Author: Andres-Papazian

PARLIAMENT DISCUSSES POLICE AND NSS BUDGETS FOR NEXT YEAR

/ARKA/
October 22, 2010
YEREVAN

YEREVAN, October 22, /ARKA/. The 2011 draft budget has earmarked a
total of 24.6 billion Drams for Armenian Police Force, by one billion
Drams more than projected for 2010, a deputy finance minister Pavel
Safarian said today during a parliament discussion on next year’s
budget.

The deputy minister said the bulk of the amount, 23.6 billion Drams,
will be directed to protection of the social order, 173 million
Drams to the department in charge of issuing passports and visas,
591 million Drams to social protection.

A deputy police chief, Hovhannes Hunanian, said the Police Force plans
to spend 73 million Drams on purchase of medications and will also
raise the median wages of contract servicemen of interior troops to
87,000 Drams and the wages of career police officers to 133,700 Drams.

The National Security Service (NSS) will get 10.6 billion Drams of
funding next year, according to its deputy chief Feliks Tsolakian. The
projected amount is by 873 million Drams more than the agency is to
get this year. He said 6.5 billion Drams are earmarked as wage-fund,
by 611.6 million more than is projected for this year.

The National Security Service plans to spend 26 million Drams on
medical treatment and purchase of medications for the staff and 272
million Drams on learning of its officers in Russia.

The Armenian government plans to spend in 2011 as much as 998.4
billion Drams ($2.8 billion), up from 935.5 billion Drams projected
for this year and boost budgetary revenues by 14.6 percent, to 850
billion drams. That would translate into a budget deficit equivalent
to almost 4 percent of Gross Domestic Product (GDP). These targets
are based on the assumption that the Armenian economy will grow by
4.6 percent in 2011. ($1- 360. 54 Drams).

From: A. Papazian

“AMERIA” CJSC IS CONTRACTED TO SUPPORT RENEWABLE ENERGY AND ENERGY EFFICIENCY FACILITIES IN ARMENIA

/ARKA/
October 22, 2010
YEREVAN

YEREVAN, October 22. /ARKA/. “Ameria” CJSC is contracted to develop
a business plan and project documentation for the investments by the
Armenia Renewable Resources and Energy Efficiency Fund (R2E2 Fund)
into renewable energy and energy efficiency sector. The goal of the
project is to promote renewable energy and energy efficiency sector
and ensure energy security in Armenia. The working program implemented
by Ameria is aimed at development of a strategic plan for R2E2 Fund
and incorporation of a credit organization adjacent to the Fund,
ensuring relevant licenses and registration.

All-embracing and comprehensive as it is, the program comprises an
action plan which envisages primarily research of legal framework,
development of regulatory documentation, including internal
regulations, guidelines, instructions, etc., design and description of
business processes, development of HR management related documentation,
strategic documents and midterm business plan. The program is focused
on three main directions: policy consultation, business advisory and
assistance in institutional development.

One of the main goals of the program is capacity building for the
emerging credit organization. As part of the program, “Ameria”
will develop the organizational chart, define the functions, duties
and authorities of the units within the organization, draft job
descriptions and documentation related to creation of institutional
memory in the course of the organization’s activity.

Decision on the establishment of credit organization by the Fund
of renewable energy and energy efficiency was carried out by the
Government in August 2010 taking into account the successful experience
of the Fund in the sphere of crediting of the given sphere.

The Fund is established in November by the Government of Armenia with
the aim of stimulating investments in the development of energy sector
and participation in the development of energy strategy of Armenia
and regulation of legislative issues.

In the frames of the program, “Ameria” will develop the organizational
chart, define the functions, duties and authorities of the units
within the organization, draft job descriptions and documentation
related to creation of institutional memory in the course of the
organization’s activity.

The key principle of these activities is to ensure feasibility
and enforceability of any document developed under the project in
daily practice, as well as employment of the project reports both as
recommendations and guidelines aimed at efficient performance.

CJSC “Ameria” is a leading advisory firm in Armenia specialized in
the areas of corporate restructuring, M&A, legal advisory, direct
and portfolio investments, business and strategic planning, financial
advisory and tax planning, public administration and reforms, etc. As
a part of “Ameria” financial group “Ameria” CJSC renders independent,
confidential and objective counsel through a uniquely harmonious and
efficient system of five advisory units: Management Advisory Services,
Financial Advisory Services, Assurance and Taxation, Legal Practice
and Investment Banking.

From: A. Papazian

500,000 ILLEGAL WORKERS IN TURKEY; NUMBER OF ARMENIANS NOT KNOWN

[ 2010/10/22 | 15:51 ]

A report issued by Turkey’s Ministry of Labor and Social Security
states that the country processes nearly 10,000 work permits
annually. However, the widely held opinion is taht there are still
some 500,000 foreigners working illegally.

Turkish law enforcement arrests nearly 60,000 illegal workers each
year in Turkey. The majority of illegal workers come to Turkey from
the Ukraine, Azerbaijan, Iraq, Iran, Bulgaria, China, Romania and
Armenia. The exact number of Armenian immigrants in Turkey is unknown.

On Wednesday, Minister of Labor Omer Dincer stated that, “When
unemployment is one of the main problems in Turkey and when the same
job can be done by a person in Turkey, it would be injustice for our
citizens to allow foreigners to work in those jobs.”

It is reported that Minister Dincer was referring to the large number
of Turkish companies requesting work permits for their Chinese workers.

From: A. Papazian

AZERBAIJANI FOREIGN MINISTER RECOGNIZES SELF-DETERMINATION PRINCIPLE BUT WITH STIPULATIONS

ArmInfo
2010-10-22 14:50:00

Arminfo. Azerbaijani Foreign Minister Elmar Mammadyarov recognizes
self-determination principle.

As APA reported, “Nagorno Karabakh conflict impedes the development
of both the countries involved in this problem, and the whole region
and threatens the stability and security in the region”, Azerbaijan’s
FM Elmar Mammadyarov said at the 1st Annual Symposium of specialists
on International Relations kicked off today in Baku.

Mammadyarov said that though position of Armenian side is based on
principle of self-determination of peoples, and Azerbaijan has also
received this principle, this principle must not run contrary to
another important principle – the territorial integrity: “Azerbaijan
considers the principle of self-determination of peoples as one of
the principles of OSCE Helsinki Final Act. But if lands are occupied,
territorial integrity of the country is violated, we consider it
impossible. While speaking about its self-determination, Armenian
side forgets one important moment – Armenian community cannot
realize self-determination by itself only, it must be decided by
both communities”.

The minister said that Azerbaijan is ready to grant high autonomy
status to Nagorno Karabakh as a compromise. He hopes that Azerbaijan
will completely restore its territorial integrity.

From: A. Papazian

IRAN IS ARMENIA’S VEILED BUT FAITHFUL ALLY
ArmInfo

David Stepanyan
2010-10-21 16:02:00

Interview with Sergey Shakaryants, expert at Political Research
Institute, Presidential Administration of Armenia

How would you comment on the statement by Iranian Defense Minister
Ahmed Vahidi that Iran supports Azerbaijan’s territorial integrity?

Armenia constantly makes a boast of its peculiar relations with
the OSCE MG co- chair-countries, but neither Armenia nor Nagorny
Karabakh authorities has ever blamed the USA, France or Russia for
recognizing the territorial integrity of Azerbaijan in 1991. As
regards the statement, the Iranian DM did not specify what he meant
by his statement. To observe diplomatic ethics Vahidi just repeated
what all the foreign diplomats repeat when they visit Baku. Earlier
Iranian Parliament Speaker Ali Larijani stated in Yerevan that he
is well aware of the situation around Karabakh and came out against
any participation in the resolution process by the actors outside the
region. He said that resumption of war is inadmissible and called on
everyone to reckon with the opinion of Artsakh’s population

Do you think this may be part of the traditional oriental Iranian
diplomacy?

This diplomacy is many-sided and multi-layered. For instance, once
one of the Iranian regional ayatollahs called on Muslims for declaring
Jihad to everyone who claims Muslim lands. Afterwards, during a meeting
at the Iranian Embassy in Armenia I wondered if he was competent making
such statements despite the Armenian-Iranian friendly relations. I was
told that the Iranian party will take this into account. A few days
after another Iranian Ayatollah called for Jihad against Azerbaijan
for destruction of Shiite mosques in its territory.

Therefore, besides the statements by Mr. Vahidi or Ahmadinejad, we
should take into account that in the name of Iran we deal with one
of the first civilized states of the world”, he said.

Shakaryants emphasized that Armenians, unfortunately, underestimate
Iran, the same is done by the western-Europeans and Americans, and in
a less degree by Russians. Moreover, the Chinese, which progressively
extend their cooperation with Iran in the fuel-energy, military
and international spheres, also underestimate this country. I think
Armenia has to stop viewing Iran from positions of the Soviet Union or
USA. Praise be to God that the Armenian authorities always emphasize
that they are grateful to Iran for its balanced policy in the region.

Moreover, just due to the efforts of Iran, Armenia succeeded to
avoid qualification of the Karabakh conflict by the Organization of
the Islamic Conference as inter-confessional that would entail very
undesired consequences.

We must perfectly understand that despite any change of power in Iran,
its estimation of the situation in the region actually does not change,
and it means that Iran is Armenia’s veiled but faithful ally.

The Iranian DM and the Parliament Speaker have already visited Baku,
the FM and the President will go there shortly. Why such a high
attention to Azerbaijan?

All this means that Tehran notifies Baku that it is not going to let
Azerbaijan out of its control.

I just cannot think differently because Iranian diplomacy is active
in the Armenian and Georgian dimensions as well. All this means that
Iran’s foreign policy has taken the Transcaucasian course. However
strange it is, this policy applies even the pro-American Georgia. The
visits by the Iranian top officials to Azerbaijan mean that Iran’s
diplomacy is focusing on the Transcaucasus in general rather than
on Azerbaijan.

Top officials of Armenia have repeatedly visited Iran in 2010 and
had quite confidential negotiations there.

In addition, Azerbaijan is currently in the pre-election fever and
Iran cannot but protect the rights of the Farsi speaking population
of Azerbaijan

Every time Aliyev visits Nakhijevan he says that it belongs to
Azerbaijan. Are these statements meant for Armenia or does the Azeri
President feel some threat from Iran?

Although Ilham Aliev says that Nakhijevan belongs to Azerbaijan every
time he visits it, everyone in Azerbaijan and the clan of Aliyevs,
first of all, understands that “Saying ‘halva-halva’ won’t make their
mouth sweet”.

They are well aware that all the doubtful allegations they have been
repeating for years that the Armenian Nakhijevan is “the original land
of Azerbaijan” settles some narrow tasks related to propaganda. The
Iranian maps present Nakijevan as one of the seven pearls of Northern
Iran. And Azerbaijan will hardly ever manage to make Iran rewrite its
history and we will not manage to do that either. Another matter that
this region is closely connected to the Iranian and Armenian history.

Therefore, Shakaryants said, Armenians should consider Aliyev’s
statements made from Nakhijevan as an extremely primitive PR
orientated at unaware western officials. As for Russians they can
easily remember from their archives who Nakhijevan belonged to after
the Russian-Persian war, specifically, it belonged to Nakhijevan
district of Erivan Governorate.

Therefore Azerbaijanis would be much clever if they behaved themselves
more modest especially with regard to Nakhijevan.

Despite its commitments, Russia has failed to supply Iran with S-300
air defense systems, why?

This issue was initially too politicized, and the backstage influence
of Israel and USA was also initially present in it. It is not for
nothing that Iranian Defense Minister Ahmad Vahidi made a subtle
statement, alien to a militaryman, saying the agreement on supplies
of S-300 was signed even in 2005 when the issue of sanctions against
Iran was not particularly pointed. Who did hamper Russia to fulfill
it during 5 years without waiting for appearance of a force majeure,
which Russian Foreign Minister Lavrov currently refers to?

Nobody can dispute Russia’s fault for refusal to supply the half-
paid product to Iran, and Moscow will not get away just with return
of the amount paid. Therefore, Moscow tries to put a brave face on
a sorry business.

Now Moscow tries to keep on playing big politics with the USA putting
on the line a more reliable and predictable partner in the name
of Iran. The point is not even S-300, since Iran, if desired, can
mention frightening facts about close and confidential cooperation
in the sphere of conventional arms with Russia till 2005.

From: A. Papazian

THE STATE WILL GRADUALLY SHIFT THE MACROECONOMIC ACCENTS
Aram Gareginyan

ArmInfo
2010-10-21 17:40:00

Interview of Armenian Finance Minister Tigran Davtyan with ArmInfo
news agency

During the program of participation in the annual meetings of Governing
Boards of the World Bank (WB) and the International Monetary Fund
(IMF) in Washington, Armenian Finance Minister Tigran Davtyan agreed
to devote some time to conversation with ArmInfo correspondent.

The minister answered questions about the forthcoming economic policy
of Armenia, including cooperation with IMF and WB

Tell me, please, about the program of the Armenian delegation that
attended the IMF/WB annual meetings on October 7-10.

Over the two days we held over 20 meetings with the representatives of
both IMF and WB, particularly, with experts and heads for our region,
as well as with the IMF and WB leaderships. We discussed the issues
that we were constantly working at with the WB and IMF Permanent
Representatives to Armenia. Each program, no matter whether it is
financial support or a loan, includes a number of reforms to ensure
its effectiveness. Detailed and bilaterally interested discussions
on these programs were held.

The Armenian government has stated its intention to pass from the
expansive economic policy to the restraining one. In Washington such
recommendations to the governments were made by the IMF top management
as well. If the fiscal impetuses are taken out of the economy, will
our private sector be able to replace them with an adequate demand?

Actually, the fiscal impetuses were used during the crisis as
effectively as possible. In the post-crisis period, we gradually
shift accents to restrictive policy, including inflation restraining,
since inflation pressures have turned out to be quite high in 2010.

Certainly, such transfers are not carried out all at once; we shall
gradually change the atmosphere taking into account the general
macroeconomic developments. As for the demand, we managed to attract
a considerable volume of resources, which entered the real sector
and the banking system, over two years within the frames of financial
programs, as well as with direct participation of the state. This is
quite a big reserve for growth and crediting of economy. Moreover, the
volume of crediting is currently growing and the rates are declining.

I think this is quite natural: the banks are interested in beneficial
crediting. Therefore, the task of economy stimulation, which was
earlier assumed by the state, is now naturally passing to the banks.

We do not rush things and reduce our involvement gradually as markets
start coping with the situation themselves. As the state assures
itself of the market efficiency, steadfast control over it stops and
the state starts fulfilling its direct duties.

The IMF Mission that visited Armenia in September pointed out the
necessity of approaching the rates of the Central Bank with the market
credit rates. What measures are to be taken for it?

If the lower threshold of interest rates is determined by the Central
Bank, the upper one is determined by the market, including by the
supply and demand ratio. Certainly, the difference in the rates should
be comparatively small. The state, in the person of the Central Bank,
uses the mechanisms it possesses; the rest depends on the market.

Despite the complicated financial conditions, the Armenian government
has never cut social expenditures. May it create additional inflation
risks now?

Of course, formal increase of state expenditures, including social
ones, contains elements of possible inflation risks. However, pensions
or allowances will hardly ever be reduced for macroeconomic reasons.

Our task is to retain and increase social expenditures and we do our
best to fulfill it.

The EFF/ECF program agreement signed between Armenia and IMF has a
number of planned reforms on tax administration. Which of them will
you single out?

Practically all of them are important here, as they are included in
the single strategy on raising efficiency of tax administration. We
have completely carried out all these measures and we think that the
IMF Board of Directors will highly assess our work. There are certain
provisions, which are not cancelled, but which are not carried
out completely because of some local factors. Though we receive
recommendations, but one shouldn’t neglect the reality and these
factors, because cooperation and support may be provided by our foreign
partners, but the economic strategies, long-term goals and the will to
fulfill them should be provided by the state. The reforms offered by
IMF and other partners among international organizations were and are
included in the number of long-term programs of the government. So,
in terms of strategy our viewpoints coincide. The discussions mostly
cover tactical issues, i.e. how and when to hold these reforms.

According to the same agreement, the state saves half of the taxes
collected more than targeted. Where will these funds be directed?

There is such agreement, and if we set ourselves a task to restrain
the inflationary factors, the money supply reduction may be called
grounded. As regards their further use, the directions of expenditures
will be discussed during the elaboration of the state budget for 2011.

This year no formal changes related to these funds have been introduced
in the budget.

And, finally, please remind the readers what are the IMF loans provided
for and where are they directed?

The funds are provided to the government and the Central Bank for
settlement of macroeconomic stability problems. For the government
these are budget funds, and last time the IMF funds were directly
provided to the budget. I think this year it will be the same. It
should be noted that budget financing is desirable for any government,
as in this case the procedure of the use of the funds is much shorter.

The positive effect for us is even stronger because we shall receive
these restructured funds from the unused funds under the previous
Stand-By program of IMF on more preferential terms.

Thank you.

From: A. Papazian

VLADIMIR KAZIMIROV: NO DISPUTES, ALL THE MORE CONFLICTS ARE SETTLED WITHOUT CONCESSIONS

ArmInfo
2010-10-22 12:27:00

ArmInfo. No disputes, all the more conflicts are settled without
concessions, ex-Cochairman of the OSCE MG on the Karabakh conflict
settlement, resigned Ambassador, first Deputy Chairman of the
Association of Russian Diplomats Vladimir Kazimirov said in the
article “Compromise is higher than victory. It is time for parties
to the Karabakh conflict to become realists” published in the Vremya
Novostey newspaper.

“The political-diplomatic calendar will give a good few mentions of
the Karabakh conflict till late 2010: sometimes in vain, sometimes
seriously and for good of peaceful settlement. They in Azerbaijan
will not be able to get round of this conflict topic during November
7 parliamentary election in the country, although the political
parties and blocs may compete in promises to solve it in any way and
in calls to power actions. The results of the assessment mission of
OSCE MG cochairmen, who visited the regions around Nagorno Karabakh
on October 3-14, will be shortly summed up, though surprises there
are hardly possible. A new round of struggle on the sidelines of the
UN General Assembly around the Azerbaijani draft resolution on the
position in the occupied territories is possible in early December.

All these actions will rather hamper than facilitate the negotiations
on Karabakh”, Kazimirov said. He recalled that a number of steps
promoting the negotiation process have been scheduled till late 2010,
in particular, the OSCE MG cochairmen’s visit to the region, top-level
meetings, as well as the long- expected OSCE summit in Astana in early
December: “All this will hardly lead to a breakthrough in the Karabakh
settlement, since the parties’ stances on a number of important issues
still differ. However, gradual progress is possible”.

According to Kazimirov, because of the sharp incidents on the
contact line, adoption of additional measures by the parties, aimed
at ceasefire strengthening and creation of a favourable atmosphere
for further political dialogue and achievement of agreements, like
foreign ministers of Russia, USA and France proposed in Alma-Ata on
July 17, acquired special topicality.

“However, it does not yet seem for the parties to the conflict to
respond to this proposal. Moreover, they do not fulfill the ceasefire
agreement which was officially signed under the aegis of OSCE on
February 4, 1995, by the three parties to the conflict, including
Nagorno Karabakh. The structures of the pan-European organization shyly
hush it up. Neither party explained the reasons of non-fulfillment
of the agreement, and the OSCE does not bring up this issue to
them. In this situation, one may stumble at loyalty of the parties
to their commitments and the OSCE ability to assure implementation
of agreements”, Kazimirov said. He added that urgent normalization of
the situation on the contact line is necessary also because aspiration
to prompt settlement of the conflict is insufficient.

“The two parties will have to shift away from their claims and take
more real positions, which will take long years. Now they easily
blame each other and sometimes the mediators for being stuck in the
negotiations, though it is the result of their own inflexibility. One
of the parties is against the status-quo and fights for resolution
to the conflict on its own terms and not on the basis of compromises.

However, that party is silent about the time lost over the 16 years
of the truce through its fault,” Kazimirov said.

The ex-co-chair pointed out that Russia in cooperation with other OSCE
MG co-chair- states, the USA and France, has been especially active in
the process and strived to accelerate the conflict’s resolution over
the last years. “At the initiative and with participation of Russian
President Dmitry Medvedev Azerbaijani and Armenians presidents met six
times, including two times in the current year. New meetings in such
format are possible for instance on sidelines of the OSCE Summit in
Astana. It would be good if the forum gives a new impetus to the work
of the parties and highlights inadmissibility of military resolution
to the conflict for the big Europe,” he said, “Speculations on the
possible stance of Russia in case of resumption of military actions
around Nagorny Karabakh have become quite frequent recently. Conflict
provokers expecting Moscow to stay indifferent to all this. However,
such scenario would affect the interests and even elements of the
national security of Russia and Moscow would oppose the war most
of all. The public is not ready for compromises, which is a serious
obstacle to the conflict’s resolution. Nothing is actually done to
remove that obstacle. But dispute resolution without a compromise is
impossible. It has been well said that a compromise is above victory,”
V. Kazimirov said.

From: A. Papazian

BEELINE ‘MOBILE OFFICE’ SERVICES ARE AVAILABLE TO RESIDENTS OF FAR AWAY POPULATED LOCALITIES IN SEVEN REGIONS OF THE COUNTRY

ArmInfo
2010-10-22 12:30:00

ArmInfo. CJSC ‘ArmenTel’ (trade mark Beeline) has announced about
extension of the geography of the programme, which will start
functioning in Kotayk and Shirak regions of Armenia since 26 October in
addition to Aragatsotn, Armavir, Gegarkunik, Lori and Syunik regions.

The delivers wide specter of ArmenTel’s services. The subscribers can
pay for the services of the fixed, mobile and Internet communication,
replenish their balance, buy SIM-cards, telephones, join to other
services of the company, etc. ‘Armentel being the biggest single
operator delivers a wide specter of communication services in the
country. We are going to further extend the geography of the “mobile
office” making services of the company more available and comfortable’,
– Director General of ArmenTel Igor Klimenko said.

To note, the “mobile office” programme has started functioning since
31 May 2010.

ArmenTel CJSC (Beeline brand) is the subsidiary of VimpelCom Group.

The VimpelCom Group consists of telecommunications operators
providing voice and data services through a range of wireless, fixed
and broadband technologies. The Group includes companies operating
in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and
Armenia as well as Vietnam and Cambodia, in territories with a total
population of about 345 million.

From: A. Papazian

‘ELECTRIC NETWORKS OF ARMENIA’ FINISHES SUBSTATIONS RECONSTRUCTION PROJECT

ArmInfo
2010-10-22 12:34:00

Arminfo. In September the “Electric Networks of Armenia” [ENA] company
finished 17 substations reconstruction project. The project cost
totally amounted to 440 mln, press-service of the company reported.

The project was fulfilled jointly with the chinese HPCC company, which
was the contractor. To finance the project the Armenian government
attracted the credit funds at $35 mln from the Japanese Bank for
International Cooperation. Taking the co-financing of ENA into account,
about $40 mln were invested to reconstruct the substations.

The reconstruction programme was fulfilled in several stages each
of which supposed repairing of four substations. Fulfillment of the
programme will lead to reduction of technical losses and exploitation
expenses for upgrading of the substations as well as raising of
their management.

The other stage of the programme supposes replacement of the worn out
and outdated equipment at other substations as well in 2011. Moreover,
construction of the new high voltage substation of the closed type
‘Tsitsernakabert’ has been already started. It will provide the
nearest regions with electric power and will take a part of burden
of ‘Shahumyan-2’ substation. Construction of this substation is
conditioned by fast development of Yerevan.

To recall, in 1999 the Armenian government signed the credit with
JBIC for 40 years with 1,8% of rate of interest with a grace period
during the first 10 years.

From: A. Papazian

PRESIDENTS OF ARMENIA, RUSSIA AND AZERBAIJAN TO MEET IN ASTRAKHAN

armradio.am
22.10.2010 16:41

A trilateral meeting between the Presidents of Armenia, Russia and
Azerbaijan will take place in Astrakhan on October 27 at the initiative
of the President of the Russian President, Dmitry Medvedev.

During the meeting the parties will continue the talks on the peaceful
settlement of the Nagorno Karabakh conflict, President’s Press Office
reported.

From: A. Papazian