Construction Of Armenian NPP’s New Power Generating Unit May Cost $4

CONSTRUCTION OF ARMENIAN NPP’S NEW POWER GENERATING UNIT MAY COST $4 BLN, ENERGY MINISTER SAYS

ARKA
Sep 16, 2008

YEREVAN, September 16. /ARKA/. Construction of the new power-generating
unit of Armenia’s nuclear power packaget (NPP) may cost some $4bln,
said RA Minister of Energy and Natural Resources Armen Movsisyan.

To attract foreign investments necessary to construct a 1000 MW
power-generating unit, Armenian government has announced a monopoly
for both units of NPP.

"Taking into account the record-high prices for ingots and equipment,
the project may cost $4bln, not $2bln as we packagened before,"
the minister said.

The operating unit of Armenia’s NPP will be closed down only after
the new one is built, according to Movsisyan.

The power-generating unit will be built in the territory of Metsamor
NPP.

"This will help save money," the minister added.

"IAEA (International Atomic Energy Agency), which is one of the main
investors of the project, approves of the government’s approach to
the construction program," the minister was quoted saying.

The coordinating board responsible for the power unit’s construction
met last Thursday in Yerevan to discuss technical assistance to
the program.

The only operating unit with a Russian nuclear reactor generates
about 50% of Armenia’s electric power.

In the coming five years, the Armenia NPP will be under the trust=2
0 management of the INTER RAO UES CJSC. According to specialists,
the Armenian NPP in Metsamor can operate until 2016.

Medvedev speaks by telephone to Azeri, Armenian, Kazakh presidents

Interfax, Russia
Sept 14 2008

RUSSIA’S MEDVEDEV SPEAKS BY TELEPHONE TO AZERI, ARMENIAN, KAZAKH PRESIDENTS

Moscow, 14 September: Russian President Dmitriy Medvedev on Sunday [14
September] had telephone conversations with the presidents of
Azerbaijan, Armenia and Kazakhstan, Ilham Aliyev, Serzh Sargsyan and
Nursultan Nazarbayev, Interfax was told at the Kremlin press service.

"During the telephone conversation with the president of Azerbaijan,
Ilham Aliyev, the agenda of a Russian-Azerbaijani meeting at the
highest level, which is to be held in Moscow on 16 September, was
discussed," the press service said.

During Medvedev’s telephone conversation with the president of
Armenia, the process of implementing the agreements on the development
of cooperation reached at the two leaders’ recent meeting in Sochi was
discussed.

"During the telephone conversation between Dmitriy Medvedev and
Nursultan Nazarbayev, further development of Russian-Kazakh
cooperation was discussed," the Russian president’s press service
added.

Lousy timing could overshadow Turkey’s logical Caucasus solution

EurasiaNet, NY
Sept 13 2008

LOUSY TIMING COULD OVERSHADOW TURKEY’S LOGICAL CAUCASUS SOLUTION

Liz Fuller 9/13/08
A EurasiaNet Partner Post from RFE/RL

Within days of the start of full-scale hostilities last month between
Georgia and Russia, Turkish Prime Minister Recep Tayyip Erdogan
floated the idea of a Caucasus stability pact modeled on a 1999 Balkan
agreement.

But the diverging geopolitical and economic interests of the proposed
five members and the ambiguous status of Georgia’s breakaway republics
of South Ossetia and Abkhazia constitute seemingly insurmountable
obstacles to such an alliance.

As outlined by Erdogan, the proposed Caucasus Stability and
Cooperation Pact would bring together Armenia, Azerbaijan, Georgia,
Russia, and Turkey. His stated intention of discussing the initiative
with UN Secretary-General Ban Ki-moon suggests that he envisaged the
UN assuming the role of "patron" in the same way as the European Union
did for the 1999 Balkan Stability Pact, which came in the wake of the
Kosovo conflict.

Turkish President Abdullah Gul endorsed Erdogan’s proposal one day
later, on August 12, saying the Caucasus pact would be "important for
stability in the region" and could encompass a mechanism for
addressing and resolving problems, presumably before they escalated
into violence.

There are, however, several fundamental differences between the
Balkans in 1999 and the South Caucasus in 2008. In 1999, the countries
of Southeastern Europe, including the Yugoslav successor states, had a
shared interest in integration into European and Euro-Atlantic
structures. Furthering such integration was one of the primary
objectives of the Balkan Stability Pact, together with preventing
further conflicts in the region; fostering peace, democracy, respect
for human rights, and economic prosperity; and stimulating regional
cooperation. In other words, membership of the Balkan Stability Pact
was intended as a win-win situation for all former adversaries.

Shared Objectives?

By contrast, the five proposed members of the Caucasus Stability and
Cooperation Pact have no shared objective or vision that would serve
as an incentive for setting aside their differences. On the contrary,
in some cases, such as the deadlock between Armenia and Azerbaijan
over Nagorno-Karabakh, their most important policy objectives diverge
or even collide, to the point that reconciling them is seen as a
zero-sum game.

Even prior to the August war, Georgia considered Russia the primary
threat to its stability. Now, having quit the Commonwealth of
Independent States (CIS) and severed diplomatic relations with Russia,
it would almost certainly make any cooperation, whether bilateral or
multilateral, contingent on Moscow retracting its formal recognition
of Abkhazia and South Ossetia as independent states, which Russian
President Dmitry Medvedev has ruled out doing. Russia, for its part,
has no obvious interest in promoting any regional cooperation that
would strengthen Armenia, Azerbaijan, and Georgia economically. Only
Turkey would stand to benefit immediately from a mechanism that would,
among other things, safeguard the export pipelines that bring Caspian
oil and gas to Turkey via Azerbaijan and Georgia. That traffic was
temporarily halted at the height of the August hostilities between
Georgia and Russia.

Two further factors cast serious doubts over the viability of the
Turkish proposal. The first is the Karabakh conflict, given that
Azerbaijani leaders have for years said that including Armenia in any
regional cooperation projects (such as the Kars-Tbilisi-Baku railway
that is currently under construction) is contingent on resolving that
conflict on Baku’s terms. In fact, it was the Karabakh conflict that
then-Azerbaijani President Heidar Aliyev adduced as the main obstacle
to a regional stability pact when then-Turkish President Suleiman
Demirel and his Georgian counterpart Eduard Shevardnadze first floated
the idea in January 2000.

The second factor is the exclusion of Iran, which aspires to the role
of a regional player. Addressing the Georgian parliament in March
2000, then-Armenian President Robert Kocharian advocated structuring
the proposed pact on the formula 3+3+2, meaning that Ruusia, Turkey,
and Iran as the countries bordering on the three South Caucasus states
should serve as "guarantors" of the pact, and the EU and the United
States as its "sponsors."

The Brussels-based Center for European Policy Studies unveiled in June
2000 a detailed "consultative document" that examined in detail the
optimum composition of a Caucasus Stability Pact, what issues it
should address, and how it might function. The preface denies that it
is modeled on the Balkan Stability Pact, but at the same time notes
the similarities (and differences) that then existed between the two
regions. The document postulated six chapters, three focusing on
relations among the South Caucasus states, including conflict
resolution and prevention and establishing a regional-security system;
and three focusing on broader regional cooperation that would draw in
Russia and the Black Sea and Caspian regions. It did not rule out the
inclusion of Iran in a Caucasus Contact Group that would discuss
implementation of that proposed agenda, and it took as a given the
involvement of such international organizations as the UN, the OSCE,
the Council of Europe, the World Bank and International Monetary Fund
(IMF), and the European Bank for Reconstruction and Development
(EBRD).

Window Of Opportunity

Although eminently rational and stuffed with innovative ideas (such as
the introduction of South Caucasus Community passports), the working
document was not unequivocally endorsed by any of the proposed
beneficiaries, although Abkhaz Foreign Minister Sergei Shamba told the
co-authors in August 2000 that Abkhazia would like to participate "on
equal terms" with the other eight players. Iran for its part rejected
the inclusion of the EU and the United States, arguing for the formula
3+3, meaning Armenia, Azerbaijan, and Georgia plus Russia, Turkey, and
Iran.

With hindsight, the window of opportunity for formalizing such a
Caucasus Pact began to swing shut in the summer of 2004, when Georgia
launched its first abortive effort to bring South Ossetia back under
its control by military force. That closure could possibly have been
reversed but for the confrontational policies and brinkmanship
espoused by the Georgian leadership vis-a-vis Moscow, the
unwillingness of both Armenia and Azerbaijan to make the concessions
needed for an equitable solution to the Karabakh conflict, and the
protracted standoff between the United States and Iran.

Meanwhile, the geopolitical balance has changed dramatically since
Erdogan resurrected the idea of a Caucasus Stability Pact one month
ago. Russia has formally recognized the independence of Abkhazia and
South Ossetia and is moving to cement closer military ties with both
entities. It could therefore insist on their inclusion in any regional
forum. President Gul has paid a landmark visit to Yerevan, thereby
paving the way for intensive discussions on the terms for establishing
formal diplomatic relations with Armenia. In response both to that
anticipated rapprochement and to the chaos unleashed by Georgia’s
strategic miscalculation in precipitating a war with Russia,
Azerbaijan is now tilting away from the West and toward Moscow.

This growing mistrust and incipient polarization suggest that at least
in the immediate future, the sole avenue for cooperation among the
countries of the region will be bilateral agreements. (Armenia and
Turkey signed such an agreement on energy supplies during Gul’s
September 6 visit to Yerevan.)

In the longer term, Dimitrios Triantophyllou of the International
Center for Black Sea Studies was quoted by the "Turkish Daily News" on
August 29 as suggesting the Black Sea Economic Cooperation
Organization — of which the three South Caucasus states, Turkey, and
Russia are all members — could conceivably "lay the groundwork, open
channels of communication, and provide the infrastructure" within
which diplomats from the five countries could address the political
differences between them.

Posted September 13, 2008 © Eurasianet

BAKU: Member of Euro Parl Invites Azerbaijan, Armenia to Join EU…

Trend News Agency, Azerbaijan
Sept 13 2008

Member of European Parliament Invites Azerbaijan and Armenia to Join
EU to Resolve Nagorno-Karabakh Conflict
13.09.08 14:35

Poland, Krynitsa, 13 September/ TrendNews, corr V. Sharifov/ The
European Union can solve problem in Caucasus related to the Armenian
`Azerbaijani Nagorno-Karabakh conflict, member of European Parliament
from Lithuania Vitautas Landsbergis said.

`Only EU can reconcile Azerbaijan and Armenia in the issue of
Nagorno-Karabakh,’ said Landsbergis, who took part in 18th economic
forum in Polish city of Krynitsa.

Landsbergis sees the way out of the long-drawn conflict between
Azerbaijan and Armenia over Nagorno-Karabakh in the admission to EU
which includes 27 states at present.

`If Azerbaijan and Armenia will join EU, there will be no problems as
in fact, there will be no borders between the two countries,’
Landsbergis, ex-president of Lithuania said.

He said, however, admission of Azerbaijan and Armenia to EU will not
take place any time soon.

`But Russia will not let solve the problem in this way. It contradicts
Russia’s interests,’ he said in seminar EU-South Caucasus: Perspective
Spheres of Economic Cooperation held within the framework of forum.

Armenian President And Prime Minister Discucss Ways To Enhance Effic

ARMENIAN PRESIDENT AND PRIME MINISTER DISCUCSS WAYS TO ENHANCE EFFICIENCY OF MANAGEMENT OF BUDGETARY FUNDS

ArmInfo
2008-09-11 19:26:00

ArmInfo. Today President of Armenia Serzh Sargsyan held a meeting
with the participation of Prime Minister of Armenia Tigran Sargsyan.

The key topic of the meeting was how to enhance the efficiency of
the management of budgetary funds.

The chairman of the Supervisory Chamber of Armenia Ishkhan Zakaryan
made a report on the efficiency of the use of budgetary funds in
different sectors and the results of inspections in the ministries of
urban development and agriculture and communities of Syunik region. He
pointed out that the inspections had detected a number of deficiencies.

Sargsyan said that those guilty had to be punished. ‘I want everybody
to know that budgetary money is under close control and all people
trying to use it ineffectively will be punished,’ Sargsyan said.

Fried: Armenia Won’t Be Assigned Extra Assistance

FRIED: ARMENIA WON’T BE ASSIGNED EXTRA ASSISTANCE

PanARMENIAN.Net
10.09.2008 16:34 GMT+04:00

/PanARMENIAN.Net/ Chairman Howard Berman (D-CA) opened a hearing
entitled "U.S.-Russia Relations in the Aftermath of the Georgia Crisis"
to address concerns and to "consider the future of U.S. relations
with Russia in the aftermath of the crisis that erupted with sudden
ferocity in the Republic of Georgia five weeks ago," reported the
Armenian Assembly of America (Assembly).

Testifying on behalf of the Bush Administration, Daniel Fried,
Assistant Secretary of State for European and Eurasian Affairs,
starting with the region’s history, told Members of Congress that the
collapse of the former Soviet Union "was marked by ethnically-based
violence, especially in the South Caucasus." Fried also explained,
in greater detail, the Administration’s $1 billion economic support
package that Secretary of State Condoleezza Rice announced on
September 3, in an effort to help meet "Georgia’s pressing humanitarian
needs, repair infrastructure damaged by Russia’s invasion, sustain
commercial confidence, and restore economic growth." He added that
the Administration would be working extensively with Congress, as to
fine-tune how the assistance will be delivered.

During a question and answer session with Secretary Fried,
Representative Brad Sherman (D-CA), citing a September 3, report from
Radio Free Europe/Radio Liberty entitled, "Armenia Claims Huge Losses
>From Georgian Crisis," pressed the Administration whether they plan
on providing additional aid to Armenia.

Fried commented that Armenia is already a recipient of significant
amount of aid, although he acknowledged that Armenia has been impacted
by the crisis. Sherman added that due to strife, Armenia has suffered
an estimated $680 million in damage to its economy and again asked
if additional aid would be provided. Fried responded that there would
be more, but would have to look into the figure as to an amount.

The House Appropriations Committee will need to review the aid package,
of which the Assembly last week sent a letter to Members of Congress
pointing out the impact not only for Georgia, but Armenia as well.

In the letter, the Assembly wrote, in part, that:

"Armenia, as a land-locked nation facing dual blockades by its
neighbors, Turkey and Azerbaijan, is forced to orient on a north-south
axis for trade and shipment of goods and supplies. As such, the
bombing of ports in Georgia and damage to rail lines therein has not
only caused hardships for the people of Georgia, but also for Armenia,
most prominently is the shortage of fuel."

"The Administration has an important opportunity to reinforce stated
U.S. policy goals of regional cooperation and economic integration in
the South Caucasus region," said Congressman Sherman. "As such, I was
deeply troubled that the Administration failed to take into account
the impact that this recent crisis has had on our ally Armenia. We must
ensure that any aid package also includes Armenia," Sherman concluded.

"We commend Chairman Berman for holding this timely hearing and applaud
Congressman Sherman for making sure that the needs of Armenia, as
a result of this crisis, will be taken into account," said Assembly
Executive Director Bryan Ardouny.

BAKU: The Next Session Of Eurasian Library Assembly To Be Held In Ba

THE NEXT SESSION OF EURASIAN LIBRARY ASSEMBLY TO BE HELD IN BAKU

Azerbaijan Business Center
Sept 9 2008
Azerbaijan

Baku, Fineko/abc.az. The Eurasian Library Assembly is planning to
hold its next session in Baku this November.

The Azerbaijan Republic Ministry of Culture and Tourism informed
that it was agreed to hold the Eurasian Library Assembly’s Meeting
on November 17-19 within the 85th anniversary of Azerbaijan National
Library named after M.F.Akhundov.

"Azerbaijan required the Assembly not to involve Armenian National
Library into the Meeting," it was informed.

It is planned to discuss development of cooperation in the area of
information and communication technologies, modern tendencies and
now-how. Besides it will be held an experience exchange in the area
of information resources.

The Eurasian Library Assembly includes 11 libraries from Azerbaijan,
Russia, Germany, Belarus, Moldova, Kazakhstan and others.

Vice President Cheney’s Visit To Baku Raises Speculations

VICE PRESIDENT CHENEY’S VISIT TO BAKU RAISES SPECULATIONS
By Alman Mir – Ismail

Eurasia Daily Monitor
Sept 9 2008
DC

On September 3, US Vice President Dick Cheney arrived in Baku as part
of his tour to the region of the former Soviet Union. The visit was the
first such high-ranking visit by a US official and drew much attention
because of the recent events in Georgia and the escalation of the
US-Russian rivalry in the South Caucasus. In the wake of the visit,
one line of questioning occupied the minds of local and international
observers: Why did Cheney come, and did he get what he wanted? In
this respect, interesting facts emerged about the trip.

Foremost, it should be noted that Cheney chose Azerbaijan and not
Georgia as his main base for the trip, staying in Baku overnight and
spending more time on meetings in Baku than in Tbilisi. This comes
as a surprise because it was the Georgian-Russian conflict which was
cited as the main reason for his trip to the region. Perhaps Cheney
wanted to convey the importance of Azerbaijan to US national interests.

While in Baku, Cheney met with the US embassy staff, foreign oil
companies, and President Ilham Aliyev to discuss the situation in the
region. Cheney and Aliyev discussed bilateral relations, as well as
the recent events in Georgia.

Russian media rushed to speculate that Cheney received a cold shoulder
in Baku. Moscow-based Kommersant newspaper even stated that Cheney was
so upset about the results of his talks in Baku that he even refused to
attend the gala-dinner organized in his honor. Both the US embassy and
the newspaper itself later denied this speculation. However, the level
of warmness shown towards Cheney in Baku does raise certain questions.

Cheney was met at the airport not by President Aliyev or Prime Minister
Artur Rasizadeh, as is usually the case, but by Deputy Prime Minister
Yagub Eyyubov. The dispatch of a lower level official indicates that
the Azerbaijani political leadership wanted to show the Kremlin that
it is not overly excited about the visit of the American official,
and that Baku does not intend to take sides in the US-Russian rivalry
in the Caucasus.

Indeed, Baku, unlike Tbilisi, prefers to stay away from antagonizing
Moscow or taking sharp foreign policy decisions towards NATO and the
US. Instead, President Aliyev prefers to maintain cordial relations
with Moscow and develop the spirit of partnership with Russia while
slowly integrating into the Euro-Atlantic space and exporting energy
resources to the European markets. In Baku, it is believed that
ostracizing Russia and overlooking Russian interests in the region will
only destabilize the situation, as the events in Georgia demonstrated.

President Aliyev was quite aware that Cheney’s visit was under the
careful watch of Moscow. It is not a surprise that President of the
Russian Federation Dmitry Medvedev called President Aliyev immediately
after Cheney’s visit to discuss the situation in the region. That
is why President Aliyev was especially careful in his remarks with
the US official not to side with Washington in any hot issues facing
the region.

Local media reported that energy and security issues were the
main items on the discussion list between President Aliyev and Vice
President Cheney. Both have known each other for more than a decade and
have already built a solid partnership. President Aliyev highlighted
the large role that the US plays in regional energy projects and
security arrangements. But at the same time, President Aliyev used the
moment to discuss bilateral US-Azerbaijan relations. On this issue,
Azerbaijan has some reasons to be unhappy.

During the March 2008 voting of UN General Assembly Resolution 10693,
the resolution supporting the territorial integrity of Azerbaijan,
the United States voted against the text of the resolution. This
truly became a heart-breaker in Baku, and officials in the Ministry
of Foreign Affairs promised to keep it in mind, while considering
relations with the US. For more than 17 years, the United States has
promised to respect Azerbaijan’s territorial integrity, but at the
same time continues funding the Nagorno-Karabakh regime, maintains
section 907 of the Freedom Support Act, and refuses to pressure
Armenia to liberate occupied territories of Azerbaijan. In Baku,
this is seen as an act of double standards.

Moreover, the slow and weak response to the Georgian crisis
demonstrated to Azerbaijan that the US does not have any practical
means to protect the South Caucasus states from Russian aggression. As
Hikmet Hajizadeh, a member of the opposition Musavat party’s Supreme
Council, told an Azeri newspaper, "Today, [the] US has no concrete
capacity to protect Azerbaijan from Russia" (Day.az, September 3).

Keeping these factors in mind, why should then the Azerbaijani
leadership display a "welcome sign" to the US leadership? After all,
despite years of Azerbaijan’s assistance to the US in the energy
and security matters, Washington has still yet to deliver anything
practical to Azerbaijan. As political analyst Rasim Musabeyov notes,
"Words alone are not enough. Real actions of Washington must be
impressive too" (Day.az, September 3).

Turkey President Slams OSCE MG As Ineffective?

TURKEY PRESIDENT SLAMS OSCE MG AS INEFFECTIVE?

PanARMENIAN.Net
09.09.2008 17:51 GMT+04:00

/PanARMENIAN.Net/ The OSCE Minsk Group failed to produce effect during
17 years of its mediation, Turkey’s President Abdullah Gul said.

The Turkey-Armenia and Azerbaijan-Armenia issues are not only bilateral
but also territorial, according to him.

"The situation in the region has changed. Resolution of conflicts
will lead to political and economic stability," Gul said, Azeri
media reports.

Earlier, Gul said he intends to mediate tensions between Armenia
and Azerbaijan.

"I have enlisted support of my Armenian counterpart Serzh Sargsyan
to arrange the meeting. And I am hopeful to receive consent from
Azerbaijan’s Ilham Aliyev. I will meet with him soon to discuss
the details and will brief on the outcomes of my visit to Armenia,"
he said.

Turkish experts do not rule out that Presidents of Armenia, Russia,
Turkey and Azerbaijan can meet to discuss the Nagorno Karabakh
conflict.