Author: Andres-Papazian

There is no monopoly in Armenian potato market, member of Armenian
parliament thinks

2010-08-27 16:39:00

ArmInfo. The potato sharp price hike in Armenia over the current year
has only unbiased reasons, deputy of Armenian parliament Lernik
Aleksanyan told journalists today.

This year just the same way as during the past years the machinery of
the market price formation was functioning in the given segment of
agriculture. During the past years the potato price was formed
according to correlation between demand and supply, and its high price
in 2010 is not a result of the actions of those who cultivate potato.
Over the past year there was surplus of potato in the country and the
farmers had a problem of its sale. This made them to cultivate grain
crops, which has led to deficit of potato. For this reason, Aleksanyan
is sure there is no monopoly at the potato market. At present potato
costs about 250 drams, but it costs a little less in the villages.
Last year it cost 150 drams per kilogram.

He is sure that the problem of agriculture is that it does not have
farm unions which can coordinate farmers work and protect their
interests. The unions should be set up on voluntary basis. At the same
time he thinks that agriculture sphere should be regulated by the
state, which in its turn should draw out and conduct the state policy
on development of this sphere.

From: A. Papazian

Armenian-Russian arrangements implant serious doubts in Azerbaijan

2010-08-27 15:09:00

ArmInfo. The recent Armenian-Russian arrangements have implanted
serious doubts in Azerbaijan, Gagik Haroutunyan, Director of Noravank
Fund of Science and Education, told media on Friday.

Generally, he said, the changes made to the Armenian-Russian Treaty,
specifically, the Protocol prolonging deployment of the military base
in Gyumri and the framework agreement of military-technical
cooperation have become a reason of serious mistrust of Azerbaijani
people in their authorities determining the foreign political course
of Azerbaijan. “Some influential representatives of the Azerbaijani
elite have already highlighted the failure of Azerbaijan’s policy in
the relations with Russia and Iran. As for Mass Media, they are
supervised by the state and more restrained,” he said.

President of Russia Dmitry Medvedev arrived in Armenia on a state
visit on August 19. Yet on August 14 Medvedev gave directions to sign
the Protocol between Russia and Armenia to amend the bilateral treaty
on the Russian military base in Armenia dated 1995. The protocol on
prolongation on deployment of the military base of Russia in Gyumri
and framework agreement on military and technical cooperation was
signed on August 20 during the talks of the two presidents. Amendments
to the treaty will extend it from 25 to 49 years starting 1995. The
Russian 102nd Military Base in Gyumri, Armenia, is part of the
Transcaucasian Group of Forces. The military base is part of a joint
air defense system of the Commonwealth of Independent States (CIS),
which was deployed in Armenia in 1995. There are nearly 5,000 Russian
soldiers, MiG-29s and S-300 air defense systems in the base.

From: A. Papazian

Cassation Court of Armenia sends back the case of death of Levon
Gulyan for additional investigation

2010-08-27 15:28:00

ArmInfo. The Cassation Court of Armenia has sent back the case of
death of Levon Gulyan for additional investigation.

To remind, Gulyan was died in the police building May 12 2007. He came
to the police on his own will in order to testify on the murder of
criminal boss Stepan Vardanyan but all of a sudden decided to escape
via the window, slipped and fell down. The investigators found out
certain circumstances that might urge Gulyan to try to escape. The
investigation lasted for 10 months and was suspended for lack of
evidence. The relatives did not agree and filed an appeal, which was
dismissed by the prosecutor’s office and the court.

Their last hope was the Cassation Court, which decided today to sent
the case back for additional investigation.

From: A. Papazian

ISTANBUL AUTHORITIES CANCEL DJIVAN GASPARYAN’S CONCERT WITH YAVUZ BINGOL

Tert.am
25.08.10

A joint concert by legendary Armenian duduk player Djivan Gasparyan
and prominent Turkish singer Yavuz Bingol scheduled on September
in Istanbul has been canceled by Turkish Government, Mr Gasparyan
told Tert.am.

Earlier in a press conference the duduk master said he had been
invited to take part in a concert to be held on 1 September – the
International Day of Peace.

“I have not been provided with any explanations, I have no idea about
the reasons the concert was cancelled,” Mr Gasparyan explained.

Djivan Gasparyan and Yavuz Bingol have previously held joint concerts.

“Bingol himself is taken aback that the concert will not take place,”
said Mr Gasparyan, adding that he would not like the relations between
Armenia and Turkey get tense.

Asked whether or not he would agree to such invitations Mr Gasparyan
said: “Let them first invite, we will think about it later.”

From: A. Papazian

TO GO, OR NOT TO GO TO THE HOLY MASS IN AKHTAMAR?
Anna Balyan

“Radiolur”
25.08.2010 15:43

To go, or not to go to the Holy mass in Akhtamar. This is a problem
for our society for several months long. Today, the question of going
or not going has been discussed by the director of the Puppet Theater
Ruben Babayan and writer- publicist Karine Khodikyan.

“If you want, then go, if you don’t, then don’t go. Don’t make use of
this occasion again to contradict each other,” Ruben Babayan gave an
advice:”There is, of course, the element of the diplomatic game, but
who has told that we must avoid diplomacy. Why don’t we make museum,
let’s say, the mosque of Shushi and invite the Turks there to make
a namaz.”

“This world has its rules of game. Either we enter and play by the
rules of that game, or we say we are not a state, we are a community,
we will sit down and raise our national flag and rejoice ourselves
with the Sevr agreement in the shoemaker’s kiosk,” the director of
the Puppet Theater added.

“To participate in the game organized by your enemy, knowing in advance
that we have already lost our game. I will not go to participate in
the Holy mass,” Karine Khodikyan said.

She is concerned with metamorphose taking place in the perceptions
of people.

“People have forgotten about the great crime the Armenian Genocide
and carry about tiny things,” she concluded.

From: A. Papazian

WE ARE TRAINING PEOPLE WITH MODERN WAYS OF THINKING AND WORKING
Artur Yernjakyan

ArmInfo
2010-08-24 10:36:00

Interview with President of Mika Limited Holding Mikhail Bagdasarov

Mr.Bagdasarov, a few days ago our agency reported that EL AL (Israel),
UTair (Russia), Aerosvit (Ukraine) and Armavia (Armenia) have signed
a declaration of intention to create an international air union – WE
(Western-Eastern). Why are you going to create such a union?

Yes, we are actually negotiating this possibility but this is just
a possibility yet.

Today, the situation on the air market is so hard that some
companies are going bankrupt or merging so as to survive. One can’t
stand competition alone. The fact that Armavia has been noticed and
invited to join such a union proves that our company has quite a good
reputation and quite an effective policy. Armavia may become a highly
reputed company.

As far as I understand, this project is about cooperation rather
merger.

Yes, it will be based on cooperation. There are lots of such unions.

We have been offered cooperation and are about to accept the offer.

The main thing about such unions is the opportunity to help each other,
to create a joint system of maintenance and flight management.

This union may as well involve American or European companies.

2009 was a crisis year for aviation. How did the crisis affect your
company’s work?

In 2009 we had no decline in passenger operations. There was certain
decline in early 2010. While the crisis led to bankruptcy of many
companies and closing of flight, we are trying to extend geography of
our flights and to fill a free niche in the market. We started flying
to Barselona, Zurich and India. It still brings losses to us, though
on the other hand, we have enhanced our position in Europe (8-9 flights
against 4 flights in the past), and hope for extra benefits in future.

Could you give specific figures on passenger traffic. Did you make
profit last year?

In 2009 as compared with 2008 our passenger traffic increased by 14%
to more than 700 thsd passengers.

Five years ago when Armavia was created, the traffic volume was 400
thsd passengers. Our company has all the chances to increase its
passenger traffic up to 800 thsd passengers by the end of 2010 thanks
to opening of the new flights and increasing frequency of flights.

The crisis has not ended yet and continues affecting passengers which
have started flying seldom because of the financial problems. Armavia
has a big circulation and small profit 1-2%. It is hardly possible for
any other company of Armenia to function with such a profit, he thinks.

This is a very hard business. For this reason, many companies go
bankrupt. But we hope to develop further.

It was reported earlier that in late 2009-early 2010 Armavia was
supposed to receive two Sukhoi Superjet 100s?

Both liners recently left Yerevan where they had been tested. They
flew to Gyumri and Yerevan.

Their performance was excellent for our severe climatic and geographic
conditions. Because of heat and highland many planes are forced to take
less passengers on board, for instance 125-130 instead of supposed 150,
but there is no such problem in case of the Sukhoi liner.

We are planning to start flying on the liners in December 2010. The
second liner will be delivered in March-May 2011. The place for
Armavia is ready and is undergoing certification.

Recently, the Government of Armenia decided to put up for auction the
former presidential plane Tu-134. Are you interested in acquiring it?

We are not interested because that plane is economically unsound. It
consumes too big volumes of kerosene, its service is expensive and
flights by such planes are banned in the USA and Europe. This plane
is geared to yesterday.

Investors from Africa, Iran or Latin America may buy the plane for
they do not care for the quality of flights. The fact that the plane
can fly is enough for them to buy it.

Let’s switch from aviation to cement. I would like you to tell me about
Mika Cement. Its last financial report says that in 2009 that company
experienced a slump in the profit – 125 times lower than a year before.

The global crisis has curbed construction. Today, there is almost
no private construction in Armenia, almost all ongoing projects are
sponsored by the state.

You planned to produce 200,000 tons of cement in 2009. Did you do it?

No, we failed. Today, we are facing high production costs. We are
forced to use new equipment so that to automatize the plant, where
prime cost growth thanks to growth of tariffs for gas and thanks
to hand work, which will turn into the automate one in future. We
have no other way to survive. We thought that hand work will give an
opportunity to people to earn money, but now we see that the plant
may simply shut down and in that case everybody will lose job. The
leadership of the plant never axes. Thanks to automatization the
production of the plant will again become competitive at the Russian
and Georgian markets. The plant is becoming 40 years old this year
and much should be changed as metal is becoming older.

In future we should lead the plant to the European standards, when
it will have 50-100 workers. I think that we shall manage to do it
by 2012. Today we employ 595 workers.

Some mass media claim that your companies pay little taxes and have
some budgetary debts?

Our cement plant has paid 320mln AMD in taxes rather than 160mln AMD –
as was mentioned in the press. Our oil trade company Mika Corporation
is the 15th biggest tax payer in Armenia. The media claimed that
we have some air tax debts but this is not true. According to the
contract, we should pay air tax on a monthly basis. In July we carried
almost 100,000 passengers, i.e. 3,500-4,000 people a day. The air tax
is 10,000 AMD, so, we should pay 1bln AMD. Our current debt is 350mln
AMD against allowed 500bln AMD. We will pay this sum within the month.

In the meantime, we have to pay fines accrued in 2006. We bought the
company in 2005 and the fines accrued because we had no access to
its accounts and were unable to pay taxes in time.

Armavia is a huge complex organism. It is connected with over 35
airports and over 20 navigation services worldwide as well as with
different maintenance organizations and ticket media. Any deficiency
in their work affects our company. Our tickets are sold all over the
world, even in the United States. Aviation is an unprofitable business
and lives on governmental grants. We get no money from our government.

Even more, we pay them almost 400mln AMD a year.

Just compare our prices with those in Georgia, Azerbaijan, Uzbekistan,
Tajikistan and you will see that ours are 2-3 times lower.

Are you planning to raise the prices?

Our ticket prices and service costs (navigation, airport, etc.) and
any changes therein depend on the EUR rate as is the case all over
Europe. As regards our leasing contracts, all of them are in USD. For
kerosene we also pay in US dollars.

May 15 2009 you launched Abit, a factory producing construction and
road bitumen. In the spring 2010 it was supposed to reach its full
capacity – 43,000 tons a year.

The plant is already close to its full capacity. For the moment, we
are buying mazut (fuel oil). We had some problems with raw material
supplies but we have already solved them. The factory already has
contracts and we are looking forward to its stable operation in the
very near future.

You are certainly aware of the Government’s plans to build an oil
pipeline Tabriz (Iran)-Yeraskh (Armenia). What do you think about
this project? It seems that it may curb your business as you are the
biggest oil product importer in Armenia?

We should regard such projects from the point of view of national
rather than personal interests. Otherwise there will be no progress.

The objective of this project is to make oil products cheaper. Today
we pay 25-30% extra for the oil products delivered via Georgia. The
pipeline will substantially reduce our expenses. Reduction in petroleum
prices will lead to reduction in agricultural and other prices.

But should a government deal in such business?

Iran does not want to deal with anybody but a government. When the
pipe is ready the Energy Ministry may well wish to sell it to big
oil traders.

Have they offered you to join the project?

Not yet. I should know what kind of oil products should be imported.

At present there are no such oil products in Iran which we use. Their
diesel fuel is of low quality, there is no normal petrol, kerosene is
not good either. Today, Europe requires that the content of sulphur
in petroleum should not exceed 0.01. Iran does not have such products.

There is hope that new oil products processing plants will be built
in Iran which will produce high quality oil products.

Do you mean that the oil products you are importing into Armenia for
the moment meet the European standards?

I can’t speak for others but our products meet all European standards.

The octane number of AI97 petroleum imported from Greece is 97.2-97.8.

The octane number of Israeli AI95 petroleum is 96. We also import
from Romania. Greece and Romania are EU members and cannot produce
sub-standard fuel.

So, one can bring high quality fuel and then blend it?

Maybe somebody blends it but we don’t. You can get our fuel at any
filling station at any moment and can check its octane number.

I think that big companies should care for their reputation and
further development. Today, we are training people with modern
ways of thinking and working – and not only in aviation but also in
industry and trade. We are spending big money on this training. At
Armavia we pay pilots from $2,000 to $12,000 a month depending
on their qualification. $12,000 is the salary of a pilot of the
highest category – the one who can land a plane in any weather at
any airport of the world. Even foreigners are happy to work for such
a salary and we have pilots from the United States, Australia and
Spain. But still we prefer training young Armenian pilots so as to
ensure intergenerational continuity

From: A. Papazian

ARMENIAN FOREIGN MINISTRY REFUTES COMPLICITY OF ARMENIAN CITIZENS IN HOSTAGE TAKING IN GREECE

ArmInfo
2010-08-25 10:22:00

ArmInfo. Spokesman of the Ministry of Foreign Affairs of Armenia
Tigran Balayan has told ArmInfo that no Armenian citizens were among
the people who took hostages in a bank robbery in Piraeus on Monday.

According to available information, two of the criminals are from
Kazakhstan, the third – from Egypt.

Today, the Greek police published specified data on the gang. One of
the criminals is wanted in Cyprus. The arrested have confessed almost
two dozens of bank robberies, hijacking and thefts committed in the
last nine months. The police suspect they might have accomplices at
large. The criminals had two hand-thrown grenades and two pistols.

The robbery took place on Monday. There were three robbers: when two
of them were caught by the police when coming out of the bank the
third one stayed inside and took 18 hostages. Later in the day he
set them free and surrendered.

From: A. Papazian

AZERBAIJAN’S RULING PARTY GROWS HOT OVER ARMENIAN-RUSSIAN PROTOCOL AFTER ALL

ArmInfo
2010-08-25 10:25:00

ArmInfo. Azerbaijan’s ruling party has grown hot over the
Armenian-Russian protocol after all.

“Azerbaijan should take measures within its opportunities to solve
the situation. Otherwise it will be difficult to predict the processes
in the South Caucasus”, said Executive Secretary of the Azerbaijan’s
ruling New Azerbaijan Party (YAP), member of the parliament Ali Ahmadov
expressing opinion about the Russian-Armenian deal for prolongation of
the Russian military base’s deployment in Gyumri, Armenia, APA reports.

YAP Executive Secretary said he strongly opposed the Russian-Armenian
deal for prolongation of the term of deployment of the Russian military
base in Armenia and said it led to military-political balance upset in
the South Caucasus. “On the other hand, Russia carries out the mission
of mediator in the settlement of Armenian-Azerbaijani conflict and
its deal with one of the conflict parts created serious doubts on
its unbiased mediation”.

The member of the parliament said Azerbaijan should strengthen its
forces to liberate its occupied lands and to keep the balance between
the forces.

“The Russian officials say that the protocol will not have a negative
impact on the process of settlement of the Armenian-Azerbaijani
conflict. We will believe it up to definite time. Azerbaijan is
expecting from the Russian president’s visit to Baku in autumn to
create a balance and to express reaction”, said Ahmadov. He added
that YAP expresses concern over the developments and is negotiating
the issue with the Russian ruling United Russia Party.

In his opinion, if the military-political balance is disrupted,
it needs to take relevant measures to prevent it and there can
be different versions. Expressing opinion about the reports on
deployment of a Turkish military base in Nakhchivan to neutralize
the Russian-Armenian latest agreement, Ahmadov said there were
relevant agreements given authorities to Turkey to enhance security
of Nakhchivan. “This is a Turkey’s duty and Turkey is working in this
field. We need to search for other forms and formats to secure the
military-political balance in the South Caucasus”.

From: A. Papazian

RECOGNITION OF NAGORNYY KARABAKH AS A SUBJECT OF INTERNATIONAL LAW WILL POSITIVELY AFFECT KARABAKH CONFLICT SETTLEMENT PROCESS

ArmInfo
2010-08-25 13:01:00

ArmInfo. Recognition of Nagornyy Karabakh as a subject of international
law will positively affect Karabakh conflict settlement process,
the head of the RPA parliamentary faction Galust Sahakyan told
journalists today.

‘I think that now after the verdict of UN International Court
regarding Kosovo our diplomacy, not leaving the frames of the OSCE
Minsk Group where we can provide favorable for us positions, should
call on our friendly countries to recognize Nagornyy Karabakh as a
subject of international law. This will suppose opening of various
representation bodies of the republic in abroad, which will increase
the level of having information about Karabakh in these countries.

These countries should also support the efforts of Armenia on peaceful
settlement of the Karabakh conflict’, – he said.

From: A. Papazian

TURKEY WILL OPEN BORDER WITH ARMENIA UNDER PRESSURE OF NATO

ArmInfo
2010-08-25 10:24:00

ArmInfo. “If Turkey does not give its consent to the NATO convoy
to pass through its borders to the territory of Armenia, the NATO
exercises scheduled for September 11-17 may be cncelled,” said the
head of the Turkish Foreign Ministry’s department for Eurasia Mehmet
Fatih Ceylan.

“In theory, Turkey can refuse to give permission and open the border
to pass the necessary equipment. But it will be exercises for the
emergency situations ministry to train for the fight against the
natural disaster that will not take a military character,” Turkish
diplomat told Trend on telephone.

According to Ceylan, if NATO carried military-technical equipment
through Turkey’s territory for exercises in Armenia, then Ankara
would not give its consent. Given that the exercises will take place
within the emergency situations, Turkey is likely to open its border
with Armenia only for the transportation of necessary equipment for
the NATO exercises,” said Ceylan.

“The scenario is that earthquake strikes Armenia and NATO forces
are sent there to provide necessary assistance,” Ceylan said, adding
that for this kind of exercise, Turkey, as a member of the alliance,
must allow a NATO convoy to pass through its borders. However, this
step does not mean that Turkey will officially open its border with
Armenia, the diplomat said.

From: A. Papazian