Author: Badalian Vardan

SEYRAN OHANYAN PARTICIPATED IN SHOYGU’S EXCURSION “OVER THE RUSSIAN PENTAGON”

17:06, 22 December, 2014

YEREVAN, 22 DECEMBER, ARMENPRESS. Minister of Defense of the
Russian Federation Sergey Shoygu organized a special excursion at
the National Center for Defense Management of the Russian Federation
for his partners from the member states of the Collective Security
Treaty Organization (CSTO). Among the guests was Armenia’s Minister of
Defense Seyran Ohanyan. As “ArmenPress” reports, citing the Russian
TVzvezda.ru, the guests and CSTO member states were introduced to
the state-of-the-art systems for developing information received from
different government agencies, “Rosatom”, the command center of the
Main Headquarters, as well as the crisis center of the Ministry of
Emergency Situations.

The latest devices can develop information two times faster than the
“think tank” of the U.S. Armed Forces. The memory space for data is
19 times larger than that of the Pentagon.

PRESIDENT SARGSYAN VISITS SIMULATION EDUCATION CENTER IN YEREVAN

17:56, 22 Dec 2014

President Serzh Sargsyan today attended the opening of the Simulation
Education Center at Yerevan State University after M. Heratsi.

Accompanied by the RA Minister of Education and Science, Armen
Ashotyan, the Chair of the NA Standing Committee on Health Care,
Maternity and Childhood, Ara Babloyan and YSMU Rector Mikayel
Narimanyan, Serzh Sargsyan toured the newly-opened center of N1
University Clinical Hospital, familiarized with the opportunities of
the center founded as part of the reforms which have been implemented
in Armenia’s higher education sector.

The Minister of Education and Science presented the implementation
process of the projects being carried out by the Armenia Higher
Education Competitive Innovation Fund and its spheres of activities.

He noted that with the opening of the simulation center, Yerevan State
Medical University is introducing a new method of medical education –
simulation education. This kind of innovative method allows students
to upgrade their practical skills and reduce the number of medical
mistakes during their professional activities both at the stages of
graduate and life-long education. The innovation project is generally
directed at substantially improving the quality and effectiveness of
medical education.

The simulation center involves four main directions – clinical skills,
reanimation, surgery and midwifery, and gynecology. The center is
equipped with necessary moulages, movers and computers installed with
educational programs. The YSMU has reviewed the educational programs
and has conducted retraining sessions. The full-fledged introduction
of simulation education at the YSMU is planned to launch in February
of 2015.

According to the executives, in case of necessity after the end of
the project a new video course available to other beneficiaries via
the university webpage will be designed. It is planned to organize
special retraining courses for lecturers and employees of the center on
a regular basis in order to involve the best international experience
and ensure reforms yield the best results.

PRICE CHECK: INFLATION PRESSURES PERSIST AMID DOLLAR-DRAM DOLDRUMS

SOCIETY | 22.12.14 | 17:40

Alina Nikoghosyan
ArmeniaNow intern

RELATED NEWS

Price Watch: Dram rebounds, inflation worries linger

The new customs regime implied by Armenia’s membership in the Eurasian
Economic Union (EEU), according to specialists, will only add to
inflation pressures in the country.

This opinion is shared by head of the Consumers Consulting Center NGO
Karen Chilingaryan, according to whom, after entry into the economic
grouping founded by Russia, Belarus and Kazakhstan there should be
no expectations for a positive change in Armenia’s domestic market.

“They make loud statements that we enter a market of 170 million
people. But if we have no purchasing power, there what is the use of
it?” Chilingaryan said, reacting to government officials’ statements
that EEU membership from January 1 will bring economic advantages
to Armenia.

On Monday the president of the Consumers Consulting Center also told
reporters that unjustified price increases should become a matter
for consideration of Armenia’s State Commission for the Protection
of Economic Competition (SCPEC) as well.

During the recent days prices for some basic foodstuffs and essential
goods drastically went up in the Armenian market in connection with
dram-dollar upheavals, and many businessmen used the opportunity to
raise retail prices.

On December 17, the Armenian dram hit its historical lows at around
600 AMD per UDS, and prices for some goods also shot up by as much
as 30 percent.

Later on, the dram rebounded and today already in most currency
exchange offices one dollar can be bought for 455-460 AMD. (Before
mid-November for a durable period of time the dram exchange rate
fluctuated within the range of 410-420 AMD).

It is noteworthy that last week Armenian Prime Minister Hovik
Abrahamyan visited several supermarkets and said that in the event of
the dollar rate fluctuating within 10-13 percent goods in the market
must not get 30 percent more expensive.

The PM also said that the “shock” was over’ and the real exchange
rate would be settled soon.

Some media reports said that last week the heads of four commercial
banks in Armenia tendered their resignations allegedly because of
being blamed for the currency market turmoil.

As for prices for some goods in the market, they remain relatively
high and have not gone down significantly after shooting up overnight.

Some also link it to the starting holiday season during which demand
tends to exceed supply in Armenia, leading to price increases.

A1+ JOURNALIST DENIED ACCESS TO PRESS CONFERENCE ON MARCH 1 TRAGEDY

17:25 | December 22,2014 | Politics

A journalist of A1+ TV Company has not been allowed to participate
in a press conference held at the office of Artur Baghdsaryan. She
was told that the event was only open to several media outlets.

According to Aravot.am, Artur Baghdsaryan am, Arthur Baghdasaryan
had invited journalists to say that his Country of Law Party (OEK)
had no connection with the March 2008 tragedy that left ten people
killed in the Armenian capital.

“Who gathered those people at [Liberty] Square? And who gave the order
to open fire at them? Both answers are known. The OEK had no connection
to the bloody events. We did not have such levers. We have nothing
to do with the bloodshed and plunder in the country. They blame us
for forming a coalition government with Serzh Sargsyan. We agreed
because we wanted changes. But when we did not have any changes we
withdraw from the coalition,” said Mr Baghdasaryan.

SOUTH CAUCASUS RAILWAY WILL INVEST 6.5 BILLION DRAMS NEXT YEAR INTO FACILITY’S UPGRADING

YEREVAN, December 22. / ARKA /. The South Caucasus Railway (SCR),
a Russian company operating Armenia’s railroads, will invest 6.5
billion drams next year into the upgrading of the facility, SCR CEO
Viktor Rebets told a news conference today.

He said the investment program’s focus will be on the rehabilitation of
the infrastructure, and its priorities will be track facilities, power
systems, signaling, centralization, blocking and communication systems.

He said the company has invested as much this year as stipulated by
the contract and despite a drop in freight volume it decided not to
cut on next year’s investment.

The company expects that the freight traffic in 2015 will grow by
0.9%, the number of locally transported passengers by 0.6% and the
number of passengers traveling to neighboring Georgia by 0.1%. It
also expects its profit to increase by 151.9 million drams. Labor
productivity is projected to increase in 2015 by 3.3% and the median
monthly wage will grow as much to reach 201,000 drams.

The company said it will work also to improve the company’s position
in the transport market, its fiscal management, raise the safety on
the railway and introduce the automated 1C accounting system.

The South Caucasus Railways is run by Russian Railways. The
concessional agreement was concluded in 2008 for 30 years, with a
right of extension for another 20 years after the first 20 years of
operation. .($1 – 455.75 drams). -0-

HOMESTRETCH: EEU MEMBER STATES’ PRESIDENTS TO CONFIRM ARMENIA’S ACCESSION

ANALYSIS | 22.12.14 | 11:21

By NAIRA HAYRUMYAN
ArmeniaNow correspondent

On December 23, Moscow will host a meeting of the Supreme Eurasian
Council and the Collective Security Treaty Organization. At the meeting
of the Eurasian Council it is expected that Armenia’s accession to
the Eurasian Economic Union (EEU) will be confirmed and an agreement
on Kyrgyzstan’s accession will be signed.

However, the day before these important meetings the presidents of
Belarus and Kazakhstan, Alexander Lukashenko and Nursultan Nazarbayev,
have decided to visit Ukraine, which, in fact, is at war with the
third member of the EEU – Russia. Moreover, Lukashenko already on
Sunday arrived in Kyiv and pledged full support for Ukrainian leader
Petro Poroshenko.

Nazarbayev also expressed a desire to become a mediator in settling
the Ukrainian-Russian dispute. Experts are wondering what these visits
are related to and how they will impact decisions on December 23.

The devaluation of the Russian ruble and the sharp economic downturn in
Russia have weakened the position of Russian President Vladimir Putin
in the Supreme Eurasian Council, and, as Western analysts suggest,
Belarus and Kazakhstan are trying to achieve greater rights for
themselves in the emerging EEU. Moreover, they often use for this
the factor of Armenia’s membership, which has been sought by Putin
and for his consent to this membership Belarus President Lukashenko
already appears to have received a lot of discounts and incentives.

The parliaments of all three EEU member countries have ratified the
treaty on Armenia’s accession, but the president are yet to sign the
ratification bills on December 23 and, apparently, Lukashenko and
Nazarbayev intend to achieve new preferences on the account of Armenia.

But what is the goal of the Belarus and Kazakh presidents’ visits
to Kyiv? Maybe Lukashenko and Nazarbayev have decided to talk to
Poroshenko about the establishment of a kind of free trade zone?

Earlier it was reported that Russia had appealed to the European
Commission with a proposal to create a free trade area between the EU
and the EEU. German Chancellor Angela Merkel said that it is quite
possible if Russia withdraws from Ukraine. Maybe Lukashenko went to
Kyiv to convey conditions of Russia’s “withdrawal” from Ukraine?

Forecasts about the EEU that will be formally launched from January
1 are different – some view it as a “stillborn” project or a formal
alliance like the CIS, others argue that the project is too important
for Putin, and he will achieve its implementation at any cost.

However, one question remains open – will the international community,
particularly the United States, Europe and major Asian nations, wish
to recognize the EEU as an entity of international law? Will they wish
to conclude agreements not with different member nations of the EEU,
but with the Union itself, thus confirming the re-establishment of
a mini-USSR?

BEELINE TO COMPLETE DIGITIZATION OF THE NETWORK IN METSAVAN, NORASHEN AND KUCHAK COMMUNITIES

by Mariam Lazarian

arminfo
Thursday, December 18, 17:09

By the end of the current year, Beeline will complete landline network
digitization in Metsavan community in Lori region, Kuchak community in
Aragatsotn region and Norashen community in Armavir region. Beeline
informed that from then on, high-quality digital network services
will be available for the residents of these communities, broadband
Internet quality will be enhanced, while Kuchak community residents
will start taking advantage of broadband Internet services. During
digitization works, the equipment will be also replaced and modernized.

“Beeline remains committed to its strategy of across-the-board
development and this year has considerably enlarged the digitization
geography of its fixed network. Digitization works will continue next
year as well, and we will provide simple, convenient and high-quality
network services for our subscribers in Armenian regions”, said
Beeline Armenia CEO Andrey Pyatakhin.

The digitization index exceeds 87% in Armenia, while the total wire
length is over 8.5 thousand km.

Fixed networks of 16 Armenian settlements were digitized in 2014. The
company believes reduced landline network tariffs are one of its
achievements in 2014. Since 1 September 2014, the tariff of an
outgoing call from Beeline to the NKR and international numbers has
cost 5 AMD/ min.

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 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. The Group companies provide services
under the “Beeline” brand. VimpelCom was the first Russian company to
list its shares on the New York Stock Exchange (“NYSE”). VimpelCom’s
ADSs are listed on the NYSE under the symbol “VIP”.

THE 2014 WAS A DIFFICULT YEAR FOR TURKEY – TURKOLOGIST

15:00 / 22.12.2014

The 2014 was a difficult year for Turkey, Turkologist Gevorg Petrosyan
told the reporters on Monday. He said five important events took
place there having direct or indirect impact on Armenia.

First of all the expert mentioned the April 24 message which was part
of their plan relating to the Armenian Genocide centennial.

“Continuing the policy of denial, with this message Turkey creates
an illusion that positive changes are taking place in their country,
the so-called new Turkey is being created. It is in case when this
is the continuation of the policy of denial,” he said.

The other important point, according to the expert, is the Islamic
State-Turkey relations. In June this year the Islamic forces
established Islamic State in Iraq which may be said has become a new
acting force in the Middle East. The expert said the two forces seem
to be enemies but in reality they are engaged in shadow cooperation.

Petrosyan said that another significant thing was the dispute between
Gulen associates and the ruling circles. The disputes started from
December last year and lasted throughout the year. The expert said
that Gulen associates are known with their anti-Armenian lobbying in
the USA.

The other thing that happened there were the blasts in mines which
claimed many lives. It became the reason of criticism addressed to
the government and the opposition forces directed their criticism
toward Erdogan.

The 2014 was also marked with the conduction of elections in Turkey.

In March municipal elections were held there with Erdogan’s party
wining with greater number of votes than previously. August has been
marked in Turkey with historic presidential elections. These were
the first ones when people were electing the president, previously
the president was elected by the parliament.

Nyut.am

EXPERT: ARMENIA IS ‘DOOMED’ TO COOPERATE WITH RUSSIA

14:27 22/12/2014 >> POLITICS

Armenia is ‘doomed’ to deepen its relations with Russia, Manvel
Ghumashyan, an analyst at European Integration NGO, told reporters
on Monday.

In his words, expansion of relations with Russia should be viewed in
the context of Armenia’s long-term strategic interests.

Commenting on Armenia’s accession to the Eurasian Economic Union (EEU)
and different opinions about this process, Ghumashyan said that Russia
is certainly in a difficult economic situation now, but it would be
wrong if Armenia changed its political course solely for this reason.

The West-Russia conflict will end sooner or later, he noted, adding
that in this context the Nagorno-Karabakh peace talks can be a bridge
between the West and Russia.

ARMENIA’S ECONOMIC LAWS SHOW PROGRESS – ECONOMISTS

11:54 * 22.12.14

Gagik Makaryan, Chairman of the Republican Union of Employers of
Armenia (RUEA), notes progress in Armenia’s business environment for
a number of reasons.

“The first positive change is the ‘one-window’ principle and simplified
laws. Besides, progress has been recorded due to reforms in supervisory
bodies,” Mr Makaryan told Tert.am as he commented on the Forbes Best
Countries for Business list, which ranks Armenia 56th.

With respect to business environment problems, Mr Makaryan said:

“One of the major problems is that, however hard the government tries
to reform laws, certain cases require more aggressive intervention,
without hopes for self-regulated market.”

Although in other states the government is supposed to ensure
favorable conditions, in Armenia such factors as black economy, unequal
conditions for competition and inspections, management quality and
personnel problems impede the process.

“I would like the government to pay more attention to such problems,”
Mr Makaryan said.

He points out the need for work with banks in simplifying loan terms,
– ensuring low-interest loans or subsidies.

“Unfair competition does not imply punishment of businessmen for
changing prices in certain cases.

Rather, it is unequal attitude by officials, inspections and local
government bodies. The situation needs improvement.”

The government should pay more attention to innovative research
centers, which would be more efficient in terms of management and
economic stability, technologies and export.

“Such companies will prefer transparent activities due to high
profits,” Mr Makaryan said.

According to him, Armenia’s incumbent government is more active,
especially Prime Minister Hovik Abrahamyan.

“Half of the ministers are passive, but the premier, although he is
not an economist, is taking practical steps. He does not waste time
and makes prompt decisions.”

Vice-Chairman of the Heritage party, economist Armen Martirosyan
believes that although the Forbes Best Countries for Business list
ranks Armenia 56th, it does not reflect the reality.

“I think any economic practice is evidence, and it shows quite a
different picture,” he said.

The latest developments are clear evidence that Armenia cannot be
said to have a favorable business environment.

“We see pressure on small and medium businesses year by year, with
their share decreasing, and a lack of large-scale investments in
Armenia,” Mr Martirosyan said.

With respect to international organizations’ assessments, he said:

“For advisability reasons they may make positive assessments, but
the real situation does not change.”

Only top-ranking officials own big businesses in Armenia, and they
are in the authorities’ hands.

“Market competition is out of the question here. Small and medium
businesses are unprotected, and, despite cheap labor forces,
large-scale investments are few in number in Armenia,” Mr Martirosyan
said.

“Some legal reforms may have been implemented, but the reality is
strikingly different from the official documents.”

Despite the fact that Armenia gets huge amounts to implement education
and health reforms, but the real situation is worsening in the country,
Mr Martirosyan concluded.