Author: Basmajian Ani

The Moscow Times, Russia
Feb 9 2009

Solving the Mystery of Yerevan’s Brutal Chaos
09 February 2009

Almost a year ago, I arrived in Yerevan just as the Armenian capital
was engulfed by brutal chaos. Armed police and protesters fought
running battles through the city streets during a night of
unrestrained violence that left 10 people dead.

On the road to the city, I saw a long, ominous line of army trucks
carrying troops from their barracks toward the capital, a clear sign
that the authorities were mobilizing their forces to deal with the
demonstrators.

When I got to the scene of the demonstration, furious protesters had
already built barricades and were making petrol bombs and arming
themselves with staves, while grim-faced policemen were lining up
their riot shields just a few meters away, getting ready to move
in. Soon afterward, missiles started to fly and tracer bullets lit up
the night sky.

Armenia is still trying to come to terms with what happened on that
horrific night last March, and seven opposition figures, including a
former foreign minister, are currently on trial on charges of
masterminding the violence in an attempt to seize power by force.

At the prosecutor’s office, I was given transcripts of surveillance
tapes recorded by the security services. In a typical exchange just
before the protesters started gathering, one opposition leader asks,
"So what are we doing now?" Another responds: "Well, don’t know. Come
up with a shared decision." The first says, "Would be better if more
people go there." That, insists the prosecutor, is proof of a "closely
developed plan" to overthrow the government.

But the wife of one of the defendants told me a very different
story. She insisted that this was a show trial and described the men
as political prisoners. "I think they are heroes because they want
their country to be free, and they’re willing to go to jail for that
and stay in jail for as long as it takes," she declared.

For those who lost sons or husbands that night, no court case can end
the grief. The mother of one 23-year-old victim, who was shot in the
head, told me that she was still upset that no official had offered
her condolences. A picture of the young man stood behind her on a
table, surrounded by religious icons. "Every day I remember that
night," she said quietly. "I couldn’t believe he was killed. I told my
husband that he was mistaken, maybe that was someone else’s body in
the morgue. I cannot forget."

Matthew Collin is a journalist based in Tbilisi.

ARMEN RUSTAMIAN: GRANTING AMNESTY WOULD BE QUICKEST AND MOST CORRECT SOLUTION

Noyan Tapan

Feb 5, 2009

YEREVAN, FEBRUARY 5, NOYAN TAPAN. "Armenia is faced by a very
serious problem: the reforms should be done parallel with solution
of post-electoral problems," Armen Rustamian, a member of the ARFD
Bureau, National Assembly ARFD faction, and Armenian delegation in
PACE, stated at the February 5 press conference. According to him,
the problems caused by the post-electoral events seriously slow
down country’s normal development, therefore, we should get rid of
them as soon as possible. "And for it, as we have already said it,
granting amnesty to those arrested on the March 1 case would be the
quickest and the most correct solution," the ARFD representative
said. According to him, amnesty would also contribute to formation
of an atmosphere of tolerance.

A. Rustamian said that an expected amendment to Articles 225 and
300, RA Criminal Code, is too important, as only in that way it
will be possible to avoid speculations by both the authorities
and the opposition. He reminded that those speculations mainly
concern imprisoned activists’ status: home political sphere’s one
wing considers them criminals, the other political prisoners. "When
clarity is introduced to those articles, the Prosecutor General’s
Office will reconsider the accusation brought to them," A. Rustamian
predicted. According to him, no sanctions were used to Armenia during
the last PACE session, as the Co-rapporteurs recorded that the RA
authorities have a political will.

A. Rustamian refuted the rumors that ARFD is going to assist former
President Robert Kocharian for the latter to become Prime Minister.

According to him, R. Kocharian himself decides what to do. Meanwhile,
A. Rustamian said that according to ARFD, in general former Presidents
should not leave active politics.

ANTI-ISRAEL: IS TURKEY THE NEXT VENEZUELA?
by Aimee Kligman

Examiner.com
86-NY-Foreign-Policy-Examiner~y2009m2d3-AntiIsrael -Is-Turkey-the-next-Venezuela
Feb 4 2009

Ataturk would be extremely unhappy about the state of affairs in the
country he founded and endeavored to keep secular. The election of
Turkish Prime Minister and head of the Conservative Islamist Party
Tayyip Erdogan may change the secular element. From a historical
perspective, Turkey enjoyed good relations with Israel, and as of
late, was party to peace brokering on its behalf with Syria. The two
countries have enjoyed a close relationship, especially in the 1990’s
brought about by mutual fear of Iran, and Syria.

Since Israel’s incursion into Gaza in late December, the Muslim
majority in Turkey has been incensed and there have been several
antisemitic incidents in Istanbul, where a Jewish community of about
25,000 still thrives.

"Down with Israel", and "We don’t want you in the Turkish Republic"
were slogans painted in red on a building close to Istanbul’s
Neve Shalom Synagogue. A huge Palestinian flag was unfurled by the
street’s inhabitants, which has been closed and protected by police
vehicles. In addition, Turkish authorities have beefed up security
around the Rabbinate and buildings owned by the Jewish Community.

The Israeli Consulate in Istanbul received many threatening emails
accompanied by antisemitc slurs. Two synagogues, one in Izmir and
the other in Kadikoy have been vandalized with graffiti. It has
been reported that some Jews are thinking of leaving the country as
they indicate that this is the worst wave of antisemitism they have
witnessed, and believe it is exacerbated by PM Erdogan. He recently
stormed out of a conference at Davos where he told Israeli President
Simon Peres that Israel was murdering children on beaches.

There has been a call in the country to boycott Jewish businesses
and in Osmangazi, the largest city in Bursa, Jews were banned from
entering a local organization which also bans Armenians.

Yesterday, Turkey’s deputy prime minister Cemil Cicek told a news
conference: ""We attach importance to our relations with Israel and
we want to preserve those relations. Turkey is not targeting Israel
or its people. We have been expressing concern over the killing of
civilians and human tragedy in Gaza."

We’ll keep watching this one.

CSTO’S RAPID-REACTION FORCE WILL BE EQUAL OF NATO’S – MEDVEDEV

RIA Novosti
20:49 | 04/ 02/ 2009

MOSCOW, February 4 (RIA Novosti) – The collective rapid-reaction force
to be created by a post-Soviet regional security bloc will be just
as good as comparable NATO forces, Russian President Dmitry Medvedev
said on Wednesday.

The Collective Security Treaty Organization (CSTO) agreed on Wednesday
at a summit in Moscow to set up the new force, to be based in Russia.

Medvedev said the force, to be comprised of a "sufficient" number of
units, would be "well trained and well equipped."

"Russia is ready to contribute a division and a brigade," he
said. "This gives you an idea of the scale."

The Russian president also said the CSTO was open for cooperation
with the United States in the fight against terrorism in Central Asia.

The Collective Security Treaty Organization (CSTO) is a security
grouping comprising the former Soviet republics of Armenia, Belarus,
Kazakhstan, Kyrgyzstan, Russia, Uzbekistan and Tajikistan.

The rapid-reaction force agreement was signed by the leaders of
all CSTO member states in the Kremlin, although Uzbekistan recorded
"a special opinion."

"Uzbekistan cannot accept the provision whereby all special services,
including emergency services, are to be part of the collective force,"
CSTO press secretary Vitaly Strugovets said.

The force will be used to repulse military aggression, conduct
anti-terrorist operations, fight transnational crime and drug
trafficking, and neutralize the effects of natural disasters.

The force will be permanently based in Russia and placed under a
single command, with CSTO member countries contributing special
military units.

A source in the Russian delegation said Uzbekistan would not
participate in the collective force on a permanent basis but would
"delegate" its detachments to take part in operations on an ad
hoc basis.

THE ENERGY WEAPON BACK TO SECURITY: CAN EUROPE BE TAKEN HOSTAGE BY RUSSIA’S NATURAL GAS SUPPLY?
by Ariel Cohen, Ph.D. and Owen Graham

The Cutting Edge
rticle=1071&pageid=20&pagename=Security
Fe b 2 2009
DC

On January 1, 2009, Russia’s state monopoly OAO Gazprom began reducing
gas supplies to Ukraine. Moscow and Kiev had failed to negotiate
the price for natural gas, and the initial reduction affected six
additional countries: Czech Republic, Turkey, Poland, Hungary,
Romania, and Bulgaria. As problematic as this was, the crisis has
extended beyond these initial victims.

Not surprisingly, Russia is losing its reputation as a reliable
supplier of gas to Europe. Motives for the Russian action include
sending a signal to Europe that Ukraine should not be integrated
into the Euro-Atlantic zone, but remain within the Russian sphere
of influence. The crisis demonstrates Europe’s strategic dependence
on Russian gas and highlights the necessity to change this situation
quickly in order to prevent Europe from being taken hostage by Russia.

Failed Negotiations Russia began halting supplies after Ukraine
rejected a proposal to raise gas prices in 2009 to $250 per 1,000
cubic meters from the 2008 price of $179.50. This was considerably
below European market price, and Russia claims that Kiev owes more
than $600 million in late fees and fines.

Subsequently, Gazprom escalated tensions, saying that it initially
wanted Ukraine to pay $418 per cubic meters, and then $450.

On Monday January 5, four days into the dispute, Prime Minister
Vladimir Putin appeared on Russian television with Gazprom chief
executive Alexei Miller and ordered supply to be cut by about 20
percent, withholding 65.3 million cubic meters of gas. Russia alleges
that Ukraine is siphoning off an equivalent amount without paying
for it.

As of January 6, 11 European countries had been affected by this
disruption: Greece, Macedonia, Serbia, Poland, Slovakia, Romania,
Hungary, Czech Republic, Italy, Turkey, and Croatia. Amidst
temperatures as low as 0 Fahrenheit, the demand for heating is
growing. Most countries have some gas storage to outlast a short
disruption, but if the crisis continues for weeks, these supplies
will run out.

It is clear that Russia has not ceased its efforts to use energy as
a weapon, while Europe and particularly Ukraine have made themselves
vulnerable by failing to diversify their energy baskets to expand the
role of nuclear energy and coal, to modernize their energy-intensive
industrial base to make it more efficient, and above all, to develop
a coherent policy toward their Russian supplier. Europe has clearly
made itself vulnerable by relying too much on Russian energy, while
the national governments and the European Union failed to develop,
coordinate, and implement effective policy which could have prevented
the current predicament.

Energy Transit and European Dependence Many Europeans look to Russia
because Europe’s own domestic gas production is in decline, while
demand is likely to rise for another decade. Demand is projected
to increase dramatically. In 2007, European demand for gas was 500
billion cubic meters (bcm) a year and is expected to rise to 800 bcm
within the next decade, according to most forecasts.

With the largest proven natural gas reserves on the planet and a
massive pipeline network built mostly in the Soviet era, Russia has
a natural leverage in supplying energy to Europe. Gazprom currently
provides EU members with one-quarter of its gas–about 160 bcm per
year; Gazprom officials hope that this number will climb to 250 bcm
per year by 2020.

Ukraine is a key energy transit state for producers in Russia and
Central Asia to European consumers. Around 80 percent of Europe’s gas
imports from Russia travel through Ukrainian pipelines: approximately
120 bcm per year. In turn, Gazprom receives around two-thirds of its
revenue from gas that passes through these pipelines, representing
20 percent of European demand.

Germany is dependent on Russia for close to 40 percent of its gas
and this number is expected to rise to 60 percent by 2020. Some
European countries areentirely dependent on Russian gas, as high
as 80 to 100 percent, such as Slovakia, Finland, Bulgaria, Greece,
Serbia, Montenegro, and Macedonia. Many of the Baltic States and the
Commonwealth of Independent States are also 80 to 100 percent dependent
on Russian gas, such as Belarus, Lithuania, Armenia, and Georgia.

The Kremlin uses this dependence as a foreign policy tool to apply
pressure against states that would adopt policies that go against
Russia’s national interests. Moscow has cut off supplies to numerous
countries over the last seven years with Ukraine as the primary target.

Undermining Ukraine Russia is escalating the gas crisis in order
to prove to the Ukrainian people that President Victor Yushchenko
and Prime Minister Yulia Timoshenko are discredited leaders, who
caused energy shortages in the middle of a harsh winter. This is the
price Ukrainians must pay, some in the Russian leadership imply, for
pursuing a pro-Western path toward NATO membership. Russia demands
that Ukraine abandon its road to NATO and the EU, and allow Moscow
to base its Black Sea Fleet in the Crimea after the current agreement
expires in 2017. If Ukraine runs out of gas reserves, this is a lesson
many Ukrainians will not forget quickly.

Gazprom has pressured Ukraine to pay higher prices since the
election of the pro-Western Victor Yushchenko. Some experts view the
current price war as outright economic warfare against Ukrainian
independence. Shutting off the gas to Ukraine denies the country
valuable transit revenue and undermines the government’s reputation
as an energy transit state.

While Gazprom has raised the price of gas to most of the customers
in the former Soviet Union in recent years, allies such as Armenia
continue to pay lower rates, while "problem" states like Georgia pay
full price.

The New Pipeline Network to Bypass Ukraine?

The Russian leadership wants Ukraine to lose its leverage over
Gazprom as a transit country. Moscow is hoping to make Ukraine
appear an unreliable partner to the Europeans, which it believes
will justify building expensive Russian-proposed gas pipe lines to
Europe bypassing Ukraine. Some European governments, notably those of
Germany and Italy, would now support these "direct" pipelines which
bypass Ukraine, such as Nord Stream, chaired by the former German
Chancellor Gerhardt Schroeder, and the South Stream along the Black
Sea bottom. Yet, concerns over excess dependence on Russian energy,
the current economic crisis, and high costs of these projects raise
questions about the timetables and affordability of the new pipelines
from Russia.

The astronomic price tag for both projects, over $30 billion, makes
them seem less feasible today than even a year ago. Furthermore,
the pipelines proposed by the Russians would only increase Europe’s
dependence on Russia. The more Germany and Italy’s dependence on
Russian gas increases, the less they would be inclined to stand up
to Russia over any foreign policy excesses.

Ukraine’s Inefficient Energy Sector Ukraine is not without blemish,
as its leaders have made it vulnerable to Russian tactics and
pressures. Ukraine’s manufacturing sector is notoriously inefficient,
producing a mere 10 percent of Germany’s output, while consuming as
much energy as Germany does. Ukraine’s energy sector suffers from
lack of transparency and from corruption, regardless of who is in
power in Kiev.

Swiss-registered RosUkrEnergo, for example, was in charge of marketing
gas from Russia and Turkmenistan until October 2008. This company is
a shady entity with allegedly illicit ties, and is an intermediary
that benefits businessmen and government officials who prefer
anonymity. RosUkrEnergo, like a number of other middleman companies
Russia has set up in Europe, is a gas-trading company that does not
own any gas fields or pipelines. It is also not the first middleman
company in the Russian-Ukrainian gas trade.

RosUkrEnergo was created in 2004 and is owned jointly by Gazprom
and two unknown Ukrainian businessmen for the benefit of themselves
and unnamed government officials. Experts have pointed out that
the company appears to have links to organized crime. Despite the
lack of transparency, Gazprom has insisted on the continuing role
of RosUkrEnergo in the Russian-Ukrainian gas trade. In October 2008,
Ukraine and Russia agreed that their government-owned gas companies,
Naftogaz and Gazprom, will deal directly with each other.

The Ukrainian state-owned energy sector remains overly politicized,
mismanaged, and laden with conflicts of interests. By now, Ukraine
should have taken steps to modernize its energy sector, including
privatization and getting rid of the shady middlemen.

Recommendations for the Obama Administration The Kremlin derives
leverage from its control of gas production and supply networks. It
uses its energy supplies to divide Europe on key issues, thus weakening
Europe’s bargaining power in economic and geopolitical relations
with Russia. This dependence increases Europe’s "continental drift"
from the U.S. by limiting the foreign policy options available to
America’s European allies, and forcing them to choose between an
affordable energy supply and siding with the U.S. and NATO on key
strategic issues, such as missile defense or opposing Russia’s
treatment of Georgia.

U.S.interests lie in strengthening its European allies in their dealing
with Russia, promoting transparency and energy security in Ukraine,
and supporting Ukraine’s course for Euro-Atlantic integration.

In light of these circumstances, the U.S should:

Support European diversification of energy transporta¬tion routes in
Eurasia. Specifically, the U.S. should support the construc¬tion of
the Nabucco pipe¬line which would bring gas from the Caspian basin,
via Azerbaijan and Georgia, to Europe. The U.S. should oppose any
excessive dependence of its allies on Russian energy exports and
should encourage application of the European anti-trust legislation
against Gazprom.It will also be necessary to encourage EU members to
establish and implement a joint policy on their dealing with Moscow
in the energy sector.

Encourage Europe to construct more liquefied natural gas (LNG)
terminals, importing gas from Qatar, Algeria, and Nigeria, thus
diversifying the sources of gas. Moreover, Germany, Italy, and other
countries in Europe should be encouraged to develop coal, nuclear
power, and competitive renewables as sources of affordable electricity.

Support Ukraine’s efforts to modernize its energy sector, including
reforms to increase transparency and energy efficiency, privatize
and liberalize oil and gas sectors, depoliticize management, and
decisively remove middlemen in energy transactions.

Time to Face the Cold Facts As frigid Arctic winds blow across
Europe, it is time to face the cold facts: Dependence on Russian
gas is undermining European security. Russia is likely to use its
energy muscle to impose its geopolitical agenda on its neighbors,
today and in the future. To change this situation, European countries,
including Ukraine, need to work with the United States to diversify
sources of energy and stand up to Russian bullying.

Ariel Cohen, Ph.D., is Senior Research Fellow in Russian and Eurasian
Studies and International Energy Security at the Katherine and Shelby
Cullom Davis Institute for International Studies at The Heritage
Foundation. Owen Graham is Research Assistant at the Davis Institute.

–Boundary_(ID_pFamDaQcwiRY49vEOqcviQ) —

S. SARGSYAN SAYS ARMENIAN POSITION IS CLEAR AND UNEQUIVOCAL: WE MUST REACH THE INTERNATIONAL RECOGNITION OF THE RIGHT OF NAGORNO KARABAKH PEOPLE TO SELF DETERMINATION

ARMENPRESS
Feb 2, 2009

YEREVAN, FEBRUARY 2, ARMENPRESS: "The position of Armenia is clear
and unequivocal: we must reach the international recognition of the
right of Nagorno Karabakh people to self determination", during the
meeting with the representatives of Swiss Armenian community the
Armenian President Serzh Sargsyan said referring to his January 28
meeting with Azerbaijani President Ilham Aliyev in Zurich.

"We continued negotiations over Karabakh conflict regulation. In
this respect the Armenian position is clear and unequivocal: we must
reach the international recognition of the right of Nagorno Karabakh
people to self determination. You can be sure in this we put no other
task in front of us. And the myths that out of certain aims or being
unable to stand pressures we can make one-sided concessions in Karabakh
issue do not correspond to reality. We cannot yield our national aim,
the general issue, for solution of certain secondary problems", –
Armenian president said.

OPPORTUNITIES OF ESTABLISHING AN ARMENIA FUND LOCAL COMMITTEE IN IRAN TO BE DISCUSSED

armradio.am
03.02.2009 14:40

Hayastan Fund Acting Executive Director Ara Vardanyan left for the
Islamic Republic of Iran with a two-day working visit. The purpose of
the visit is to discuss possibilities of establishing a Fund local
committee in Iran. The trip was organized with the support of the
Armenian Embassy in Iran, as well as Chairman of the Armenian Council
of Tehran Aida Avanesyan.

Meetings are scheduled with the Armenian Ambassador to Iran Karen
Nazaryan, primate of the Armenian diocese of Tehran Archbishop Sepuh
Sargsian, management of the of Ararat sport center in Tehran, and
representatives of the Armenian cultural NGOs in Iran.

Ara Vardanyan believes that foundation of a local committee in Iran
will make the already established rapport between the Fund and the
Armenian community in Iran even more efficient.

There are around 100,000 Armenians living in Iran currently. Thanks to
their sponsorship a number of projects were implemented in Shvanizor,
Alvank and Nrnadzor villages of Megry region, Armenia.

ARMENIANOW.COM
Administration Address: 26 Parpetsi St., No 9
Phone: +(374 1) 532422
Email: [email protected]
Internet:
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Juharyan)
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*************************** **************************************************
January 30, 2009,

1. Time Added for Good Behavior: PACE extend deadline giving
authorities until April to complete 03/01 investigation

2. Good Business in Garbage: Vanadzor to create recycling plant

3. Historic Message: Obama’s Election Sets Standard for All Governments

4. Capital Changes: New law on Yerevan municipality takes effect this week

5. Silk Road on Rails?: Armenia-Iran railway gaining speed – at
least in debate

6. Arrests in Georgia: Two Armenians detained on espionage suspicion

7. Bad Odds: Crimes in Yerevan up 10 percent in 2008; police
success rate up 4 percent

8. Facing the Challenge: VivaCell-MTS aims to continue
business/social success of previous years

9. Looking for the "Shock Absorber": Does Armenia have a "middle class"?

*********************************** *****************************************
1. Time Added for Good Behavior: PACE extend deadline giving
authorities until April to complete 03/01 investigation

Gayane Abrahamyan
ArmeniaNow reporter
According to newly-adopted Parliamentary Assembly of Council of Europe
Resolution 1643, Armenian authorities have three months to complete
its investigation into the March 1-2 post-election clashes of last
spring or face sanctions. On Tuesday Armenia escaped having its
Council of Europe voting privileges revoked when PACE, for the second
time, extended its deadline for giving Armenia time to explain what
led to the deaths of 10 and the imprisonment of more than 100, 60 of
whom had been classified "political prisoners" by PACE.
Armenia’s radical opposition, the Armenian National Congress (ANC) –
led by former president and last February’s main contender for
president, Levon Ter-Petrosyan — considers the resolution a fraud of
justice that favors local authorities.
"It comes to prove once more that Europe does not follow its
democratic rules. What could change in a day that they simply removed
the expression ‘political prisoners’ from the document? Are these
people no longer political prisoners? If they aren’t, why does PACE
demand to release them?" says Arman Musinyan, Ter-Petrosyan’s
spokesman.
The resolution states that "the Parliamentary Assembly considered that
progress had been insufficient" and that "the charges against a
significant number of persons… could have been politically motivated."
However, PACE welcomes "the increasing number of presidential pardons…
and expresses its expectation that this process will continue
unabated."
About 30 people spoke during the two-hour heated debates in Strasbourg
on January 27, with most delegates speaking out in favor allowing
Armenia to keep its status as a voting member. The Russian delegation
was the most ardent supporter of Armenian authorities, criticizing the
opposition’s activities. "It was very wrong of the opposition to show
defiance in protesting the results of the presidential election," the
Russian delegates said, condemning the opposition for rebellious
appeals.
The Azeri delegation took the opportunity to insult its neighbor and
enemy, urging PACE to suspend Armenia’s right to vote.
Gultakin Hajieva, an Azeri delegate, said "Armenia has no place in the
European family," adding "the regime that had slaughtered 600 peaceful
people in Khojalu raised its hand against its own people," she said,
referring to disputed history of Armenia’s war with Azerbaijan over
Karabakh.
Rumors fly that Armenia had to pay a high price for not being expelled
from PACE. Armenian authorities are said to have agreed to make
compromises in the Karabakh issue. Speculation has centered, too, over
whether the reprieve in Strasbourg was influenced by potential secret
negotiations outlined in Wednesday’s meeting between President Serzh
Sargsyan and Azeri President Ilham Aliyev in Switzerland.

Aram Manukyan, an ANM (Armenian National Movement) oppositionist
member was quoted as saying: "It is ridiculous that they deny any
compromise, as the direct connection between these two issues is
obvious. The illegitimate government is so confused that its political
steps are dictated. It will turn out that considerable compromises
have been made."
Eduard Sharmazanov of the ruling Republican Party of Armenia denies
rumors about possible compromises.
"No such thing is possible. It is the opposition’s style," he said.
"They claimed three months ago that they had to postpone rallies
because of the ‘sad’ prospects of the Karabakh issue. Now they desire
to see Armenia deprived of the voting right," Sharmazanov continued.
Three major changes occurred in the new resolution, with PACE omitting
the part about "political prisoners in Armenia."
In his report, PACE Co-Rapporteur John Prescott said he still believes
"some of the arrested persons are political prisoners."
The most important change in the resolution is Rule 9, stating PACE
will not suspend Armenia’s voting right at this stage. The
Parliamentary Assembly has decided "to invite its Monitoring
Committee, at its next meeting, before the April 2009 part-session, to
examine the progress" achieved in Armenia.
According to Sharmazanov, the most important revision in the document
is that PACE welcomes Sargsyan’s political will to implement
democratic reforms. He says this is the whole nation’s victory, as the
country has taken great efforts to achieve this resolution. "Nobody
has cheated the European Council. It is they who have recorded a
significant progress," Sharmazanov said.
The co-rapporteurs have based their decision on the government’s
intention to amend the RA Criminal Code, a swell as the January 24
presidential pardon granted to 16 persons who had been charged with
crimes related to the deadly March events.
The opposition claims the pardoned convicts were criminals, not
political prisoners.
Most of the pardoned persons were charged for theft and larceny, with
two convicts admitting in court to be Sargsyan’s proxies, said Armen
Khachatryan, coordinator of Legal Support to Convicts NGO.
"As they were under provisional detention, the government turns out to
have pardoned non-convicts," he added.
The opposition also doubts the government’s readiness to amend the
articles 225 and 300 of the Criminal Code referring to "Mass disorder
accompanied with murder…") and Article 300 on Usurping State Power –
punishable by 6-15 years imprisonment.
"It is obvious that the Armenian authorities have made this proposal
to gain time and evade the issue," ANC says.
The Center for the Protection of Prisoners’ Rights says around 50
persons were charged on Article 225 and 25 persons were charged for
"usurping State power".
Attorney Hovik Arsenyan, who has represented about 20 persons charged
in relation to the March 1-2 clashes, is sceptical about the positive
results of the amendments. "The application of the articles are wrong,
not the law itself," he said.
"Article 300 is on the usurpation of the power, with dozens of people
charged on this article. No one has ever seized the power," the lawyer
added, pointing out the detained persons are still in prison. "No
matter how many times they amend the law, they will charge the same
innocent people if they want," he concluded.
According to Sharmazanov, though the judiciary is imperfect, it is
undergoing changes.
The republican quoted Levon Ter-Petrosyan saying in 1996: "Armenia
will be in line with European standards only after ten presidents
follow me."
"Now they want to become a strong democracy in a year," Sharmazanov
said. "They want the Armenian government to immediately overcome their
attempt of revolution and the bloody events, so that they can be in
line with European democratic principles," he concluded.

************************************** **************************************
2. Good Business in Garbage: Vanadzor to create recycling plant

By Naira Bulghadaryan
ArmeniaNow Vanadzor reporter

While the global economic crisis continues to devastate enterprises
worldwide, authorities in Vanadzor have announced a business project
unprecedented for Armenia.

Vanadzor (population 100,000) has been chosen as site of a plastic
recycling plant – a first for Armenia and the entire Caucasus.

"We will reduce non-degradable wastes," says Suren Karapetyan, head of
the Department for Programs and External Relations, Vanadzor
Municipality, adding that modern technologies and methods will be
used. "Non-biodegradable wastes that remain in the soil will be
recycled, enabling us to open new employment opportunities and clean
the city," Karapetyan says. The new enterprise will create at least 20
jobs in the plant( with more people to be hired to collect the plastic
throughout the city).

In partnership with GTZ (an international cooperation enterprise for
sustainable development with worldwide operations)Vanadzor
Municipality aims at clearing the city’s streets of household waste
and plastics, as well as making recycling a common and useful
occurrence in Armenia. As with other cities and villages of Armenia,
plastic containers including cellophane shopping bags are a blight on
the landscape and an eyesore.

The municipality has announced a competition for the best business
project and will choose the winner by mid-February. The German company
will grant the winner 12,000 (4.7 million drams)to buy necessary
equipment.

Vanadzor’s business circles are discussing the municipality’s plan and
some of them are already going to submit their projects to local
authorities.

Businessman Aharon Makaryan, director of Marmos Ltd, (A Vanadzor-based
company dealing with trade, real estate, internet clubs) is getting
ready for the competition.

Makaryan’s business project focuses on recycling technologies, as well
as on how to use the recycled waste. However, the businessman prefers
maintaining confidentiality.

He unveils his plans only partially, saying the plastic containers
will first undergo grinding, then they will be washed and dried at a
certain level of humidity. The enterprise will use the primary product
to manufacture nonfood products.

"Waste recycling is not a profitable business, but using recycled
products in industry is truly beneficial," Makaryan says.

Being sure of his company’s victory, the entrepreneur has purchased
necessary equipment and installed them at the site of his "future
enterprise". He hopes to buy the rest of the facilities with the help
of the German company’s grant.

He has even consulted with GTZ specialists about recycling
technologies. The businessman has also met with the workers of the
Vanadzor-based Polymer-Glue Research Institute (which produced polymer
goods, like dye, glue, etc.) to discuss with them how to make a better
use of the recycled waste.

"If they (the jury of municipal experts) decide to finance another
project, the German grant will hardly be enough for them to procure
equipment. No one except our company has necessary facilities to build
a production line," Makaryan says, underlining his company’s
privileges, including threshers, cleaning and drying machines and
necessary production line.

Felix Chilingaryan, president of Lori region’s Union of Employers
believes in the success of the first waste recycling project in
Vanadzor, taking into account the city’s industrial achievements in
the past.

"Let’s not forget that Vanadzor was once a large industrial city with
brilliant specialists," he says. Though the new enterprise is unlikely
to lack for professionals, if necessary, foreign specialists will be
invited."

Meanwhile local authorities say they are going to give preference to
the most realistic, profitable project that will help clean the city
and nearby forestlands from plastic waste.

Authorities do not deny that the four trash collecting companies
currently working are scarcely able to clean the city from its
rubbish.

Lyova Melikyan, head of the Department for Public Services, Vanadzor
Municipality believes the waste recycling enterprise will make the
trash-cleaning task easier. At the same time he blames residents for
not throwing garbage into the trashcans and leaving trash bags in
nearby areas instead.

The overfilled Vanadzor dump, located in Arjut village, (15km outside
Vanadzor) was built 18 years ago. Around 25 trash collecting trucks
with four cubic meters each transport household waste from Vanadzor to
the Arjut dump every day, with plastic containers constituting about
20 percent of the rubbish.

Melikyan believes the new recycling enterprise will help spare about
five garbage trucks.

The municipal authorities plan to raise public awareness of the issue,
explaining to residents the importance of separating plastics from
household waste and plan to place recycling bins for plastics.
**************************************** ************************************
3. Historic Message: Obama’s Election Sets Standard for All Governments

A commentary by Jirair Haratunian

On January 20, 2009, with more than a million cheering people standing
in bitter cold on the grounds facing the American Capitol building,
Senator Barack Obama was sworn in as the 44th President of the United
States. Obama’s election was historic. It was the culmination of a
two-year-long election campaign in which more than a dozen candidates
debated publicly more than 20-times seeking to become their party’s
nominee. And following their respective nominations, Senators Obama
and John McCain conducted an unprecedented nationwide campaign, up to
Election Day on November 4, 2008.

President Obama’s election was historic for many reasons, but perhaps
the most important was that it demonstrated the two greatest gifts of
a democracy, the sanctity of a citizen’s ballot and the peaceful
transfer of presidential power.

That standard, while universally admired, is violated by too many
governing regimes. They intimidate and bribe voters, stuff or miscount
ballots and declare victories that are obviously flawed. Regrettably,
the standard has not been met in the 17 years of independent Armenia’s
history.

Electoral malfeasance is usually followed by more protests, occasional
violence and the arrest of protesters. Then, there is increased
economic corruption and emigration of the young and the ambitious.
While all of this occurs, governing regimes piously declare that they
are committed to democracy.

This unfortunate pattern has been experienced to one extent or another
by all the republics of the former Soviet Union, including of course –
as was demonstrated just about a year ago – Armenia.

All post-Soviet republics inherited a "top down" system of power and
authority that has proven to be very difficult to reverse. Personal
interests are at stake and politicians in power resist risking their
political and economic fortunes in honest and transparent elections.

In truth, the process of democratization is by necessity evolutionary.
Most, if not all, post Soviet societies have no history, or limited
experience, with democratic systems. Progress has been slow, uneven
and frustrating.

As examples, soon after the "color revolutions" in Ukraine and
Georgia, which were hailed in the west as democratic successes,
progress faltered. New struggles for power among political rivals have
caused political and social crises in Ukraine. And in Georgia, new
violations of minority rights were followed by an ill advised war with
Russia which resulted in the loss of the disputed regions of South
Ossetia and Abkhazia.

Meanwhile, in Russia, the public appears to prefer the stability of
authoritarian rule by Vladimir Putin’s regime, now headed by President
Dmitry Medvedev, over the earlier Boris Yeltsin government that was
more democratic, but economically and politically unpredictable.

Nonetheless, Russians and neighboring people living in this
post-Soviet environment surely felt envy watching the worldwide
broadcasts of the inaugural spectacle in Washington on January 20.
Most undoubtedly wondered when they would also experience the
satisfaction of choosing their national leaders through free
elections.

In fairness, it must be said that America’s own political history has
not been without blemish and controversy. In recent years, its image
and reputation have been damaged at home and abroad, but what is
enduring in the American experience is that in the end, citizens are
the ones who decide through their ballots who will be chosen to
govern. These standards are irreversible and stand in sharp contrast
to dictatorial rule.

In his inaugural address President Obama spoke eloquently to the
problems of despotism. He said, "To those who cling to power through
corruption and deceit know that you are on the wrong side of history."
*********************************** *****************************************
4. Capital Changes: New law on Yerevan municipality takes effect this week

Gayane Lazarian
ArmeniaNow reporter

The Republic of Armenia Law on Local Administration of Yerevan city
came into effect this week, which will delegate municipal authority in
Yerevan to a City Council by December 6 of this year. The post of
mayor – previously appointed by the President of Armenia – will be
determined by a proportional election of parties.

Hrair Tovmasyan, an electoral law expert, legal advisor of the
Association for German Technical Cooperation (GTZ), states that the
amendments in the RA Constitution of 2005 have created favorable
grounds for an efficient model of Yerevan city’s municipal government.

"The newly enforced law stipulates elections of Yerevan city council
through 100% proportional system – this is a novelty in our reality.
While in case of the National Assembly the process of transforming
majoritarian electoral system into a proportional (single mandate) one
is gradual, here in this case the change will be instant", says
Tovmasyan.

The mayor of Yerevan city will not be elected through "direct"
elections. Calling this "quasi-direct elections", Tovmasyan clarifies
that the top position holder on the list of a party scoring 50% plus
one vote in elections will automatically become mayor. If any of the
parties fail to score the 50% plus one vote, then the mayor shall be
elected by Yerevan city council of aldermen. However, in that case,
only representatives of those parties who hold top positions on their
lists can be candidates for the mayor’s post.

David Harutunyan, chairman of the Standing Committee on State Legal
Issues of RA National Assembly believes that one of the basic
shortcomings of democracy in Armenia is that political bodies have
virtually no opportunities outside parliamentary and presidential
elections.

"Parliamentary elections ought not to serve as an experimental field
for political parties; rather this should be a result of continuous
effort. Such issues are regulated through politicized elections of
local authorities. Local administration bodies serve as a field for
experiments, where political parties test their ambitions, win their
voters’ trust, demonstrate their abilities, and further aim at higher
positions", Harutyunyan (former Minister of Justice) says.
Yerevan City Council will consist of 65 members, elected for a term of
4 years, and the Mayor will be elected for the same term. The mayor
may or may not be affiliated with any party.
The new law will abolish the current system of Community Heads; they
will be replaced by heads of 12 administrative districts appointed by
the mayor.
Heritage Party parliamentary faction voted against this draft law.
Deputy Zaruhi Postanjyan, Heritage faction member, explains the
reasons for voting against it, saying that it would be more
appropriate if the mayor of Yerevan were elected through direct
elections because the opposition is more active in the city, therefore
an opposition candidate would have more chances to be elected by
people than through indirect elections," she says.

Opposition members say the amendments to the law should have lead to
decentralization of the governing system. Yerevan should not depend on
the central government and should not perform the orders of the
president or the government. The amendments, instead, they say, would
contribute to a much deeper dependence of the mayor from the central
government and the leading party. As a result, the mayor is again not
independent but would depend on the party list, and in this case, on
the leading political force – the Republicans.
Grigot Harutyunyan, member of oppositional People’s Party of Armenia,
points out that his party also favors direct elections of the mayor.
"After all, it is easier for the authorities to falsify the elections
of the City Council than mayoral elections. Just as it is easier to
falsify parliamentary elections as compared to presidential ones.
Besides, the problem is rather the lack of political will on the part
of the authorities; and they will bypass any law whatever it is,"
Harutyunyan says.
Political analyst Yervand Bozoyan says according to the new law
Yerevan will have one community head.
"This is literally an imitation, and has nothing to do with local
government. In countries like Armenia, the model of indirect elections
does not work. How it is used in more democratic countries is another
issue," he says.
Tovmasyan believes that the type of mayoral elections stated in the
draft is more appropriate. "Comparing whether direct election is
better than an indirect one is pointless, as there have to be
elections and they have to be fair," he says. "The concept of direct
elections for both the City Council and the mayor is a potential
conflict bearer, especially as they would represent different
political forces."

According to him, one person’s responsibility differs substantially
from that of a party. If in case of direct elections, a person is
chosen as a scapegoat for failed projects, in this case an entire
political team is accountable, be it a party or a coalition. The
suggested model might be used for other communities as well, and in
the future even for the country, as an efficient government model.
******************************************* *********************************
5. Silk Road on Rails?: Armenia-Iran railway gaining speed – at least in debate

Marina Grigoryan

A railway that would join Iran and Armenia appears to be nearing
reality. Armenian authorities say the Iran-Armenia railway is the
government’s top priority, as the crucial communication route would
provide land-locked and border-restricted Armenia with a link to the
outside world that is currently severely missing.

Experts on trade communication say the complex geopolitical and
economic realities of the region and indeed the world have caused
official Yerevan to fast-track negotiations.

"The railway has a strategic importance for Armenia and we should have
launched its construction shortly after the country gained
independence," Gagik Asatryan, chair of the Department of Iranian
Studies, Yerevan State University, told ArmeniaNow.

According to preliminary calculations, the railway construction may
cost around $2 billion and will last five years. The railway will be
540 km long, with 480 km of the main line passing trough Armenia’s
territory, RA Deputy Minister of Transport Hrant Beglaryan said,
citing the project’s feasibility.

Pending results of the study, construction of Armenia’s section could
begin mid-year.

"If Armenia implements its part of the agreement, the Iranian railways
will have no difficulty building a 60 kilometer-long section," the
minister said in a January 19 interview to Gudok, the official
newspaper of the Russian Railways.

Director of the Iranian Railways Hasan Ziyari said his side stands
ready to participate in the railway construction. Emphasizing the
project’s importance for Armenia and Iran, he said it is among Iran’s
top priorities.

There are three possible routes for the railways. As Armenian minister
of Transport ?? Gurgen Sargsyan says, the most preferable for Armenia
is the route, which starts from Gagarin’s village ( from the existing
railway station (Gegharkunic province)) then will goes through towns
Gavar, Martuni to Jermuk (Vayots Dzor province) then to Meghri
(Syunic province, border with Iran). The remaining 60 km of railway
will pass through Iran territory.

Experts say the two major hindrances for the project are the U.S.
barrier and lack of funds. They believe U.S. Secretary of State
Hillary Clinton’s statement during the January 13 Senate hearings
about the U.S. administration considering a new approach to relations
with Tehran has made Armenia more optimistic about the project.
"I don’t think we have any problems with the US. Washington has never
hindered Armenia’s relations with Iran. Moreover, Armenia is the only
country in the region in this context," said Sergey Minasyan, deputy
director of the Caucasus Institute.
According to Armenia’s Prime Minister Tigran Sargsyan, the Asian Bank
for Development (ADB) has allocated around $1.5 million for
Iran-Armenia railway’s feasibility study.

According to Minasyan, the government’s priority task is to attract
foreign investments to implement the project.

He was quoted as saying: "The Armenian government must arouse the
interest of offshore investors. China and ADB are among potential
investors and this may herald a new Silk Route."

(The Silk Road is the trade network of 7000 km, existed till the XVI
century, connecting Eurasian counties, from Western Europe to China)
Russia is likely to take a keen interest in the project, taking into
account that the Russian Railways is the operator of the Armenian
Railway.

"If the financial crisis did not hit the global economy, Russia would
obviously take an active participation in the project. Since the
Russian Railways is the concessionaire of the Armenian Railway, Russia
is to render a financial assistance to the project by all means,"
Minasyan said.

According to professor Asatryan, no matter how attractive, Armenia’s
neighbors are unlikely to support the project, as it contradicts their
political interests.

"This grants Armenia a direct access to the outside world,
particularly, to the Persian Gulf," Asatryan said, adding Turkey,
Georgia and Russia are unlikely to hold Armenia’s interests (although
the Russians will operate the line).

Armenia’s premier says the best time to launch the railway
construction is late this year. However, everything depends on the
project’s feasibility study.
******************************************* *********************************
6. Arrests in Georgia: Two Armenians detained on espionage suspicion
By Siranuysh Gevorgyan
The detention of Armenians in Javakhk, Georgia, raised concerns in
Armenia with some political experts claiming that detention was an
attempt of the Georgian authorities to instigate Armenians to stir up
a rebellion and provoke ethnic clashes.
On January 27, during a press conference in Hayeli (Mirror) Club, MP
Shirak Torosyan said Georgia aims at aggravating the situation in
Javakhk by creating an atmosphere of fear and uncertainty in the
region
At a press conference In Yerevan on Tuesday Republican Shirak Torosyan
who just returned from Javakhk told journalists that on January 22 two
young Armenians were arrested in the Youth Centre of Akhaltska.
(Grigor Minasyan, director of the Centre, and Sergey Hakobjanyan,
president of Charles Aznavour Benevolent Organization). The Georgian
police burst into club, where seized all cell phones, collected
information from the computers, took away books and magazines from the
library. The two men were accused of committing a deliberate crime,
forming an armed group, and spying. Georgian Interior Ministry
declined to reveal other details of the case. "Further statements on
the matter will be made later," the Interior Ministry spokesman, Shota
Khizanishvili told Civil. Ge news agency.
(Javakhk is the historical name of Samtskhe-Javakhketi, region in the
south-western of Georgia, where three regions out of 6 are mainly
Armenian populated, with some 100,000 Armenians living there.
Armenians living there demand to respect their rights as a national
minority which they claim are being violated by Georgian authorities.
Time to time the situation in between Armenians and Georgia
authorities is getting tense)
The Armenians remain in detention in Tbilisi. So far, Georgian
authorities have given no information about what country the Armenians
had spied for and what kind of armed group they had formed.
"Arresting these people, Georgia aimed at precluding Armenian
national, public and cultural activities in Samtskhe-Javakhk,"
Torosyan said, adding he personally knows the detained young people,
as they both were engaged in cultural and educational activities in
Javakhk.
Doctor of Philology Haykazun Alvrtsyan also expressed concern about
the current situation in Javakhk. He said the accusations of Georgian
authorities were nonsense. "They want to give a criminal implication
to a political problem," Alvrtsyan said, adding in case their
"justice" triumphs and they prove Armenians are forming an armed
group, Georgian authorities will start a witch hunt.
According to Alvrtsyan, setting this trap, Georgian officials try to
destabilize the situation and clean Javakhk from Armenians, thus
allowing Turkey to surround Armenia.
"Let’s not forget that Javakhk is the only link connecting Armenia
with the Christian World and Europe," he said.
Both Alvrtsyan and Torosyan are discontent with the Armenian
government’s inaction. According to Torosyan, Armenian authorities
must react to the arrest of the young people and try to solve all the
existing problems of Armenians in Javakhk.
Having met with local high-ranking officials, Torosyan is still
waiting for any response from the Georgian Ministry of Home Affairs
and other officials. As an MP, he intends to raise the issue during
the RA Parliament’s regular meeting.
Critics say Armenian authorities are passive, not wishing to risk
Armenian relations with Georgia, it being the only link that connects
Armenia with the outside world. Thus, Georgia can throw obstacles in
Armenia’s way any time the government takes decisive actions to settle
the dispute. Torosyan differs from this opinion, claiming Javakhk’s
strenuous efforts prevent Georgia from hampering Armenia’s transport
communication.
The MP believes the dispute can be settled either by repeating the
Karabakh scenario or by reaching mutual consent. "This must become the
number one topic in intergovernmental relations," Torosyan said.
According to Sevak Artsruni, president of Yerkir Union (a Yerevan
based NGO which has branches in Javakhk and Karabakh ), Armenia
should work with the world community and international organizations
to make Georgian authorities obey the ethnic rights of local
Armenians.
********************************* *******************************************
7. Bad Odds: Crimes in Yerevan up 10 percent in 2008; police success
rate up 4 percent
Arpi Harutyunyan
According to victims of random burglaries, theft is on the increase in
Yerevan. In the week of January 12-19, police recorded 70 thefts, of
which 39 were solved.
RA Police Spokesman Armen Malkhasyan refused to make comments on the
alleged wave of larceny, adding police cite only facts. Nor would he
say whether the 70 thefts in one week is in line with statistics from
a year ago.
According to victims of crime, however, even official statistics do
not reveal an accurate picture as, they claim, police encourage
victims to not fill out reports allegedly claiming that it makes the
police department appear ineffectual if all the crimes are not solved.
"Last year, burglars cleaned out our house, taking with them gold,
jewelry, expensive clothes and perfumes," says Yerevan resident Marine
Danielyan. "We called the police at once… They came and persuaded me
against writing any complaint. Later, they turned out to have caught
the burglar, but I was not considered a victim since I had not written
any letter of complaint". And because there was no letter of complaint
she did not get her property back.
Lyova Harutyunyan, 54, a resident of Komitas, told ArmeniaNow a
similar story. "When thieves entered my cellar, I called the police.
They asked me not to complain of the case, saying it would hardly be
of use and could harm their reputation in case the crime was not
solved," he said. (In Harutyunyan’s case, unlike Danielyan’s, thieves
took canned goods and other food items, so perhaps police were
justified in calling it a case that couldn’t be solved.)
Malkhasyan strongly denies allegations that police discourage crime
reports. "No such thing could possibly happen. All crimes must be
recorded, otherwise this would mean hiding information," the spokesman
stated briefly. However, when asked to compare this year’s string of
January thefts with last year, the spokesman said no such data was
available.
According to police information, 8,428 crimes were recorded in Armenia
in 2008 – a 10 percent year-on-year rise.
Last year, the RA Police recorded 108 murders and attempted murders
(compared to 99 in 2007), 215 cases of using force against individuals
(185), 19 cases of sexual abuse and attempted rapes (8), 286 cases of
disorderly conduct (241), 126 frauds (76), 224 burglaries (123), 3,216
thefts (2,712), including 854 break-ins (802) and 77 cases of larceny
(69).
The RA Police cannot say why the crime rate is rising.
"We cite facts instead of making assumptions," Malkhasyan said.
Non-experts speculate that the rise in theft reflects hardships of the
global economic crisis – especially for Armenian immigrant workers,
who had to return home, suffering the most.
Economist Liana Mesropyan does not share this view.
"The reason for the crime wave is the lawlessness in Armenia, the
indifference of police, as well as corrupt and non-professional work,
not the economic crisis," she said, adding population insolvency is
one of the reasons of the crime hike.
The RA Police prefers not making any reviews on the issue, citing
their success in solving 54.7 percent of crimes in 2008 as compared
with 50.9 percent in 2007.
While not speculating on causes, it would appear that police have seen
reason to step up crime-prevention. They have set up a hotline:
calling 54-69-12 or 54-69-14, citizens can complain about unrecorded
crimes and violations of their rights.
When ArmeniaNow tested the phone line several times over the past two
weeks, there was no answer.
Vahan Ishkhanyan, a journalist who used to write about crimes, became
a victim of a home burglary at the beginning of the year.
On January 4, Ishkhanyan went to a shop, leaving his apartment on
Leningradyan Street for 50 minutes. He remembered his neighbor’s
apartment being cleaned out a month ago. "My flat was on the first
floor. The burglars climbed the second floor up the bars on my
window," the journalist said, adding he had forgotten to double- lock
the door.
When Ishkhanyan retuned home, he found that burglars had taken $300,
120,000 drams( about 393$) and a $2,000-laptop with a huge information
archive, including the electronic version of the reporter’s unfinished
book.
"I found out that they had taken my wallet and emptied a metal box for
cash. But something was shining inside the box," he said.
When the police opened the box, they found a 100-dram coin inside.
"They’ve probably left it for you," a police officer said, jokingly.
A few days later, the journalist filed a claim, though he was pretty
sure it would change nothing.

**************************************** ************************************
8. Facing the Challenge: VivaCell-MTS aims to continue business/social
success of previous years

Karine Ionesyan
Special to ArmeniaNow

Armenia’s leading mobile operator K-Telecom (under theVivaCell-MTS
brand) this week summed up the results of the business year 2008 and
made public its short-range objectives.

VivaCell-MTS General Director Ralph Yirikian and MTS Vice President
Oleg Raspotov told journlalists at a press conference on Thursday in
Marriott Armenia that the global financial crsis is unlikely to bite
into VivaCell-MTS, a subsidiary of Russia’s top mobile operator MTS
(Mobile TeleSystems).

"This year, our primary objective will be maintaining leading
positions in the local market. No job cuts are expected in the
1,200-member staff, but we will not open new vacancies in 2009," said
general director Yirikyan.

The mobile operator strengthened position in 2008 with a market share
that reached more than 78 percent with more than 2 milion subscribers.
VivaCell entered the Armenian market in 2005.

Armenia’s number one taxpayer, VivaCell-MTS paid $1.26 million in
taxes last year. Corporate management says the company will implement
$55 million in programs this year in Armenia, including launching a
"third generation" netword to improve mobile communication.

Viva-Cell-MTS leaders did not say when exactly the network will
operate, adding they will intorudce a pilot project first.

"At the initial stage, the network will operate in Yerevan, Gyumri and
Vanadzor," Yirikyan reported.

In addition to 093,094,077 codes the mobile operator will launch this
year the 098 code, saying it will guarantee an uninterrupted
connection even in the underground metro.

The coming year will also see the continuation of VivaCell-MTS’
Corporate Social Responsibility (CSR) programs (VivaCell-MTS to
Children, VivaCell-MTS Culture’s Friend and VivaCell-MTS Sponsor of
Sport), which in the previous year saw the communication giant do
groundbreaking work to promote corporate social responsibility..

"Challengers are leader’s best friend," says Yirikiam, adding that his
company is ready for a year that "will be very challenging on more
than one level."

*********************************** *****************************************
9. Looking for the "Shock Absorber": Does Armenia have a "middle class"?

Sara Khojoyan
ArmeniaNow reporter

As Armenia continues to re-define itself in post-Soviet culture strata
of society are mostly identified in extremes – the very rich and the
very poor. Then comes the poor, and from there the lines become less
distinct.

There is a certain category of people in Armenia who consider
themselves middle class, however there are no criteria and a system of
values according to which they can be characterized as such.

While in developed countries the middle class as a rule makes 50-60 of
the population and play a role of economic, political and social shock
absorber, in Armenia it is not yet properly formed, despite the fact
that those above dire poverty think of themselves as middle class.

According to classic economic patterns, Armenia’s middle class should
stand to absorb the pending economic blow as a result of the world
economic crisis expected to be most severe in spring of this year. No
matter what various approaches experts use to describe middle class in
Armenia, they all share the same opinion that it’ll be the first and
the most to suffer from the crisis effects.

Sociologist Yuliana Melkonyan, Yerevan State University professor,
points out two main theories to describe the middle class: normative
and relative.

The normative theory requires meeting certain criteria, such as
income, real estate and ownership of immovable property, etc.
According to the relative theory, the middle class is characteristic
of the country it belongs to, so middle class in each country is
unique.

Melkumyan has been holding surveys among her students for the past
seven years, combining these two theories and trying to identify how
much money one should earn, what kind of property s/he should have,
what needs s/he should be able to satisfy in order to be considered a
representative of Armenia’s middle class.

"First of all it’s interesting how the amount of money to be earned
has changed: if in 2001 it was $200 per month which was equal to
50,000 drams, today a middle class representative, according to the
students, must earn the average of $500 per month- approximately
150,000 drams. "

"The boundaries of our middle class are hard to draw, it’s too broad:
those who aren’t rich yet but aren’t poor. According to the surveyed
students, the lowest income per person – a representative of the
middle class- is now 30,000 drams ($100), the highest being 1 million
drams (roughly $3,300)," says Melkumyan.

"As for the needs, if before food, a living space and at least a VAZ
21-06 brand car were the main needs to be met, now "at least LADA ’06’
car" is not an enough anymore. Now the apartment has to be renovated,
a middle class person should be able to spend a holiday once a year if
not abroad then at least at one of Armenia’s resorts," Melkumyan says.

She points out that according to the relative theory a middle class
representative has a profession, can find a job and ensure a certain
standard of living. The way they feel about themselves is very
important too: to what extend they associate themselves with middle
class.

Yerevan State University of Economics professor, economist Zoya
Tadevosyan disagrees with Melkumyan. She is convinced that middle
class in Armenia is purely about a certain category of people thinking
they are middle class. "All those involved in intellectual work tend
to think they are middle class, but that’s not an accurate criterion."

"Middle class shouldn’t be living from salary to salary, but must have
an opportunity to meet the kind of needs which are a level higher. For
example, purchase a car or kitchen equipment not on credit but at
once," she says.
The middle class formed within the past few years- bank employees and
civil officers, managers and others- are constantly affected by
economic cycles.

"A number of bank employees have been dismissed on grounds of
redundancy as a result of the crisis, the same will happen in other
fields. And middle class matching yesterday’s criteria tomorrow will
become poor, because the society is not economically stable,"
Tadevosyan makes predictions.
In other countries the existence of middle class is a symbol of
economic stability, that is why Tadevosyan is certain there is no
middle class in Armenia.
"The somewhat wealthy and now endangered class does not have a stable
ground for development. The ground on which today’s middle class has
formed is shaky in situations like, for example, the current economic
crisis is. That class might soon become extremely poor," says the
economist.

A manager Sofi Mosinyan, 27, considering herself middle class, says
that her salary is enough to cover her expenses.

"I regard myself as a representative of middle class, because I am
neither rich nor too poor. I have a permanent job, my salary covers my
expenses," says Mosinyan adding that "of course I can’t afford
spending holiday abroad or stay at expensive hotels."

Armine Melkonyan, 22, with a monthly family budget of 500,000 drams
($1,600) does not think she is middle class. "Because that class,
besides being able to satisfy their basic needs, also travels twice a
year and can go out to places of entertainment at least twice a week.
And I can’t afford those things. I am not poor but am somewhere
between the poor and the middle class."
Another economist Andranik Tevanyan, director of Politeconomy Research
Center, brings two criteria of defining middle class: system of values
and income.

"It’s pretty hard to define middle class in Armenia based on the first
criteria, as the system of values has changed after the collapse of
the USSR and we now have a multi-layered and unviable society.
Consequently, it’s hard to identify our middle class today, its heroes
and anti-heroes, what moral and ethical norms a middle class Armenian
is guided by."

As for defining middle class based the economic component, the
economist says it’s the layer of society-bourgeoisie- comprised of
small and medium entrepreneurs, non-viable yet as the main motive
force of public life because of the ever-present threat of losing
property. Political analyst Yervand Bozoyan shares the opinion that
the representatives of small and medium businesses and business
managers are Armenia’s middle class.

According to him, the middle class in Armenia has gotten smaller
within the past 1.5 years and will keep reducing. "There are two
reasons, first the country’s tax policy and second the world economic
crisis.

COUP OPPONENTS HOLD DEBATE ON ERGENEKON INVESTIGATION

Today’s Zaman
Jan 29 2009
Turkey

A group of nongovernmental organizations debated the ongoing
investigation into Ergenekon, a clandestine network accused of
undermining the state, in a panel discussion held on Tuesday at
Ä°stanbul’s Taxim Hill Hotel.

The panel, organized by the 70 Million Steps Against Coups coalition,
brought together several civil society organizations opposing coup
attempts and anti-democratic schemes. The participants condemned those
attempting to influence the investigation into Ergenekon and called for
more respect for the judiciary and the judicial process. Ergenekon is
a clandestine terrorist network charged with attempting to overthrow
the government. Dozens of its suspected members have been detained
or arrested so far, among whom are retired and active army officers,
businessmen and journalists.

Mustafa Karaalioglu, editor-in-chief of the Star daily, said it was
hard to understand why some sections of society were opposed to the
Ergenekon investigation. He noted that as the investigation deepens,
the fractures within the clandestine organization will deepen.

The 70 Million Steps Against Coups coalition brought together several
groups opposing coups.

The chairman of the Revolutionary Socialist Workers’ Party (DSÄ°P),
Dogan Tarkan, said the attempts to end the Ergenekon investigation
will be stronger in the days ahead. "The investigation should go
to the end. The ammunition and weapons discovered have shown the
objectives of the organization," he stated.

The discovery of a large amount of ammunition and weapons in isolated
places over recent weeks and the assassination plots uncovered in
the homes of Ergenekon suspects showed that the group was planning
to murder Alevi and Armenian community leaders, the prime minister
and members of the Supreme Court of Appeals — acts that would have
dragged Turkey into chaos had they been carried out. Actress Lale
Mansur, one of the members of the 70 Million Steps Against Coups
coalition, expressed her happiness with the success of the Ergenekon
investigation so far.

Democratic Society Party (DTP) Ä°stanbul deputy Sabahat Tuncel
also delivered a speech at the panel discussion and called on the
government to shed light on the unsolved murders. "I come from a
society which has several victims in unsolved murders. I support the
Ergenekon investigation and want it to go to the very end. I hope
the investigation will take us to a brilliant Turkey," she stated.

Tuncel also claimed that the reason behind the formation of Ergenekon
was the Kurdish problem. "People believed for several years that
members of the Kurdistan Workers’ Party [PKK] deserved to die. More
and more dead bodies have been removed from acid wells. We should
not accept all this [injustice]. We have to eliminate those who sow
the seeds of hatred among the public," she remarked.

–Boundary_(ID_H/Jp2nUioWcXIRAERcML8w)- –

CO-CHAIRS OF THE OSCE MINSK GROUP HOPE THE PARTIES WILL BE ABLE TO BRIDGE REMAINING DISAGREEMENTS

Regnum
Jan 29 2009
Russia

The Co-Chairs of the OSCE Minsk Group Mattew Bryza (USA), Yuri
Merzlyakov (Russia), Bernard Fassier (France) released a joint
statement over the Nagorno-Karabakh conflict settlement.

As informed a REGNUM, it is says it the document, that on January,
28 in Zurich had been organized a meeting of the President of Armenia
Serzh Sargsyan and the President of Azerbaijan Ilham Aliyev, in
accordance to the results of the OSCE Minsk Group Co-Chairs visits
to Yerevan and Baku and their meetings with the Foreign Ministers of
two countries Edward Nalbandyan and Elmar Mammadyarov. The Co-Chairs
get acquainted with the positions of both Presidents concerning basic
principles of settlement of the conflict, due to course of the talks.

"The Co-Chairs submitted the two Presidents their proposals to finalize
the Basic Principles on the peaceful settlement of the Nagorno-Karabakh
conflict, proceeding from the proposal presented to the sides at the
OSCE Ministerial Conference in Madrid in November 2007", it is said in
the document. It is stressed, that the Co-Chairs agreed to work with
the Foreign Ministers on elaborating proposals for the consideration
of the two Presidents on the most important remaining differences
between the sides. "The Co-Chairs hope, in the near future, sides
will be able to overcome remaining disagreements to provide a peace
agreement, which is far better than, status quo for all parties. Their
goal is a just and balanced agreement based on the principles of
territorial integrity, self-determination, and non-use of force,
set in the Helsinki Final Act", — summed up in the statement.