Month: November 2006

ARMENTEL HAS NOT BEEN SOLD – IT’S OFFICIAL
TeleGeography, DC
Nov 2 2006
A spokesperson for Armenia’s Ministry of Transport and Communication
says it has not received any official confirmation from OTE of Greece
concerning the sale of its 90% stake in national PTO ArmenTel. Tamara
Ghalechyan, press secretary to the Ministry, confirmed the operator
had not been sold following recent press rumours which suggested the
stake had been purchased by UAE-based operator Etisalat. The Russian
Kommersant newspaper, citing a source close to the Armenian government,
reported that a consortium led by Etisalat, and including investment
fund Istithmar, had agreed to pay OTE USD600 million for its stake in
ArmenTel. The source said that the consortium won the tender earlier
this year, beating off rival bids from Russian companies AFK Sistema
and VimpelCom, and a consortium of VTEL Holdings and Knightsbridge
Associates. Etisalat has denied the rumour.

GEORGIA FACES A HAGGLE FOR GAS
By Stephen Mulvey
BBC News, UK
Nov 2 2006
Russia’s proposal to double the price of gas to Georgia is in line
with its declared policy of putting a halt to energy subsidies for
former Soviet states.
But the policy is applied inconsistently.
Georgia cannot easily afford to pay market prices for gas The importing
countries can, and do, haggle to get a price below the supposed market
price of between $200 and $250 per 1,000 cubic metres.
Armenia and Ukraine are two recent examples.
In April, Armenia signed a three-year contract to buy gas for $110
per 1,000 cubic metres, after agreeing to sell part of a gas-fired
energy plant and part of a new pipeline to Armenia from Iran.
A fortnight ago, Ukraine negotiated a price of $130 per 1,000 cubic
metres, but in this case the payback is less clear.
Subsidies
Gazprom is always keen to buy up energy infrastructure, but Ukraine
is equally keen to hang on to its export pipeline – the one that
carries most of Gazprom’s exports to Europe.
Comments made by the Russian prime minister after the deal was struck
signalled that Ukraine may have paid a political price – an agreement
to co-ordinate with Russia the timing of its entry into the World
Trade Organization.
So what are the prospects for Georgia?
The lessons from Armenia and Ukraine would appear to be that if
Georgia wants cheap gas it either has to give up part of its energy
infrastructure, or to make some political concessions.
What such concessions might be is unclear, though there has been
speculation that the recent deterioration of relations between Georgia
and Russia may in some way be linked to its increasingly close ties
with Nato.
‘Blackmail’
At any rate, Gazprom’s announcement will certainly have given Georgian
foreign minister Gela Bezhuashvili food for thought as he visits
Moscow for talks aimed at defusing recent tensions.
No legitimate interest is served when oil and gas become tools of
intimidation
US Vice-President Dick Cheney The timing of Gazprom’s announcement
is probably no coincidence, though negotiations on a new gas contract
have been on the agenda for some time.
This way of doing business alarms the US and the EU.
In May, US Vice-President Dick Cheney made a speech in the Lithuanian
capital Vilnius, attacking Russian foreign policy.
“No legitimate interest is served when oil and gas become tools of
intimidation or blackmail, either by supply manipulation or attempts
to monopolise transportation,” he said.
US Defense Secretary Donald Rumsfeld, meanwhile, told the French paper
Le Figaro that Russia had “used its energy resources as political
weapon”.
The EU’s position is that Russia and its energy partners would be
best served by a genuine open market for energy, and a transparent
pricing policy.
It has put huge efforts into getting Russia to sign the Energy Charter
Treaty – which would, among other things, have allowed foreign energy
companies in Russia to export gas and oil via Russian pipelines –
but has now more or less accepted defeat.
The current EU strategy is to negotiate a framework for energy sector
co-operation in a new strategic partnership agreement.
Iranian option
At a summit in Finland last month, President Vladimir Putin said
Russia was prepared to have this discussion, though he did not promise
any concessions.
Talks are due to start soon but they will take months, and unlike the
Energy Charter Treaty, the EU-Russia agreement is unlikely to be much
help to a non-EU country like Georgia.
Georgia is short of money and cannot easily afford to pay $200 or
more for 1,000 cubic metres of gas.
In the long run it will be able to buy more gas from Azerbaijan.
It may still have a chance to get competitively priced gas from Iran
via the Armenian pipeline, though Russia’s increased stake makes that
look less likely.
So in the short term, it has a problem.

RA MOD REFUTED SAFAR ABIYEV’S STATEMENT
DeFacto Agency, Armenia
Nov 2 2006
RA MOD has refuted Azeri Defense Minister Safar Abiyev’s statement
circulated by the Azeri mass media, according to which October 20, in
the course of a meeting with his Armenian colleague the Azerbaijan’s
Minister raised the issue of “the Armenian troops’ withdrawal from
the occupied Azeri territories”.
According to the information DE FACTO received at the RA MOD, the
issue of the Armenian troops’ pullout from the territories controlled
by the NKR had not been discussed. Serge Sargsyan and Safar Abiyev
considered only the border’s control and the cease-fire’s maintenance.
To remind, RA and AR Defense Ministers’ meeting was initiated by
the OSCE Chair-in-Office’s Personal Representative Andrzey Kasprzyk
within the frames of the measures targeted at raising mutual confidence
between the parties. The meeting was held October 20 on the Ijevan –
Ghazakh sector of the Armenian-Azeri border. The meeting’s goal was
to discuss the issues referring to the control of the border and the
maintenance of the cease-fire.

VARDAN OSKANYAN AND SERGEY LAVROV DISCUSSED KARABAKH SETTLEMENT
DeFacto Agency, Armenia
Nov 2 2006
RA and Russia’s FMs Vardan Oskanyan and Sergey Lavrov held a meeting
within the frames of the Black Sea Economic Cooperation (BSEC) member
countries Council of Ministers 15th sitting.
In the course of the meeting the parties discussed the process of
the Karabakh conflict’s peaceful resolution.
Vardan Oskanyan and Sergey Lavrov also considered Armenian-Russian
bilateral relations and the regional issues.

PETROSIAN VS THE ELITE
by Ray Keene and Julian Simpole, Batsford, 299 pages, £15.99.
British Chess Magazine, UK
Nov 2 2006
BCM Chess Book Reviews : November 2006
Now that we have a manoeuvring, positional player in place as the
undisputed world champion and Garry Kasparov has retired, one wonders
whether fashion will change and there will be shift of focus by
students of the game towards the great technical players of the past.
Kramnik has often been compared to Petrosian, and it seems like a very
opportune moment to review the career of the Armenian world champion
of the 1960s. One of the reviewer’s personal regrets is that I was
too prone to hero-worship the likes of Fischer in my youth.
Like many, I was carried along by the zeitgeist, but I now feel I would
have learnt far more about practical chess technique by studying the
games of Petrosian. Too late for me, but younger readers might do well
to buy this book and study the 71 victories of Iron Tigran contained
within it. Julian Simpole is acknowledged as providing the bulk of
the text. He has not relied on computer analysis, and the contents do
not overlap to any significant degree with Peter Clarke’s collection
of Petrosian games nor Kasparov’s chapter on Petrosian in My Great
Predecessors. This looks like a most enjoyable read. JS.
[for other books on chess, go to
ml ]
–Boundary_(ID_FI1EwKLu0N8yAPw723C3AQ)–

OSCE MINSK GROUP TAKES UNFAIR VIEW ON NAGORNO-KARABAKH – RULING PARTY FUNCTIONARY
Author: J.Shahverdiyev
TREND Information, Azerbaijan
Nov 2 2006
MP Siyavush Novruzov, the Deputy Executive Secretary of the ruling
New Azerbaijan Party, informed Trend at an exclusive interview that
he does not believe that the OSCE Minsk Group is taking a fair view
in the resolution of the Nagorno-Karabakh conflict, Trend reports.
So far the OSCE has not recognized Armenia as an aggressor though the
Council of Europe and UN have definite resolutions on this conflict.
“If the Parliament of France adopts the well-known resolution on the
so-called ‘Armenian genocide’ in Turkey, changing European values which
have been established for centuries as well as European democracy,
could can one expect it to hold fair views on the resolution of the
Nagorno-Karabakh conflict? Furthermore, two co-chairing countries
at the OSCE Minsk Group, Russia and France, have voted against
the inclusion of an item on the settlement of frozen conflicts in
the territory of GUAM during the discussions at the UN Security
Council. The display by the Russian Ambassador during the meeting of
the Azerbaijani and Armenian Presidents in Ramboulitte demonstrated
whom he actually sympathizes with,’ Novruzov stated.
From: Emil Lazarian | Ararat NewsPress

TURKISH FOREIGN MINISTER SAYS ARMENIA’S BORDER MOSTLY OPEN
TREND Information, Azerbaijan
Nov 2 2006
(PanARMENIAN.Net) – “The Armenian-Turkish border is mostly open,”
Turkish Foreign Minister Abdullah Gul said. In his words, 70 thousand
Armenians live and work in Turkey at present and send finances to
their relatives in Armenia, reports Trend.
“Besides, there is air communication. This is a political issue and
for most part depends of the Armenian government,” the Turkish FM
said, reports RFE/RL. To note, Abdullah Gul is participating in the
BSECO FMs’ sitting in Moscow.

NKR DELEGATION VISITED FRANCE
Azat Artsakh, Republic of Nagorno Karabakh
Nov 2 2006
On October 25 and 26 the NKR minister of education, culture and sport
Kamo Atayan and the rector of Artsakh State University Hamlet Grigorian
visited France. On October 25 the delegation visited the vocation
college of the city of Meudon training specialists for industries
and hotel business. On the same day Kamo Atayan and Hamlet Grigorian
visited one of the Armenian schools of the region of Paris, met with
the students and teachers, got acquainted with the teaching methods
used in this Armenian school. On October 26 the representatives
of Nagorno Karabakh participated in the forum of the France-based
Armenian societies aiding Artsakh, during which the development of the
new vocational college in Stepanakert was discussed. After the forum
the guests took part in the ceremony devoted to the 15th anniversary
of the independence of Artsakh.
French members of parliament, mayors, heads of French organizations
and famous representatives of the Armenian community in France were
present.

I HAVE BECOME GROUNDLESS
Margaret Yesayan
Aravot, Armenia
Nov 2 2006
CRU leader Hrant Khachatrian says
– Mr. Khachatrian, something strange happens in CRU, doesn’t it?
– The point is that a trap was set by a revolt organized for about
a month not only for me but for the other members of leadership, too.
People who didn’t have any authority brought a criminal case
against Suren Vardanian and I had to participate in that case as a
witness. I was participating as the former leader, but I was asked such
documents, which the current leader could give. The former leader could
testify by his memory, but it wasn’t enough for the investigation,
and I had to refuse of testifying though I was warned by criminal
responsibility. Then it became clear that my status in the party is
indefinite. On the other hand I was elected as the leader of the party
against my own free will, I didn’t want, when NSS representatives in
the office of the party prevent my entrance there.
Finally I’ll find out my status but I don’t see any serious ground
to carry out policy, a policy as I want to carry out. It seemed to
me I have become groundless, while policy is a serious thing and only
serious politicians must carry it out.
– People who have left the party with you, have turned to the court
and want to solve your mentioned status issues by judicial order.
What do you think about it?
– I myself didn’t want my friends to turn to the court but as they
are also free persons, I’m responsible for helping those persons who
became the victims of this conspiracy.
– It is published in one of the newspapers the record that CRU
leadership was engaged in trade activities and accumulated money at
the expense of commissions in the pre-electoral period, as the leader
of the party have you been informed about it?
– There was financial account, which was adopted by the leadership;
there were different applications about behaviour of the party members
and discussions and decisions about them. But there are facts which
can’t be proved.
– That record, is it true?
– Frankly speaking that record caused a strained atmosphere inside
the party, and just Gegham Grigorian was threatening Hayk Babukhanian
by that record. Gegham told Hayk Babukhanian that he gave one of
the examples of that record to me, and sent other examples to the
representatives of mass media. We didn’t know what was there. We
listened to the record and saw that there was nothing to prove.

IN TWO YEARS WE MAY FACE SERIOUS PROBLEMS
Norair Hovsepian
Azat Artsakh, Republic of Nagorno Karabakh
Nov 2 2006
While highlighting the necessity of developing wine growing in
Armenia we often forget about the major problems we might be facing
when the grapes ripen. There are no many processing factories in
Karabakh. For instance, Karabakh Gold, one of the biggest companies
in Karabakh, producing about 30 brands of wine and vodka, bought
about 6000 tons of grapes in 2005. The company had foreseen to buy
7000 tons in 2006, but the harvest was poor, and the company bought
only 1000 tons. In 2005, 700 tons of grapes was used for wine,
2000 tons was sold to Yerevan Brandy Factory, and 2300 tons is kept
in the factory to produce brandy. Vladik Alibabayan, the production
manager says, “Presently, the production of grapes in Karabakh must be
limited. Armenia produces the amount of grapes it needs, and does not
need to import more.” A. Harutiunian, a shareholder of Karabakh Gold
says, “In two years we’ll be facing serious problems in processing
grapes. The potential of the existing factories doesn’t correspond
to the rates of development of the production of grapes. Even today
the factories are unable to keep up,” he says. Another major problem
is the sale of the production of processing factories. The consumers
of Karabakh cannot consume this much. A. Harutiunian says Karabakh
can consume the production of hardly 10 percent of grapes grown
in Karabakh. Nevertheless, the company seeks to increase the sales
and the volume of processing. Karabakh Gold increases the volume of
grapes by an annual 500 tons. The company is also planning to make
new brands. In 2007 the company will produce brandy. The company
is likely to operate another factory in Stepanakert, but it will
not start buying more grapes from farmers. Arthur Gabrielian, CEO
of Artsakh Alco says, “How can the entrepreneur buy more grapes if
he is not sure what will happen to his production?” “The grapes we
produce is too much for the market in Karabakh, and Armenia doesn’t
need to import grapes.” Artsakh Alco focuses on the production of
eau de vies, and only 15 percent of its production is consumed on the
local market. The rest is exported to Armenia, Russia, Ukraine and the
United States. Arthur Gabrielian says the only way out is to produce
competitive products, but the conclusion is not encouraging because no
Karabakh-based company has this possibility. “The factories inherited
from the USSR cannot guarantee a high quality, and new technologies
are costly and take time,” he says. For instance, he says, if the
company has considerable achievements in the production of eau de
vies, the same cannot be said about wines. “We can also export some
amount of wines but we are not sure that it will be competitive,”
Arthur Gabrielian says. The representatives of both companies said
their companies, nevertheless, attend to the problems of the farmers,
and Karabakh Gold, which rents 100 hectares of vineyard, helps the
owners of vineyards with chemicals. The CEO of Artsakh Alco said in
2006 they opened offices in the villages of Sos and Machkalashen to
buy grapes. Next year Artsakh Alco is likely to provide farmers with
chemicals. “Buying a small amount of chemicals and having it tested
in a laboratory may be a problem for a farmer because he has to waste
considerable time, whereas for the company it is a matter of finance
but we do not suffer losses because it is included in the price of
the grapes,” says Arthur Gabrielian. In other words, both the producer
and the processor are interested in the quality of their production.