a legal base for closer
cooperation between our companies,” he said.
Nazarbayev called investment protection agreements very important.
“As a result of talks, we confirmed the urge of our states to further
strengthen our relations. Increasing trade and economic ties will
contribute to this, for Kazakhstan’s business and capital not to be
afraid to go to Armenia,” he said.
Robert Kocharyan, in turn, said Armenia hoped for an inflow of
investment from Kazakhstan.
“We want this visit to prompt the arrival of Kazakh investment in
Armenia,” Kocharyan said.

IRAN’S 7TH SOLO EXHIBITION ON CONSTRUCTION MATERIALS OPENS IN YEREVAN
Mehr News Agency, Iran
Nov 6 2006
TEHRAN, Nov. 6 (MNA) – Iran opened its Seventh Solo Exhibition on
Construction Materials in Yerevan, the capital of Armenia, on Monday,
the Iranian Students News Agency (ISNA) reported.
Running for a week, the exhibition is displaying construction materials
and urban development equipment presented by over 20 Iranian firms.
At the inaugural ceremony of the exhibition, Iran ambassador to
Armenia, Alireza Haqiqian said that Tehran and Yerevan have managed
to expand trade ties because of attempts made by economic activists
to identify new investment opportunities in industrial sector.
He added that Iranian and Armenian private sectors and industrial
owners play crucial role in the expansion of bilateral ties, and they
can enjoy the support of their respective governments in this field.
Armen Movsesian, Armenian energy minister also said that both nations’
economic relations have significantly grown during the past year.
Movsesian, who is also the chairman of Iran-Armenia Economic
Cooperation Commission, noted that the commission intends to facilitate
bilateral cooperation of the industrialists and develop trade and
economic ties between Iran and Armenia.

NAGORNO-KARABAKH WINE AND VODKA EXPLORE INTERNATIONAL MARKETS
Regnum, Russia
Nov 6 2006
Wine and vodka production is one of the key directions of
Nagorno-Karabakh’s economy. REGNUM correspondent reports that the
leaders in the sphere are Karabakh Gold and Artsakh Alco.
Artsakh Alco produces wheat vodka, fruit vodkas (mulberry, grape,
apricot) and brandy. Only 15% of the fruit vodkas are sold inside
Nagorno-Karabakh. The rest is exported to Armenia, Russia, Ukraine,
and the US. The company has opened grapes reception offices in some
villages of Martuni district, which has become a good stimulus for
local farmers. The company is also planning to help grape producers
with fertilizers.
Karabakh Gold produces almost 30 types of wines and vodkas. Last year
the company processed 700 tons into wines. 2,000 tons of raw grapes
were sold to Yerevan Brandy Company, while spirit equivalent to 2,300
tons will be used in own brandy production, to be launched next year.
The company’s output is steadily growing – the volume of grape
processing is growing by 500 tons a year. People actively help
grape-growers to purchase necessary fertilizers.

SERGE SARGSIAN HAS NO CONCERN ABOUT TRANSFER OF BIG ARMENIAN ENTERPRISES TO RUSSIAN COMPANIES
Noyan Tapan News Agency, Armenia
Nov 6 2006
YEREVAN, NOVEMBER 6, NOYAN TAPAN. The Armenian government will give
consent for the deal on selling 90% of ArmenTel shares owned by the
Greek company OTE to the Russian company Vympelcom. The RA Defence
Minister Serge Sargsian expressed this opinion during a talk with
reporters on November 6. At the same time he refuted the assumptions
about his relation to the deal.
Responding to NT correspondent’s question, S. Sargsian said that he
has no concern in connection with the transfer of Armenia’s biggest
strategical facilities to Russia. “I do not consider it dangerous,
because I have not yet seen the Russian side use its economic
leverage in Armenia. Can you give an example when the Russian capital
in Armenia has been used to subject us to political pressure?,”
the minister noted. In response to the question about the use of
economic leverage by Russia to put pressure on Georgia, he replied:
“Should I be concerned about Georgia as well?”
According to the minister, no American or European company has
expressed an intention to make investment in the 5th power unit of
Hrazdan Thermal Power Plant or a gas operation enterprise. Reminding
that two Russian companies and an Arab one had participated in the
final stage of the tender for sale of ArmenTel shares, S. Sargsian
noted: “But would it have been more beneficial for Armenia, if the
Arab comapny had acquired ArmenTel?”

SERGE SARGSIAN: I WOULD LIKE ALL BUDGETS OF ARMENIA TO BE PRE-ELECTION
Noyan Tapan News Agency, Armenia
Nov 6 2006
YEREVAN, NOVEMBER 6, NOYAN TAPAN. The amount of allocations envisaged
by the 2007 draft state budget of the RA for the sphere of defence is
sufficient to keep the fighting efficiency of the Armenian army. The
RA Defence Minister Serge Sargsian told this to reporters after the
closed-door discussion of the 2007 state budget allocations for defence
at the joint sitting of the RA National Assembly standing committees
on November 6.
Comparing the military budgets of Azerbaijan and Armenia, the minister
said: “A billion dillars cannot certainly be compared with 300 million
dollars. But if 300 million is spent sparingly and purposefully,
I think it will be sufficient.”
According to him, a growth in financing the RA Defence Ministry is
envisaged in 2007. The minister said that every year the amount of
allocations for the defence sphere makes up 3.5% of the country’s
GDP. In his words, the allocations for defence will be proportional
to the growth of the Armenian economy.
S. Sargsian said that in 2007, 48% of budget allocations for defence
will be aimed at increasing salaries, thanks to which the average
salary of officers will make 165 thousand drams (about 434 USD).
As for the accusation voiced against the government that the 2007
budget is pre-elction rather than social, S. Sargsian noted that even
if this is the case, it does not change anything as a pre-elction
budget should have a social orientation. “I would like all the budgets
of Armenia to be pre-election, that is, aimed at solving the social
problems,” the defence minister stated.

WILTON PARK CONFERENCE BEING HELD IN YEREVAN
Noyan Tapan News Agency, Armenia
Nov 6 2006
YEREVAN, NOVEMBER 6, NOYAN TAPAN. Wilton Park well-known organization’s
conference under the title “The South Caucasus: Perception of the
Region and Challenges” is being held on November 6-9 in Yerevan, for
the first time in the South Caucasus. The conference was organized by
RA Foreign Ministry jointly with the Wilton Park British organization.
The conference being held in Armenia is to answer the following
questions: which are the problems and abilities of the region situated
on the crossroad of the East and the West, what lessons were learnt
during the 15 years of independence, what kind of economic policy is
demanded from the governments, business and international financial
institutions for contributing to the economic growth, investments and
efficient management, how can this policy, including policy of economic
integration, energy and transport, help to build a new region in the
developing environment, how can measures aimed at building confidence
and open borders contribute to mutual understanding, which is the
way of European integration without conflicts in the region.
As NT was informed from RA Foreign Ministry Press and Information
Department, Special Representative of UK Government to the South
Caucasus Brian Fall, Deputy Foreign Ministry of Georgia Georgy
Manjgaladze, Special Representative of OSCE Chairman-in-Office for the
Nagorno Karabakh issue Andrzej Kasprzyk, former Special Representative
of EU to the South Caucasus, Ambassador Heikki Talvitie and others
will make reports at the conference.
The Wilton Park is one of the most authoritative and leading centers
of conferences in the world, which has organized more than 1000 events
since 1946. It works as an independent academical institution attached
to the Foreign Affairs Department of the United Kingdom. It is 6
decades this intitution unites representatives of various countries
of the world for the purpose of discussing the most urgent issues
of politics. The Wilton Park is going to organize 60 events during
2006. Among the main subjects of the conferences are political,
security and economic issues, as well as environment and terrorism,
social reforms and influence of information revolution.

POVERTY LEVEL DECREASES IN ARMENIA
Noyan Tapan News Agency, Armenia
Nov 6 2006
YEREVAN, NOVEMBER 6, NOYAN TAPAN. According to the preliminary results
of summarized study of living standard of home farms conducted in 2005
by RA National Statistical Service, 29.8% of RA population is poor,
4.6% extremely poor. According to the results of study conducted in
2004, these indices made 34.6% and 6.4%, respectively, and according
to the results of 1998/99 56.1% and 21%.
For the above mentioned periods, the abject (food) poverty line was
calculated in the amount of 13.266 thousand drams (about 30 USD),
12.467 thousand drams and 11.21 thousand drams and the general poverty
line in the amount of 20.289 thousand drams, 19.373 thousand drams
and 17.663 thousand drams.
In 2005, 2004 and 1998/99, the level of poverty and abject poverty in
Armenian towns made 30.7% and 5.3%, 36.4% and 7.5%, 62.1% and 26.2%,
respectively, in Yerevan 32.6% and 4%, 29.2% and 6.1%, 58.4% and 24.8%,
in other towns 37.8% and 7.2%, 43.9% and 9.2%, 65.5% and 27.4%, in
rural populated areas 28.3% and 3.2%, 31.7% and 4.4%, 48.2% and 14.1%.
In 2005, poverty level in RA regions fluctuated from 19.2% (Vayots
Dzor) to 42.5% (Shirak), abject poverty level from 1.8% (Vayots Dzor)
to 8.7% (Kotayk).

V.OSKANIAN: GUL’S INSISTENCE THAT ARMENIAN-TURKISH BORDER IS ESSENTIALLY OPEN IS DISINGENUOUS
Noyan Tapan News Agency, Armenia
Nov 6 2006
YEREVAN, NOVEMBER 6, NOYAN TAPAN. “We remain amazed that a letter
sent by President Kocharian to Prime Minister Erdogan in April 2005
remains ignored, simply because the Turkish authorities did not like
the response contained therein, and do not wish to broaden the scope
of discussion beyond history.” Foreign Minister of Armenia Vartan
Oskanian said about it, commenting upon Turkish Foreign Minister
A.Gul’s interview to Radio Liberty. Noyan Tapan was informed about
it by the RA Foreign Ministry’s Press and Information Department.
In Foreign Minister’s words, President Kocharian clearly said to Prime
Minister Erdogan that the “suggestion to address the past cannot be
effective if it deflects from addressing the present and the future. In
order to engage in a useful dialog, we need to create the appropriate
and conducive political environment. It is the responsibility of
governments to develop bilateral relations and we do not have the
right to delegate that responsibility to historians.
That is why we have proposed and propose again that, without
pre-conditions, we establish normal relations between our two
countries.”
In that context, President Kocharian said, “an intergovernmental
commission can meet to discuss any and all outstanding issues between
our two nations, with the aim of resolving them and coming to an
understanding.”
Foreign Minister Gul’s recent comments to Radio Liberty, insisting
that the existence of flights between Armenia and Turkey, and of
Armenian citizens in Turkey, is evidence that “the borders are
essentially open,” in V.Oskanian’s opinion, is disingenuous. First,
the number of Armenians from Armenia living and working in Turkey
do not approach the numbers he claims. Second, open borders assumes
direct contacts between peoples, unobstructed relations across the
border and a functioning transport infrastructure.”
“We stand by our response which we consider to be a positive one and
we wonder whether the Turkish insistence on a historical commission
is genuine,” V.Oskanian said. In his words, “after all, we have in
fact agreed to discussions on all issues, in the context of open
borders. Further, so long as Article 301 which criminalizes mere
discussion of the genocide topic remains on the books in Turkey, an
invitation to open dialogue cannot be taken seriously. Finally, outside
Turkey, scholars – Armenians, Turks and others – have studied these
issues and have reached their own independent conclusions. The most
notable among these is the May 2006 letter to Prime Minister Erdogan
by the International Associationn of Genocide Scholars wherein they
collectively and unanimously affirmed the fact of the Genocide and
called on the Turkish government to acknowledge the responsibility
of a previous government.”
“In light of these complex realities, we can only repeat our readiness
to enter into dialogue and normal relations with our neighbor,”
the RA Foreign Minister stated.

REPRESENTATIVE OF TRANSPARENCY INTERNATIONAL DOES NOT EXCLUDE THAT AID TO ARMENIA WILL BE “FROZEN” PROVIDED THAT NORMAL ELECTIONS BE HELD
Noyan Tapan News Agency, Armenia
Nov 6 2006
YEREVAN, NOVEMBER 6, NOYAN TAPAN. According to the studies of the
Transparency International conducted in 169 countries of the world,
Armenia is among countries with a high level of corruption. Amalia
Kostanian, Chairwoman of the Center for Regional Development of
Transparency International Armenia NGO, declared at the November 6
press conference within the framework of the Actual Subject program
of the National Press Club.
She explained that according to used methods, calculation of corruption
level starts from one point, i.e. the most corrupted are the countries
where this index is close to one. It is two years running that the
index of corruption in Armenia is “2.9,” which, in A.Kostanian’s
words, is evidence of failure of fighting corruption announced by
the country’s authorities.
“In spite of anti-corruption laws adopted in the country, signing of
a number of conventions in this sphere, fighting corruption in Armenia
has an imitation character. No high-ranking official was punished for
taking bribe during the three years of official fighting corruption
and, which is the most important, on the threshold of elections the
authorities bear no responsibility for factual failure of this fight,”
A.Kostanian declared.
She especially dwelt upon such problem as political corruption, the
brightest manifestation of which is falsifications during elections.
Besides, manifestations of political corruption are also creation of
unequal conditions for agitation during electoral campaign, electoral
bribes, etc.
As regards the recent statement of the Freedom House international
human rights organization containing appeal for the Millennium
Challenge corporation for ceasing to provide aid to a number of
countries, including Armenia, in connection with not ensuring political
rights and civil freedoms, A.Kostanian did not exclude that aid to
Armenia within the framework of the above mentiond program can be
“frozen” provided that normal elections be held in Armenia.

EX-PRIME MINISTER OF ARMENIA WELCOMES TRANSACTION ON SALE OF 90PCT STAKE IN ARMENTEL TO RUSSIAN VIMPELCOM
ArmInfo News Agency, Armenia
Nov 6 2006
“I welcome this transaction and I am very glad that just a Russian
company has become the owner of the telecommunication operator of
Armenia,” said Armen Darbinyan, the ex-prime minister of Armenia,
Rector of Russian Armenian (Slavonic) University, commenting on sale
of 90pct stake in ArmenTel to Russian VimpelCom.
“I know that VimpelCom is a serious company introducing modern
principles of management. I wish it success in the Armenian market,”
A. Darbinyan said. He expressed regret that in 1998 when Armenia set
ArmenTel for sale, there were no Russian companies to apply for it.
It was probably because the process of initial accumulation of capital
and “distribution” of Russian assets was not over then, A. Darbinyan
supposed. “Approximately in 2001, leading Russian companies started
an active search of additional investment projects, first of all,
in CIS. Of course, the price of this stake was not the same as in
2001, however, Russian companies are ready to pay for expansion,
which is pleasant.”
To recap, the Greek OTE announced about an agreement on sale of 90pct
stake in Armenia to the Russian Vimpel Communications for $381.9
million, including about $40 million financial debts and liabilities
of the company. VimpelCom Vice President for International Investment
Ties Valery Goldin said the company intends to make investments in
improvement of the subscribers net and communication level in Armenia
to meet the Russian standards. High quality standard of the net is
the prior task of the company, he said. The given task applies to
the quality of the technical net, expansion of the service zone to
meet the demand of consumers, development of distribution net and the
payment system, V. Goldin said. Speaking of possible difficulties of
the Greek company in the work in the Armenian market, V. Goldin said
the specifics of the work in the post-Soviet countries is identical.
While, VimpelCom has got relevant experience in the Ukraine,
Kazakhstan, Uzbekistan and Tajikistan. “It seems to us that we’ll
not have big problems in the Armenian market,” he said with optimism.