Month: September 2008

ARMENIAN AND RUSSIAN PRESIDENTS EXPLORE RAILWAY LINKS VIA IRAN
by Natalia Leshchenko

World Market Research Centre
Global Insight
September 3, 2008

Armenian President Serzh Sargsyan is visiting his Russian counterpart
Dmitry Medvedev to discuss bilateral relations in the minds of the
Russia-Georgia crisis. The military hostilities gave a new lease of
life to the Iran-Armenia railway project. First introduced in 2006,
it was dismissed over the high estimated cost, $1US.5 billion, but
is back on the table now as diplomatic relations between Russia and
Georgia are cut off. The chance of bypassing Georgia for Russia’s gas
deliveries to Armenia is small at the moment, with the possibility
of building an Iran-Armenia gas pipeline branch only mentioned. The
price for gas deliveries over 2009-2011, was not discussed, according
to Medvedev’s aide.

Significance:Armenia has felt the effects of the military operation
in Georgia this August, particularly in the form of fuel shortages,
and its president, only elected this year and still facing street
opposition, is keen to assure economic stability and prosperity in the
country as a bedrock of his authority. Russian railway monopoly RZhD
already owns Armenia’s railway network as an affiliate company, and
is most likely to take charge of the Iran-Armenia railway, although a
source of funds would have to be found for such a costly project. One
may also wonder if the need to bypass Georgia for Russia-Armenia trade
may be pertinent and long-term enough to justify an expensive railway.

PERSISTENT INFLATION PRESSURE LEADS TO YET ANOTHER ARMENIAN INTEREST RATE INCREASE
by Venla Sipila

World Market Research Centre
Global Insight
September 3, 2008

The Board of the Armenian Central Bank (CBA) in its meeting yesterday
decided to raise the banks’ refinancing rate by 25 basis points,
taking the rate to 7.75%. This was the eighth increase of a similar
magnitude in as many months. The move was taken in the wake of the
publication of August inflation figures, which had shown consumer
prices falling by 0.7% from July, but rising by an accelerating rate
of 11.5% in annual comparison (see Armenia: 1 September 2008: ). The
CBA Board noted that the strength of inflation pressures was to an
important extent determined by continued, stable increase in prices
of bread products, instead of their expected decline.

This, further, was attributed to the recent events in the region,
the CBA here referring to the security instability caused by the
military conflict between Georgia and Russia. The CBA further stated
that even if external inflation pressures continued to moderate
over last month, these tendencies where not comparably reflected in
the domestic market. Following its arguments in previous months,
the CBA noted imperfections in some domestic community markets as
the reason for this. However, the bank added that, also import
disruptions resulting from the region’s instability were partly
to blame this time. It concluded that if import obstacles prove
persistent, inflation risks grow substantial, whereas additional
inflation pressures from the demand side otherwise should not play a
role. Finally, the CBA stressed the importance of lowering inflation
expectations in order to bring inflation closer to target. Further
rate revisions will depend on regional developments and the response
of domestic commodity markets to global trends.

Significance:The further increase in the Armenian policy interest
rate was expected, as the inflation rate keeps running far above
the central bank’s target rate of 4%. The CBA has in recent years
proven fairly competent in its monetary policy, showing ability and
willingness to control inflation within the means it has. The Armenian
government has also recently pledged wide-ranging efforts to curb
rapid price rises. However, the central bank’s key tool for curbing
inflation in the still relatively undeveloped financial environment
has been letting the dram appreciate considerably in response to
strong remittance and foreign investment inflows. If import obstacles
recede, the moderation in inflation pressure from food costs should
start having an easing impact on inflation with the new crops, as the
cost of food has been a major factor recently in boosting Armenia’s
inflation also in annual terms. However, as of yet there has been
no clear indication of moderating demand-side inflation pressures,
as economic growth remains robust and fiscal spending high.

ARMENIAN LEADER MEETS TURKISH PRESIDENT’S ENVOY IN YEREVAN

Mediamax
Sept 3 2008
Armenia

Yerevan, 3 September: Armenian President Serzh Sargsyan received the
special envoy of the Turkish president, Unal Cevikoz, in Yerevan today.

They discussed Turkish President Abdullah Gul’s expected visit [on 6
September] to Armenia to jointly watch a football match between the
national teams of the two countries, the presidential press service
has told Mediamax.

Sargsyan described as positive the visit of the Turkish president’s
special envoy. The Armenian president noted that it created an
opportunity to discuss issues concerning the normalization of bilateral
relations and exchange views on regional problems.

The two men also discussed Turkey’s initiative on setting up a
"Caucasian platform of peace and stability". Noting that the Turkish
prime minister came up with a difficult but extremely important
initiative, the Armenian president said that he was in favour of
discussing any problems.

"Armenia welcomes all the efforts aimed at strengthening confidence,
stability and security, as well as expanding cooperation in the
region," the president said. Sargsyan also expressed his opinion with
regard to the proposal on setting up the "Caucasian platform of peace
and stability".

[Mediamax news agency, Yerevan, in Russian 0703 gmt 3 Sep 08 said
that Armenian Foreign Minister Edvard Nalbandyan had met the Turkish
president’s special envoy Unal Cevikoz. They discussed details of
Turkish President Abdullah Gul’s forthcoming visit to Armenia, the
agency said.]

AGENCY SLAMS AZERI AUTHORITIES FOR FAILURE TO REACT TO REGIONAL DEVELOPMENTS

Turan news agency
Sept 2 2008
Azerbaijan

Baku, 2 September: The state of prostration in which the Baku
government has found itself since the beginning of the aggression
against Georgia is continuing. The situation worsened even further
after Moscow recognized the independence of Abkhazia and South
Ossetia, as well as the Turkish president announced his possible
visit to Armenia.

Until the last minute each of these issues, which the country’s
foreign policy was based on, seemed inconceivable to the Azerbaijani
authorities. All the assurances given by the government to the
population are now irrelevant and one has to admit that the situation
has basically changed. However, the authorities are incapable of
doing so, which is why they have chosen the tactics of an ostrich.

The Azerbaijani Foreign Ministry did not even hold the traditional
news conference [on Monday 1 September]. The official reason was
the press secretary’s sickness (as if there was no-one else working
at the Foreign Ministry). In the meantime, the Azerbaijani Foreign
Ministry and the presidential administration have been avoiding in
every way possible commenting on the decision by Moscow to recognize
the independence of the separatists and Turkish President Abdullah
Gul’s visit to Armenia.

The situation has also showed that the authorities were not absolutely
ready for the crisis in the region. Apparently, the authorities have no
idea what steps to take, what to say and how. However, the longer Baku
keeps silent, the more its confusion will be evident to the public.

ARMENIAN PARTY OPPOSES PRESIDENT’S DRIVE OF ESTABLISHING TIES WITH TURKEY

ArmInfo News Agency (in Russian)
Sept 2 2008
Armenia

Yerevan, 2 September: Historical experience and memory should be
taken into account before establishing good-neighbourly relations
with a neighbour, the New Times party has said in a press release.

"[Armenian President] Serzh Sargsyan considers himself Robert
Kocharyan’s successor, but Kocharyan had a very tough position towards
Turkey because of the international recognition of the 1915 Armenian
genocide. We believe that Serzh Sargsyan as well as the [ruling]
coalition parties realize the hopelessness of Armenian-Turkish
relations as you encounter more problems in this arena with every
step than any progress is reached," the party’s statement says.

ARMENIAN, RUSSIAN LEADERS DISCUSS REGIONAL SITUATION IN SOCHI

ArmInfo News Agency (in Russian)
Sept 2 2008
Armenia

Yerevan, 2 September: The Armenian and Russian presidents, Serzh
Sargsyan and Dmitriy Medvedev, have discussed a wide range of
bilateral, regional and international issues.

At the meeting, the Russian president expressed his opinion about
international issues and foreign policy, the Armenian presidential
press service has reported. Medvedev pointed out that the Collective
Security Treaty Organization [CSTO] member countries will elaborate
their positions on the South Ossetian developments at a forthcoming
CSTO summit in Moscow.

In turn, Armenian President Serzh Sargsyan said that meetings
between the Armenian and Russian presidents in Sochi had became a
good tradition. He added that this created an opportunity to discuss
issues of bilateral and multilateral cooperation in a calm atmosphere.

"I would like to discuss economic issues and the issues concerning
the expansion and strengthening of our relations within the CSTO
framework. This is our first meeting after the developments in South
Ossetia and Abkhazia. I want once again to express condolences
on numerous human losses, the killing of Russian citizens and
peacekeepers. I deeply regret that the events developed in this way and
I wish that the results of the humanitarian catastrophe be eliminated
as soon as possible," the president said. He added that Armenia had
been waiting for schoolchildren from South Ossetia for two weeks.

Press and Information Department
of the Ministry of Foreign Affairs
of the Republic of Armenia
Tel. + 37410 544041. ext. 202
Fax. + 37410 565601
e-mail: [email protected]
web:

Minister Edward Nalbandian meets Unal Cheviqyoz, Special Envoy of
Turkish President

On September 3 Foreign Minister Edward Nalbandian received Ambassador
Unal Cheviqyoz, special envoy of Turkish President Abdullah Gul.

The two discussed the details of Turkish President Abdullah Gul’s
upcoming visit to Armenia on September 6 by the invitation of Armenian
President Serzh Sargsyan to watch the match between Armenian and
Turkish football teams in Yerevan.

In the course of the meeting Minister Nalbandian and Ambassador Unal
Cheviqyoz also discussed the initiative of Turkey to establish a
Caucasus stability and cooperation platform. Minister Nalbandian
stressed that Armenia has always welcomed all the efforts to deepen
stability, security, trust and cooperation in the region. He also
mentioned that the idea of establishing stability and security
platform in Caucasus can be welcomed in this sense.

Minister Nalbandian mentioned that Armenia was continuously in favor
of establishment of good-neighborly ties with all regional countries
and lasting solidarity in the Caucasus.

Minister Nalbandian and Ambassador Cheviqyoz exchanged opinions on
number of international, regional and bilateral issues.

From: Emil Lazarian | Ararat NewsPress

PRESS RELEASE
Armenia Holy Church of Nazareth
2 Armenia Street
Kolkata 700 001
Tel: +91 33 2242 6124
Fax: +91 33 2242 3408
Email: [email protected]

Armenian Churches in India
300th Anniversary Celebrations 8-16 November 2008

We are pleased to announce that preparations continue for the organising of
the forthcoming celebrations of the 300th Anniversary of the Armenian Church
in Kolkata. Please find below the finalised programme of events.

Saturday 8th November
Guests invited to the re-consecration at Chennai, should arrive today.

Sunday 9th November
Re-consecration of the Armenian Church at Chennai will be conducted by His
Holiness Karekin II, Catholicos and Supreme Patriarch of all Armenians.

Monday 10th November
Guests invited for the celebrations should arrive in Kolkata by today.
In the evening there will be a welcome Hrashapar service starting the
celebration the 300th anniversary at the Holy Nazareth Church.

Tuesday 11th November
Opening ceremony of the newly constructed Tangra Community
Welcome ceremony of the 300th anniversary celebration
Guests will return to Kolkata via St. Gregory’s so that they can see that
church as well.

Wednesday 12th November
Guests will attend a seminar at Tangra.
Guests will be transported back to Kolkata.
Casual evening function

Thursday 13thth November
All guests will visit the Armenian College today. The school will put on a
show/exhibition for visitors and guests will be able to tour the school
buildings and see how the renovation programme is progressing. There will
also be the ground breaking ceremony for the new sports complex.

Friday 14th November
All guests will visit Saidabad today. This is a long journey of 5 (five)
hours each way. Return late evening to Kolkata.

Saturday 15th November
All guests to visit Chinsurah and Bandel churches.
Formal banquet in the evening.

Sunday 16th November
10.00 Pontifical Mass at the Holy Nazareth Church will bring the
celebrations to a close.

Now that the programme is finalized, it would be greatly appreciated and
extremely helpful, if anyone with a serious intention of coming to Kolkata
to share this experience with us and participate, could let us know as soon
as possible so that we can have an idea of numbers, both at the Chennai
service and then the various events in Kolkata

We have made arrangements with some local hotels for discounted room rates.
To take advantage of these, as they are offered on a first come first serve
basis, please get in touch at the earliest.

Lastly, if you have any old photographs or memorabilia relating to the
Armenians in India we would very much like you to bring them along. With
your permission, we would like to photograph or scan the items and see if we
can put together a book containing all such historical memorabilia supplied
and send out as a commemoration book after the celebrations are over.

If you need any further advice regarding your travel or accommodation, do
not hesitate to contact the Church office [email protected] or
either of our two co-ordinators, Helena Cray [email protected]. for US based
people and Liz Chater [email protected] for the UK and other
locations.

We are all very excited about this wonderful historic occasion and do hope
that we will see as many of you in Kolkata as possible.

Armenian Church
Kolkata
2nd September 2008

RUSSIA AND ARMENIA PREPARING AGREEMENT FOR THE EXPORT OF GAS TO YEREVAN IN 2009-2011

Interfax
Sept 1 2008
Russia

Moscow and Yerevan are working intensively to prepare a midterm
agreement on the supply of Russian gas to Armenia in 2009-2011,
a Kremlin source told Interfax commenting on the run-up to Armenian
President Serge Sargsyan’s visit to Moscow.

"Energy [resources] remain a priority in economic cooperation:
intensive work is underway for the preparation of a midterm agreement
on the supply of Russian gas to Armenia in 2009-2011," the source said.

The source said that during the upcoming meeting between Sargsyan
and Russian President Dmitry Medvedev, both sides would discuss the
possibility of expanding trade and economic relations.

He added that Russia is definitely a leader among Armenia’s trading
partners. According to customs service statistics, in 2007 total
trade between the two countries came to $821 million while Russian
exports increased 67% to $655 million. In the first half of 2008,
trade turnover increased 20% year-on-year to $400 million.

The source also said that Russia was likely the leading investor in
the Armenian economy with most funds going into the energy, banking,
construction, communications, information technologies, mining and
metallurgical sectors.

Total capital investment topped $1.3 billion, the source said.

In addition, the source commented on current interest in expansion of
the Russian presence in the Armenian banking system, saying that the
share of Russian banks in the combined charter capital of Armenian
bands came to over 25%.

"Recently, both countries have been discussing the possibility of
implementing new and large-scale joint projects in various production
and manufacturing sectors, as well as in transportation," he said,
adding that this would facilitate the doubling of capital investment
in Armenia in the coming years.

The source added that there had also been noticeable steps in the
development of cooperation in precious stones and metals. He cited
Alrosa (RTS: ALRS) and the Armenian government’s 2007 signing of a
partnership agreement for development in these spheres.

In addition, the source said there has been dynamic development
in humanitarian cooperation between the two countries. He cited
Armenia’s participation in the implementation of Russia’s plan for
the development of coordinated multilateral humanitarian efforts
throughout the CIS.

AZERBAIJAN PRESIDENT RECEIVES OSCE PA PRESIDENT’S SPECIAL REPRESENTATIVE ON NAGORNO-KARABAKH CONFLICT

State Telegraph Agency of the Republic of Azerbaijan
September 1, 2008 Monday

Azerbaijan President Ilham Aliyev has received OSCE PA President`s
Special Representative on Nagorno-Karabakh conflict Goran Lennmarker

Mr. Lennmarker said he has eye-witnessed great economic development
in Baku during his current trip.

President Aliyev said development processes now cover all spheres of
life in the country.

They discussed current state of the Nagorno-Karabakh peace talks and
prospects for the conflict`s resolution.