RFE/RL Armenian Report – 10/20/2017

                                        Friday, 

Russian Gas Cheaper Than Iranian, Says Armenian Minister


 . Astghik Bedevian


A gas flare on an oil production platform in the Soroush oil fields is
seen alongside an Iranian flag in the Gulf

Armenia imports the bulk of its natural gas from Russia because it is
cheaper than gas supplied by neighboring Iran, Energy Infrastructures
Minister Ashot Manukian insisted on Friday.

Russia gas, which currently costs Armenia $150 per thousand cubic
meters, meets more than 80 percent of the country's annual demand. The
remaining gas imports come from Iran under a swap arrangement
involving supplies of Armenian electricity to the Islamic Republic.

"If a lower price is offered to us, we will definitely buy [more
Iranian gas,]" Manukian told a news conference.

Manukian said Prime Minister Karen Karapetian made this clear during
an official visit to Tehran last week. In his words, Karapetian told
Iran's Oil Minister Bijan Zanganeh: "If you can give us gas at a lower
price, we are ready to directly buy gas from you and partly abandon
this [swap] deal."


Iran - Iran's First Vice-President Eshaq Jahangiri (R) meets with
Armenian Minister for Energy Infrastructures Ashot Manukian in Tehran,
5Dec2016.

The gas-for-electricity exchange is due to be significantly expanded
after the ongoing construction of a third power transmission line that
will connect Armenia to Iran.

A senior executive of the National Iranian Gas Company (NIGC) claimed
in August that Armenia would like to more than double Iranian gas
imports even before the high-voltage line goes on stream in 2019. He
made clear that the Armenian side would have to pay for extra supplies
in cash and that they would cost Yerevan more than Russian gas does.

Iranian media last week quoted the country's Deputy Oil Minister
Amir-Hossein Zamaninia as saying that Karapetian also discussed in
Tehran the possibility of Armenian imports of gas from Turkmenistan
via Iran. Yerevan is interested in Turkmen gas because it would
presumably be cheaper for Armenian than Iranian gas.

Karapetian, who managed Armenia's Russian-owned gas distribution
network from 2001-2010, declined to elaborate on his gas talks with
Iranian leaders when he spoke to reporters in Gyumri on Wednesday. He
said only that he returned from Iran with "very good and very
promising projects."



Yerevan `Still Committed' To Karabakh Talks Despite Truce Violation


 . Hovannes Movsisian


Armenia - Foreign Minister Edward Nalbandian (R) and his Polish
counterpart Witold Waszczykowski at a joint news briefing in Yerevan,
20Oct2017

Foreign Minister Edward Nalbandian said on Friday that Armenia will
not avoid further peace talks with Azerbaijan despite continuing
ceasefire violations in Nagorno-Karabakh that left an Armenian soldier
dead.

The 19-year-old soldier, Tigran Khachatrian, was reportedly killed by
Azerbaijani sniper fire on Thursday just three days after the latest
meeting of the Armenian and Azerbaijani presidents held in Geneva.

Serzh Sarkisian and Ilham Aliyev pledged to intensify the peace
process and bolster the ceasefire regime in the Karabakh conflict
zone. "We agreed to take measures to further ease tensions so that we
have no casualties on the frontlines," the Armenian president said
after the talks.

The U.S., Russian and French mediators said in that regard that they
will soon hold follow-up "working sessions" with Nalbandian and
Azerbaijani Foreign Minister Elmar Mammadyarov.

Reacting to the Armenian soldier's death later on Thursday,
Sarkisian's Republican Party of Armenia (HHK) accused Baku of "trying
to walk away" from the Geneva understandings. Nalbandian also deplored
the Azerbaijani truce violation when he spoke after talks in Yerevan
with Poland's Foreign Minister Witold Waszczykowski.

"Unfortunately, after the summit held in Geneva there have been
various speculations by Baku, and ceasefire violations in the conflict
zone are continuing, as a result of which an [Armenian] soldier was
killed yesterday," Nalbandian told a joint news briefing.

"My Polish counterpart and I agree that there is no alternative to a
solely peaceful resolution of the Karabakh conflict based on
principles of international law," he added.

Nalbandian did not say when he and Mammadyarov will hold the planned
meetings with the three mediators leading the Minsk Group of the
Organization for Security and Cooperation in Europe.



Karapetian Again Discusses Anti-Graft Measures With U.S. Envoy


Armenia - Prime Minister Karen Karapetian (L) and U.S. Ambassador
Richard Mills attend a celebration organized by the USAID mission in
Yerevan, 12Oct2017.

The U.S. ambassador in Yerevan, Richard Mills, met with Prime Minister
Karen Karapetian on Friday for further discussions on the Armenian
government's stated efforts to combat endemic corruption in Armenia.

Karapetian was reported to brief Mills on the government's "consistent
policy" of reducing "corruption risks" through the enactment of
relevant legislation and the "active work" of its Anti-Corruption
Council. A government statement also cited him as calling for
U.S. assistance to the council and his broader reform agenda.

According to the statement, Mills praised the Armenia government's
efforts to strengthen the rule of law and improve the business
environment, saying that they have already increased U.S. investors'
interests in Armenia. "He said that over the past 8-10 months he has
received positive signals from American companies operating in Armenia
especially with regard to ongoing reforms in the customs sector,"
added the statement.

Mills urged the authorities in Yerevan to tackle corruption in earnest
in a speech delivered in February. He said they should send a "clear
message from on high that corruption will not be tolerated and that no
one # is above the law." In that regard, the envoy suggested that the
government set up a "fully independent anti-corruption body that can
both investigate and prosecute cases."

The authorities decided instead to form a different anti-graft body
that will start functioning early next year. The Commission on
Preventing Corruption is to scrutinize income and asset declarations
to be submitted by over 2,000 senior state officials and investigate
possible conflicts of interest among them. Under a government bill
passed by the Armenian parliament in June, it will be empowered to ask
law-enforcement bodies to prosecute officials suspected of graft.

The separate Anti-Corruption Council was previously overseen by
Karapetian's predecessor, Hovik Abrahamian. It approved in 2015 a
three-year plan of actions against various corrupt practices.

Despite skepticism voiced by many Armenian civil society members, the
U.S. Agency for International Development (USAID) pledged in February
2016 to support the program's implementation with a $750,000
grant. Mills said in February that the USAID has since allocated less
than 2.5 percent of that money because of a lack of "concrete
progress" in the work of that body.

The USAID's current country director for Armenia, Deborah Grieser, was
also present at Mills' latest meeting with Karapetian.

Armenia ranked, together with Bolivia and Vietnam, 113th out of 176
countries evaluated in Transparency International's most recent
Corruption Perceptions Index released in January.



Press Review



"Zhoghovurd" notes that an Armenian soldier was shot and killed by
Azerbaijani forces in Nagorno-Karabakh on Thursday just three days
after the Armenian-Azerbaijani presidential meeting in Geneva. The
paper says that Baku continues to violate the ceasefire despite
President Ilham Aliyev's reported pledge to ease tensions on the
frontlines. "The incident must first and foremost be a cause for
concern for the co-chairs of the OSCE Minsk Group," it says. "They
must explicitly demand that Azerbaijan put an end to its
unconstructive actions and attempts to torpedo the Nagorno-Karabakh
settlement process."

"Zhamanak" urges Armenia and the European Union to issue "clear
statements" to the effect that they will sign their Comprehensive and
Enhanced Partnership Agreement (CEPA) next month. "In case of its
non-signing, it won't matter at all by how much it will be delayed and
who is to blame for that," writes the paper.

"Haykakan Zhamanak" scoffs at Prime Minister Karen Karapetian's remark
that Armenians should "treat with patience" the latest rise in the
prices of some foodstuffs and gasoline. The paper is unconvinced by
Karapetian's and other officials' assurances that the price hikes were
caused by external market factors. It argues that in September the
price of sugar plummeted by more than 30 percent year on year in the
international markets but rose by 3.4 percent in Armenia. Sugar
imports to the country are controlled by Samvel Aleksanian, a
pro-government wealthy businessman.

"Chorrord Ishkhanutyun" comments on the resignation of Portugal's
interior minister which followed a series of deadly wildfires in the
country. The paper suggests with sarcasm that he should have "followed
his Armenian counterparts' example" and listed the quantity of
equipment used for extinguishing the fires.

(Tigran Avetisian)


Reprinted on ANN/Armenian News with permission from RFE/RL
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