Author: Chatinian Lara

United Press International
Aug 25 2004
Analysis: Nuclear power gaining popularity

Date: Wednesday, August 25, 2004 8:41:22 AM EST By ANDREA R.
MIHAILESCU, UPI Correspondent
WASHINGTON, Aug. 25 (UPI) — Nuclear power has become increasingly
popular worldwide, particularly in the developing world, as a source
of energy consumption, yet accidents involving radiation leaks
continue in some of the world’s safest nuclear plants. Amid rising
oil prices, developing countries have little alternative but to
depend on nuclear power.
Developing countries are increasing their nuclear power usage.
Armenia has one working reactor; Bulgaria has two; Ukraine three, and
Romania one. One nuclear power plant is under construction in Iran
and three more are planned. A total of 27 nuclear power plants are
under construction in developing countries.
Within the next several decades, energy consumption will at least
double or triple in developing countries with growing populations and
economies, according to Turkey’s Hurriyet.
Building nuclear power plants is expensive, but their operational
costs are relatively low. It is not difficult to obtain nuclear fuels
such as uranium or thorium. Nuclear power plants also produce
virtually no carbon emissions.
These power plants currently generate 16 percent of the electricity
the world consumes, and currently account for 78 percent of
electricity generation in France, about half of Belgium and Sweden’s
electricity, 28 percent of Germany’s electricity, 20 percent in the
United States, and 17 percent in Russia.
But even as nuclear power becomes increasingly popular worldwide,
some developed countries are considering shutting down their plants
amid plant malfunctions. Belgium, the Netherlands, Germany, and
Sweden have decided to gradually phase out their nuclear power
plants.
The oldest operating powerplant in Spain, the Jose Cabrera power
station in Almonacid de Zorita, will be shut down on April 30, 2006.
In 1994, more than 170 cracks were detected in the cover of the
reactor vessel; the cracks were only repaired in 1997. Dismantling
the station is expected to start in 2008 and completed in 2014 at a
projected cost of $165 million, according to Spain’s National
Radioactive Waste Company.
Sweden’s Nuclear Power Inspectorate intends to impose stricter safety
measures on the country’s nuclear power plants, which generate about
half of the country’s electricity, to bring the country into line
with IAEA and UN standards, according to the Svenska Dagbladet.
Renovation work will total $809 million. Citizens voted in 1980 to
phase out nuclear power by 2010, but the deadline was scrapped in
1997 because the country had not worked out how to replace lost
generating capacity.
Nuclear power plants have seen massive leaks throughout the decades
in some of the world’s safest plants as well as the world’s worst,
and increased safety measures by the IAEA and the UN nuclear watch
dog have not helped prevent such leaks. The third-safest power plant
in Russia, the Volgodonsk facility in the Rostov region, had to be
stopped twice within the past nine months due to emergencies in
November 2003 and January 2004.
Even Japan’s Mihama plutonium-thermal plant, considered the world’s
safest power plant, saw four workers killed when steam leaked from a
turbine reactor on August 9.
Japan’s Asahi Shimbun reported the accident as the worst ever in
Japan’s nuclear powerplants: “Trust was lost and the accident will
have a great impact on future nuclear power development.” And as
nuclear powerplants get older and older, problems like pipe corrosion
and equipment malfunction may increase.
Following the Mihama accident, Greenpeace Russia has expressed
concerns over conditions at Russian nuclear plants. “Japan’s nuclear
power plants are among the best in the world,” Greenpeace said in a
press release on Aug. 10. But in 2003, Japan failed to disclose the
critical state of several of its reactors, which led to an immediate
halt in operations at several nuclear plants.
Greenpeace reported that major disasters in Russia’s nuclear plants
were similar to the accident in Japan. “There will be accidents as
long as the nuclear power industry exists, and there could be a new
Chernobyl at any moment,” Russian Greenpeace head Ivan Blokov told
Interfax on Aug. 8.
Russia has a history of accidents. Three people were killed in an
accident at the Leningrad nuclear powerplant on February 6, 1974. The
facility was the venue for another disaster in autumn 1975, which
involved a radiation leak that continued for more than a month.
Fourteen people were killed in an accident at the Balakovo nuclear
plant on June 27, 1985.
A radiation leak also happened on U.S. soil when the 1979 Three Mile
Island reactor leaked radioactive material.
Despite such malfunctions, developing countries continue to construct
nuclear plants. A newly-built reactor in Ukraine, launched at the
Khmelnytskyy nuclear power plant, went offline due to massive
overheating on August 13. Ukraine has had several radiation leaks
throughout the decade, according to Washington-based Nuclear Threat
Initiative reports.
Equipment problems have also developed in two China-based power
plants which Russia helped China build. Russian Federal Atomic Energy
Agency Head Alexander Rumyantsev said that glitches arose in one
reactor’s equipment but hopes to eliminate those glitches within the
next two months. Regarding another reactor close to Beijing,
Rumyantsev told Interfax on Aug. 12, “Some parts of the equipment,
however, have started to malfunction, but we know how to fix them.”
Slovenia’s only nuclear power plant shut down automatically on August
10 as a safety precaution after a mistake occurred in the system that
regulates the amount of nuclear reaction taking place in the reactor.
According to a statement from the Nuclear Power Plant Krsko, the
control rods that regulate the amount of fission lost power after
their power source broke down on the evening of Aug. 9.
Another issue to consider is that nuclear technology can be used to
make weapons as well as electricity. China and Pakistan signed a
contract to supply a reactor pressure vessel for the second phase of
the Chashma Nuclear Power Station in Pakistan. China Nuclear Energy
Industry Corporation Deputy General Manager Huang Guojun said
Pakistan had pledged that technology would be used solely for
peaceful purposes with no transferal to a third parties. It is
difficult to ignore the fact that nuclear technology has benefits in
addition to its primary function of electricity generation.
With no oil or gas of its own, Turkey has been debating the issue of
construction of nuclear power plants in the country. But even if
Turkey decides not to construct nuclear plants of its own, the
country will be affected by any accidents that may occur in nearby
countries — just as in the case of the 1986 Chernobyl accident.
Earthquake-prone countries such as Armenia may see disastrous
radiation leaks to one of its units if an earthquake occurs. One of
Armenia’s power plant units has been shut down for repairs and
nuclear fuel loading in late July, according to plant General
Director Garik Markosian.
Proper disposal of nuclear waste, meanwhile, is a growing problem in
developing and developed countries. In short, nuclear power plants
may be environmentally friendly and cheaper to operate generating a
cheaper source of energy consumption — but with the risks the plants
pose, no one wants to live near one.
“Until about 2 billion years ago, it was impossible to have any life
on Earth. That is, there was so much radiation on Earth you couldn’t
have any life — fish or anything. Gradually, about 2 billion years
ago, the amount of radiation on this planet reduced and made it
possible for some form of life to begin. It started in the seas, I
understand from what I’ve read. And that amount of radiation has been
gradually decreasing because all radiation has a half-life, which
means ultimately there will be no radiation. Now, when we go back to
using nuclear power, we are creating something that nature tried to
destroy to make life possible,” said Admiral Hyman Rickover, known as
the father of the U.S. nuclear navy.

Detroit Free Press, MI
Aug 25 2004
LOCAL VOICES: Cleanse world of genocide
Collective action can end Darfur atrocities
BY VICTOR BEGG DAVID GAD-HARF AND THE REV. DANIEL KRICHBAUM
We are blessed in metro Detroit to have a great number of activists
committed to improving interfaith and inter-race relations in our
community.
The connections we have built allow us to ensure positive and
constructive solutions to problems that may arise between our groups
and maintain an atmosphere of acceptance, tolerance and civility.
Taking a look into our history books underscores the importance of
working together to foster intergroup relations.
Toward the end of World War I, the Ottoman Empire began a program of
ethnic cleansing targeting the Armenian population. During the
Holocaust, over 6 million Jews and an equal number of non-Jews were
slaughtered in Europe. In the mid-1990s, 800,000 Rwandans were killed
in that African country’s program of mass murder. Around the same
time, Muslims in the former Yugoslavia were subjected to genocide.
Is it conceivable that such ethnic cleansing that so stained the 20th
Century continues today?
Not only is it conceivable, but it is happening. As we speak, blacks
in Sudan’s Darfur region are being killed, raped and displaced by
militiamen known as the Janjaweed. These militias are supported by a
Sudanese government that continues to allow the Janjaweed to commit
these atrocities against fellow Muslims in the African nation. Both
the U.S. Congress and UN Security Council have issued resolutions
condemning the ongoing genocide.
U.S. Secretary of State Colin Powell and UN Secretary-General Kofi
Annan also have visited the Darfur area, but these minimal efforts
are not enough. The Save Darfur Coalition (), made
up of more than 80 organizations, including representation from major
faith groups and humanitarian organizations, has designated today,
Aug. 25, as the Day of Conscience.
Across North America, communities are engaging in interfaith efforts
to raise public awareness about the horrific situation in Darfur and
to demand that the international community take immediate and
decisive action to stop the ethnic cleansing.
So what can each of us do today and in the coming days, weeks and
months to end this great tragedy unfolding before us? Each of us
should write to President George W. Bush and urge him to declare what
is happening in Darfur genocide (he has not done so, even though such
a declaration would solidify support for Darfurians). We can also ask
our members of Congress to express their outrage that genocide can
still occur and speak publicly about the issue.
Our religious clergy can bring this issue to the attention of their
congregations. We can pledge financial support — no matter how large
or small — to the relief organizations trying to provide food,
water, health care and shelter to over one million refugees of this
crisis.
The value of every action — whether individual or collective — can
bring an end to this great human tragedy.
Who knows what could have been had more people stood up to Hitler, if
more nations had spoken out against Slobodan Milosevic in Bosnia?
Here in metro Detroit, we are committed to improving our
understanding of, and relations among, all religious, racial and
ethnic groups despite our differences. One important lesson that we
have learned is that no matter which faith we hold so dear, we are
all commanded to respect life, care for those in need and create a
better world.
It is this belief that underscores today’s Day of Conscience. Let us
act now to raise awareness of the atrocities being committed in
Sudan. Let us act together, quickly, so that this new century does
not carry the bloody stains of the previous one.
VICTOR BEGG is vice chair of the Council of Islamic Organizations of
Michigan; DAVID GAD-HARF is executive director of the Jewish
Community Council of Metropolitan Detroit; THE REV. DAN KRICHBAUM is
executive Director of the National Conference for Community &
Justice. Write to them in care of the Free Press Editorial Page, 600
W. Fort St., Detroit, MI 48226.

NAGORNY KARABAKH ACTUALLY INDEPENDENT STATE: VARDAN OSKANYAN
YEREVAN, AUGUST 19. ARMINFO. Nagorny Karabakh is actually an
independent state now, and the Armenian side’s task is international
recognition of the status quo, RA Foreign Minister Vardan Oskanyan
told reporters.
He said that Nagorny Karabakh will never be part of Azerbaijan. “I
find it difficult to say how the conflict will be settled, but Nagorny
Karabakh cannot in any way be part of Azerbaijan,” Oskanyan
said. Commenting on RF Foreign Minister Sergey Lavrov’s statement that
the Russian side sees the resolution of the Nagorno-Karabakh problem
in the context of Azerbaijan’s territorial integrity, which statement
was published by mass media, Oskanyan said that official statements of
the RF Foreign Office do not contain such wording. “Russia is for a
peaceful settlement of the conflict and has repeatedly stated its
willingness to accept any solution to the Nagorno-Karabakh problem
that will be approved by the conflicting parties,” Oskanyan said.
Speaking of the possibility of hostilities, the Foreign Minister
stated that “this possibility cannot be ruled out completely, but it
is extremely small.” According to Oskanyan, the Armenian army is the
guarantor of peace. Oskanyan also reported that his regular, fourth,
meeting with his Azerbaijani counterpart is to be held in Prague on
August 29-30, and the next round of negotiations between the two
countries’ Presidents is expected to take place during the CIS Summit
in Astana, this autumn. “We must be able to continue and finish what
we began,” Oskanyan said.
From: Emil Lazarian | Ararat NewsPress

VARDAN OSKANIAN: ARMENIA THOROUGHLY FOLLOWS DEVELOPMENT OF SITUATION
IN ZONE OF GEORGIAN-OSSETIN CONFLICT
YEREVAN, AUGUST 19. ARMINFO. People in Armenia is thoroughly following
the development of the situation in the zone of Georgian-Ossetin
conflict. Minister of Foreign Affairs of Armenia Vardan Oskanian
declared during the press conference today.
“We are concerned over the situation and we deeply regret the news
about victims”, the foreign minister of Armenia said. He expressed
hope that the parties will succeed to sit down at the negotiating
table and solve the problem only by peace.

Los Angeles Daily News, CA
Pasadena Star-News, CA
Aug 20 2004
Martirosian bows out to Cuban veteran
Of course, it had to be a Cuban.
That’s the way it’s gone more often than not for the U.S. boxing team
in recent Olympics. Some Cuban fighting gray at the temples schooling
some U.S. boxer fresh from earning his learner’s permit.
The boxing program on that little tropical island remains one of the
hottest in the world. The once great amateur program in the U.S.,
cold as ice.
Since the 1988 Olympics the U.S. has won a grand total of two boxing
gold medals. Meanwhile, Cuba brought home 13.
Nothing is expected to change here. Cuba is favored to advance six
boxers to the finals and the U.S. maybe one.
So it came Thursday afternoon that the USA’s Vanes Martirosian drew
Cuba’s Lorenzo Aragon in his second-round match.
Aragon owns cigars older than Martirosian. He’s 30 and has won two
world championships. One more serious Cuban boxing veteran.
Understand, in Cuba they don’t turn pro. Their best boxers just keep
appearing at Olympics and world championships. They get better and
better until deemed too old and replaced by the next 28-year-old
rookie.
Fidel Castro may be on his last legs, communism crumbling, the Cuban
economy in shambles, but the country’s boxing remains a regular world
leader.
On the surface, Thursday offered the biggest of mismatches. A few
months ago, no one in the U.S. even knew Martirosian. He was 17 years
old and ranked 14th nationally at 152 pounds when he went to trials.
But with two of the top boxers in his weight class disqualified Andre
Berto for throwing Juan McPherson to the ground, forcing McPherson
out with an injury Martirosian turned it on and stunned just about
everyone by winning the welterweight class.
Martirosian was born in Armenia and came to the U.S. at age 4 with
his family. He’s now the pride of Glendale’s swelling Armenian
community, but all logic pointed to his being outclassed against
Aragon.
Martirosian entered the ring first. You figured his knees might be
shaking. He won his first Olympic bout against Algeria’s Benamar
Meskine, but Aragon was a whole other level.
“I wasn’t nervous,’ Martirosian said. “I just love boxing so much, I
can’t wait to get into the ring.’
Martirosian talks about boxing with the kind of enthusiasm most
teenagers reserve for PlayStation 2. And he clearly was not afraid of
the veteran.
But Aragon is a serious veteran, and looked it. Apparently the judges
thought so, too.
He scored early and often with punches that barely seem to graze the
kid. He’d tie Martirosian up, then stick his arms out straight like
it was the kid holding him.
Several times Martirosian was warned by the official from Lestho (a
small South African country) not to hold.
“He was holding and I was getting called for it,’ Martirosian said.
“It was frustrating. He was trying to get into my head, but I stuck
to my game plan.’
He had fought and lost to Aragon once before in May, starting well
but getting a little too excited and allowing the Cuban to score
easily with jabs.
This time out, it went the other way. In the electronic scoring
system in the Olympics, a point is scored for each blow landed,
regardless of its power.
Aragon jumped to a quick 8-2 lead after the first round. Martirosian
scored the first two points of the second, and Aragon the last six.
A 14-4 lead is huge in this four- round format. Still, Martirosian
kept up the pressure and actually won the next round 4-3 and split
the final round.
That ended his dreams of gold, the Cuban advancing with a 20-11
victory.
“I thought he scored more points than he did,’ said U.S. coach
Basheer Aboullah.
“I wanted that one. I thought if he beat the Cuban we could really
build some momentum for the rest of the tournament.’
Aragon, the 2003 and 2001 world champion, acted like it was so much
in a day’s work. At least a Cuban boxer’s work.
“We Cubans are always optimistic because we are the best team,’
Aragon said. “We aim at getting gold at all 11 weight classes.’
Martirosian made Aragon look like a very beatable fighter. He landed
the hardest blow of the bout, staggering Aragon with a right. But the
official warned him for slapping. Must have been some slap.
“He showed me a lot of respect this time,’ Martirosian said. “He knew
I hit hard. I caught him good in the first round.’
Now he gets to play cheerleader for his surviving U.S. teammates.
Typically, boxers use the Olympics as a springboard to a pro career,
but Martirosian now 18 isn’t so sure.
“I’m still young,’ he said. “I’m still going to get better. He’s 30
years old. You might see me in 2008, who knows?
“To me, it’s not about the money. I just love amateur boxing.’
The pros do offer one major advantage, though. No Cubans.
From: Emil Lazarian | Ararat NewsPress

Armenian National Committee of Florida
PO Box 741364
Boynton Beach, FL 33474
954-401-9787
[email protected]
PRESS RELEASE
August 17, 2004
Contact: Bedo Der-Bedrossian
[email protected]
SOUTH FLORIDA ANC ACTIVISTS REACH OUT TO ELECTED OFFICIALS
— Urge Senator Nelson to Support Genocide Resolution, Strengthen
US-Armenia Relations
FT. LAUDERDALE, FL – Florida ANC activists joined with ANCA national and
regional staff in a meeting, today, with representatives of Senator Bill
Nelson’s (D-FL) district office to discuss issues of concern to the Armenian
American community in the Sunshine State, reported the Armenian National
Committee of Florida.
The meeting is among the first in a series of activities involving Members
of Congress and the Florida Armenian community during a 10-day trip to the
region by ANCA Eastern Region Director Doug Geogerian and ANCA Government
Affairs Director Abraham Niziblian.
Over a dozen Florida Armenians participated in the meeting Sen. Nelson’s
Broward County Regional Office Director Willowstine Lawson. Activists
joining Niziblian and Geogerian were ANC South Florida Chairman Bedo
Der-Bedrossian, Rev. Vasken Bekiarian, Pastor of St. Gregory Armenian Church
of South Florida, Marilyn Vaboolian McClean, Sonya Toumayan, Gloria Toroyan,
Michael Toumayan, Arlys Koushakjian, Naomi Davitian, Eugenie Megherian
Rodrigues, Sevag Tokatlian, and Siran Der-Bedrossian. Michael Toumayan
recently finished an eight-week internship at the ANCA national
headquarters, during which time he met with Senator Nelson and his
Washington, DC staff.
During the hour-long meeting with Lawson, community participants urged the
first term Senator to take an active role on a number of key Armenian
American concerns including Congressional reaffirmation of the Armenian
Genocide, stronger US-Armenia bilateral economic and political relations,
and a lasting and equitable resolution to the Nagorno Karabagh conflict.
Der-Bedrossian specifically asked that the Senator cosponsor S.Res.164,
legislation marking the 15th anniversary of US implementation of the
Genocide Convention. The resolution, introduced by Senators John Ensign
(R-NV) and Jon Corzine (D-NJ), currently has 40 cosponsors. Der-Bedrossian
also briefed Lawson about activities planned in commemoration of the 90th
anniversary of the Armenian Genocide next year in South Florida and invited
Senator Nelson to join the Armenian American community in marking this
solemn occasion.
Participants urged the Senator’s support for S.1557, which would ensure
permanent normal trade relations between the US and Armenia. The ANC
activists will be meeting personally with Senator Nelson regarding these and
other pressing issues later this week.
Geogerian and Niziblian arrived in Ft. Lauderdale this past weekend, where
they joined the South Florida community in celebrating the Feast of the
Ascension and the Blessing of the Grapes at St. Gregory Armenian Church.
Last night, Niziblian and Geogerian gave an update on Armenian American
advocacy efforts in Washington, DC and around the nation to local activists
at a public forum hosted by the ANC of Florida. Over the next seven days,
they will be traveling throughout the state, meeting with Members of
Congress and local Armenian American activists in an effort to strengthen
the community’s political advocacy efforts in Florida.
The Armenian National Committee is the largest Armenian American grassroots
political organization in Florida and nationwide. The ANC actively advances
a broad range of issues of concern to the Armenian American community.

Agence France Presse
Aug 16 2004
Putin To Meet Ukrainian And Armenian Presidents In Sochi
MOSCOW, Aug 16 (AFP) – Russian President Vladimir Putin is scheduled
to meet with his Ukrainian and Armenian counterparts this week in the
Black Sea resort of Sochi, where he is currently on holiday, the
Kremlin said Monday.
Putin is due to hold talks Wednesday with Ukrainian President Leonid
Kuchma and Friday with Armenian President Robert Kocharian, a Kremlin
spokeswoman told AFP Monday.
Putin’s meeting with Kuchma comes on the heels of a decision by
Ukraine to sign a three-year contract with the Russian-British oil
company TNK-BP to carry Siberian oil through the Odessa-Brody
pipeline.
The move thwarted European hopes that the pipeline would export oil
from Central Asia and the Caspian Sea to Europe, but was welcomed by
the Kremlin.
Analysts said the move was the latest in a series that have seen the
former Soviet republic lurch back toward Moscow, after spending most
of the post-Soviet years reaching out toward the West, ahead of
presidential elections in October 31.

Le Télégramme
16 août 2004
Hélène Diner fait visiter l’église
Si le fier clocher de l’église de Saint-Servais ne se mire pas dans
l’eau, contrairement à celui de la chanson, il n’en reste pas moins
que le magnifique édifice est toujours apprécié de nombreux
touristes.
Mercredi, Hélène Diner, pour qui aucune pierre du saint lieu n’a de
secret, conduisait un groupe d’une douzaine de visiteurs à travers la
nef et les bas côtés, commentant, vitraux, statues, sculptures et
tableaux, autant de trésors que renferme ce splendide édifice dont la
construction traverse tout le XVII e siècle.
Sur le clocher, en effet, on trouve inscrit la date du 16 mai 1610,
le chevet date de 1688 et la partie centrale de 1707.
Mais c’est essentiellement sur les portes qu’Hélène Diner attire
l’attention des visiteurs, dont beaucoup, curieusement, prennent des
notes et bien sûr des photos.
Trois portes sculptées
Saint-Servais a la particularité de posséder trois portes sculptées,
originales en Bretagne et d’une extrême beauté. Elles seraient
réalisées d’après des dessins du peintre italien Nicoleto dell
Abatte, dit encore Nicolet de Modène, qui est arrivé en France avec
la suite d’artistes ramenés d’Italie par François 1 e r . Ce peintre
aurait aussi participé à la décoration du chteau de Fontainebleau
avec un autre peintre italien Primaticcio. Comment les dessins
sont-ils arrivés dans les mains d’un artiste sculpteur local qui a
réalisé ces portes un ou deux siècles plus tard ? Il y a là un beau
sujet de recherche pour un historien chevronné.
Saint Servais : ne pas confondre avec Pierre
Autre spécificité de l’église, un tableau d’indulgence plénière,
écrit en vieux breton mais dont Hélène Diner donne une traduction aux
curieux qui s’interrogent « cette prière, dont le rôle était
d’écourter le séjour des mes en purgatoire, pour rejoindre le
paradis au plus vite ». On trouve sur ce panneau, situé au fond de
l’église, une représentation de saint Servais, longtemps confondu
avec saint Pierre, car le saint local est toujours représenté avec
des clés. « La différence s’explique par le fait que saint Servais
porte une mitre en tant qu’évêque, ce que n’était pas le grand saint
Pierre. Servais est, selon l’histoire et la légende, originaire
d’Arménie.
Il aurait baptisé Attila
Il aurait été le premier évêque de Maastricht et aurait même baptisé
le terrible Attila. Enfin, juste à côté de ce panneau d’indulgence,
un vitrail en oeil-de-boeuf ne manque pas d’attirer l’attention. Il
représente très naïvement un prêtre baptisant des petits noirs en
leur versant sur la tête l’eau à l’aide d’un fort belle coquille
Saint-Jacques. Là aussi, un certain mystère plane quant à l’origine
de ce vitrail. Enfin dernière curiosité de Saint-Servais que peuvent
admirer les visiteurs, les toiles de Yan’Dargent, peintre local du
XIX e siècle.

Noyan Tapan
Aug 14 2004
COOPERATION OF ARMENIA AND OSCE TO STRENGHTEN
YEREVAN
RA Minister of Foreign Affairs Vartan Oskanian received Ambassador
Steven M. Minikes, Head of the US delegation to the OSCE, on August
12. During the meeting the sides discussed the activities of the OSCE
structures and departments, its Yerevan Office, as well as the wide
circle of problems regarding regional security. The sides also
discussed the Karabakh problem, the processes and prospects of the
settlement of the confrontation.
According to the press service of the RA Ministry of Foreign Affairs,
the sides expressed hope that Armenia-OSCE cooperation will continue
and strenghten in a constructive spirit.
Noyan Tapan

Investment Opportunities in Armenia
BISNIS Armenia Update
12 August 2004
Contents:
1. Now on the BISNIS web site – CCG FY05 and Customs Report
2. New BISNIS SFP lead from Armenia
3. News – Armenian Economy Continues to Top Growth Expectations
4. New EBRD project in Armenia
Now Available on the BISNIS web site!
Country Commercial Guide for Armenia FY05 –
Customs Clearance Process in Armenia, part of BISNIS Survey on Logistics
of Exporting to Eurasia –
BISNIS Search for Partners lead
Yerevan, Armenia
Industry: Construction Materials
Company: Comfort R&V
Comfort R&V was established in 1993 as a private company. The company is
the distributor of a number leading European and American producers of
building materials. The company plans to establish a large trade center
specializing in the wholesale and retail distribution of building
materials. The total project cost is $4 million. The company seeks a
U.S. partner that would co-invest in the project. Comfort R&V will
finance 50% of the total project cost.
Web site:
Source: BISNIS Representative in Armenia
LeadLink,
From ARMENIA THIS WEEK
Monday, August 2, 2004
Visit to read Armenia This Week
issues since 1997.
ARMENIAN ECONOMY CONTINUES TO TOP GROWTH EXPECTATIONS
Armenia’s Gross Domestic Product (GDP) grew by more than nine percent in the
first half of 2004, the National Statistics Service reported this week.
While below the record-high 2002-2003 growth of 12 and 14 percent
respectively, the increase was well above the six to seven percent
anticipated by the government and international financial institutions
earlier this year.
Significantly, this year’s robust growth comes after completion of
infrastructure projects funded by the U.S.-based Lincy Foundation, as well
as an 11 percent decrease in diamond-processing and jewelry production,
which had been one of the fastest growing sectors in recent years.
Industrial output was up 4.5 percent, driven by growth in generation of
energy (up 17 percent) and mining and metallurgy (up 46 percent). Textiles
production was up 2.2 times, with garment / leather and rubber / plastics
up 1.4 times each. Investments in construction increased by 12 percent, with
agricultural production up 8.5 percent.
In January-June 2004, the volume of Armenian exports grew by over 7 percent
to $340 million and imports by 4 percent to $625 million. Dependence on
outside supplies of energy and fuel, and raw materials imported for
processing in Armenia, kept the trade deficit large. The list of main export
destinations for Armenian goods continued to be topped by Belgium (19
percent of all goods), Israel (12), Russia (11), the United States (10),
Germany (9) and Switzerland (6). Most imports arrived from Russia (18
percent), Belgium (11), the United States (8), Israel (7) and Great
Britain (6).
The Armenian government also reported to be on track with a projected
increase in revenue collection to reach $450 million this year. Combined tax
and customs revenue in the first half of 2004 reached $211 million, up 17
percent year-on-year. Nevertheless, the State Taxation Service chief
estimated that the so-called shadow sector continued to account for 30
percent of economic activity, with an equivalent portion of profits and
incomes remaining officially untaxed. At the end of June 2004 the average
private sector monthly salary was estimated at $100, up 28 percent
year-on-year, while average public sector wages stood at a meager $50,
despite a 46 percent increase. The unemployment rate remained largely
unchanged at 9.3 percent of the adult population. (Sources: Armenia This
Week 2-6, 4-30; Arminfo 7-31, 8-2; Golos Armenii 7-31)
European Bank for Reconstruction and Development ()
Project name: Armenian Economy Development Bank Equity Investment
Country: Armenia
Project Approval Date: 20.07.04
Funds Approved: 0.79 million Euro
Project Type: Purchase of 25% plus one share of capital and voting rights
Project number: 27309
Business sector: Financial Institutions: Bank equity/Bank lending
State/Private: Private sector
Project description and objectives: The proposed project envisages an
equity investment in Armeconombank. The project will strengthen
Armeconombank’s capital base to be used for anticipated growth in
lending and development of its infrastructure. Management guidance and
institution building is envisaged through technical assistance and
EBRD’s seat on the bank’s Supervisory Board.
Transition impact: This project will be the first equity participation
in an Armenian-owned financial institution. The combination of
additional capital and institution building through technical assistance
is expected to support strengthening of a key player in the Armenian
banking sector. By promoting competition and consolidation in the sector
the project will contribute significantly to the development of the
banking sector in Armenia. The project is also expected to provide a
demonstration to other market players of the benefits of having an
international institutional investor as a shareholder.
The client: Armeconombank is one of the largest banks in Armenia at 31
December 2003 with total assets of US$ 33.4 million. The bank is based
in Yerevan and has a network of 24 branches. The bank offers all major
services currently available on the market.
EBRD finance: Equity investment of AMD (Armenian Dram) 566,670,000 (EURO
equivalent of 789K at 1 June 2004).
Total project cost: AMD 566,670,000
Environmental impact: Armeconombank will carry out its operations in
accordance with the EBRD’s Environmental Procedures for Financial
Intermediaries, which provide for the integration of environmental due
diligence into Armeconombank’s credit appraisal processes and a
requirement that the bank complies, at a minimum, with national and
local health, safety and environmental regulations and standards and
public consultation requirements. Armeconombank will submit annual
environmental reports to the EBRD.
Technical cooperation: The bank has benefited from access to a
Japanese-funded credit advisor tied to a loan under the Multi-bank
facility for Armenian banks. This has assisted in all aspects of
screening, approving and monitoring of potential borrowers and sub-loans.
It is proposed that this equity investment be made together with
technical assistance for institutional development. Funding is expected
to be provided under the 2002 Action Program for the EU-EBRD Investment
Preparation Facility. EBRD approval will be sought in 3q2004.
For consultant opportunities for projects financed by technical
cooperation funds, visit procurement of consultants.
Company contact: Armeconombank OJSC
23/1 Amiryan Street
Yerevan 375002
Armenia
Contact: Edward Marutyan, Deputy CEO
Phone: (3741) 534 801
Fax: (3741) 538 904
Email: [email protected], [email protected]
Web :
Business opportunities: For business opportunities or procurement,
contact the client company.
General enquiries: EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: [email protected]
********** Forwarded by: ***************************
Ellen S. House, BISNIS Trade Specialist for Armenia
U.S. Department of Commerce
Tel: 202/482-2284, Fax: 202/482-2293
Additional information on Armenia is available via BISNIS Online at