Author: Chatinian Lara

OIC SECRETARY GENERAL: "OCCUPATION OF THE AZERI TERRITORIES IS A PROBLEM NOT OF AZERBAIJAN ONLY BUT OF THE WHOLE MUSLIM WORLD"

Today, Azerbaijan
June 18 2006

OIC session to address broad agenda.

Representatives of 90 countries are to attend a session of the
Organization of the Islamic Conference’s (OIC) foreign ministers in
Baku on June 19-21, Azeri Foreign Minister Elmar Mammadyarov told a
news conference on Sunday, Interfax reports.

"Of the OIC’s 57 member-nations, 51 countries have already confirmed
their participation in the session. Another 33 countries will
be represented by their foreign ministers. The event will also
involve representatives of the Council of Europe, the OSCE and other
international organizations," he said.

The session’s agenda includes 99 issues, he said. "Among other matters,
we will discuss the occupation of the Azeri territories and assess
the damage caused by Armenia’s occupation of the Azeri territories
and the destruction of monuments there," the minister said.

The participants in the meeting will also exchange their views on
the diplomatic impasse over Iran’s nuclear program, the situation in
Iraq and the Palestinian territories. "All these problems should be
resolved diplomatically," Mammadyarov said.

The Muslim world’s role in global energy projects is crucial,
OIC Secretary General Ekmeleddin Ihsanoglu said at the same
news conference. He welcomed Kazakhstan’s decision to join the
Baku-Tbilisi-Ceyhan oil pipeline.

"We are entering a new epoch of global energy projects with the
participation of Azerbaijan, Kazakhstan, Turkey and other countries
of the Muslim world," he said.

Ihsanoglu, however, expressed concern over security worldwide and the
situation in the Palestinian territories and other conflict-ridden
regions.

"Our aim is not to stay away from ongoing processes. We attach great
importance to cooperation in ensuring peace and security worldwide.

The Palestinian issue is a common problem facing the Muslim world. We
are concerned about continuing terrorist attacks that claim civilian
lives," Ihsanoglu said.

"We are all concerned about Iran’s nuclear issue, the problem of Azeri
refugees from Nagorno Karabakh and the Palestinian issue. All these
problems have had a negative impact on security around the globe,"
he said.

"The occupation of the Azeri territories is a problem of Azerbaijan
and the Muslim world as a whole," he said.

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LLOYD’S GUEST OF "LONDON-YEREVAN" INSURANCE COMPANY

Karina Melikyan, ArmInfo, 14 June 2006

Lloyd’s Heritage Managing Agency Ltd. Syndicate 1200, specializing
in property insurance, is seriously interested in Armenia. The
syndicate’s representative has got an offer from London Gate
Group, 100% founder of "London-Yerevan" insurance Company, to pay a
fact-finding visit to Armenia. Few days ago, London representatives
arrived in Armenia and visited the Central Bank, the British Embassy
and met with the directors of HSBC Bank Armenia quite in a short
period of time. Representative of Heritage Managing Agency Ltd.
Syndicate 1200 Darren Warkcup and Chairman of London Gate Group Brian
Salmanpour shared their plans and the preliminary assessments of
Armenia’s insurance market with ArmInfo’s correspondent. In her turn,
"London-Yerevan" insurance Company director Sona Dalalyan presented
the achievements of the company.

How would you assess the activity of "London-Yerevan" insurance
company?

Brian Salmanpour: As the head of London Gate Group, I’ll say that
our broker KAY International has been reinsuring London-Yerevan’s
policies in the market of Lloyd’s for several years already. And I
think this partnership is quite successful.

Darren Warkcup: In my turn, I’d underline that London-Yerevan’s
high indices, quick growth rates and quite serious development plans
prove that the company is making serious achievements in Armenia’s
insurance market. In this light, Syndicate 1200 has decided to give
London-Yerevan a unique chance to asses risks and to sign documents
"with Lloyd’s pen."

Lloyd’s corporation is known to comprise several specialized
Syndicates. It is interesting why exactly the representative of
Syndicate 1200 specializing in property insurance arrived in Armenia
to get first hand view of the country’s insurance market?

Darren Warkcup: In the last years Armenia has shown growing activity
in construction and I wanted to see this in the place. I am especially
glad to know that Armenia is beginning to assess risks in construction
and I want to see what risks they deal with in Armenia and in what
amounts. It was exactly because of London-Yerevan’s growing activity
in risk reinsurance abroad that we decided to visit Armenia. I am
the first property underwriter representative to visit Armenia so
far and I can say that I am very much impressed by London-Yerevan’s
work, especially in property insurance, a sphere I supervise at
Lloyd’s. So, I am ready to do my best to help the Armenian company
to get competitive.

What is your conclusion, of course, if you could arrive at such during
your short-term visit to Armenia?

Brian Salmanpour: Armenia’s insurance market is developing very slowly
and in order to step up this process it is necessary to regulate the
market and the activities of insurance companies.

Sona Dalalyan: As a direct participants of the insurance market,
I’d like to note that today only 8-10 companies have life insurance
license. Having such a license, London-Yerevan is not very much active
in the sphere as it knows that the CB is planning legislative changes
to make insurance companies choose either they insure only life
or only other spheres. So, it is a question yet how many companies
will agree to insure only life as this type of insurance is not very
much popular in Armenia yet. Today insuring life in Armenia are only
companies with foreign capital or bank-related entities wishing to
insure their borrowers.

Regarding the supervisory body, what is the opinion "abroad" on the
role of the Central Bank as the megaregulator of the financial market,
including, as a body controlling over the activity of insurance
companies?

Darren Warkcup: Vache Gabrielyan, a member of the CB Council, informed
us of CB’s supervisory mechanisms. It is important that the powers
of megaregulator were laid on the Central Bank as the chief banker
tries to transfer the insurance market to an open field i.e.

to secure transparency of this business for potential clients. As
regards the CB’s aspiration to bring the law on insurance in the
line with international standards, it will help the market develop
and attract more foreign companies to Armenia. This, in its turn,
will develop competition and create more attractive conditions for
clients. In fact, only reliable insurance companies will maintain
their positions in the market.

And what about the compulsory insurance the introduction of which in
Armenia is not far away?

Brian Salmanpour: I think the compulsory insurance plays an important
role both for the economy, on the whole, and for development of
insurance market, in particular. It is, first of all, aimed at
protecting consumers’ interests as it will allow the market becoming
well-organized, and the public – more aware of their demands.

It is not a secret that there are no insurance companies especially
founded to protect the interests of large financial and industrial
groups in Armenia. Is it normal?

Darren Warkcup: It is very dangerous and may lead to double economy.

Quite recently Fitch rating agency gave Armenia a sovereign credit
rating "BB-," another rating is expected from another large foreign
agency within a month. It is interesting, if any steps are taken to
give ratings to insurance companies?

Sona Dalalyan: Armenia’s Central Bank has already signed a resolution
on compulsory rating of foreign insurance companies reinsuring
insurance policies of Armenian insurance companies, and submitted
it to the RA Justice Ministry for registration. This document, which
will come into effect in six months, provides for 5 leading foreign
rating agencies: Standard&Poor’s (U.S.) – "BBB", Moody’s (U.S.) –
"Baa2", A.M. Best (U.S.) – "B+", Duff and Phelps – "BBB", Weiss –
"B" è Fitch Ratings (U.S.) – "BBB".As you see, the minimal required
rank is "Â". One of Russian leading rating agencies was included in
the initial list, which, however, is not indicated in the final list
because of its minimal rating of "ÂÂ-" rank.

In the course of the visit, you met also with HSBC Bank Armenia
Executive Director Anthony Turner. What was the purpose of the
meeting? Do you negotiate or it was just a meeting of partners?

Brian Salmanpour: We had a desire to meet with one of the oldest and
most reliable clients of "London-Yerevan," HSBC Bank Armenia. We
discussed the details of partnership and the prospects of our
cooperation with the leadership of that bank.

Sona Dalalyan: Besides HSBC Bank Armenia, "London-Yerevan" cooperates
also with five leading banks in the country, which, apply to the
company mainly for insurance of bank risks, property and cars, for
medical insurance of employees and for insurance against careless
employees. As regards insurance of financial risks, "London-Yerevan"
is not engaged in this type of insurance.

As our talk touches upon the activity of "London-Yerevan" anyway,
would you present its achievements and plans in figures? What is the
company’s share in different types of insurance, insurance premiums
etc??

Sona Dalalyan: In 2005, the company’s share in total insurance
premiums in the market was 20% as against 16.9% in 2004. As to this
indicator, "London-Yerevan" is in the lead in the Ranking of the
leading insurance companies in Armenia 2005 prepared by the Agency of
Rating Marketing Information (ArmInfo). As to the payments of insurance
indemnity, the company is the second. The share of the company’s life
insurance premiums in the market made up 56%, however, the share of
this insurance type in the company’s insurance portfolio was only
1%. For instance, at European companies, the share of life insurance
is almost 40%. In 2005, "London-Yerevan" secured an impressive growth
of automobile insurance – 115%. Then goes property insurance – 56%,
cargo transportation insurance – 44%, accident insurance – 40%, and
responsibility insurance – 7.5%. In total, the company secured 17%
growth on all the insurance types in 2005.

Regarding plans, we intend to at least double the growth of property
insurance and to increase insurance premiums by 25%.

Brian Salmanpour: All the underwriters keep supporting "London-Yerevan"
in reinsurance of property, life, accident and cargo transportation
insurance risks it undertook.

In conclusion, it would be useful to know the opinion of authoritative
foreign insurers concerning the influence of stable economic growth
in Armenia on development of the country’s insurance market.

Darren Warkcup: The stable economic growth in Armenia will allow
insurance companies extending their activity, specifically,
capitalization is in question. Due to it, new services will be
provided to clients, the competition will be increased. In fact,
only specialized stable companies will remain in the market, others
will amalgamate. Of course, the share of reinsurance of Armenian
companies in the Lloyd’s market is so insignificant that it is
not worth mentioning. The annual turnover of Lloyd’s Corporation
considerably exceeds the budget of Armenia. Nevertheless, the
corporation’s underwriter noticed Armenia and other CIS countries
which were avoided by other foreign reinsurers.

–Boundary_(ID_7FfH8sczrOAbkStAuQmM5g )–

GEORGIA AND THE EUROPEAN UNION: TWO VIEWPOINTS
By M. Alkhazashvili

The Messenger, Georgia
June 14 2006

Slouching towards Brussels: arrival of realism

The government’s statement about the possibility of a quick integration
into the European Union is unrealistic. Currently, the expansion of
the European Union is limited to a small list of countries and Georgia
is not on this list. Georgia and Ukraine will have to continue under
the neighborhood policy with European Union for quite some time.

Interviewed in the Russian newspaper Novie Izvestia, EU Foreign and
Security Policy Coordinator Javier Solana, made it clear that Georgian
and Ukrainian integration was not yet on the agenda.

Solana said that at this stage EU expansion is limited to Romania
and Bulgaria, then Croatia, Turkey the other Balkan republics. The
newspaper Rezonansi quotes Solana as saying that "The discussion of
the new candidates has ceased, although this does not mean that we
don’t want close relationships with other neighboring states."

According to Solana close relations between neighboring countries
are in the interests of both the EU and Moscow. However, states that
have a close relationship with Russia will find it difficult to have
a close relationship with the EU.

Before Solana’s statement David Bakradze, the Chair of Europe
Integration Committee of the Georgian Parliament, said in an interview
with Rezonansi that the EU should have a much more positive position
on Georgia’s membership. "Georgia has expressed its sincere wish to
become a member of the EU, I think that EU should fix upon a much
more positive position."

Clearly, Bakradze did not think that Solana would rule out Georgia’s
speedy integration into EU; citing as a positive indicator European
Parliament Vice-Speaker, Edward McMillan-Scott’s statement at an
Armenian press conference that "The South Caucasus countries should
be individually integrated into the EU."

McMillan-Scott’s position was approved of in Georgia. The three
countries of the South Caucasus could not, like the Baltic States,
simultaneously integrate into the EU owing to their different political
trajectories, cultural differences and (in the case of Armenia and
Azerbaijan) their ongoing conflicts. Furthermore, of all the three
South Caucasus states, only Georgia has unequivocally stated its
desire for EU membership.

Georgia and Ukraine’s EU integration has become an issue of
active discussion, however it seems that the hopes of political
leaders outweigh the chances of integration for the time being. The
neighborhood policy offers a chance to cooperate with the EU at many
levels. With this Georgia can approach EU standards, and has the
chance to try to deepen its interaction with the EU.

Georgia and Ukraine can also deepen cooperation in the frames
of GUAM, which recently became a fully-fledged international
organization. However, the desire of some GUAM members to integrate
in the EU may cloud their chances for overall regional cooperation.

ARMENIA AND SWITZERLAND SIGN AGREEMENT ON DOUBLE TAXATION AVOIDANCE

ARKA News Agency, Armenia
June 13 2006

YEREVAN, June 13. /ARKA/. Armenia and Switzerland has signed an
agreement on double taxation avoidance.

The Information and Press Department of the RA Ministry of Foreign
Affairs reports, the agreement was signed by the RA Minister of
Foreign Affairs Vartan Oskanian and federal Councilor and Head of
Swiss Federal Department of Foreign Affairs Micheline Calmey-Rey in
Yerevan on June 12.

After the signing ceremony Calmey-Rey expressed belief that this
agreement is to become a stimulus for development of relations between
businessmen of two countries.

She also pointed out willingness of the Swiss side to go on with
initiatives on implementation of various programs in Armenia, within
bounds of which Swiss Government gave 4 mln Swiss francs to Armenia
in 2006.

In his turn Oskanian briefly presented present stage of Karabakh
conflict and Armenian-Turkish relations, as well as statement of the
Official Yerevan regarding Destruction of Armenian cemeteries and
khachkars (cross-stones) on the territory of Old Jugha in Nakhichevan
(Azerbaijan), sent to corresponding infrastructures, namely to the
Council of Europe, OSCE and UNESCO.

Calmey-Rey was in Armenia on June 11-13. During her visit she met
with the RA President Robert Kocharyan and Prime Minister Andranik
Margaryan.

Calmey-Rey visited also offices of Mission Armenia Swiss organization
and Swiss agency for development and cooperation, as well as Genocide
Museum in Yerevan and laid wreath to the Genocide Memorial.

IRAN DOES NOT CONFIRM GAZPROM’S PARTICIPATION IN IRAN-ARMENIA GAS PIPELINE CONSTRUCTION
By Aghavni Harutyunian

AZG Armenian Daily
15/06/2006

Iran finds that Nagorno Karabakh conflict can be settled only through
negotiations. Ali Akbar, deputy ambassador of Iran to Armenia, stated
that Iran is ready to support in peaceful settlement of the conflict
as it maintains good relations with all neighbors and is interested
in a stable region.

Speaking to a press conference in Yerevan, deputy ambassador touched
upon construction of Iran-Armenian gas pipeline and said that no change
was made in the Iranian-Armenian document on pipeline construction.

Mr. Akbar noted that Iran is unaware of Russian Gazprom’s intention
to join the construction. He also said that high-ranking Armenian
officials did not confirm the information that Gazprom was entrusted
with the construction of a certain section of the pipeline.

The gas pipeline is scheduled to open on January 1 2007.

NA RATIFIES AN AGREEMENT BETWEEN ARMENIA AND THE WORLD BANK

ArmRadio.am
14.06.2006 13:48

RA National Assembly ratified the agreement between Armenia and
the World Bank on providing loans for renewable energy development
in Armenia.

Deputy Minister of Energy Areg Galstyan informed the MPs that the
agreement was signed on April 7, 2006.

The agreement envisages provision of US$5 million loan to Armenia,
which will be spent on renewable energy development. With the same
objective the World Bank will provide a US$3 million grant with 40
years maturity and a 0.25 interest rate.

RA FOREIGN MINISTER TO LEAVE FOR PARIS, THEN FOR BRUSSELS, KIEV, GENEVA AND TBILISI

Noyan Tapan
Armenians Today
Jun 12 2006

YEREVAN, JUNE 12, NOYAN TAPAN – ARMENIANS TODAY. On June 13, RA Foreign
Minister Vartan Oskanian will leave for Paris where he will meet with
Azerbaijani Foreign Minister Elmar Mammadiarov with participation of
OSCE Minsk Group Co-chairs. According to RA FM Press and Information
Department, on June 14, RA Foreign Minister will leave for Brussels
to take part in the meeting of the Northatlantic Council and Armenia
(26+1) format with RA Defence Minister Serge Sargsian, during which
the process of implementation of Armenia-NATO Individual Partnership
Actions Plan (IPAP) based on the results of the IPAP interim estimation
given by NATO international staff delegation on May 18-19 will be
discussed. On June 19, Minister Oskanian will pay an official visit
to Kiev where he will meet with the Ukrainian President and Foreign
Minister. On June 20-21, Minister Oskanian will be in Geneva for the
purpose of taking part in the opening sitting of UN Human Rights
Council. On June 27-28, RA Foreign Minister will pay an official
visit to Georgia.

ROAD UNDER CONSTRUCTION TO BYPASS MOTORWAY WITHIN REACH OF AZERBAIJANI
GUNFIRE

IJEVAN, JUNE 8, NOYAN TAPAN. Voskepar-Baghanis bypass making part of
Ijevan-Noyemberian motorway is currently under construction. Thus, the
road is being moved away from the border area within reach of
Azerbaijani gunfire. The bypass is being constructed by road builders
of Ijevan with allocations from the RA state budget.

The Messenger, Georgia
June 9 2006

Great interest in the Saakashvili-Putin meeting

Georgian and Russian analysts and politicians are expressing great
interest in Russian President Vladimir Putin’s and Georgian President
Mikheil Saakashvili’s upcoming meeting, which is planned for June 13
in St. Petersburg.

As the meeting approaches both sides have become milder – a fact that
should be seen as reflecting the two countries’ positive attitudes
towards the meeting. In fact, the currently milder relations between
the two countries can be regarded as an important achievement in and
of itself.

The Speaker of the Parliament Nino Burjanadze called upon her
political colleagues to observe a week’s moratorium on openly
criticizing Russia. She asked the country’s MPs not to intensify the
already existing difficult atmosphere before the Saakashvili-Putin
meeting. Accordingly the parliament has postponed discussion of the
issue of the Russian peacekeepers’ withdrawal from the conflict
zones. Governmental representatives are making optimistic statements
toward the future meeting.

“We have many reasons to think that the Georgian and Russian
Presidents’ meeting will solve many issues positively. Russia still
can play a positive role in the development processes of the region.
We hope the aforementioned meeting will solve the problems that are
so painful for us, in particular issues connected with the conflict
zones,” Burjanadze said as quoted by the newspaper 24 Saati.

The State Minister for Conflict Resolution Goga Khaindrava has made
analogous statements and is asking Moscow to make use of this “unique
chance.”

“This is a chance to accomplish an unprecedented feat: to solve the
issue of Georgian territorial integrity with the support of Russia.
We are expecting from Russia that they will see the great potential
here. Even one political decision taken by official Moscow will be
enough to change the process positively,” Goga Khaindrava said as
reported by the newspaper 24 Saati.

Such statements are necessary to lay the foundation for the two
presidents’ meeting and seem to be having the desired effect.
Although some analysts have a less optimistic attitude towards it and
they think that Russia will make concessions only if Saakashvili is
prepared to satisfy Moscow’s interests towards Georgia.

The New Rights made a special statement in which they called on
Saakashvili to be more attentive. According to them Georgia should
not make any concessions on principle issues.

“If the president makes any such concessions then it will be
treason,” Davit Gamkrelidze, the leader of the New Rights said as
quoted by the newspaper 24 Saati.

According to the newspaper Alia Saakashvili and Putin have already
met each other twice in Moscow, and once in Kazan so now they will
meet for the fourth time. The two presidents have also frequently
spoken on the phone, and Alia says that they have had 13 telephone
conversations.

According to unofficial information Saakashvili and Putin’s last
phone conversation was brought about by diplomatic efforts on the
part of the U.S. Russia does not want its relations with its
neighbors to become a thorny issue on the upcoming G8 summit
meeting’s agenda which is planned to be held in St. Petersburg later
this summer. Moscow wants to put its best face forward at this summit
and to gain respect as being a fully modern and civilized country and
not a source of potential instability and unrest.

At the same time Russia has its own interests in Georgia and fights
for the realization of these interests. For example: it has been
trying to prevent Georgia from integrating with the western world; it
wants to receive Georgia’s necessary approval for entering the World
Trade Organization; and it wants Georgia to guarantee the lines of
communication and commerce connecting Russia with Armenia. The issues
that Saakashvili is going to raise at the meeting are quite different
from Russia’s.

In reality Saakashvili’s main goal is to soften the tense relations
between the two countries. During the meeting the President of
Georgia is definitely going to push the issues of the conflict
situations in Georgia’s separatist regions, hoping to reconfirm
Russia’s commitment to the territorial integrity of Georgia.
Saakashvili will also address the Russian ban on Georgian products;
the protection of the interests of Georgian citizens who live and
work in Russia; and the increase in energy prices.

According to some analysts the aforementioned issues are wider and
more important for Georgia than Russia’s interests towards the
country, the newspaper Rezonansi writes.

Some think that the meeting will have a positive result if Moscow
agrees to reject taking any more aggressive steps against Georgia.
For example, if Moscow will agree to stop its attempt to transpose
the “Kosovo model” on the Caucasus.

According to some analysts if Russia is willing to make such
concessions then Georgia will have to cease demanding the withdrawal
of the Russian peacekeepers. If this happens then the Georgian
opposition will immediately evaluate such a development as “the
treason of Georgian interests.”

During his meeting with Putin, Saakashvili will have to balance
Georgian-Russian-Western relations and this will be quite difficult.

AZERBAIJANI POLITICIAN CALLS ON ARMENIAN PRESS TO TOLERANCE AND
REFUSES TO RESPOND FOR PUBLICATIONS OF THEIR COLLEAGUES OF BAKU

YEREVAN, JUNE 9, NOYAN TAPAN – ARMENIANS TODAY. Media representatives
must support solution of conflicts but not draw attention to
conflicts. Asaf Hajiyev, the head of the Azerbaijani parliamentary
delegation addressed to Armenian journalists with such a call at the
press-conference dedicated to results of the BSEC PA 27th plenary
session held in Yerevan.

Responding the Noyan Tapan correspondent’s question about his attitude
towards the recent publication in the “Zerkalo” newspaper in which, as
quotings from Armenian writer Zori Balayan’s book (not existing in
reality), brutalities as if conducted by Armenians against Azeris are
described, Hajiyev stated that he is a deputy and may not be
responsible for the ones press of his country writes.

Russian delegation head Alexander Dzasokhov mentioned in his turn that
there are two viewpoints in dialogues between the two sides of
conflicts: either to postpone all issues till settlement of the
conflict, or, not waiting for the final settlement, to solve all
possible issues. The Russian politician quoted President of Armenia
Robert Kocharian who mentioned in his address to participants of the
Assembly that joint regional projects will support settlement of
conflicts. According to Dzasokhov, though there are small and big
conflicts in the region, the principle of tolerance was chosen in the
BSEC PA work, and it is one of important results of the Yerevan
convention.