Month: October 2008

ARMENIAN FOREIGN MINISTRY: "IF NOT FOR THE EVENTS AROUND SOUTH OSSETIA, AZERBAIJAN MIGHT HAVE TRIED TO SETTLE THE NAGORNO KARABAKH ISSUE BY WAY OF FORCE"

Today.Az
itics/48592.html
Oct 29 2008
Azerbaijan

"The political-diplomatic way is the only way of resolution of the
Karabakh conflict", said Armenian Foreign Minister Edward Nalbandyan
in his interview to BBC Russian service.

"The forced way can not be a solution, as after any war and any forced
solution, diplomats must initiate talks in worse conditions", said he.

According to Nalbandyan, the events around South Ossetia proved
that the forced approach creates additional problems, which are more
difficult to overcome.

"Azerbaijan has increased its military budget by 10 times through the
past 10 years and the events around South Ossetia became a kind of a
cold shower for Azerbaijani leaders, who suspended their bellicose
rhetorics and statements that the Karabakh conflict can be settled
by way of force", said he.

He added that "If not for the events around South Ossetia, Azerbaijan
might have tried to settle the Nagorno Karabakh issue by way of force".

Speaking of the activity of the OSCE Minsk group, the Armenian FM
said that the format of this structure has proved effective. "We
intend to continue talks in the framework of the OSCE Minsk Group
and with the help of the co-chairs", noted he.

"There is no need to develop other formats for as I have said the
format of the Minsk Group is effective", noted Nalbandyan.

He also said that the United States should be more attentive to the
statements made in Washington, according to which there is a principle
of the territorial integrity, which must be respected.

Nalbandyan noted that "we are now at the stage of serious talks on
the resolution of the Karabakh conflict and we hope that these talks
will lead to a compromised solution".

"The status of Nagorno Karabakh is a key issue. This is the issue
of recognition and execution of the right of Nagorno Karabakh people
for self-determination. And we consider that under political will of
both parties, we will be able to come to a solution of the issue",
stressed the Armenian Foreign Minister.

WHO IS TO DETERMINE THE FATE OF THE TERRITORIES AND HOW?
Vardan Grigoryan

Hayots Ashkhar Daily
30 Oct 08
Armenia

Geopolitical hustle and bustle "for Karabakh"

The fact that the Karabakh settlement talks are going to be resumed
by the negotiations to be held in Moscow on November 2 (with
the participation of the Armenian and Azeri leaders and Russian
President D. Medvedev), rather than by the visit of the Co-Chairs
of the OSCE Minsk Group is probably the most obvious evidence of the
unprecedentedly sharp struggle among the superpowers in the region. And
the strictly ambiguous doubts expressed by the M. Jovanovich, the US
Ambassador to Armenia, with regard to the viability of negotiation
format of the OSCE Minsk Group are also an evidence of the above
mentioned.

It turns out that all the parties are looking forward to the speedy
settlement of the conflict. And in his congratulatory message sent
to Azeri leader Ilham Aliev, US President G. Bush also expresses a
‘formal hope’ for progress in the conflict settlement process during
the upcoming months.

As to why the President’s hope bears a formal nature is because the
recent statements of the US senior officials refer to the possibilities
of progress vs. the final settlement of the conflict. Let’s note that
US Under Secretary of State D. Fried who recently visited Yerevan
also pointed out a "possibility" for the settlement of the conflict
by the end of the year but he didn’t speak about the inevitability
of such settlement.

In such context of hints, the unprecedented haste of the Russian
leadership becomes quite comprehensible and normal. Inviting Armenian
President S.

Sargsyan and Azeri President I. Aliev to negotiations on the 2nd of
November, the official Moscow probably wants to make it clear that
it will by all means find the keys to the settlement of the Karabakh
conflict before the Presidential elections to be held in the United
States on November 4.

Clearly, Moscow believes that it’s no use waiting till the new US
Administration assumes its duties on January 20, 2009, because that
will be too late in the estimations of the Russian officials.

In our opinion, the initiative, at least at the current stage, is
invulnerable to Russia as a full member of the OSCE Minsk Group. But
we can’t say the same about Turkey’s "simultaneous haste".

Moreover, it is strange that the information about the possibility of
organizing a trilateral meeting with the participation of the Armenian,
Azerbaijani and Turkish sides reaches us from an anonymous source
of the Azeri Foreign Ministry, whereas our Foreign Ministry remains
silent about the issue. It turns out that some circles in Azerbaijan
have decided that it is possible to organize such meeting in Helsinki
on November 4-5, during the session of the Council Ministers of the
Organization for Security and Cooperation in Europe (OSCE); that’s
why are also going to inform us about it through Turkey.

By trying to involve Ankara in the negotiation process, Azerbaijan
is obviously trying to use double pressure on Armenia on the one
hand and Russia on the other. With regard to Armenia, it is trying to
make it clear to us that the opening of the Turkish border depends on
the outcome of the negotiations; as to the Russian side, Azerbaijan
is threatening it "with the Turkish alternative" which receives the
approval of the United States.

That’s why, Foreign Minister Edward Nalbandyan is immediately trying
to deny the current attempts of finding any relationship between
the Karabakh peace process and the Armenian-Turkish dialogue. But
we believe it is not enough because neither Turkey nor especially
Azerbaijan deny the existence of such relationship. Moreover, they
make it clear that the Armenian-Turkish border will be opened provided
their collective demand is met.

Therefore, Armenia is required to be tougher and more precise
while expressing its approaches, so as not to leave room for any
speculations.

It is also noteworthy that the Nagorno Karabakh Republic, the object of
the universal haste, does not show the slightest signs of nervousness,
and in response to the threats of Baku, organizes large-scale military
trainings.

By inviting the Armenian and Azeri Foreign Ministers, giving them
promises and admonitions and making threats, the world’s superpowers
forget about the following: the issue on which they are having a
dispute and the territories whose status they are discussing are, as
a matter of fact, under the control of the Nagorno Karabakh Republic
both de facto and de jure.

So, who is going to determine the fate of those territories and in
what way, when the existence of the Nagorno Karabakh Republic is
being ignored?

Without the control of those territories, the NKR will not only be
deprived of the opportunity to gain an international recognition but
also be unable to protect the physical existence of its people. And
such major problem is a thousand time more important than the
opening of the "Armenian-Turkish border" and all kinds of economic
and political blockades.

From: Emil Lazarian | Ararat NewsPress

FRENCH ENVOY SAYS EU SUPPORTS TURKEY’S FIGHT AGAINST PKK VIOLENCE

Anadolu Agency
Oct 29 2008
Turkey

Emie, the French ambassador in Ankara, said that the EU would stand
with Turkey on the fight against PKK since nothing could justify
violence.

The ambassador of France, holding the rotating presidency of the
European Union (EU), reaffirmed on Tuesday the union’s support for
Turkey’s fight against PKK violence.

Bernard Emie, the French ambassador in Ankara, said that the EU
would stand with Turkey on the fight against PKK since nothing could
justify violence.

"The PKK is for all of us a terrorist organization and is treated
accordingly in all our countries," Emie said during a luncheon he
hosted in honor of Turkey’s Foreign Minister Ali Babacan, who is also
the chief negotiator for the EU.

Emie said that the EU was very much confident that the Turkish
government would deal with that issue (terrorism) with the arms
of democracy.

On the crisis in Caucasus, Emie said that the French presidency of
the EU supported Turkey’s initiatives (the Turkish idea of a platform
for cooperation and stability in the Caucasus and President Abdullah
Gul’s trip to Yerevan on September 6).

Emie said that there was yet much that remained to be done to restore
the full stability of the region and the EU presidency had decided
to work hand in hand.

Referring to Turkey’s EU membership bid, the ambassador said that
the French presidency was holding its course and keeping its promises.

"I am glad that Turkish authorities acknowledged the fact that France’s
pledge of a neutral, objective and impartial presidency towards Turkey
was kept," Emie said.

Emie expressed belief that the draft for the national program on
integration of the acquis had the potential to become an important
roadmap for the reforms that still needed to be done.

"We also very much hope that some further progress will be registered
in terms of freedom of expression," the ambassador said.

Emie also said that the French presidency was doing its utmost to
carry on, with all the European partners, the preparatory work for
the opening of new chapters.

"We very much hope that the full involvement of the Turkish side
that we have witnessed in the past weeks, under your leadership,
will continue to prevail so that we should be in a position to open
two chapters," the French ambassador said.

Emie expressed hope that the talks held in Cyprus would yield results
some time soon, and said that the EU stood ready to assist and to
continue to bring its direct assistance to the Turkish Cypriots that
were also members of the European family.

The French ambassador also congratulated Turkey on its election as
a non-permanent member of the United Nations (UN) Security Council
for the term 2009-2010.

SILVIA ZEHE: COE-EU-ARMENIA COOPERATION DEVELOPING

PanARMENIAN.Net
29.10.2008 14:54 GMT+04:00

/PanARMENIAN.Net/ The CoE-Armenia relations have been developing
and covering new fields of cooperation from the very day of the
republic’s accession to the Council of Europe, said Silvia Zehe,
Special Representative of the Secretary General of the Council of
Europe to Armenia.

"The CoE office in Yerevan is implementing programs for improvement
of the legal system and human rights. This work has been always
associated with the European Union and I think the process should
continue. The CoE-EU-Armenia cooperation is in progress," she said.

"Democracy is an assembled phenomenon which demands time and
transformation of the society. Armenia should define its objectives
and work to attain them," CoE SRSG to Armenia said.

From: Emil Lazarian | Ararat NewsPress

SOUTH OSSETIAN EVENTS HAD COLD SHOWER EFFECT ON BAKU

PanARMENIAN.Net
29.10.2008 14:13 GMT+04:00

/PanARMENIAN.Net/ Much has changed after the August tragedy in South
Ossetia, Armenian Foreign Minister said.

"Those events proved that the use of force doesn’t resolve problems,
but on the contrary, aggravates them," Edward Nalbandian told BBC.

"We had a similar situation with Nagorno Karabakh. Azerbaijan increased
its defense budget tenfold. The events in South Ossetia had a cold
shower effect on the Azerbaijani leaders, making them stop their
bellicose propaganda. But for this tragedy, Azerbaijan could make an
attempt to turn its arms against Karabakh," the Minister said.

EBRD’S SHARE IN ARARATBANK EVIDENCE OF CONFIDENCE IN ARMENIA’S BANKING SYSTEM

ARKA
oct 29, 2008

YEREVAN, October 29. /ARKA/. The share of the European Bank for
Reconstruction and Development (EBRD) in the capital of the Armenian
Araratbank is evidence of confidence in Armenia’s banking system,
EBRD Director for south Caucasus, Moldova and Belarus Mike Davey
told reporters.

It is a serious signal on the EBRD’s part, he said. Davey pointed out
that, in the context of dramatic changes on the world market, the EBRD
has focused its efforts on overcoming the crisis in many countries.

As regards Armenia, the EBRD’s 25% share in Araratbank’s capital is
considered a successful transaction. Davey stressed that it is the
EBRD’s fourth share in Armenia’s banking system.

He pointed out that the transaction is the result of long-lasting
negotiations with the Araratbank management. The EBRD is happy to
have a share in Araratbank’s capital and assist it in developing
Armenia’s economy, Davey said.

A contract for the EBRD’s purchasing 25% plus one share of Araratbank
for $7mln was signed in Yerevan. The transaction is to be completed
within a month, to be followed by placement of shares. As a result,
Araratbank’s authorized capital will reach $24mln against the current
$13mln. During the next three years the bank’s capital is to be
brought up to $50mln.

The businessman Barsegh Beglaryan, who owns the Flash Company, is
the principal stockholder of Araratbank (70%), the EBRD holds 25%
plus one share, the rest shares being in free circulation. The bank
has 86 shareholders.

The Araratbank OJSC (legal successor of Armcomunicationbank) was
founded on September 2, 1991. On October 31, 1996, the bank was issued
License #4.

On September 30, 2008, the bank’s assets amounted to 27.9bln AMD,
capital reached 5.5bln AMD, profit 552.6mln AMD (in January-September
2008).

On December 7, 1992, Armenia joined the EBRD with a â~B¬10mln share.

The EBRD also has shares in Byblos Bank Armenia, Armeconombank,
ProCredit Bank.

The EBRD is among largest investors in Armenia – â~B¬202mln under 52
programs.

–Boundary_(ID_eReDKaIeItXi+Gz7XbdFM w)–

AZERBAIJANI, ARMENIAN, RUSSIAN FOREIGN MINISTERS TO GET TOGETHER IN MOSCOW BEFORE PRESIDENTS MEET

Trend News Agency
Oct 29 2008
Azerbaijan

Azerbaijan, Baku, 29 October/ TrendNews, corr N. Abdullayeva/ Foreign
Ministers of Azerbaijan, Armenia and Russia Elmar Mammadyarov, Edward
Nalbandyan and Sergey Lavrov will meet in Moscow on 31 October,
Azerbaijani Foreign Minister Elmar Mammadyarov told journalists.

Azerbaijani and Armenian Foreign Ministers also plan to hold
consultations with the co-chairmen of OSCE Minsk Group on 1 November,
Mammadyarov said.

The results of the meeting will be reported to the Presidents who
will meet on 2 November in Moscow, Mammadyarov added.

In response to question about possible changes in the format of talks
on Nagorno-Karabakh conflict, Mammadyarov said "there is no need to
change format of talks".

OSCE Minsk Group is engaged in the solution of Nagorno-Karabakh
conflict under chairmanship of the United States, Russia and France.

AFTER AZERBAIJAN’S PRESIDENTIAL ELECTION: THE LOOK AHEAD (PART ONE)
By Vladimir Socor

The Jamestown Foundation
Tuesday, October 28, 2008

Azerbaijan’s reelected president Ilham Aliyev was inaugurated on
October 24 for a second five-year term (, October 24,
25). As had been expected, voters gave Aliyev a strong mandate for
continuing his policies.

International observers noted clear improvements in the electoral
process and practice on this occasion, compared with previous electoral
cycles (see EDM, September 23, October 20).

If it were situated in a less dangerous neighborhood, Azerbaijan
would undoubtedly be firmly set on the road to success as a rapidly
modernizing Muslim society. Political ingredients of success–internal
stability and security, statesmanship at the top, a secular path of
development, and external orientation toward the West as matters of
national consensus–were already in place before the country’s oil
revenues started flowing in. With its oil-driven economic growth
averaging a world-record of 30 percent annually in the last three
years, some 700,000 jobs created, a rapidly growing oil fund open
to international auditing, vast reserves of gas just barely tapped,
a key location on intercontinental transit routes, and new investment
priorities in non-oil sectors planned for Aliyev’s second presidential
term (, October 13, 25), Azerbaijan is rapidly moving from
inherited structural poverty to modernization, while contributing to
the West’s energy security. The basis is also now in place for more
effective institution-building during the second presidential term.

Azerbaijan`s prospects for further advances, however, look suddenly
fragile in the wake of Russia’s aggressive resurgence and invasion of
Georgia, the consequences of which are casting shadows on Azerbaijan
at the start of Aliyev’s second presidential term. That invasion
exposed a vacuum of Western power and political presence in the
South Caucasus generally. Few international observers had noticed and
warned against that developing vacuum, and those who did were scarcely
heeded. The United States essentially disengaged itself strategically
from the region after 2005, with medium-level officials and rhetorical
flourishes substituting for high-level strategic policy. The European
Union never engaged seriously with Azerbaijan, nor could Brussels
have done so in the absence of EU common policies on Caspian energy
and the South Caucasus conflicts.

However neglected, Western energy security policy remains a common
agenda with Azerbaijan and Georgia, its prospects linked to these
countries` national independence and security. Azerbaijan`s potential
as a producer of gas– the commodity more critical than any other to
Euro-Atlantic energy security–is materializing slowly, however. The
reasons behind this include the paralysis of the Nabucco pipeline
project; lagging development of the Shah-Deniz offshore gas field
(in turn delaying capacity expansion of the Baku-Tbilisi-Erzurum
pipeline); and Turkey’s ambitions to take a portion of Azerbaijani
gas for possible resale at a profit to itself, instead of providing
transit service for that Azerbaijani gas via Turkey to Europe.

Exploiting this situation, Russia is offering to buy the entire volume
of gas available for export from Azerbaijan at European netback
prices. Russian President Dmitry Medvedev and the Gazprom monopoly
have both made that attractive proposal to Baku. The government there,
as well as the BP and Statoil companies, may soon find themselves
facing the choice of either selling their gas export volumes to
Gazprom or delaying a production ramp-up at Shah-Deniz while waiting
for a non-Russian outlet to become available.

Azerbaijan`s EU and U.S. partners must therefore try seriously to
kick-start Nabucco and work politically with Turkey to remove its
obstacles to the transit of Azerbaijani gas.

Meanwhile, portraying Azerbaijan as capable of supplying Nabucco’s
first phase by itself is unconvincing to investors (in view of
Azerbaijan`s other, already existing commitments), and it exposes
Azerbaijan to Russian pressures, instead of sharing that burden among
several potential supplier countries. For its part, Azerbaijan is
actively engaged in political bridge-building with Turkmenistan,
encouraged by Baku’s Western partners. But only the formation
of a Western consortium, with an attractive commercial offer to
Turkmenistan, could open access to that country’s gas supplies for
the planned trans-Caspian pipeline that would connect with Nabucco
through the Baku-Erzurum link.

Continuing internal debates within the EU reflect an incipient
understanding that Brussels needs to subsidize pipeline projects for
supply diversification. At present, however, the EU has only limited
tools available and even fewer resources earmarked for this. Unless
it moves quickly, EU policy will miss an opportunity yet again to
take full advantage of Azerbaijan’s potential as a gas producer and
transit country.

Baku feels surprised and puzzled by the idea of replacing Georgia
with Armenia as a transit route for Nabucco gas. Under this option,
gas earmarked for Nabucco would be pumped from Azerbaijan to Turkey
through a pipeline to be built via Armenia, instead of Georgia. This
suggestion has recently emerged in the context of a possible package
deal in the Karabakh conflict.

The position of Azerbaijan’s government, however–as summed up in
Brussels by Deputy Minister of Foreign Affairs Araz Azimov–is that it
would make no sense to bypass the already existing Baku-Tbilisi-Erzurum
pipeline, the designated conduit for Caspian gas via Georgia and
Turkey to Europe (EUobserver, October 8).

THE PRICES OF FUEL DROP

Hayots Ashkhar Daily
28 Oct 2008
Armenia

In parallel with the drop of the prices of fuel in the international
market, the prices of petrol and diesel fuel continues to drop in
Armenian markets as well. As of yesterday the prices dropped by
20 dram.

At the moment "regular" petrol is sold by 340 drams in the two big
companies importing petrol – "Petrol Service" and "Flesh".

The same goes with the price of the diesel fuel – 340 drams a liter.

"Petrol Service" and "Flesh" companies have reduced the price of
"premium" petrol by 20 drams. But as usual in the gas-filling stations
belonging to "Petrol Service" it is cheaper (360 drams a liter)
than in the ones belonging to "Flesh" (370 drams a liter).

IT IS ENVISAGED PASSING ARMCARSTATION CJSC FOR CONCESSION MANAGEMENT

Noyan Tapan
Oct 29, 2008

YEREVAN, OCTOBER 29, NOYAN TAPAN. It is envisaged passing Armcarstation
CJSC, which includes all the car stations, car parks and route
regulation points in Armenia, to a company with an international
experience for concession management. NT correspondent was informed by
the director of Armcarstation Armen Harutyunian that prior to that,
they intend to carry out some work at 31 car parks in order to make
the system more attractive to investors. For this reason structural
changes are underway at the company.

Some improvement will also be made soon at the expense of the company.

As for the car station system, A. Harutyunian described its state
as quite poor: in some cities, car parks do not function. There
are no conditions for normal provision of services to drivers and
passengers. In particular, satisfactory hygiene and sanitary conditions
are absent, the fire prevention norms are violated. Public catering
facilities do not operate, and before departure, cars do not undergo
a checkup.

There are 17 route regulation points in Armenia, mainly in the
capital city.

A. Harutyunian said that the problem here is that most of them are
located in areas not permitted by the government. Besides, according to
some checks, vehicles are sent by their routes without being registered
at the respective route regulation service. The ticket sale order is
violated, and preliminary sales of tickets are not organized. Measures
are being taken to legalize the operation of route regulation points:
they are being moved either to the areas of car stations or to sites
permitted by the government.

It was mentioned that in the past month Armcarstation paid off its
debt of 29 million drams.