Month: December 2008

GAZPROM GUARANTEES REGULAR GAS SUPPLIES TO ARMENIA

ARKA
Dec 26, 2008

YEREVAN, December 26. /ARKA/. Russian gas supplies to Armenia are
regular and stable, ArmRosGasProm Director General Karen Karapetyan
said on Friday.

"Armenia has no problems with Russian gas supplies," he said, adding
the Russian gas transits through Georgia work properly, though Russia
does not supply Georgia with gas.

According to ArmRosGasProm’s press service, Russian gas supplies
to Armenia rose 11% to over 2bln cubic meters between January and
November 2008, with 1.874bln cubic meters of gas consumed in the
country during the past 11 months.

Monopolist in Armenia’s gas supply market, ArmRosGasProm CJSC was
established in 1997.

Gazprom OJCS and the RA Ministry of Energy used to hold 45% of the
company’s shares each, with Itera Oil and Gas Company owning 10%
of ArmRosGasProm.

After implementing two of the three planned stages of its investment
program (and buying extra shares of ArmRosGasProm in 2006 and 2008)
Gazprom became 75.55% shareholder of the company, with Itera now
holding 4.4% of ArmRosGasProm’s shares.

CONVERSEBANK PROFITS MAY REACH 2.5BLN AMD

ARKA
Dec 26, 2008

YEREVAN, December 26. /ARKA/. Ararat Ghukasyan, the Executive Director
of Conversebank, said the bank’s profits before taxation may reach
2.5bln AMD.

"In the whole, the 2008 was a successful year for the bank and we
intend to complete it with profits exceeding the expected indicators,"
he told reporters on Friday.

According to Ghukasyan, Conversebank will adhere to a policy of
expansion in the regions and improve infrastructures and services
there.

"We managed to bring the number of branches to 25 with four of them
being renovated thoroughly, expanded the network of ATMs, increasing
their number up to 41 against 29 early this year," he said.

The Conversebank CJSC was incorporated in Armenia on December 20, 1993.

Eduardo Ernekyan, an Argentina-based Armenian businessman purchased
the bank’s 95% shares last February. The other 5% is held by the
Armenian Apostolic Church.

The bank’s assets reached 63.9bln AMD this October 31, total capital
13bln AMD, liabilities 50.9bln AMD. ($1 – 308.37).

FORMER FOREIGN MINISTER: IF ARMENIA IS DEPRIVED OF VOTE IN PACE, CRISIS IN COUNTRY WILL DEEPEN FOR EVEN MORE

Noyan Tapan

Dec 26, 2008

YEREVAN, DECEMBER 26, NOYAN TAPAN. We have rather a deep crisis and
tension after March 1 in Armenia, which not only fails to decrease,
but deepens for even more. Vardan Oskanian, the former RA Foreign
Minister, the Chairman of the Civilitas Foundation, said at the
December 26 presentation of Foundation’s first annual report under
the title Armenia-2008: Crisis and Possibility. Applying to Armen
Rustamian, a representative of the ARFD Armenian Supreme Body, the
Chairman of the RA National Assembly Committee on Foreign Relations,
he asked whether the ruling coalition realizes the formed situation
and undertakes steps. In response A. Rustamian said that, certainly,
there are elements of crisis and it was noticeable as early as before
March 1, in the process of the RA presidential elections.

V. Oskanian gave assurance that ARFD should have been in the opposition
sphere, as today our country lacks ideological opposition. "You
would have provided a bigger service by doing so. We should strive
for political sphere’s rehabilitation, and unless that sphere
rehabilitates, we cannot solve any problem," he said.

Touching upon the PACE Monitoring Committee’s report, the former
Foreign Minister said that if under conditions of economic and home
political tension Armenia is deprived of the vote in PACE, the crisis
in the country will deepen for even more. "It is unprecedented, as
no phenomenon of the kind has taken place in the whole history of
Council of Europe so far," V. Oskanian said.

In the words of Hovhannes Igitian, the Executive Director of the
EU Chamber of Commerce in Armenia, the Council of Europe demands
domestic consolidation from Armenia, as well as disclosure of the
March 1 events, political prisoners’ release, and A1+ TV company’s
return on air. According to H. Igitian, only 3 days are needed to
fulfill the last three conditions.

V. Oskanian, in his turn, said that information sphere’s normalization
and unbiassed character is not only conditioned by A1+ TV company’s
return on air. "Our TV companies should be told from above to act
according to the public demand," he said. Armen Darbinian, the
Rector of the Russian-Armenian (Slavonic) University, the former
Prime Minister, expressed an opinion that by Georgia’s example one
TV company should be provided to the opposition.

MATTHEW BRYZA: CITIZENS NEED TO BE PREPARED FOR DIFFICULT COMPROMISES

Noyan Tapan

Dec 26, 2008

YEREVAN, DECEMBER 26, NOYAN TAPAN. Matthew Bryza, U.S. Deputy Assitant
Secretary of State has answered to the questions of Noyan Tapan.

NT – What was the reaction of Armenia and Azerbaijan to the call of the
Minsk group Co-Chairs (in Helsinki in early December) about an early
agreement on the settlement principles? Can a timeline for that purpose
(at least an approximate one) be determined for reaching that goal?

MB – Armenia’s and Azerbaijan’s leaders have expressed their desire to
finalize the Basic Principles, but have also recognized they still have
much work ahead of them. The OSCE Minsk Group Co-Chairs have suggested
mid-2009 as our target date for finalizing the Basic Principles and
then launching intensified negotiations on a formal peace agreement.

NT – What was the reaction of the two countries to the call of
the Co-Chairs to remove the snipers from the front lines? Will the
co-chairs make further efforts to that end?

MB – The leaders of the two countries expressed their understanding
of the importance of ending sniper incidents, which needlessly take
the lives of soldiers and civilians and raise tension to potentially
dangerous levels.

The Co-Chairs will keep pressing for a pullback of the snipers,
as well as other important confidence-building measures.

NT – What was the reaction of the two countries to the call on applying
other confidence-building measures? Have the co-chairs suggested any
specific measures and any time schedule for their implementation?

MB – Presidents Aliyev and Sargsian called for additional
confidence-building measures in the declaration they signed on November
22 in Moscow. The Co-Chairs have been discussing possible measures
with the Presidents and Foreign Ministers, including visits to both
countries by intellectuals and other civil society leaders. Personally
speaking, I believe there might be a possibility to build confidence
through archtectural and cultural preservation projects.

NT – During the last years, the co-chairs of the Minsk group have shown
a good example of co-operation between the three "superpowers." Do you
believe (or, maybe, you have some information) that the U.S. policy
regarding the Nagorno Karabakh issue will be continued under the
new administration?

MB – I cannot guarantee US policy on Nagorno-Karabakh, or any other
issue, will remain exactly the same in the new US Administration. But,
my best guess is that the strong interest of the US in a just and
lasting settlement to preserve peace and strengthen regional stability
will endure.

NT – Also, we will be happy to publish any commentary you will see
appropriate about the comments and interpretations concerning the
Nagorno Karabakh mediation process and its goals. As misquotes and
misinterpretations concerning these issues have been frequent in recent
months, the public opinion is very sensitive to any event of this type.

MB – I would like to add an appeal to journalists and other civil
society leaders to demonstrate the same commitment to a peaceful
settlement as guides the work of the countries’ leaders and the Minsk
Group Co-Chairs.

Instead, many people in both countries seem more concerned with
creating scandal. Too often, these scandals are artificially
manufactured in response to poor translations of statements those who
are involved with the actual negotiations. It is time for all leaders
of the parties, whether in government or civil society, to commit
themselves to helping their fellow citizens prepare for difficult
compromises that are required for a just and lasting settlement.

In this context, it is important to understand clearly how the
various principles of a settlement relate to each other. Today, the
United States, France, and Russia, and all Minsk Group countries
all recognize the territorial integrity of Azerbaijan. They all
also recognize that a peaceful settlement must also incorporate the
principles of self-determination and non-use of force.

I appeal to journalists in both countries to pay careful attention
to this statement. If any journalist believes one of the Co-Chairs
have made a statement that contradicts what is written above, that
journalist should check the translation or citation of that Co-Chair,
as it is likely incorrect. Please do not mistake a poor translation
or a quote that is twisted out of context for a scandalous departure
from the Co-Chairs actual positions.

ACCORDING TO GALUST SAHAKIAN, COUNCIL OF EUROPE SHOULD NOT BE SO NOT SERIOUS TO TRY TO PUSH BACK ARMENIA FROM EUROPEAN VALUES

Noyan Tapan

Dec 26, 2008

YEREVAN, DECEMBER 26, NOYAN TAPAN. "As fate has willed it, the sword
of Damocles constantly hangs above Armenia. However no one can stop
the course we have adopted," Galust Sahakian, the Vice-Chairman of
the Republican Party of Armenia (RPA), stated at the December 26
press conference touching upon the prospect of depriving the Armenian
delegation of the vote in PACE.

According to the RPA figure, the Armenian people being slaughtered by
Muslim world representatives has renounced their values and chosen the
European development way. Now, according to G. Sahakian, the Council
of Europe should not be so not serious to push Armenia back from the
European world and to impel it to the Muslim one.

G. Sahakian added that some forces in the home political sphere,
which many years ago were for brotherly relations with Azerbaijan,
now "exert pressure" on European structures and do their best for
sanctions to be used towards Armenia. G. Sahakian did not render it
more clear which those forces are, but said that he does not consider
them a normal opposition. According to his observation, today in the
political sphere there is no proper opposition to conduct a dialogue
and to cooperate with.

"Certainly, it would be pleasant if only good words were said for
us at all international structures, but it should not damage our
national security," G. Sahakian said. He added that he considers those
imprisoned on the March 1 case his friends and would like "a message
on releasing them to be issued just tomorrow." However, according to
RPA Vice-Chairman’s observation, that issue should be solved on the
legal plane, otherwise their release can endanger the country.

From: Emil Lazarian | Ararat NewsPress

CHARLES AZNAVOUR GRANTED CITIZENSHIP OF REPUBLIC OF ARMENIA

Noyan Tapan

Dec 26, 2008

YEREVAN, DECEMBER 26, NOYAN TAPAN. On December 25, RA President Serzh
Sargsyan signed a decree on granting citizenship of Republic of Armenia
to great singer, public figure, Republic of Armenia National Hero
Charles Aznavour and his impresario, Movses Khorenatsi medal-winner
Levon Sayan.

Noyan Tapan was informed about it by the RA President’s Press Office.

From: Emil Lazarian | Ararat NewsPress

IN OPINION OF FORMER PRIME MINISTER, ARMENIAN ECONOMY IS ILL TODAY, BUT NOT BEYOND HOPE

Noyan Tapan

Dec 26, 2008

YEREVAN, DECEMBER 26, NOYAN TAPAN. The Armenian economy is ill today,
but not beyond hope as it is not big and can be cured by taking bold
and serious steps. Armen Darbinian, former prime minister of Armenia,
rector of the Russian-Armenian (Slavonik) University, expressed this
opinion during the presentation of the Civilitas Foundation’s report
"Armenia 2008. Crisis and Opportunity" on December 26.

He said that various models of developing the Armenian economy
have been worked out since the country’s independence. In 1991-1997
it became possible to overcome the "collapse" of the Soviet Union
and to replace the inflow of low-quality Iranian goods by domestic
products. However, according to A. Darbinian, attempts to enter the
foreign market from the domestic one and expand the external economic
field have failed. "Unfortunately, we have not done so, as a result
of which we will again return to the policy of cheap import in 2009,"
the former prime minister noted.

In his opinion, in order to take the country’s economy out of the
crisis, it is necessary to replace the declining imports with domestic
production.

However, this requires resources, a competition field, as well as
justice in the taxation field which is absent in Armenia. "We can
stabilize the situation only by ensurung an equal taxation field,
otherwise 1993’s situation is awating us in the domestic production
market in 2009," A. Darbinian said.

The chairman of the Civilitas Foundation, former Armenian foreign
minister Vartan Oskanian said that although a two-digit economic growth
was recorded in Armenia over the past 7 years, today "we are receding",
which is conditioned not only by the global financial crisis but also
by the incorrect policy of the authorities.

ARMENIA’S GDP GROWS BY 7.2% IN JANUARY-NOVEMBER 2008 ON SAME PERIOD OF 2007

Noyan Tapan

Dec 26, 2008

YEREVAN, DECEMBER 26, NOYAN TAPAN. Armenia’s GDP grew by 7.2% in
January-November 2008 on the same period of 2007 and made 3 trillion
290 billion 972.1 million drams (over 10 bln 761.8 mln USD). The GDP
index-deflator made 110.8%.

According to the RA National Statistical Service, industrial production
grew by 2.9% to 693 bln 389.9 mln drams in Armenia in January-November
2008 on the same months of 2007.

Gross agricultural output increased by 0.1% to 585 bln 573.2 mln drams,
construction – by 1.6% to 757 bln 806 mln drams, retail trade – by
6.2% to 883 bln 628.7 mln drams, and services grew by 13.3% to 656
bln 714.9 mln drams.

Foreign trade of Armenia grew by 27.6% in January-November 2008 and
amounted to 4 bln 992.6 mln USD, with exports growing by 4.5% to 1
bln 7.6 mln USD and imports growing by 39.5% to 3 bln 985 mln USD.

Consumer prices rose by 9.3%, industrial production prices – by 3.5%
as compared with January-November 2007.

The number of officially registered unemployed declined by 0.3% in
the country in late November 2008 on the same month of last year and
made 74.3 thousand.

The average monthly nominal salary made 89,029 drams in the first
eleven months of 2008 (18.8% growth on the same period of 2007),
including the salary of the budgetary system’s employees – 63,197 drams
(19.1% growth) and that of employees of the nonbudgetary system –
110,991 drams (18.3% growth).

The average exchange rate of a US dollar made 305.8 drams in
January-November 2008 (in 2007 this index made 342.08 drams).

PROFESSIONAL ALL-ARMENIAN NETWORK TO BE CREATED IN 2009

Noyan Tapan

Dec 26, 2008

YEREVAN, DECEMBER 26, NOYAN TAPAN. The RA Ministry of Diaspora among
2009 programs attaches most importance to holding of all-Armenian
conferences.

Minister Hranush Hakobian reported at the December 26 brief press
conference adding that in 2009 April it is envisaged holding
conferences of Armenian architects, in September Armenian lawyers,
then of Diasporan Armenians graduating from a higher educational
institution in Armenia. Besides, according to H. Hakobian, events
should be organized dedicated to Armenian National Hero Charles
Aznavour, Kirk Kerkorian, and Alex Manoogian for "presenting them
properly" both in the country and in the Diaspora.

The most important program to be implemented in 2009, according to H.

Hakobian, will be creation of an all-Armenian professional network
within the framework of the Diaspora-Armenia cooperation. As she
affirmed, thanks to that network it will be possible to efficiently
use nation’s mental potential.

The Minister said that within the three months of its activity
the Ministry has worked out and presented to various departments
and Armenian and Diasporan organizations a draft conception of
Armenia-Diaspora Partnership Development. According to H. Hakobian,
positive responses have been received on it from different corners
of the world. The draft will be submitted to RA government’s approval
in 2009 February.

H. Hakobian also said that the experience of work organization with
diasporas of various countries, in particular, Greece, Serbia, India,
Israel has been studied. For instance, as the Minister emphasized
it, Armenia will need the experience of Greece when adopting laws on
Diasporan Armenians.

Among the work done H. Hakobian also mentioned the launching of
the movement Armenians without Smoking in the Diaspora and Armenia,
preparation of all-Armenian Olympic Games.

HRANUSH HAKOBIAN: FAVORABLE CONDITIONS SHOULD BE CREATED FOR DIASPORAN ARMENIANS TO PROMOTE REPATRIATION

Noyan Tapan

Dec 26, 2008

YEREVAN, DECEMBER 26, NOYAN TAPAN. "We cannot but speak of repatriation
under the circumstance of having such a large Diaspora," RA Minister
of Diaspora Hranush Hakobian stated at the December 26 press
conference. In her words, the most of Diasporan Armenians living in
Armenia at present returned to the homeland in the difficult years,
in 1991-92. According to H. Hakobian, for the purpose of promoting
repatriation today favorable conditions should be created for Diasporan
Armenians in the country.

In response to the observation that many Diasporan Armenian businessmen
come across some obstacles connected with the legislation when
founding their own business in Armenia, the Minister said: "Soon we
will publish a collection of laws that will help Diasporan Armenians
to found business in Armenia." As she affirmed, that collection with
keep the Diasporan Armenians away from their Armenian partners, who
"not resisting the temptation try to deceive those arriving from the
Diaspora by all means."