Author: Babajanian Karo

ARMENIA’S PROPERTY MARKET SLUMP PERSISTS

NuWire Investor
Dec 4 2013

Written by: Global Property Guide

Armenia’s residential real estate boom ended with the beginning
of the global financial crisis and recent data show that there has
been no real recovery since that time. Prior to the crisis in 2008,
Armenians watched as property prices soared 250% and construction
increased fourfold, but the bust has left little in its wake. The
government has started a mortgage fund to assist purchasers and
has offered guarantees to construction firms investing in building,
property transactions have improved little and construction is down
0.5% from the previous year, according to the National Statistical
Service. For more on this continue reading the following article from
Global Property Guide.

Armenia’s property market has not recovered from the 2008 housing
slump, despite robust economic growth. In 2012:

The average price of apartments was unchanged at AMD257,300 (US$633)
per square metre (sq. m.) in 2012, from AMD257,400 (US$633) the
previous year.

The average price of private houses increased by 0.3% to AMD275,000
(US$676) per sq. m. in 2012, from AMD274,000 (US$674) in 2011.

Source: Yervand Zagaryan, chairman of the State Committee of the Real
Estate Cadastre

In Yerevan, the capital, the average price of apartments and private
houses just slightly dropped during 2012, according to Zagaryan.

“As to the regions, prices are growing there-in apartment buildings
by 3.5% from 2011 to 82, 100 drams (in 2012), and in private houses-by
0.7% to 86, 700 drams (over the same period),” Zagaryan added.

The capital’s Kentron (downtown) administrative district has the most
expensive housing in Armenia, with an average price of AMD424,100
(US$1,017) per sq. m. in February 2013.

>From boom to bust

Armenia experienced a great housing boom from 2004 to 2008. House
prices soared by about 250% over the four year period, based on the
International Monetary Fund (IMF) report Armenia’s Housing Boom-Bust
Cycle. The house price to income ratio in Yerevan peaked in 2007, at
about 16.5. The house price to rent ratio peaked in 2008, at about 28.

Real estate construction increased four-fold during this period. The
construction sector grew exponentially, its share of GDP increasing
from 10% in 2000, to 25% in 2008.

In the wake of the global financial crisis, construction collapsed
to a third of 2008 peak levels. Property transactions plummeted by
almost 30%, House prices fell 15%. The housing market has not yet
fully recovered since then.

To buoy the housing market, the government created a mortgage fund
and granted government guarantees to construction companies.

RELATIVE PRICES IN YEREVAN AND REGIONS COMPARED TO ARMENIA AVERAGE
(Based on contract price of transactions)

Property TypeYearYerevan centerYerevan averageRegions averageArmenia
average Apartments20042.51.40.21.0 20082.01.40.31.0 20101.91.30.41.0
Houses20044.62.70.51.0 20083.52.30.61.0 20103.32.10.61.0 Source:
State Committee of the Real Estate Cadastre, IMF

Property transactions

There are signs of recovery. In August 2013, there were about 16,100
real estate transactions in Armenia, up by 1.5% from a year earlier,
according to the Real Estate Cadastre. Yerevan accounted for about
40.9% of all transactions, followed by Kotayk province (13.2%), Ararat
(8.3%), Aragatsotn (6.9%) and Armavir (6.6%).

Syrian Armenians are boosting housing demand, according to local
real estate experts. “Many came and rented apartments for a month,
and they now extend their rents for another month after hearing news
of the worsening situation in Syria. People are scared,” said Garik
Danielian, a private real estate agency owner in Yerevan.

“There are people who buy homes, there is some movement in the
market, even a slight increase in prices for newly built homes,”
Danielian added.

Apartments located in the center of Yerevan and in the prime resort
of Lake Sevan have seen the greatest demand. Gyumri and Vanadzor are
also experiencing increasing demand.

Construction activity remains down

The sluggish construction sector in the country is one of reasons why
the property market remains down, according to Hakob Baghdasaryan,
head of Akcern real estate agency. There were about 434,892 apartment
units in Armenia in 2011, down by 0.5% from the previous year,
according to the National Statistical Service.

Small mortgage market

The size of the mortgage market in Armenia remains very small, despite
recent growth. From just 0.5% of GDP in 2005, the mortgage market grew
to about 3.2% of GDP in 2012, according to the Central Bank of Armenia
(CBA).

In August 2013, total mortgage loans rose 11% year-on-year to AMD136.78
billion (US$336.4 million), according to the CBA.

The construction boom during 2004 to 2008 was largely undertaken by
households, not developers. Property developers accounted for only
22% of total construction, financing themselves by presales with
deferred payments.

Foreign individuals can lease

Foreigners may only lease land for up to 99 years. However, foreign
individuals are allowed to purchase a house in Armenia, and a company
registered by a foreigner in Armenia as an Armenian business entity
has the right to buy land.

Robust economic growth

>From 2001 to 2007, Armenia experienced spectacular economic growth,
with an average real GDP growth rate of 12.8%. However, economic
growth slowed sharply to 6.9% in 2008, mainly due to the adverse
impact of the global financial and economic meltdown. Then in 2009,
the economy contracted by 14.15%. The economy bounced back in 2010,
with a real GDP growth rate of 2.2%. In 2012, the economy expanded
by 7.2% after growing by 4.7% in the previous year.

In the first half of 2013, the economy grew by 3.5%, according to
the Eurasian Development Bank (EDB). Armenia’s economy is projected
to expand by 4.6% in 2013 and by another 4.8% in 2014, according to
the IMF.

The 2013 government budget deficit amounted to AMD119.7 billion
(US$294.4 million). This is equivalent to about 2.3% of GDP.

Stagflation?

In September 2013, Armenia’s overall inflation rate eased slightly
to 8.2% from 9.3% in the previous month, compared to just 2.5% in 2012.

The high inflation is now wiping out incomes and people’s bank
savings. The average gross salary in the country rose by 5.1% y-o-y
to AMD149,725 (US$368) per month in August 2013. However, real wages
actually declined by 4.2% over the same period.

In an effort to curb inflationary pressures, the CBA recently raised
the refinancing rate by 50 basis points to 8.5%.

Unemployment is another problem. The country’s unemployment rate
stood at 16.9% in the first quarter of 2013, down by 3.2% from a
year earlier, according to the National Statistical Service. The
jobless rate in cities eased to 23.3% in Q1 2013 from 28.8% in the
same period last year. Over the same period, the jobless rate in
villages increased from 6.9% to 8%.

Corrupt and in conflict

Corruption remains a major concern in Armenia. During the 2013
presidential elections, incumbent president Serzh Sargsyan has won
reelection with 59% of the vote. However, Raffi Hovannisian, who came
second with 37% of the vote, alleged electoral fraud.

Mass protests took place. Hovannisian, together with his supporters,
started a hunger strike in Freedom Square. However on 14 March 2013,
the Constitutional Court of Armenia confirmed the victory of President
Sargsyan.

Armenia is also in conflict with its neighbours. Two important
neighbours, Azerbaijan and Turkey, have closed their borders to Armenia
for political reasons. Azerbaijan and Armenia have not yet reached a
peaceful resolution of claims on Nagorno-Karabakh, an area assigned
to Soviet Azerbaijan in the 1920s by Moscow. A ceasefire in place
since 1994, has failed to deliver any lasting solution. In fact, the
territorial dispute is escalating further amidst a weapons build-up
between the two nations.

This article was republished with permission from Global Property
Guide.

EURASIAN INTEGRATION IS VERY ATTRACTIVE FOR ARMENIA

In an exclusive interview with ARKA news agency Viktor Spassky, the
director of the Integration Development Department of the Eurasian
Economic Commission, speaks about Armenia’s Eurasian integration
process, economic advantages and risks stemming from its decision to
join the Customs Union and to refuse to initial an association and
deep and comprehensive free trade area agreements with the EU.

ARKA – Mr. Spassky, Armenian deputy foreign minister Shavarsh Kocharyan
said recently that Yerevan would be ready sign the agreement on
joining the Customs Union until early next February. Do you think
Armenia will be able to accomplish all the procedures by that time
and become one of the founders of the Eurasian Economic Union ?

V. Spassky – I would not like to speak about an exact time because
Armenia will have to go through a set of procedures as stated by the
heads of Russia, Kazakhstan and Belarus at their latest meeting in
Minsk on 24th of October. Armenia and these three countries signed
a memorandum defining the form of interaction and as far as I know
everything goes according to the schedule. The presidents decided
also that at the next meeting of the Eurasian Economic Commission’s
board a task force should set up with representatives from Belarus.

Kazakhstan, Russia and Armenia to draft a “road map” for Armenia’s
accession and once it is ready, it should be implemented as quickly
as possible, but the pace also depends on the Armenian side that
should approve the entire regulatory framework. Some documents must
be ratified by the parliament, others by the government and president.

So, it is necessary to determine the number of documents to which
Armenia will join. It is a common and concrete work. First and foremost
, it is Armenia’s parliament that will have to do a serious amount
of work.

ARKA – What kind of documents do you mean?

V. Spassky – I would divide the documents that needs to be
conceptualized into two categories -one part should be incorporated
into the bloc’s agreement, which must be signed by May 1, 2014, and
the second part are regulations that are connected with the Customs
Code and international agreements. There is some specificity for
Armenia and once this work is done we can talk about real accession.

ARKA – What are the benefits and risks for Armenia stemming from its
membership in the Customs Union.

V. Spassky – When talking about any economic integration process, it
is necessary to consider all options. The first option – Armenia joins
the Customs Union and the Common Economic Space. We must see which
are the benefits for Armenia in this case. Under the second option
Armenia joins another integration alliance. Then, we need to compare
both options. This will allow analyzing and adopting the most feasible
solutions that meet the aspirations of the Republic of Armenia. I am
absolutely convinced that the first option is the best for Armenia –
it really is a very interesting integration project, the first post-
Soviet integration bloc in which absolutely all are equal. All the
decisions are accepted at the highest level by consensus. The Eurasian
Economic Commission has much in common with the European Commission,
because the latter has gained serious experience. The commission takes
into account the interests of all members regardless of their size,
GDP and population number.

The highest level of the commission is made of three vice-premiers,
who also adopt decisions by consensus. If someone is against no
decisions are made. There is the permanent body -the board, composed
of nine ministers – three from each country. Decisions are taken
by 2/3 majority. A board’s decision may be revised by the supreme
body – the Council that also adopts decisions by consensus. I want to
emphasize that in this sense our commission differs from the European
Commission. Therefore, in this respect the interests of Armenia will
not be infringed in any way. Armenia will be a full member of the
Customs Union, which has a total of 170 million inhabitants, while
Armenia only 3.5 million

ARKA – But if Armenia had chosen the Association Agreement with the EU?

V. Spassky -An EU-associated member country has no rights, it has
only obligations. Therefore, unlike the Customs Union, it is an
asymmetric form of interaction. Frankly, I’m not familiar with the
details of Armenia’s associated membership documents, but am well aware
of Ukraine’s which were published a long time ago and anyone could
explore them. I have been engaged in foreign economic affairs for 40
years, but I have never seen such an unequal international agreement .

Of course, decisions are made by sovereign states. But most importantly
we are talking about economic integration and the Customs Union,
the Eurasian Economic Space and the Eurasian Economic Union , on
which we are currently working on are all purely economic projects.

They have no politics-related issues’ they have only specific economic
issues and the representatives of Armenia must understand what the
membership gives economically.

ARKA – And what are the advantages of Customs Union’s membership?

V. Spassky – Economic integration includes four freedoms – freedom
of movement of goods, services, capital and labor. For a proper
assessment we need to consider actions in each direction. Let’s start
with clear things like the movement of goods. The statistics says that
in January-September this year Armenian exports increased by 10 %;
exports to Russia increased by 25%, while exports to EU dropped a
little. Armenian exports to the Customs Union member countries are
value-added products, while exports to EU are raw commodities with no
added value. Armenian exports to Russia, Belarus and Kazakhstan are
growing. Here is an example; Armenian exports to Kazakhstan are not
large, but they doubled in ten months because of no customs borders
within the bloc making shipment of goods easier. Armenian exports to
Customs Union are made seventy percent of food products, including
alcoholic beverages, which have all the grounds to grow.

ARKA – Could Armenia’s membership in the Customs Union bring more
investments into its economy?

V. Spassky – If we look at real investments made so far in Armenia,
I mean direct investment, and then 42 % are from Russia. When all the
rules are exactly the same in Belarus, Kazakhstan, Russia and Armenia,
the Russian businesses will invest more money in enterprises in these
countries. For example, if money is invested into production of shoes,
and we know that Armenia has good tradition in this field, then it can
produce quality shoes not only for the Armenian market of 3.5 million
people, but for more than 170 million of the Customs Union. However,
investments may come not only from the territory of the Customs Union ,
but also from Armenian Diaspora.

ARKA – What can say about the situation in the labor market?

V. Spassky – Armenia’s migrant labor force is important for Armenia
itself and Russia. This is a very serious matter, because being in
a single bloc, migration flows will receive such benefits, which
cannot be offered by any other trade bloc. For Armenia this is very
significant, because now 85% of remittances come from the territory
of the Russian Federation. This amount is 1.4 billion US dollars
annually, according to your official statistics. It’s more than
Armenia’s entire annual export. Most importantly, families here
getting this money ensure domestic demand. Part of that money is
invested into small and medium business.

Besides, Russia needs qualified labor force. Armenia boasts of skilled
construction labor force. There is also another freedom. When we
talk about the integration component, we mean the harmonization
of policies. For you, a coherent agricultural policy is of great
interest. In May in Astana the presidents addressed specific issues
of agro-industrial policy. In the case of Armenia’s membership in the
Customs Union, it will participate in these matters and get involved
in joint projects. You will take your niche and work consistently in
this direction.

ARKA – In Armenia there is much talk about the lack of a common
border. This is the main argument of the opponents of the Eurasian
integration.

V. Spassky – You are right, but Armenia has no border either for
European integration. For example, Greece joined the EU without a
common land border.

ARKA – But Greece has sea.

V. Spassky – Well, here is another example. Let us remember the
West Berlin that was an integral part of the EU. If someone seeks
reservations – he will always find or invent the. Relatively speaking,
it is necessary to determine the mode of operation. Train containers
are sealed in Armenia and go through Georgia to Russia. Today we
have such a regime with Kaliningrad region separated from Russia
by Lithuania.

ARKA – What about possible preferences for Armenia because of absence
of common borders ? And very often there is talk about Armenia’s
commitments to WTO.

V. Spassky – A good question. It is the question of yours and maybe
our risks. Armenia has a very liberal (customs) regime and it’s
not bad. We also want to learn from you. But today Armenia employs
weighted average import tariff of 2.9 % – 3 %. After Russia joined
WTO last year we pledged to gradually reduce tariffs. Last year they
were 9.5%, we have dropped them now to 7.02 %, and the rate goes down.

This means after a while there will be no problems at all. Of course,
we are not interested in European goods coming to Russia through
Armenia with zero customs duty, and here we and the Armenian side
should look into how to resolve this issue so that such products
do not hit our market. On the other hand, we can ask the WTO to
review import duties on some items. After Ukraine saw that joining
WTO greatly reduced duties on imports it is going now to ask it to
review many of them upwards. The WTO has a mechanism to address these
issues. So we have to sit down and negotiate if there is a problem.

There are no unsolvable problems.

ARKA – What about Nagorno -Karabakh, which is in a single customs
area with Armenia?

V. Spassky – And could you tell me how this issue was to be
solved gad Armenia signed the EU association agreement? Hence,
this is a solvable issue too. As a person engaged in foreign
economic affairs for several decades I am confident that the
most unsolvable problems can be solved. -0 – – See more at:

PUTIN: “WE WOULDN’T LIKE BLOOD TO BE SHED ANY MORE IN NAGORNO KARABAKH”

APA, Azerbaijan
Dec 3 2013

[ 03 December 2013 11:33 ]

Baku. Anakhanum Idoyatova – APA. “We wouldn’t like blood of
Azerbaijanis or Armenians to be shed any more in Nagorno Karabakh,”
said Russian President Vladimir Putin at the joint press conference
with his Armenian counterpart Serzh Sargsyan in Yerevan, APA reports
quoting Novosti-Armenia.

Asked how Russia will act, if Azerbaijan starts military operations,
Putin said: The more loudly these words are uttered, the more
unfavorable conditions for the peaceful settlement of the conflict
will be. We wouldn’t like blood to be shed in the region, which is
located near the Russian borders and has close ties with Russia.”

PUTIN IN ARMENIA: THE VIEW FROM MOSCOW

Vestnik Kavkaza, Russia
Dec 3 2013

3 December 2013 – 11:28am

Victoria Panfilova, an NG commentator, exclusively for Vestnik Kavkaza

Yesterday, Armenia welcomed Russian President Vladimir Putin. The
visit had been planned a long time ago, almost from the day of Putin’s
inauguration. However, he took a long time to arrive. The strategic
partners had one problem – Armenia decided to sign an association
agreement with the EU. This was supposed to happen at the Eastern
Partnership summit in Vilnius. Moscow had to wait and see what friendly
Yerevan did, and the visit could wait.

Armenia’s behavior was easy to explain. It couldn’t make Russia to
give a two-billion credit to Yerevan on economic development. Moscow’s
promises to help were insulting in the context of generous grants to
unstable Kyrgyzstan which received Russian aid, but often acted not
in Russian interests. Moreover, ignoring of Armenia in the context of
the Customs Union was insulting as well, even though Yerevan stated
about its interest, it didn’t receive an invitation.

At the same time, association with the EU was developed in detail by
Armenia. The agreement contained to military component; a political
component was minimal. In short, Armenia would have got simplification
of the visa regime and a free trade zone, would have been obliged
to conduct management reforms, according to European standards. On
the other hand, Russia would have got rid of a troublesome relative
who annoyed Russia with its demands for help. At the same time,
Russia would have maintained its military influence and would have
lost an insignificant part of its political influence. However, it
seemed Moscow didn’t like the scenario. Probably Yerevan received some
guarantees secretly, because during Serge Sargsyan’s visit to Moscow
association with the EU wasn’t discussed and Armenian President stated
that Armenia would join the Customs Union. By the time, it was clear
that Belarus was indifferent to such extension of the alliance, while
Kazakhstan was against it. Different views on the issue were made up
at the 10th Russian-Kazakhstan Interregional Summit in Yekaterinburg
in November.

What guarantees Yerevan could receive, making choice in favor of the
Customs Union, we found out during Vladimir Putin’s visit to Yerevan on
December 2nd. Armenia will get Russian gas for internal Russian prices,
as well as arms; cooperation will be intensified; and investments and
a series of economic projects are promised to the nuclear and security
spheres. Isn’t it sufficient? It is sufficient, if it becomes true.

The Karabakh problem. Vladimir Putin said that blood shouldn’t be
shed anymore and welcomed restoration of contacts between Azerbaijan
and Armenia at the top level. The statement seems to be adequate and
reasonable. Yerevan should be happy. Moreover, “Russia will make the
process of Armenia’s accession to the CU most effective.” A road map
may be signed on December 24th.

Vladimir Putin stated that Russia intends to improve positions in
the South Caucasus, and it would reasonable to think that it relies
on its strategic partner, first of all. It also seems to be alright
for Armenia.

However, in Yerevan strange developments took place on Monday, to put
it mildly. A group which calls itself ‘Dignified Motherland’ decided
to meet Russian President by an action which had to make it clear
that Russian President is not welcomed in Armenia. The group includes
the opposition Armenian party Heritage; it has pro-Western views and
believes that the choice in favor of the Customs Union was made by the
authorities because of Russia’s pressure, i.e. it was interference in
Armenian internal affairs. The politicians and social activists held
their protest with mottos on prevention of the country’s colonization.

Probably, the hundred or so people deserved no attention, but for
several circumstances. It is inadequate to shout about Moscow’s
pressure on Yerevan: according to Gellapa public opinion polls,
about 70% Armenian population stands for the CU. Did the authorities
falsify the data, as the opposition stated? Why didn’t the opposition
present other data? Are initiators of anti-Russian protests ready to
be responsible before the Armenian nation and history for consequences
which will follow a break-up between Armenia and Russia? It seems to me
they are not able to think in such a way, if they forgot hospitability
rules, especially considering the fact that Armenia has many times
invited the Russian president to come.

ARMENIA’S RELATIONS WITH IRAQ ARE IMPROVING, FM SAYS

Vestnik Kavkaza, Russia
Dec 3 2013

3 December 2013 – 7:32pm

Armenian Foreign Minister Edvard Nalbandyan says the country’s
relations with Iraq are developing rapidly and have improved greatly
in the last few years.

The two nations now successfully cooperate in the spheres of business,
culture and politics.

ARMENIANS PROTEST DURING PUTIN VISIT TO YEREVAN

New Tang Dynasty Television
Dec 3 2013

Some 500 Armenians march through the capital Yerevan to protest plans
to join a Moscow-led customs union during Russian President Vladimir
Putin’s visit to Armenia. (Karen Minasyan/AFP/Getty Images)

2013-12-02 08:10 PM

Armenian anti-Putin demonstrators rally in Yerevan, on December 2,
2013, to protest against the visit of Russia’s president. (KAREN
MINASYAN/AFP/Getty Images)

Russia’s President Vladimir Putin descends from his plane in Gyumri
airport, on December 2, 2013. (ALEXEI NIKOLSKY/AFP/Getty Images)

Armenian anti-Putin demonstrators rally in Yerevan, on December 2,
2013, to protest against the visit of Russia’s president. (KAREN
MINASYAN/AFP/Getty Images)

About 500 people marched through the capital of Armenia on Monday
(December 2) to denounce Russian President Vladimir Putin as he visited
the country, and protested against plans to join a Moscow-led customs
union, witnesses said.

Some of the crowd in central Yerevan held banners declaring “Putin,
go home!” or “No to the USSR!”, a reference to Putin’s efforts to
bind former Soviet republics together more closely in economic and
security alliances.

Putin flew to the southern Caucasus country for talks on its decision
in September to join the customs union with Russia, Belarus and
Kazakhstan but began his visit in another city.

The rally followed much larger protests in Ukraine, which suspended
plans to sign a trade deals with the European Union last week and
rebuild economic ties with Russia instead.

Kremlin critics in the West accuse Putin of putting pressure on
Ukraine, Armenia and other former Soviet republics to back away from
agreements that would increase their integration with the EU.

Police blocked a central street as the demonstrators headed closer
to the headquarters of President Serzh Sarksyan’s administration,
and protesters handed over a letter urging the government to renounce
its decision to join the customs union.

FOREIGN INVESTMENT IN ARMENIA FALLS ALMOST A THIRD IN JAN-SEPT

Interfax, Russia
Dec 2 2013

YEREVAN. Dec 2

Foreign investment in Armenia dropped 31.7% year-on-year in
January-September 2013 to $395.6 million, the National Statistics
Service reported.

Foreign direct investment slumped 62.1% to $155.1 million.

Argentina was the biggest overall investor with investment of $89.7
million, a surge of 510%. However, direct investment from Argentina
fell 7% to $10.7 million.

Second in terms of overall investment was Cyprus with $58.7 million,
an increase of 980% and third was Russia with $52.7 million, down
35.7%. Canada invested $42.7 million, down 58.2%, and France $41
million, down 81.6%.

Investment from Argentina mainly went into aviation and agriculture,
from Cyprus it was metal ore mining and wholesale trade and from
Russia it went largely into the ore mining industry and metallurgy,
the gas industry and electricity.

Me of

PUTIN STARTS VISIT TO ARMENIA FROM GYUMRI

Interfax, Russia
Dec 2 2013

GYUMRI Armenia. Dec 2

Russian President Vladimir Putin has arrived in Gyumri, the first
leg of his state visit to Armenia.

Putin will come from the airport to the Gyumri Drama Theater to
participate in the commissioning of the fifth unit of the Razdan
thermal power plant during a teleconference. This is a unique project
incorporating the newest engineering solutions: it combines steam
turbine and gas turbine technologies for the first time ever. The
unit’s rated output is 467 megawatts.

The ceremony of the cancellation of a postage stamp dedicated to the
Sochi Winter Olympic Games will be held in the Theater after that.

Once the ceremony is over, the Russian president will attend a meeting
of the Third Russian-Armenian Interregional Forum. The presidents
of Russia and Armenia will make their first appearance at the forum,
whose main theme is the upcoming accession of Armenia to the Customs
Union and the Common Economic Space. All the Armenian regions and more
than 70 regions of Russia are engaged in interregional cooperation
between Russia and Armenia. The forum will have over 600 delegates.

After the forum Putin will lay wreaths to the monument to the victims
of the Spitak earthquake and visit the Russian military base in Gyumri.

The Russian force stationed in Armenia is committed to covering the
southern flank of Russia and to protect Armenia as a member of the
Collective Security Treaty. The enlargement of the Russian military
base was announced in 2005 after the signing of a number of bilateral
documents. Armenia transferred some land plots and real estate items
to the base. The staff of the Russian forces formerly deployed in
the South Caucasus and some of the personnel and armaments previously
stationed in Georgia have been transferred to the base.

The Russian president will tour the base and speak to Russian
servicemen before he goes to Yerevan.

After his arrival in Yerevan, Putin and Armenian President Serzh
Sargsian will lay wreaths to the memorial to the victims of the
Armenian genocide. The presidents will have a meeting and participate
in Russian-Armenian negotiations. The negotiations will end with the
signing of joint documents and a statement by the two presidents for
the press.

Te cm

AZERBAIJANI RELIGIOUS LEADER CALLS FOR FAIR SOLUTION OF NAGORNO-KARABAKH CONFLICT

AzerNews. Azerbaijan
Dec 2 2013

2 December 2013, 18:59 (GMT+04:00)

By Sara Rajabova

Head of Caucasus Muslims Office, Sheikh ul-Islam Allahshukur
Pashazadeh, has called on religious figures to continue their efforts
to find a fair solution within the international legal norms for the
Nagorno-Karabakh conflict.

“At present, when our country insists on a fair settlement of the
conflict within the international legal norms, we, as religious
figures also continue exerting efforts in this sphere,” Pashazadeh
said in an interview with Trend news agency.

The Nagorno-Karabakh conflict emerged in 1988 when Armenia made
territorial claims against Azerbaijani lands.

He went on to note that the religious figures of the involved countries
have a big responsibility.

“From the very beginning of the Nagorno-Karabakh conflict, while
realizing this mission, we gathered around a round table,” Pashazadeh
said, adding that they had their first meetings in Rostov, and then
in Moscow, and Montreux back in 1988.

Pashazadeh said the meetings, except for the one held in Montreux,
were held with the mediation of the Russian Orthodox Church.

He said the main mission of these meetings was to prevent an ethnic
and territorial conflict from turning into a religious one.

According to Pashazadeh, the reached agreements, and the signed
documents prove that the mission was accomplished.

“We serve to building a confidence between the two nations by our
agreements on mutual protection of religious and spiritual monuments,
returning of captives, withdrawing of snipers from the contact line,
and other issues,” he said.

“That’s why in 2010, we met with Catholicos of All Armenians Karekin
II as part of the Baku summit with mediation of Patriarch of Moscow
and All Russia Kirill,” Pashazadeh said. “Another meeting was held
on the sidelines of the presidium of the CIS Inter-Religious Council
meeting in Yerevan.”

Through these negotiations, the sides intended to assist in reaching
a peaceful solution for the Nagorno-Karabakh conflict.

Pashazadeh noted if these negotiations and meetings can even slightly
influence on this process, the sides must continue to hold them.

Pashazadeh went on to say that his meeting with an Armenian captive
kept in Azerbaijan upon the request of the Catholicos of all Armenians
was aimed to demonstrate the conscientious adherence to the spirit
of joint statements.

“Karabakh is our historical territory. We must continue exerting
efforts until our lands are liberated. This is our duty to God,
the Motherland and people,” Pashazadeh said.

Referring to destruction of the cultural, religious and historical
monuments in the occupied Azerbaijani territories, Pashazadeh said the
topic was repeatedly discussed during the meetings with the religious
leader of the Armenians.

“What happened cannot be turned back, and our goal now is to prevent
such incidents and in particular, to reconstruct all cultural,
religious, and historical monuments after the end of the occupation,”
he said.

Pashazadeh also said this issue is clearly indicated in each joint
statement, and the demonstration of the Armenian side’s will is
required.

“We raise the issue at all events in which we are involved. From the
very significant platforms, we are trying to direct the opinion of
the international community to prevent such cases,” he said.

Pashazadeh said Islamic countries always express their support and
these monuments are common Islamic monuments.

“The appropriate measures are being taken through the Organization
of Islamic Cooperation (OIC) and ISESCO and significant assistance
is being rendered,” he said.

OIC member states expressed concern over the occupation of Azerbaijani
territories and looting and destruction of the archeological, cultural
and religious monuments in those areas, including Islamic monuments
in the resolution adopted by the organization during the OIC summit
in Dakar, Senegal in 2008.

Since a lengthy war in the early 1990s that displaced over one million
Azerbaijanis, Armenian armed forces have occupied over 20 percent
of Azerbaijan’s internationally recognized territory, including
Nagorno-Karabakh and seven adjacent regions.

The UN Security Council has adopted four resolutions on Armenia’s
withdrawal from the Azerbaijani territory, but they have not been
enforced to this day.

Peace talks mediated by Russia, France and the US have produced no
results so far.

RUSSIAN AND ARMENIAN PRESIDENTS ATTEND OPENING OF THERMAL POWER PLANT

Vestnik Kavkaza, Russia
Dec 2 2013

2 December 2013 – 2:49pm

Russian and Armenian Presidents Vladimir Putin and Serzh Sargsyan
have attended the opening of launch of the third block of the Razdan
nuclear power plant, RIA Novosti reports.

They held a teleconference with Gazprom Head Alexey Miller. He gave
details about the opening of the fifth energy block and said that
the facility had an output of 480 MW and will produce 3.3 billion KW/h.

Sargsyan said that 280 MW had started flowing to the Armenian energy
system.

Miller told Putin that over $300 million had been invested in the
facility.

Russian and Armenian Presidents Vladimir Putin and Serzh Sargsyan
have attended the opening of launch of the third block of the Razdan
nuclear power plant, RIA Novosti reports.

They held a teleconference with Gazprom Head Alexey Miller. He gave
details about the opening of the fifth energy block and said that
the facility had an output of 480 MW and will produce 3.3 billion KW/h.

Sargsyan said that 280 MW had started flowing to the Armenian energy
system.

Miller told Putin that over $300 million had been invested in the
facility.