Author: Baghdasarian Karlen

ARMENIA: COULD A GAS PRICE HIKE HAVE POLITICAL IMPLICATIONS?

EurasiaNet.org, NY
June 10 2013

June 10, 2013 – 2:29pm, by Marianna Grigoryan

Armenia is bracing for a roughly 18-percent hike in the price of
natural gas imported from Russia. The unanswered question is what’s
the domestic political cost for the Armenian government?

Beginning in July, ArmRusGazProm, a joint venture between the Armenian
Ministry of Energy and the Russian companies Gazprom and Itera, will
charge customers 156,000 drams (about $374) per 1,000 cubic meters
(tcm) of gas, compared with the current price of 132,000 drams/tcm
(roughly $316), the Public Services Regulatory Commission announced
in early June. Electricity prices will increase by eight drams
(approximately two cents) per kilowatt-hour.

The gas and utility price hikes followed an earlier Gazprom
announcement that gas prices for European customers would fall by up to
10 percent to an average of $370-$380/tcm. The Commission’s decision
means that Armenians could soon be paying more for gas than residents
of Western Europe, marking a sudden reversal from previous years,
when formerly Soviet republics could expect to get a big discount
from the Kremlin. The Commission has not elaborated on its reasons
for agreeing to the price hike.

Calling for Gazprom to leave Armenia, protesters on June 7 were not
allowed to attend a Commission session at which the new prices were
discussed, Armenian news outlets reported. The gathering followed a
mini-protest on June 5 outside of the Russian Embassy in Yerevan. The
demonstrators submitted a letter of complaint to Russian Ambassador
Ivan Volynkin about the new prices. So far, the complaint has not
elicited a response.

With Armenia dependent on Gazprom for gas supplies, the government
had little leverage in negotiations. Even so, officials in Yerevan
point out that the new price is substantially lower than the initial
ArmRusGazProm proposal of 221,000 drams/tcm ($5.36).

Few citizens are giving the government any credit. Instead they are
assailing officials for failing to diversify gas supplies. “This
was the wrong management decision,” fumed filmmaker and opposition
activist Tigran Khzmalian. “The consequence is this increase in the
gas price and, particularly, the bad situation Armenia will face.”

Economist Vahagn Khachatrian, a member of the opposition Armenian
National Congress, predicted that prices for goods and services will be
“20- to 50-percent higher” by July or August. “We’ll find ourselves
in a totally different environment,” Khachatrian said.

With one-third of Armenia’s official population of roughly 2.97 million
people living beneath the poverty line, according to official data –
unofficial estimates range far higher, – the gas price hike, along
with the expected chain effect in raising costs for food and essential
durable goods, stands to heighten dissatisfaction with the government.

Aware of that risk, particularly following the short-lived Barevolution
(Hello Revolution) protest movement, Armenian Prime Minister Tigran
Sarkisian on May 16 pledged that the government will subsidize the
new gas price by 30 percent, as well as provide additional financial
support for underprivileged families. The amount of the additional
support hasn’t been specified.

Many Armenians, though, are skeptical that such measures will take
the economic pressure off them. While inflation for the first quarter
of 2013 stood at 3 percent, few see these official figures as accurate.

Retail prices for food and services increase steadily; in May, for
instance, bread prices were 10.8 percent higher than during the same
period in 2012.

“What do they want from us? How long will the government continue to
suck our blood?” asked 68-year-old Yerevan pensioner Marjik Avagian.

“That is the reason why everyone dreams of leaving the country.”

Since the 1991 Soviet collapse, the country has lost hundreds of
thousands of residents, driven abroad by the 1988-1994 war with
Azerbaijan and the lack of jobs. Official unemployment stands at 7
percent, though unofficial estimates soar well into the double digits.

In a 2010-2012 poll by Gallup, 40 percent of Armenian respondents
expressed a desire to move abroad.

“Armenian villages are getting empty,” independent political analyst
Yervand Bozoian commented. “We are losing our human resources.”

Not all believe that higher gas prices will prove the final straw
for Armenians’ patience. Economist Tatul Manaserian, director of
Yerevan’s Alternative Armenian Analytical Center, agrees that the gas
price hike will have a chain effect on other prices, but believes that
“no shocking changes” will occur.

The government, Manaserian underlined, managed to negotiate with
Russia and significantly reduce the 67-percent increase initially
desired. He does not doubt that it similarly will stick to its promise
about support for the underprivileged. “By taking on such a burden,
the government tries to implement the whole process smoothly,” he said.

As of yet, the political opposition has not focused on alternative
options for softening the impact of the hike on ordinary Armenians.

Some focus on government promises before the February presidential
election that gas prices would not change. Others are asking; what is
the point of Armenia’s strategic alliance with Russia, if it results
in such increases in natural-gas prices?

Editor’s note: Marianna Grigoryan is a freelance reporter based in
Yerevan and editor of MediaLab.am.

From: Baghdasarian

POPE FRANCIS ARMENIAN GENOCIDE COMMENT ANGERS TURKISH GOVERNMENT

Newsmax.com, Florida
June 10 2013

By Alexandra Ward

Pope Francis intends to visit Armenia in 2015 to commemorate the 100th
anniversary of the Armenian genocide, the pontiff told a delegation
from the Eastern European country last week.

The pontiff also referred to the mass killings of Armenians during
World War I as “the first genocide of the 20th century.”

“This recognition of the Armenian Genocide as the first genocide of
the 20th century reaffirms the statements of John Paul II, [which were
made] upon his arrival in Armenia on Sept. 25, 2001, demonstrating that
more and more states, parliaments, and international organizations
are adopting this position against the denial of history perpetrated
by the Turkish state,” Dr. Alfonso Tabakian, director of the Armenian
National Committee of South America, told Armenian Weekly.

Pope Francis’ comment about the genocide angered the Turkish
government, which has long been blamed for the mass killings of
Armenians. Turkey has denied that the genocide ever actually happened.

“It cannot be business as usual while accusing a nation of genocide,”
Turkish Ambassador Tuncay Babali said. “It’s a serious allegation. It
needs to be substantiated, legally, historically.”

Armenian Apostolic Church Diocese of Gougark Bishop Sebouh Chuljyan
Primate defended the pope’s remarks.

“The pope is speaking out a historical truth,” he told the Hurriyet
Daily News. “Turkey needs to see the pains and should face the
genocide.”

This isn’t the first time Pope Francis has publically referenced the
Armenian genocide.

At events commemorating the killings’ 91st anniversary in 2006, while
he was still a cardinal in Argentina, he said the mass killings were
the “gravest crime of Ottoman Turkey.”

A Turkish official suggested that the pope’s scheduled visit to the
Fener Greek Orthodox Patriarchate in Istanbul could be in jeopardy
after his Armenian genocide comment.

From: Baghdasarian

TURKISH ANGER AS POPE TALKS OF ARMENIAN GENOCIDE

The Tablet , UK
June 10 2013

The Turkish Foreign Ministry has expressed its “disappointment”
at Pope Francis for using the word “genocide” to describe the mass
killings of Armenians during the First World War.

Turkey has reacted angrily to the Vatican following a statement from
Pope Francis describing the mass killings of Armenians during World
War I as “the first genocide of the twentieth century”.

Pope Francis used the term at a meeting with a delegation led by
Nerses Bedros XIX, Armenian Catholic Patriarch of Cilicia, on 3 June –
the first time he has used the term since being elected Pope.

Today the Armenian News Agency Armenpress reported that at the official
opening ceremony of the Armenian embassy in the Vatican on Friday
the Pope also said that he wanted to hold a religious ceremony in
the Armenian capital, Yerevan, during the 2015 ceremony to mark the
centenary of the genocide.

From: Baghdasarian

FORUM THEATRE ON THE “CHALLENGING DISCRIMINATION” TOPIC WILL TAKE PLACE IN YEREVAN

21:02, 10 June, 2013

YEREVAN, JUNE 10, ARMENPRESS: “Challenging discrimination in the forum
theatre” youth exchange project, which is organized by World Armenian
Youth Network (WostAYN) along with various partners: Ukrainian “EcoArt”
youth center, Romanian “Vira Association”, Bulgarian “YMCA-DOBRICH”,
Moldavian “TENDO” and Turkish “Dortyol Engelliler Genclik ve Spor
Kulubu”, is being held in Yerevan, Armenia starting from the 3rd of
June till the 13th of June.

The program’s main aims are to promote intercultural contacts and
understanding, to give the European youth the opportunity to reveal
the predominating problems of their countries and to perform the
problems in the frames of Forum Theatre. Forum Theatre expert met
the participants of the program, taught them different professional
skills, and helped them to plan screenplays. The best screenplays
are going to be presented to Armenian society in Yerevan.

“Various experts of Forum Theatre, who were invited to Armenia from
different countries, presented the secrets of this wonderful tool ipso
facto contributing to the youth work” said Atom Mkhitaryan, reports
“Armenpress” adding that the main aim of the program is to develop
professional skills in these 31 participants and make them think of
struggling against these discriminations.

During this youth exchange the participants presented their culture,
customs, language, and the vexed problems of their countries. The
cooperation between the participants has become the perspective start
for various new projects. “Challenging discrimination in the forum
theatre” was funded and supported by European Union in the frames of
the “Youth in Action” program.

From: Baghdasarian

EXPERT: SOLAR WATER HEATING (SWH) TO BECOME POPULAR IN ARMENIA

ARMINFO
Monday, June 10, 20:54

Solar hot water (SHW) systems will be widely used in Armenia within
the coming year due to rising tariffs of gas and electric power,
says Hayk Shekyan, expert in renewable energy. He told media, Monday,
that SHW will make it possible for the population and enterprises
to save up to 2/3 of the funds they usual spend on gas and electric
power. The expert said that large-scale production of Photovoltaic
Solar Panels in Armenia can be competitive if the necessary metal
and spare parts are imported on preferential terms.

Shekyan said that among alternative sources of energy, solar water
heating panels are the most beneficial ones due to their optimal
efficiency coefficient. He said that financial organizations of
Armenia already offer leasing and credit services for acquisition of
SWH systems. For instance, a family of 5 people will need a SWH system
worth 300,000 drams (some $750, inclusive of installation). There are
three companies producing such systems in the country. Imported SWH
systems cost nearly $1,500 inclusive of transport and customs costs.

As regards photovoltaic power stations, the expert said, the period
of return of investments in such stations is 15-20 years.

Hayk Khachatryan, Deputy Head of the Pure Energy NGO, said, in turn,
that due to the geographic location, Armenia gets direct solar
radiation within 80% of the daytime, while in Europe this index is
60%. In Armenia 1 sq m of area receives 1700 watt of energy in average
versus 1000 watt in Europe. Despite that fact, even the northern
regions in Europe have significantly progressed in use of solar energy.

Khahcatryan warned that photovoltaic power stations occupy big areas.

Therefore, it is expedient to install solar power panels on the roofs
of buildings for local use of the generated electric power.

As regards other alternative sources of energy, Khachatryan said that
in line with the surveys by Pure Energy NGO, the potential of energy
generation on wind power plants in Armenia is 10,000MW annually,
which is 10 times as much as generation at the Armenian NPP. He said
that wind power plants should be built on highly mountainous areas and
their construction is expensive. He recalled that the only big wind
power plant in the country is located in the Pushkin Pass, Lori region
(2.6MW capacity). It was built in 2005 on a $3.5 million grant from
Iran and generates electric power for 41.9 drams ($0.1) per KWh. There
are also low capacity wind power plants that serve some villages.

Shekyan said that installation of new turbine equipment for 1 MW
capacity wind power plants will cost $1-$1.5 million ($300-$400,000
for used equipment).

Khachatryan said that there is also big potential of thermal energy
from underground thermal waters, specifically in Syunik region.

He thinks it necessary for the government to settle the problem of
thermal isolation of buildings to prevent 20%-30% of heat loss.

Gas and electric power tariffs will rise 18.2% and 26.7%, respectively,
in Armenia starting July 7 2013, the Public Services Regulatory
Committee of Armenia adopted a relevant decision, Friday.

Head of the PSRC Department for Tariff Policy Garegin Baghramyan says
that the Committee adopted the decision on the basis of ArmRusgasprom
Company’s application for revision of the gas tariff and satisfied it
partially. Thus, the gas price for the consumers using up to 10,000
cu m of gas monthly will total 156,000 drams per 1,000 cu m instead
of the current 132,000. For those who consume over 10,000 cu m of
gas monthly, gas tariff will rise to $276.98 instead of the current
$243 per 1,000 cu m (up 14%). PSRC adopted a decision to increase
also electric power tariff as the expenditures of power generating
companies will grow. Thus, in daytime, the electric power tariff for
the population will make up 38 AMD per 1 kWh instead of the current
30 AMD and at nighttime the tariff will rise to 28 AMD instead of
the current 25 AMD. For commercial users, the tariff will rise to
29-35 AMD per 1 kWh at daytime and 25 AMD at nighttime instead of the
current 21-35 AMD per kWh daytime and 17 AMD per 1 kWh for nighttime
depending on the volume of consumption.

By official statistics, in 2012 the share of electric power
generation by heating power plants in total electric power generation,
transmission and distribution (182.8 bln drams or $455.1 mln) totaled
45.1%. The share of HPPs in total power generation was 6.4% and that
of the nuclear power plant is 9.8%. High-voltage power lines produce
only 0.1% of total power generation, while power transmission and
distribution totaled 38.6%.

From: Baghdasarian

RUSSIAN CONSUL SPEAKS ABOUT ROLE OF ARMENIA IN RUSSIAN REGIONAL POLICY

21:11, 10 June, 2013

GYUMRI, JUNE 10, ARMENPRESS: On occasion of the day of Russia which is
celebrated on June 12, Russian consulate in Gyumri organized official
receiption on June 10. Represnetativ es of regional authorities from
Shirak and Lori as well as urban authorities from Gyumri and Vanadzor,
Russian servicemen, representatives of non-governmental organizations,
mass media were present at the receiption.

“Armenpress” reports that greeting all the guests general consul of
Russian Federation Vasily Korchmar at first presented the history
of the holiday highlighting that it is the holiday of independence
and statehood.

“I am glad that this holiday of great importance we are celebrating
here in Armenia. As Russian diplomatic representative in Gyumri I am
proud to say that the guarantee of success of new Russian policy in
South Caucasus is also the development of strategic partnership with
Armenia. I also want to note the presence of Russian detachment in
Armenian-Turkish border. As an visible evidence of Russian-Armenian
friendship can be mentioned the relations and joint programsbetween
Russian consulate and Lori and Shirak regions,” mentioned the consul.

From: Baghdasarian

TURKEY EVENTS WILL IMPACT PRESIDENTIAL ELECTIONS – TURKISH STUDIES EXPERT

16:15 10/06/2013 ” TOPIC OF THE DAY

Turkey’s domestic life will never be the way it was before and the
latest events taking place in Turkey will still have consequences,
Ruben Safrastyan, Turkish studies expert, Director of the Oriental
Studies Institute of the Armenian National Academy of Sciences,
told reporters today.

According to him, the current situation in Turkey will first of all
impact the 2014 presidential elections and local self-government
elections.

We should not think there is foreign influence behind what is taking
place in Turkey, said the expert.

“Public anger rose as Turkish authorities cracked down on a small
protest. The people who gathered were indignant over the actions
of the authorities,” he said, adding that certain strata of society
overcame their fear of authorities.

As for a possible influence of Turkey events on national and religious
minorities, Mr Safrastyan called for alertness and reminded the
history.

“The history shows that such events in Turkey have always resulted in
pressure on national and religious minorities. We should not ignore
that threat,” the expert concluded.

Source: Panorama.am

From: Baghdasarian

VARUZHAN AKOBIAN SHARES FIRST PLACE AT LAS VEGAS OPEN

17:08 10/06/2013 ” SPORT

GM Varuzhan Akobian scored 5 points out of 6 and shared 1st-6th
places together with GMs So Wesley (Philippines), Jaan Ehlvest,
Alejandro Ramirez, Enrico Sevillano (U.S.) and Manuel Leon Hoyos
(Mexico) at Las Vegas Open. Akobian finished third on tiebreak.

So became the winner of the tournament, armchess.am reported.

Source: Panorama.am

From: Baghdasarian

RPA SUPPORTS SHADOW MINING INDUSTRY

The majority of the National Assembly of Armenia does not want to
regulate the activities of companies operating in mining sphere which
are registered in offshore areas.

The law draft on Regulating the activities of companies, which are
registered in offshore areas and which are operating in the mining
sphere of Armenia, worked out by Hrant Bagratyan, Member of Parliament
from Armenian National Congress, was not introduced onto the agenda
because the majority voted against it.

Earlier, Hrant Bagratyan had said that his law draft aims at regulating
the mining sphere.

13:35 10/06/2013 Story from Lragir.am News:

From: Baghdasarian

ARMENIAN PARLIAMENT VOTES DOWN MP BAGRATYAN’S OFFSHORE MINING BILL
Grisha Balasanyan

Earlier today, the RA National Assembly voted down a bill introduced by
HAK MP Hrand Bagratyan seeking to regulate the operations of offshore
companies in Armenia’s mining sector.

Those in opposition were the majotity Republican Paryy and its junior
partner, Rile of Law. Those voting in favour were the Heritage Party,
ARF, HAK and Prosperous Armenia.

The bill would has banned companies registered off-shore from operating
mines in Armenia, in addition to prohibiting companies from exporting
ore and finished products to companies registered offshore as of
January 1, 2014.

The bill would have also banned companies in Armenia’s mining sector
from purchasing equipment, technologies, raw materials, financial
and other services from offshore registered companies.

From: Baghdasarian