Author: Chatinian Lara

Eurasia Daily Monitor — The Jamestown Foundation
Thursday, March 23, 2006 — Volume 3, Issue 57
IN THIS ISSUE:
*Russian troops sweep Dagestan, resulting in widespread anger
*Kyiv now tilts toward Russia on Transnistria issue
*Tbilisi to receive gas deliveries from Azerbaijan
DESECRATION OF KORAN COULD PROVOKE ATTACK IN DAGESTAN
On March 3 Russian security officials swept through several villages in
the Khasavyurt district of Dagestan, North Caucasus.
According to RIA-Dagestan, “Officers of the Ministry of Interior Affairs
[MVD] and the Federal Security Service [FSB] are combing the Khasavyurt
area adjacent to Chechnya with the support of the 102nd Motorized Rifle
Division, helicopters, and armored vehicles.” The Ministry also reported
that a Kalashnikov assault rifle, two hand grenades, and 2,000
ammunition cartridges had been found in the village of Novosasitli in a
house owned by a relative of Rasul Maksharipov, a Dagestani insurgent
leader who was killed last summer (RIA-Dagestan, March 3).
Mopping-up operations, house searches, and arrests of suspected rebel
sympathizers happen daily in Dagestan, but this time Russian military
forces, not local police, took the lead, a tactical decision that
immediately caused trouble.
On March 10, Islamskoe Vozrozhdenie, a website linked to the Muslims of
Russia organization, posted an open letter from residents of
Novosasitli. The letter revealed the details of the sweep and contained
information not mentioned in the official report. Before they started
the mopping-up operation, residents claimed, Russian soldiers forced all
of the residents to leave their homes. The locals complained that the
servicemen were drunk, stole money and jewels during the sweep, and
broke furniture in many houses. One officer threatened to have his
soldiers rape a female village, adding that the attack would be even
worse than “what the Americans do with Muslims in Guantanamo or Abu
Gharib” (Islamskoe Vozrozhdenie, March 10). In addition, people in
Novosasitli insist that all of the weapons found in the village had been
planted by the military to justify their violent raid.
Yet all of these alleged crimes pale in comparison to one specific
incident that might have serious negative consequences not only for
Dagestan, but also for Russia’s reputation before the whole Muslim
world. At the home of Makhach Khabibov, Makhsharipov’s relative, Russian
officers deliberately desecrated a Koran. According to the letter by the
villagers, a Russian officer pulled the holy book from a shelf and
methodically began to rip out its pages. Then he threw it on the floor
and walked over it. Chernovik, a Dagestani newspaper, confirmed this
information. A correspondent from the newspaper saw the desecrated Koran
himself when he visited the village (newsru.com, March 16).
This provocation was so extreme that even some official Muslim leaders
of Russia, who usually look the other way when officials violate the
rights of ordinary Muslims in the country, protested.
At the end of last week, Mufti Mukkadas Bibarsov, head of the Muslim
Spiritual Directorate of the Volga Region, said that this act of
desecration must receive exactly the same strong condemnation from the
government and Russian society as did the recent Danish cartoons
lampooning the Prophet Mohammad (Islam.ru, March 16).
Mufti Nafigulla Ashirov, head of the Muslim Spiritual Directorate for
the Asian part of Russia, echoed these words, arguing that anyone,
Muslim or non-Muslim, should be angry at such actions and the dangers
they pose to the unity and stability of the Russian Federation
(Islam.ru, March 17).
Leaders of the MVD forces hurried to disavow their involvement in the
incident. A source in the Command called the desecration of the Koran
“a serious case” and said that an investigation into the incident was
underway (Ekho Moskvy, March 16).
Nevertheless, it is unlikely that the desecration of the Koran was done
on impulse. The witnesses say that the entire sweep was well organized
and that Russians in civilian clothes (probably FSB officers)
coordinated the actions of the Interior forces. Given the high level of
advance planning, the provocative behavior of the servicemen, as well as
the desecration of the Koran, could have been premeditated. The
residents of Novosasitli said that, before the sweep began, the MVD
troops fired guns in the air and helicopters flew over the village,
which made the locals feel especially nervous and terrified. The
Dagestani police and even the republic’s deputy minister of interior
affairs were forcibly kept away from the settlement during the sweep
(Islamskoe Vozrozhdenie, March 10).
The rough manner of the mopping-up operation resembles the massive
sweeps that took place in Chechnya from 2000 through 2003. The aim of
those “zachistkas” was to terrorize the Chechen population in order to
make them stop supporting the insurgency. The result was exactly the
opposite, however, since this brutal strategy only fueled resistance.
The same reaction could happen in Dagestan, where the local insurgency
had already gained significant public support.
“The desecration of the Koran has inspired serious public discontent in
Dagestan,” says Abdurashid Saidov, a respected Dagestani journalist. “No
doubt such blasphemy will stimulate the youth to join the rebels. And it
should be clearly understood that actions such as the desecration of
sacred Muslim items and tormenting unarmed civilians, including women,
will not help security officials to frighten the Dagestanis, but, on the
contrary, this can only lead to a second Nalchik in the largest republic
of the North Caucasus. I do not think the Kremlin will gain anything for
itself if what happened in Nalchik is repeated in Dagestan.” On October
13, 2005, insurgents swept into Nalchik, the capital of
Kabardino-Balkaria, capturing key facilities and fighting local security
forces. The authorities attempted to seal off the town, but the rebels
managed to escape.
The Russian military does not listen to people like Saidov, operating
under a different logic. “Religious fanatics understand only the
language of force,” says General Yuri Nikolaev, a former army commander
in the North Caucasus (see EDM, June 23, 2005).
Time will tell whose arguments are closer to reality.
–Andrei Smirnov
UKRAINE BREAKING RANKS WITH EUROPE AND MOLDOVA ON TRANSNISTRIA
Ukraine’s March 3 decision to cooperate with the European Union and
Moldova on Transnistria is proving short-lived. On that day, at the EU’s
insistence, Ukraine began enforcing a new border and customs regime
agreed with Moldova on the Transnistrian sector of the Ukraine-Moldova
border, thus closing Europe’s largest “black hole” of contraband and
illicit trafficking. However, the March 15 meeting in Moscow of
Ukraine’s National Security and Defense Council Secretary (NSDC),
Anatoly Kinakh, with his Russian counterpart, Igor Ivanov, marked
another turning point in Ukraine’s policy (if decisions reversible every
few weeks amount to a policy).
That meeting’s officially reported agenda included only two items:
preparing the first session of the presidential Putin-Yushchenko
commission (which has never met since its creation on paper more than a
year ago) and Transnistria (Interfax, March 15). The seemingly peculiar
linkage of these two items reflects the Ukrainian presidency’s and
NSDC’s long-standing attempts to elicit positive pre-electoral signals
from Moscow in return for Kyiv’s alignment with Moscow on Transnistria.
Indeed, on the eve of the Ivanov-Kinakh meeting, Russian Minister of
Foreign Affairs Sergei Lavrov publicly asked Ukraine to return to the
spirit of the December 15 Putin-Yushchenko declaration on Transnistria
(whereby the Ukrainian president had fallen into line with Putin, hoping
to induce him to visit Yushchenko in Ukraine ahead of the March 26
parliamentary elections). Lavrov further recalled the February
joint “inspection” visit to Transnistria by Igor Ivanov’s and Kinakh’s
deputies, who demonstratively exonerated Transnistria of suspicions
regarding arms production and contraband (Interfax, March 14).
That Lavrov-invoked spirit seems to be back after Kinakh’s Moscow visit.
Moscow’s consent to open the prospect of a Putin-Yushchenko meeting in
the joint communiqué is a modest but real “positive signal” just ahead
of Ukraine’s March 26 vote.
On March 17 and 20, Ukraine’s Ministry of Foreign Affairs forwarded two
notes to Moldova’s Ministry of Foreign Affairs, in which it complained
of economic damage and political complications that Ukraine is
experiencing as a result of the new border and customs regime on the
Transnistria sector. Between the lines, the notes expressed discontent
with Chisinau’s failure to explain the nature of the measures introduced
on March 3 to the public in Ukraine and Transnistria and hinted that
Ukraine cannot be expected to adhere to these measures much longer.
Indeed the Ukrainian Ministry proposes in one of the notes that the new
border and customs regime be “temporarily suspended” after Ukraine’s
March 26 elections. It further proposes that Ukrainian customs clear
Transnistria cargos in situations where the March 3 regime stipulates
Moldovan clearance of those cargos.
Meanwhile, Kyiv is already punching some holes in that regime
politically and physically. Politically, Kyiv is undermining the basic
tenet of the European Union’s initiative to introduce international
legal norms and standards on this border. That tenet holds that all
deliberations and decisions regarding this border are strictly a
bilateral matter between Moldova and Ukraine. The EU’s Border Assistance
Mission (EUBAM) is present on the border and actively engaged in
consultation, advisory work, and monitoring, but in no way substitutes
for Ukraine and Moldova, the sovereign states qualified to make policy
decisions on that border under international law. Thus, the EU opposes
any transfer of deliberations and decisions from the Ukraine-Moldova
bilateral framework into a format that would include Transnistria and
Russia as well. By contrast, Moscow and Tiraspol call for a format of
all
“interested parties,” including themselves on an equal footing with
Ukraine and Moldova, to settle the issue.
Kyiv is now inching toward accepting that Russian view. On March 16,
Yushchenko authorized an invitation to Transnistria’s self-styled
“foreign affairs minister,” Valery Litskay, for consultations in Odessa;
and Yushchenko personally invited Transnistria’s leader Igor Smirnov on
March 17 for a meeting in Kyiv. Litskay declined, saying that he would
only attend together with the Russian side. Smirnov accepted in
principle, but only if the agenda and outcome of a meeting with
Yushchenko are well prepared in advance (translation: if Kyiv agrees to
suspend the border and customs regime that were introduced on March 3).
Following this humiliating episode, Kyiv continued consulting with
Moscow.
Beginning with the night of March 16-17, Ukrainian border and customs
authorities, on instructions from Kyiv, are from time to time allowing
road transport to enter Transnistria directly from Ukrainian territory,
bypassing Moldovan customs. Such passage violates the regime introduced
on March 3, which requires such transport to be detoured from Ukrainian
territory to Moldovan customs checkpoints, there to undergo registration
and clearance before proceeding to their destinations in Transnistria.
Some of those cargos are food products, some of which are intended to be
smuggled back into Ukraine or redirected to Moldova; others are scrap
iron for the Rabnita steel plant, Transnistria’s most lucrative official
enterprise; and many of the cargos are imports of the Sheriff
conglomerate, the hub of Transnistria’s shadow economy.
Official statements from Kyiv portray the passage of such transport as a
welcome sign that Transnistria’s authorities are lifting the blockade
they had installed after March 3 on the border with Ukraine. In reality,
Tiraspol relaxed its blockade on the condition that Ukrainian
authorities collude in bypassing Moldovan customs. Tiraspol had stopped
all transport from Ukraine to retaliate economically against Kyiv,
generate political pressure from Ukrainian interest groups on the
government to lift or dilute the new border regime, foster a siege
atmosphere in Transnistria, and furnish a basis for Russian actions to
lift the purported “blockade.” Tiraspol’s move appears to be partly
successful against wavering Ukrainian authorities.
(Interfax-Ukraine, Moldpres, Olvia-Press, March 13-21)
–Vladimir Socor
GEORGIA EXTRICATING FROM GAZPROM’S BEAR HUG
The winter now ending was almost certainly the last one during which
Georgia had to face Gazprom’s commercial blackmail and supply cutoffs.
Within the coming months, Georgia will begin receiving Azerbaijani gas
through the Shah Deniz-Baku-Tbilisi-Erzurum (Turkey) transit pipeline
and will also have an opportunity to receive small volumes of Iranian
gas. This new situation should finally end Georgia’s dependence on
Gazprom and constant risk of losing the country’s gas transport and
distribution systems to the Russian state monopoly.
Deliveries from Azerbaijan’s offshore Shah Deniz gas field are scheduled
to begin in September 2006, reaching 20 billion cubic meters annually to
several consumer countries by the end of the decade. That figure, almost
double the initial projection, rests on revised estimates of the field’s
recoverable reserves, which turned out to be far richer than initially
estimated. The consortium for extraction and transport consists of:
British Petroleum as technical operator and Norway’s Statoil as
commercial operator, with stakes of 25.5% each; Azerbaijan’s State Oil
Company, Total of France, and the National Iranian Oil Company (NIOC),
with 10% each; a partnership of Russia’s Lukoil and Italy’s Agip with
10% between them, and Turkish Petroleum with 9%.
Georgia is to receive 300 million cubic meters of gas annually in
compensation for the transit service and to purchase another 500 million
cubic meters annually for a deeply discounted price fixed at per one
thousand cubic meters. The aggregate volume of 800 million cubic meters
represents 60% of Georgia’s current annual requirement of gas.
Significantly and properly, the arrangement whereby the consortium pays
Georgia with gas, in lieu of cash, for the transit service is deemed
entirely compatible with market economics. Gazprom and the Kremlin
denounced a similar arrangement, whereby Ukraine was receiving under
priced Russian gas in lieu of cash for the transit service until January
1, as “anti-market” and provided an excuse for their predatory move
against Ukraine.
The Georgian government now seeks to increase Georgia’s guaranteed
annual intake of Shah Deniz gas, so as to cover at least part of the
remaining 40% of the country’s current requirement. The requirement will
increase as Georgia’s economic growth accelerates. With Gazprom a risky
option for meeting that requirement, Georgia is looking at the
possibility of importing small volumes of gas from Iran. Georgia began
such imports in late January, following the never-explained bomb blasts
in Russia’s North Caucasus that sabotaged two Russian gas pipelines,
interrupting the supply to Georgia and Armenia. The national gas
companies of Georgia and Iran signed an agreement at that point whereby
Georgia would receive 2 million cubic meters of gas per day from Iran,
priced at 0 per one thousand cubic meters. That gas reached Georgia via
Azerbaijan, through the reconstructed small-capacity pipeline
Astara-Gazi Mahomed-Gazakh. That emergency arrangement opened the way to
exploratory discussions with Iran toward a more stable agreement to help
meet Georgia’s annual requirements. Meanwhile, 10% of the Shah Deniz gas
to reach Georgia will count as “Iranian” (NIOC’s share in that project).
On March 20, Georgia’s Ambassador to Armenia, Revaz Gachechiladze,
declared Georgia’s interest in receiving Iranian gas via Armenia. Both
Armenia and Georgia could benefit by enlarging the diameter of the
Iran-Armenia pipeline currently under construction, Gachechiladze
remarked (Armenian Radio, March 20). The pipeline’s diameter of 700
millimeters barely meets Armenia’s own needs. It was initially projected
at 1,420 millimeters with an eye to markets beyond Armenia, primarily
Georgia; but Moscow prevailed on Yerevan to reduce the scope of the
project so as to maintain Gazprom’s dominance. Under a 2005 bilateral
agreement, Iran will supply Armenia with 36 billion cubic meters of gas
over a 20-year period, with an option to extend the contract period to
25 years and the volume of supplies to 47 billion cubic meters.
Any gas reaching Armenia and Georgia from Iran is almost certainly not
“Iranian,” but rather originating in Turkmenistan and re-exported via
northern Iran. Turkmenistan is supplying northern Iran’s market as well.
Under an agreement signed last month, Iran will import 14 billion cubic
meters of Turkmen gas in 2006, up from 9 billion cubic meters in 2005.
The deliveries in 2006 will for the first time fill the Korpeje-Kurt Kui
pipeline — the sole non-Russian line out of Turkmenistan — to full
capacity. Part of the additional volume is almost certainly intended for
re-export by Iran to Armenia, Azerbaijan, and possibly Georgia. This
year, Turkmen gas costs per one thousand cubic meters at Iran’s border,
up from previously.
Gazprom may well retain some market share in Georgia beyond 2007, but
without the leverage to force Georgia to hand over its worn out trunk
pipeline or distribution systems. At the moment, Gazprom persists with
the offer to supply Georgia with gas at a still “favorable” rate of 0
per one thousand cubic meters (up from ), if Georgia locks itself into
permanent dependence by selling the trunk pipeline to Gazprom for a
deceptively tempting 0 million and throws the main gas distribution
systems into the deal. Some Georgian government officials seriously
considered such a possibility, but three factors have recently doomed
it: Gazprom’s unreliability as demonstrated by the January-February
supply crisis, Georgia’s receipt of U.S. Millennium Challenge Account
funds (partly earmarked for the trunk pipeline’s rehabilitation), and
the Shah Deniz-Erzurum pipeline about to come on stream.
Gazprom was also unsuccessful in targeting Georgia’s largest gas
distribution company, Tbilgazi, for takeover. Insolvent and heavily
indebted, the municipally owned Tbilgazi is being restructured under the
just-appointed General Director Bidzina Chkonia, hitherto the Millennium
Challenge Account’s Georgia coordinator for energy. Tbilisi is
negotiating with Kazakhstan’s gas transport company, KazTransGaz, to
privatize and overhaul Tbilgazi.
(Rustavi-2 Television, March 16, 20; Kavkas-Press, March 15; Interfax,
March 14 – 17, 20; Imedi TV, March 6; see EDM, January 23, 25)
–Vladimir Socor
The Eurasia Daily Monitor, a publication of the Jamestown Foundation, is
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From: [email protected]
Subject: British Columbia Legislative Assembly Recognizes Armenian Genocide
LEGISLATIVE ASSEMBLY OF BRITISH COLUMBIA RECOGNIZES ARMENIAN GENOCIDE
OTTAWA, APRIL 7, NOYAN TAPAN – ARMENIANS TODAY. The Legislative
Assembly of British Columbia unanimously adopted a Private Member’s
Motion 59, recognizing the Armenian Genocide and to designate April
24th of every year as a remembrance day for the 1.5 million Armenians
who fell victim to the first genocide of the 20th Century. The debate
on the Motion, which was sponsored by Member of the Legislative
Assembly (MLA) Adrian Dix (Vancouver-Kingsway), commenced at 11:00
a.m. on April 3 and was voted upon at the end of the allotted one hour
according to Private Member’s Motion rules. MLAs Adrian Dix
(Vancouver-Kingsway), Rob Fleming (Victoria-Hillside), Randy Hawes
(Maple Ridge-Mission), Dave S. Hayer (Surrey-Tynehead), John Horgan
(Malahat-Juan de Fuca), Maurine Karagianis (Esquimalt-Metchosin),
Leonard Krog (Nanaimo), Kevin Krueger (Kamloops-North Thompson), John
Nuraney (Burnaby-Willingdon), Michael Sather (Maple Ridge – Pitt
Meadows), and John Yap (Richmond-Steveston) spoke in support of the
Motion. Since last August The Armenian National Committee of Canada
(ANCC), The Armenian National Committee of Canada – West (ANCCW), and
The Armenian National Committee of Vancouver (ANCV), have worked
closely with the MLAs Dix, Hawes, Sather, and Hayer to build
non-partisan support for Motion 59. The ANCC, ANCCW and ANCV delegates
had numerous meetings with various MLAs to brief them on the Motion’s
importance as a universal human rights issue. In addition, the
delegates presented historical overview of the Genocide and supporting
documents. The executive director of The Armenian National Committee
of Canada Aris Babkian, on behalf of the Canadian-Armenian community,
thanked MLAs Adrian Dix (NDP) and Randy Hawes (Liberal) for their
leadership role in the successful adoption of the Motion. Furthermore,
Mr. Babikian thanked members who spoke in favour of the Motion and the
members who voted to adopt it. Mr. Babikian said: “This is a historic
day for our community in Canada and in British Columbia. The steadfast
suppor! t and the unanimous vote of the MLAs demonstrates once again
that the Turkish Government’s denial policy and rewriting of history
will not succeed. We call upon the Turkish Government to be
constructive, to come to terms with its dark history and to
acknowledge its predecessors’ guilt and extend a hand of atonement and
reconciliation to the Armenian People.”

Radio Free Europe, Czech Rep
April 7 2006
Russia Hushes Up Purchase Of Iran-Armenia Pipeline
Russia’s state-run Gazprom monopoly has hastily retracted its
official confirmation of reports about its takeover of a planned
Armenian-Iranian natural pipeline as part of a controversial
agreement to temporarily reduce the cost of Russian gas for Armenia.
In a statement posted on its website on Thursday, Gazprom said it
will be granted ownership of a major Armenian power plant and the
first 40-kilometer section of the pipeline currently under
construction in return for keeping the gas price relatively low until
the end of 2008.
The statement was found to have been altered the next day, containing
no references to the pipeline which is due to go into service this
November. It now says that Gazprom’s Armenian subsidiary,
ArmRosGazprom (ARG), will take over the gas-fired plant in Hrazdan
and unspecified `facilities of Armenia’s gas sphere.’
The change of wording seems aimed at sparing the Armenian government
public embarrassment over its claims that the Russians will get hold
of the Hrazdan plant only. Still, the edited version of the Gazprom
statement falls short of explicitly denying the imminent Russian
takeover of a pipeline that was supposed to reduce Armenia’s
dependence on its ex-Soviet master for energy.
The Russian energy giant also stood by its claims that its presently
45 percent share in ARG, which owns Armenia’s entire gas
infrastructure, will be raised to a `qualitative majority.’ According
to the Moscow daily `Kommersant,’ the Gazprom stake in the gas
operator will jump to 82 percent.
This will constitute an additional handover of Armenian energy assets
to Moscow which the government in Yerevan prefers not publicize for
the moment. President Robert Kocharian and other senior officials
have spoken instead of the short-term benefits of the deal for
hundreds of thousands of Armenians using Russian gas for heating
purposes. They will pay 65 drams (14 U.S. cents) per cubic meter of
the fuel, instead of the planned 90 drams, until January 2009.
Under the terms of the deal, the Russian side is also obliged to pay
the Armenian government $60 million in cash and make large-scale
capital investments in the incomplete Hrazdan facility.
State-run Russian companies already own Armenia’s largest thermal
power plant, also located in Hrazdan, several hydro-electric stations
as well as the country’s entire electricity distribution network. In
addition, Russia’s Unified Energy Systems utility manages the
finances of the Metsamor nuclear power plant.
`The republic’s energy sector has been taken under Russian control,’
`Kommersant’ declared on Friday. The paper said that Gazprom will now
make sure that Iranian gas is not exported to third countries,
including Georgia, through Armenian territory.

Kommersant, Russia
April 7 2006
Gazprom Takes Over Armenian Energy
Gazprom has reported the signing of a 25-year agreement with Armenia
on strategic partnership in gas projects. Armenian Foreign Minister
Vardan Oskanian is to hand a draft agreement signed in Yerevan to his
Russian counterpart, Sergey Lavrov today. Under the document, Gazprom
takes control over all gas pipeline projects of the country. In
return, Armenia will get the guaranteed volume of gas supplies for
the next 25 years and the fixed gas price of $110 per 1,000 cu.
meters for the next three years.
The visit of the Armenian foreign minister to Moscow is timed to the
Year of Armenia in Russia. Yet, Armenia is set to discuss a more
pressing issue in Moscow – that of gas prices. Gazprom announced last
December an intention to raise gas prices for Armenia to $110 per
1,000 cu. meters from $56. In the end, Moscow offered Erevan a deal
designed to cushion the price blow.
Gazprom and Armenia’s government initialed an agreement on long-term
cooperation in late March, according to the information Kommersant
obtained. Gazprom is to increase its share in Armrosgaz, the joint
venture controlling all gas transportation in Armenia, to 82 percent
from 45 percent. The Armenian government is currently holding 45
percent in the company and 10 percent is owned by Itera. Under the
agreement, Gazprom will bring funds to the Armenian budget which will
make up for the price hike for local customers.
Gazprom officially confirmed that Armrosgaz will buy the 40km-long
portion of the Megri-Kazharan gas pipeline from Iran to Armenia. The
gas main is to be put into operation by the end of the year.
by Ara Tatevosian, Erevan; Alexander Reutov, Nataliya Grib

RAFFI HOVHANNISIAN CALLS FOR POLITICAL CONSOLIDATION
YEREVAN, APRIL 7, NOYAN TAPAN. “Starting from 1995-96 the Armenian
authorities did their best on order to weaken the civil society formed
in the country and the development of democracy. They carried out a
whole chain of violations equal to coup d’etat, the last link of which
was the 2005 November 27 referendum,” Raffi Hovhannisian, Chairman of
the Zharangutiun (Heritage) party, Vice-Foreign Minister of Armenia,
declared at the April 7 conference of the party. According to him, the
normal development of Armenia was stopped because of the
“anti-national” steps of both first and second regimes. “At present
our country is a half-criminal, authoritarian territory which is
neglected by the strongest of the world”. According to Hovhannisian,
the country’s authorities have been demoralized, estranged from the
nation and have forgotten about their duty and responsibility towards
the people. According to him, the curent regime is engaged in “cutting
a dash” to the Armenian people and the world in order to retain its
power. The Zharangutiun party leader blamed the President for mass
riggings at the constitutional referendum and for violating his
constitutional oath twice. R.Hovhannisian also touched upon the
results of the Armenian-Russian negotiations dedicated to the gas
tariff naming them disgraceful and the legality of the bargain striken
very doubtful: “They resell the national wealth and the state power –
from the mineral wealth and water up to means of communication and
production”. He strictly condemned some media naming them shameful and
saying that they have lost their professional dignity. Characterizing
the situation formed in the country as “extremely hard,”
R.Hovhannisian meanwhile declared: “We have no right to leave the
people or not to protect our future. We need reanimation of the unity
of citizens, formation of a public opinion, in one word, restoration
of the civil society in Armenia. I call for a political
consolidation”.

ARMENIA’S GOVERNMENT TO SELL IRAN-ARMENIA GAS LINE TO “ARMROSGASPROM”
Yerevan, April 6. ArmInfo-RBC. According to the Gasprom’s press-office
information, the “Gasprom” and the government of Armenia signed an
agreement on the purchase of the 40-km section of the Iran-Armenia
gas line under construction and the Razdan HPP’s Unit N5 (Razdan-5) by
“ArmRosgasprom” CJSC from the Republic’s government. It is envisaged
to sign the preliminary purchase and sale agreement till April 14 and
the final law of property transfer must be carried out till January 1,
2007. According to the agreement, the Armenia’s government also engages
itself to hand over the functions of the Principal of the Iran-Armenia
gas line’s second part construction with length of about 197 km to
“ArmRosgasprom. The government of Armenia aims at assuring the national
energy safety by Iran-Armenia gas line construction at the expense
of gas supply sources diversification. In order to assure efficient
processing of the natural gas into electric energy, the parties will
join their efforts to restore and create a technologically unified
Razdan-5 complex with a common control center, as well as to build
a gas-turbine plant with electric power to 140 MW. Further operation
of these objects will allow to reduce fuel expenses for the electric
energy production. A possibility of export of the Razdan-5 energy
output is fixed in the agreement. Upon completion of the transaction,
the Gasprom’s share in the authorized capital of “ArmRosgasprom”
will made up the qualified majority.
The “ArmRosgasprom” CJSC was created in December, 1997. The
“Gasprom” OJSC and the Armenia’s Ministry of Energy own 45% of
the enterprise’s stocks each, 10% of shares belongs to the “Itera”
Company. The main sphere of “ArmRosgasprom” activity is organization
of the natural gas supply for the Armenia’s internal market. Moreover,
the “ArmRosgasprom” deals with transportation, storage, processing,
distribution and realization of the natural gas, reconstruction and
enlargement of the gas transport system and the gas underground
storages in the republic. The Razdan HPP is the largest one of
Armenia’s energy complex. It’s power is 1,1 thsd. MW, 800 MW of which
is used in winter time. The Razdan HPP was handed over to the RF
ownership in 2003 against discharge of the Armenia’s state debt. The
republic’s government made a decision in 2004 to sell the unfinished
fifth unit of Razdan HPP with power of 300 MW in order to attract
investments for the Armenia’s power system modernization. There is
no own gas production in Armenia, the republic’s power system nearly
fully depends on the gas import. The Gasprom resumed the natural gas
supply to Armenia in June, 2003, and now it is the only gas supplier
to the country. The Company supplied 1,7 bln cub.m. of natural gas
to the Armenia’s consumers in 2005. The “Gasprom” and the Armenia’s
government also signed an agreement, according to which the gas price
is fixed at the level of $110 per 1 thsd. cub.m. till January 1, 2009.

CHINESE MILITARY BODY VICE-HEAD, ARMENIAN DEPUTY MINISTER LAUD TIES
Xinhua news agency, Beijing
6 Apr 06
Text of report in English by official Chinese news agency Xinhua
(New China News Agency)
Beijing, 6 April: Senior generals of Chinese and Armenian armed forces
agreed on Thursday [6 April] to promote military exchanges.
“The Chinese armed forces value friendly ties with their Armenian
counterparts and there exists potential for cooperation in various
fields,” Vice-Chairman of the Central Military Commission Xu Caihou
said at a meeting with visiting Armenian Deputy Defence Minister Y.
Khachaturov.
Xu said China-Armenia relations have progressed smoothly since the
two countries established diplomatic ties in 1992.
“We would like to make concerted efforts with the Armenian side to
continuously promote the existing friendly relations and cooperation
between the armed forces on the basis of equality, mutual trust,
benefit and respect,” Xu said.
Y. Khachaturov, who arrived on Monday for a goodwill visit, said the
Armenian side holds a positive attitude on developing ties with Chinese
military and would like to boost the cooperation in various fields.

ROBERT KOCHARIAN: ARMRUSGASPROM PLAYS A KEY ROLE IN ARMENIAN ECONOMY
Noyan Tapan
Apr 05 2006
YEREVAN, APRIL 5, NOYAN TAPAN. The Armenian President Robert Kocharian
on April 5 visited ArmRusgasprom CJSC where he conducted a working
consultation with the company’s management. NT was informed about it
from the RA President’s press service. Pointing out that ArmRusgasprom
is a large infrastructural company that plays a key role in the
Armenian economy, R. Kocharian said that the purpose of his visit
is to summarize the work done by the company in 2005 and to become
acquainted with its activities to be carried out this year.
Karen Karapetian, Chairman of the company’s board, Director General,
made a report on the work done by the company last year. Noting that
the volumes of gas consumption are increasing each year, he said
that 1 bln 685 mln cubic meters of natural gas was imported into
Armenia in 2005, which is by 24.2% more than during the previous
year. ArmRusgasprom’s head explained this stable increase in gas
imports by the intensive implementation of the program on restoration
of gas supply, extension of the gas distribution system and the upward
tendency in gas consumption shown by the industry and trade sectors
of Armenia.
According to K. Karapetian, the number of Armusgasprom’s actual users
makes 360,634 as a result of the large-scale gas supply provision
process in Armenia. The company plans to complete the intensive stage
of the gas supply restoration program in 2007. The actual losses
of natural gas are declining in parallel with the growth in gas
supply and gas consumption volumes, as well as considerable efforts
are underway to solve the problems related to the in-house system’s
technical services and to safety of gas use. ArmRusgasprom’s head spoke
about the investments in the system in 2005, which were mainly aimed at
extending the gas distribution network, increasing the number of users,
reconstruction and re-equipment of the gas transportation system, and
enhancing the safety of the gas distribution network. K. Karapetian
noted that thanks to the complex measures taken over years, it has
become possible to make the company profitable and ensure its stable
financial activities, as a result of which ArmRusgasprom is now among
the biggest Armenian tax payers. He informed those present that the
company is implementing some educational programs aimed at training
of experts for the system. K. Karapeytian considered the completion
of gas provision process as one of the company’s priorities, noting
that this year it is envisaged to increase the number of users by
80-100 thousand.
He attached importance to construction of the Iran-Armenia gas
pipeline. He also indicated the maintenance and development of
capacities of the Abovian underground gas depot as one of the
main directions of the company’s investment policy. Summarizing
the consultation, R. Kocharian underlined the importance to the
efficient implementation of the presented programs. In his words,
these programs show that ArmRusgasprom has a good tendency for further
development. “The government is interested in ArmRusagasprom’s being
profitable and having an effective management,” the President pointed
out. He noted that the implementation of these programs will allow to
improve significantly the lives of people. According to the Armenian
President, time has shown that the choise of Gasprom (Russia) as a
strategical partner was a correct one. He expressed confidence that
the future joint programs will promote the company’s development.

AZERI, TURKISH LEADERS SEE EYE-TO-EYE ON ‘ALL ISSUES’
Assa-Irada, Azerbaijan
April 5 2006
Baku, April 4, AssA-Irada
Turkish-Azerbaijani relations can serve as an example for all
regional countries in terms of the spirit of friendship and fraternal
cooperation, the visiting Turkish President Ahmed Necdet Sezer said
in a meeting with his Azerbaijani counterpart Ilham Aliyev in Baku
on Tuesday.
The Turkish president’s second two-day visit started with a private
meeting between the two leaders which was followed by negotiations
in an expanded format. In his remarks, President Aliyev pointed to
the developing collaboration in all areas and welcomed the presence
of political dialog between the two countries. He said the trade,
economic and cultural relations were also burgeoning.
Sezer, for his part, touched on commercial contacts between Baku
and Ankara. He said while in 2004 the turnover between Azerbaijan
and Turkey was $550 million, it reached $795 million last year,
with prospects of bringing the figure to one billion this year. The
Turkish leader said his country’s businessmen had invested $4.5bn in
Azerbaijan, of which $2.5bn was channeled into the non-oil economy.
He reaffirmed his country’s interest in energy cooperation with
Azerbaijan.
In a joint news briefing shortly after the meeting, the two
presidents said they had also discussed prospects for future
cooperation. President Aliyev said international relations and regional
collaboration were high on the agenda.
“Both countries are implementing global energy projects and the energy
avenues being explored and developed will soon open up tremendous
opportunities for the entire world,” Aliyev said. He added that
the two heads of state had also exchanged views on the strategic
Gars-Tbilisi-Baku railway project and indicated that Baku and Ankara
were united on all issues surrounding the initiative.
Sezer told journalists that all issues of interest had been covered
in the negotiations.
“We consider it necessary to keep on improving our relations in all
directions. Turkey supports all economic projects Azerbaijan has
embarked upon.”
He reiterated his country’s position on the Armenia-Azerbaijan Upper
(Nagorno) Garabagh conflict, saying Turkey will always stand by
Azerbaijan on the issue. Sezer also thanked Baku for its support on
the Turkish Republic of Northern Cyprus issue.
President Aliyev said his country’s stance on the Garabagh dispute
remains unchanged.
“The conflict may be resolved strictly on the basis on international
law. Azerbaijan’s territorial integrity must be restored and occupation
ended, while Azeri citizens ousted from their homes as a result of
Armenia’s policy of ethnic cleansing must return to their native land.”
Sezer invited President Aliyev to attend the ceremony of launching
the Baku-Tbilisi-Ceyhan main export pipeline in Turkey in May.
The parties signed no documents during the Turkish president’s visit.
Although local media reported prior to the visit that the two leaders
were to discuss Turkish-Armenian relations and the tensions between
the United States and Iran, no information concerning these issues
was provided during the news briefing.

ARMENIAN AND AZERI FOOTBALL FEDERATION HEADS TO MEET IN GENEVA MAY 11
PanARMENIAN.Net
05.04.2006 20:53 GMT+04:00
/PanARMENIAN.Net/ The Armenian and Azeri Football Federation Heads will
meet in Geneva May 11 to determine the venue of the selection matches
of the Europe-2008. UEFA Chief Executive Lars-Christer Olsson, who
paid a visit to Armenia the other day remarked that the meeting will
be held with the participation of a special UEFA committee that will
visit Baku and Yerevan. “Armenia and Azerbaijan can reach consensus
via constructive dialogue only,” the UEFA Chief Executive stated. At
the same time he noted that the availability of a political problem
created rather a complicated situation. To note, earlier Mr. Olsson
said the UEFA stands for the conduction of the matches in Baku and
Yerevan.