U.S. Military Officials in Iraq Meet with Defense Minister Serge Sar

EMBASSY OF THE UNITED STATES OF AMERICANEWS RELEASE
1 AMERICAN AVENUE
YEREVAN, ARMENIA
TELEPHONE (+374 10) 464700
FAX (+374 10) 464742
E-MAIL: [email protected]

November 14, 2006

U.S. Military Officials in Iraq Meet with Defense Minister Serge Sargsian
On November 14, U.S. military officials in Iraq, including U.S. General
George Casey, the Commander of Multinational Force – Iraq, met with Armenian
Defense Minister Serge Sargsian. Defense Minister Sargsian also met with the
Armenian contingent working to bring peace and stability to Iraq.

1406.php

Armenian Minister of Defense Serge Sargsian and U.S. General George Casey,
Commander, Multinational Force
Armenian Minister of Defense Serge Sargsian and Iraqi Minister of Defense
Qadir
Armenian Minister of Defense Serge Sargsian and the Armenian contingent
serving in Iraq
The Armenian contingent working to bring peace and stability to Iraq

http://www.usa.am/news/2006/november/news11

Armenian Reporter – 11/18/2006

ARMENIAN REPORTER
PO Box 129
Paramus, New Jersey 07652
Tel: 1-201-226-1995
Fax: 1-201-226-1660
Web:
Email: [email protected]

November 18, 2006

1. EU signs "Neighborhood Action Plan" agreements with Armenia,
Azerbaijan , Georgia

2. Heirs of Armenian Genocide victims to receive almost $8 million
from New York Life settlement

3. Armenian soldier wounded in Iraq; Defense Minister Sargsyan in
Baghdad

4. Vimpel set to buy ArmenTel from Greeks; promises to relinquish
ArmenTel’s controversial monopolies

5. "Armenian Reporter" opens D.C. bureau; Emil Sanamyan is Washington
Editor

6. Editorial: Thankfully

************************************** *************************************

1. EU signs "Neighborhood Action Plan" agreements with Armenia,
Azerbaijan , Georgia

Yerevan–On November 14 in Brussels, the European Union and Armenia
signed a European Neighborhood Policy Action Plan. Under the plan,
the EU will provide Armenia with aid, better trade relations, and
greater political cooperation; Armenia, in turn, will adopt political
and economic reforms. Similar plans were signed with Azerbaijan and
Georgia on the same day.

The EU is expected to spend an average of 25 million Euros ($32
million) on the Armenia program each year for the first five years of
the agreement.

The EU high commissioner for foreign and security policy, Javier
Solana, told RFE/RL that the EU’s contribution increases if the
recipient government "does things properly." Otherwise, "cooperation
with the government will diminish."

Mr. Solana added, "This is the same political technology that was
applied to countries that later became EU members, sector by sector,
chapter by chapter in a very well-organized fashion that we have
tremendous experience in."

Signing the accord on behalf of Armenia was Foreign Minister Vartan
Oskanian. Welcoming the plan’s insistence on political and economic
reforms, Mr. Oskanian noted that Armenia’s "development depends not
on natural resources but human resources; and therefore, we have to
provide the necessary conditions to develop that resource."

The Foreign Ministry announced that in the process of implementation
of the plan, " Armenia’s social, political and economic systems will
begin to resemble European systems." Further, the plan allows for
Armenia–and the two neighboring republics–to penetrate EU’s
internal markets.

**************************************** ***********************************

2. Heirs of Armenian Genocide victims to receive almost $8 million
from New York Life settlement

Los Angeles–Settlement checks totaling $7,954,362 will be
distributed this week to more than 2,500 descendents of those killed
during the Armenian Genocide of 1915. These checks resulted from the
multi-million-dollar settlement reached in a class action lawsuit
brought against New York Life Insurance Company.

The lawsuit, originally filed in November 1999, stemmed from New York
Life’s nonpayment of life insurance benefits for those who died in
the Armenian Genocide. These payments, together with the $3 million
dollars already distributed to various Armenian charitable
organizations, puts an end to an historic and groundbreaking case
which was able to right a 90-year-old injustice.

"Ten years ago, compensating these Armenians was a mere dream," said
Vartkes Yeghiayan, one of the lead attorneys who represented the
Armenian heirs and who originally conceived of this case 20 years
ago. "This settlement was a small measure of justice for the
Armenians."

The Settlement Board, the body created by the Federal District Court
to handle the distribution of the settlement, reviewed 5,692 claims
and found that 2,515 of them could be traced to Armenians who had
purchased life insurance policies from New York Life prior to 1915.

Letters will be mailed to all claimants, with checks included for all
claimants that were awarded compensation. Of the nearly $8 million in
checks, Armenians in Armenia will receive the most, roughly $3.7
million, followed by Armenians in the United States who will receive
almost $2.7 million. Armenians in France occupy the third place and
will receive a total of $656,413. In all, Armenians in 26 countries
will receive compensation.

For questions about the settlement, contact the Settlement Board at
(213) 327-0740.

*************************************** ************************************

3. Armenian soldier wounded in Iraq; Defense Minister Sargsyan in
Baghdad

Yerevan-Senior Lieutenant Georgi Nalbandian, 25, a member of the
Armenian regiment in Iraq, was seriously wounded in an attack on
November 11. He was transported to a U.S. military hospital in
Germany for treatment. Two other soldiers, one from Poland, the other
from Slovakia, were killed in the attack. Mr. Nalbandian’s right leg
was amputated.

In a news release, the U.S. embassy in Yerevan expressed "its deepest
concern" for the soldier and thanked him and his Armenian colleagues
"for their vital role in the international coalition fighting the
global war on terror."

The attack occurred while the soldiers were returning from a mission
to defuse mines, the Armenian Defense Ministry announced. The bomb
exploded near the town of Al Kut in Wasit province as a multinational
convoy was returning to base.

Armenian troops, now in their fourth rotation, have been deployed to
Iraq since January 2005. The contingent of 46 soldiers includes truck
drivers, bomb detonation experts, physicians, and officers. They
carry out only humanitarian operations.

Meanwhile, Armenia’s defense minister Serge Sargsyan began a
previously scheduled trip to Iraq to visit the Armenian soldiers and
meet his Iraqi counterpart. Mr. Sargsyan has asked the National
Assembly to prolong the service commitment of the Armenian detachment
in Iraq. "Armenia cannot only be a security consumer. It ought to
have its modest but consistent contribution to the world security
processes," Mr. Sargsyan told reporters. "As time shows, our officers
and soldiers are on an important and difficult mission, but it is
first of all Armenia that needs this mission, and by their duty our
soldiers once again confirm that Armenia is a full-fledged state."

A sixth rotation of Armenian troops left for Kosovo this week.

After recovering, Mr. Nalbandian, the wounded soldier, is expected to
return to Armenia to continue his military service.

**************************************** ***********************************

4. Vimpel set to buy ArmenTel from Greeks; promises to relinquish
ArmenTel’s controversial monopolies

YEREVAN–In what may be the largest business transaction in Armenia’s
history, the Russian mobile operator Vimpel Communications is buying
a 90 percent stake in Armenia Telephone Company (ArmenTel) from the
Hellenic Telecommunications Organization for 341.9 million Euros
($436.3 million) plus about 40 million Euros in debt.

The Armenian government’s Public Services Regulatory Commission
approved the sale on November 14.

ArmenTel holds a monopoly on landlines in Armenia, for which it has
about 600,000 subscribers. It holds about 40 percent of the mobile
market with about 400,000 mobile subscribers. It also holds a
monopoly on Internet data transmission.

Vimpel says it will relinquish the monopolies ArmenTel holds within a
year. It says it will compete by increasing the quality and variety
of ArmenTel’s services. It is expected to make a $100 million
investment in Armenia in 2007.

Vahe Yacoubian, a Los Angeles attorney representing the Armenian
government in its dealings with ArmenTel, says that Vimpel has
offered to give up the Internet data transmission monopoly
immediately.

"Both sides are interested in completing this process as soon as
possible as VimpelCom itself states that they think that an open
market is better for their company’s business and profits," Yaghubian
said, according to RFE/RL.

Vimpel operates phone services in Russia and Kazakhstan. It has
recently acquired cellular operators in Ukraine, Tajikistan,
Uzbekistan, and Georgia.

Whereas the main Russian investors in Armenia have in the past been
state companies, Vimpel is publicly traded. The largest shareholder,
at 33 percent, is Altimo, part of Mikail Fridman’s Alfa holding
company, which is publicly traded in the U.S. A Norwegian company,
Telenor, is the second-largest shareholder at 27 percent.

Another Russian company that took part in the tender and for months
claimed to have won it has closer ties to the Russian state.

****************************************** *********************************

5. "Armenian Reporter" opens D.C. bureau; Emil Sanamyan is Washington
Editor

Yerevan–The "Armenian Reporter" has established a bureau in the
nation’s capital, announced Vincent Lima, the newsweekly’s editor.
Emil Sanamyan has been appointed Washington editor of the "Armenian
Reporter" and will lead the bureau.

"Our community recognizes that what goes on in Washington is
important for Armenia, Artsakh, and Armenian-Americans," Mr. Lima
said. "True to our calling as an independent newspaper, we are doing
what we must in order to bring our readers first-hand accounts of
these goings on."

The "Reporter"’s Washington Bureau will follow developments of
interest in the administration and Congress, at the Armenian Embassy
and Nagorno-Karabakh office, and in Washington think tanks. It will
also report on the activities of Armenian lobbying and advocacy
groups and on Armenians in Washington–officials, staffers, visitors,
and interns.

"I am truly delighted to join the Reporter staff," Mr. Sanamyan said.
"This is a unique and exciting opportunity to contribute to the
understanding of the United States’ policymaking, particularly as it
relates to Armenian concerns."

"Emil Sanamyan is a great resource for our readers. He is not afraid
to pick up the phone, call a source, and get to the bottom of
things," said Chris Zakian, managing editor of the "Reporter." "And
he knows whom to call. As a researcher and analyst, he has been
following news, attending talks, reading reports, and networking in
Washington for years."

A graduate of the University of Arizona, Mr. Sanamyan has studied,
worked, and lived in Washington since 1998. While attending the
George Washington University’s Elliott School of International
Affairs, he served as assistant to the Representative of the
Nagorno-Karabakh Republic in the United States. Since 2000 and until
recently, he was Research and Information Associate at the Armenian
Assembly of America.

Mr. Sanamyan and his wife Oksana make their home in Rosslyn, VA.

********************************************* ******************************

6. Editorial: Thankfully

It is the week before Thanksgiving, and we are counting our
blessings.

Armenia celebrated the fifteenth anniversary of its independence this
year, a joyous milestone. And it is the fifteenth anniversary too of
the overwhelming vote of the people of Karabagh in favor of
independence.

Armenia has a long way to go, of course. But we can be grateful for
the progress that has been made over the past year. The economy has
attracted increased investments; there are thousands of new jobs.
This progress is reflected in double-digit growth in the gross
domestic product, coupled with low inflation.

The progress will continue–in the economy as well as in the
political and

social arenas.

Only this week Armenia and the European Union signed a European
Neighborhood Policy Action Plan. The plan helps Armenia implement
political and economic reforms, while lifting trade barriers and
investing perhaps 125 million euros ($160 million) in the country
over the next five years.

This April Armenia and the United States signed the Millennium
Challenge Compact, which invests a much-needed $237 million in
Armenia’s rural infrastructure.

Both programs come with strings attached: Armenia must fulfill
commitments to political, economic, and social reforms. But these
strings are not encumbrances; they insist simply on the
implementation of commitments Armenia has chosen to make. These
commitments are in line with our collective desire to see a more
democratic, more transparent, more prosperous, and peaceful country.

* * *

Meanwhile, we have seen Armenian issues take an ever-higher
international profile over the past year. In April, PBS broadcast a
documentary on the Armenian Genocide. The broadcast got the attention
of major newspapers thanks to our collective response to an
ill-advised decision of the network brass. The decision was to
balance out the well-balanced documentary with a panel discussion
that gave legitimacy to falsifiers of the historical record.

The Genocide stayed in the news, grabbing headlines again in late
September when President Jacques Chirac announced that France
considered recognition of the Genocide a precondition for Turkey’s
accession to the European Union. EU officials who were trying to get
Turkey to meet other agreed-upon preconditions condemned the
announcement. But the French opposition agreed with the president on
this one–making the precondition very real.

Armenians and the Armenian Genocide grabbed headlines again in
October when Orhan Pamuk–one of the growing circle of Turkish
intellectuals at odd with the national chauvinism of his country’s
old elite–won the Nobel Prize for Literature. The same day, the
French National Assembly voted in favor of a bill that would
criminalize denial of the Genocide.

The publication with much fanfare this week of Taner Akcam’s book, A
Shameful Act, is a further step in the right direction.

* * *

The year has also been replete with cultural happenings: concerts,
dance performances, plays, photo exhibits, films, novels, radio
shows, and so much more have made it a joy to be part of the Armenian
community.

Our gratitude is not simply for the events, but for the people who
make them possible. The events reflect an enormous investment of
time, energy, talent, and money by activists, by scholars, by
artists, by engaged philanthropists, by government officials and
pressure groups alike.

We say, "Thank you," and we say, "Let’s carry on."

* * *

If it’s Thanksgiving, it’s time for the Armenia Fund Telethon. It’s
time for an extravaganza of live entertainment from some of the most
popular Armenian talent around. It’s time for engaging hosts. It’s
time to see the work your donations last year have made possible.
It’s time to watch online ( ) or tune in. And it’s
definitely time to call in.

********************************************* ******************************
Direct your inquiries to [email protected]
(c) 2006 CS Media Enterprises LLC. All Rights Reserved

http://www.armenianreporteronline.com
www.armeniafund.org

Armenian And NKR MPs To Discuss The Harmonization Of Economic Legisl

ARMENIAN AND NKR MPS TO DISCUSS THE HARMONIZATION OF ECONOMIC LEGISLATURES

Public Radio, Armenia
Nov 14 2006

November 20-21 the recurrent sitting of the Interparliamentary
Cooperation Commission of Armenia and the Nagorno Karabakh Republic
will be held in Yerevan.

Chairman of the NKR NA Standing Committee on Foreign Relations
Vahram Atanesyan told Mediamax agency that issues of harmonizing the
legislation in the economic sphere, as well as peculiarities of the
economic situation in NKR will be discussed during the sitting.

Vahram Atanesyan informed also that consultations will be held also
on the settlement of conflicts and regional cooperation, during which
NKR MPs will familiarize themselves with the activity of Armenian
parliamentary delegations in European structures.

Armenian Military Officer Wounded In Iraq

ARMENIAN MILITARY OFFICER WOUNDED IN IRAQ

Armenpress
Nov 13 2006

YEREVAN, NOVEMBER 13, ARMENPRESS: An Armenian military officer with
a contingent of troops serving in the U.S.-led coalition in Iraq
was wounded on Friday, Armenian defense minister Serzh Sarkisian
said Saturday.

The minister said Lt. Gevorg Nalbandian was wounded while on a mission
to defuse mines. Nalbandian had his foot amputated after the incident,
Sarkisian said on a visit to the military conscription office in the
Armenian capital. The minister said the Armenian servicemen will be
transported to an American military hospital in Germany for further
treatment. The Armenian troops have been deployed to Iraq since
January 2004, and early this year Armenia rotated its troops in Iraq
for the fourth time, sending 46 servicemen, who are truck drivers,
medics and sappers.

Polish PAP news agency said one Polish and one Slovak soldier were
killed by a roadside bomb in south-central Iraq late on Friday. The
bomb exploded near the town of Al Kut in Wasit province as a
multinational convoy was returning to base. Another Polish soldier and
Gevork Nalbandian were wounded in the attack and rushed to hospital
by helicopter.

In a press release disseminated to Armenian media the Embassy of the
United States of America in Yerevan expressed its deepest concern
for the Armenian soldier who was seriously injured in Iraq, as well
as its condolences for the Polish and Salvadorian soldiers who were
killed during the incident.

"Armenia’s contingent in Iraq is carrying out the extremely important
but dangerous work of bringing peace and democracy to the country. The
injured Armenian solider is receiving the best medical care available,
and we would like to thank him and his Armenian colleagues for their
vital role in the international coalition fighting the global war on
terror," the statement read.

Serzh Sargsyan to Leave for Iraq

Panorama.am

18:34 11/11/06

SERZH SARGSYAN TO LEAVE FOR IRAQ

According to our sources, Serzh Sargsyan, defense minister of Armenia
and secretary of security board, will leave for Iraq on a three-day
trip. The aim is to learn about the service conditions of 46 member
military unit of Armenian soldiers which is on a peacekeeping mission
in Iraq.

The unit is in Iraq since January 25, 2005. The fourth detachment of
peacekeeping forces of Armenia left for Iraq late July, this
year. Each group of 46 soldiers spends their mission in Iraq for 6
months.

Armenian soldiers in Iraq peacekeeping mission have been variously
praised by foreign experts, particularly the
U.S. military. /Panorama. am/

They Drank To Victory In Advance

THEY DRANK TO VICTORY IN ADVANCE
James Hakobyan

Lragir, Armenia
Nov 9 2006

Javakheti is a country of lakes. In this territory with a population
of about 70 thousand there are about 20 big and small lakes. The
most famous, the biggest and the "water symbol" of Javakheti is
Lake Parvana. It is difficult to say what the minister of defense
hinted when he invited the foreign minister of Georgia and his
Armenian counterpart to dine at the Parvana Restaurant. Perhaps
he had calculated that even if Bejuashvili were reluctant to speak
about Javakheti, the name of the restaurant would constantly remind
him of it. On the other hand, it is possible that Bejuashvili had
greater interest to speak about Javakheti. And it is possible that
he considered this in choosing the Parvana for dinner. Perhaps it
was a hint that the Armenians are the host in Parvana. However, it is
hardly possible that Georgia does not know this and needs additional
remarks. Otherwise, official Tbilisi would not try its best to replace
the hosting side in Javakheti and would not visit Armenia on the eve
of the local election there. Meanwhile, in this context the relation
with Armenia has a definite purpose. Georgia realizes that at least
in the upcoming few years the demographic pattern in Javakheti will
be in favor of the Armenians. Radical actions are required to change
it quickly. But radical actions would lead to an adequate reaction of
the population and instability. This is not favorable for Georgia at
the moment. Therefore, Tbilisi does not make radical moves in Javakheti
like in the case of the Azerbaijanis of Marneuli. Sahakashvili started
a real chase there and made it clear in this relation that the power
would belong to Tbilisi.

Georgia has chosen a different tactics with regard to the issue of
Javakheti, and thinking and considering that for the time being
they can have little influence on the Armenians of Javakheti,
Tbilisi tries to set up relations with the Javakheti Armenians
via the Armenian government or influential figures of the Armenian
government. In other words, if the Armenians of Javakheti are not
subject to Tbilisi, they must make efforts to make them subject to
Yerevan. And perhaps Bejuashvili was trying to settle this problem by
having a meal in Armenia before the local election. On the other hand,
it is a rather dangerous game for Georgia because if the Armenian
government establishes its influence in Javakheti, it may "take away"
this region from the Georgians. Apparently, however, Tbilisi has
thought about this. Before coming to dinner in Armenia Georgia hinted
at its reluctance to pay for anything and stated that Armenia should
do. It was not accidental that when the Russian-Georgian spy scandal
started, Georgia stated that the actions of the Russian spies were
coordinated from Yerevan. This statement did not appear to have a
continuation but it is notable that Armenia did not react. Official
Yerevan did not try to demand explanations from Tbilisi. The reason
might be that Tbilisi could give an explanation. In that case, it
would be Yerevan’s turn to explain.

Even if there was espionage, and was instigated by the Russians, it
is related to Armenia if it was coordinated from Yerevan. And it is
already an issue of national security when the territory of a country
is turned into headquarters of spies in the region.

Considering this, the seriousness of the accusation from Tbilisi
becomes apparent, and in this context the silence of official Yerevan
kindles doubts that in reality it was considered more expedient to keep
silent about this fact rather than demand explanation. And in politics
everything has its price. Tbilisi agrees to keep silent, and Yerevan
agrees to keep the processes in Javakheti under control. And whatever
they cannot keep under control they keep at the remand prison of the
National Security, like in the case of Vahagn Chakhalyan, who did not
agree to join the national organizations of the Armenians of Javakheti
gathered under the flag of the ruling political party of Georgia, which
got 70 percent of votes in the local election by official statistics.

In fact, it was the victory of official Tbilisi and Yerevan rather
than the Armenians of Javakheti, and the toast to this victory may
have been drunk at the Parvana, in advance. It will become clear
in the course of time what this victory will bring to Javakheti. It
should be noted, however, that Yerevan and Tbilisi have always reached
agreement on Javakheti, and the only problem that has been solved is
enclosing the exiting problems successfully.

Parliament Approves Bill On Alienation Of Property

PARLIAMENT APPROVES BILL ON ALIENATION OF PROPERTY

Panorama.am
16:37 09/11/06

Parliament extraordinary session approved several government
proposed bills, among them already famous bill on alienation of
property for public and state needs. The package was approved on 61
in favor and 11 abstained vote. Arshak Sadoyan, who boycotted the
bill, said that Armenian Revolutionary Federation (Dashnakcutiun)
which abstained in the vote, in fact, pushed it forward by ensuring
minimum quota. If Dashnakcutiun did not participate, the bill would
be rejected. Everything was taken into consideration, Sadoyan said.

EU Report Contains Stinging Criticism Of Turkey

EU REPORT CONTAINS STINGING CRITICISM OF TURKEY

Financial Mirror, Cyprus
Nov 8 2006

Freedom of speech in Turkey is not guaranteed, the military still plays
a "significant" political role and non-Muslim religious communities
face discrimination, the European Commission is set to say in a report
due out Wednesday, according to a report by EUobserver.

Just over a year after Turkey started membership negotiations with the
EU in October 2005, the European Commission will on Wednesday release
both a specific progress report on Turkey and a general enlargement
report which also deals with Ankara’s EU accession bid.

Commissioner for Enlargement Olli Rehn will present the enlargement
strategy paper and progress reports for candidate countries, including
Turkey, in Brussels at 12.00 local time (1100 GMT).

A draft version of the general report says that "Turkey has continued
to make progress in reforms," but adds that "the pace of reforms
has slowed."

"In 2007, it will be important to undertake determined efforts to
broaden the reform momentum throughout Turkey," the document says.

The draft progress report – detailing specific policy areas – kicks
off with a chapter on Turkey’s compliance with the EU’s political
and human rights standards which according to the commission leaves
a lot to be desired.

"The armed forces have continued to exercise significant political
influence. Senior members of the armed forces have expressed
their opinion on domestic and foreign policy issues," the draft
says referring to generals interfering in issues such as Cyprus,
secularism and the Kurdish issue.

Further highlighting the uncontrolled role of Turkey’s army, the draft
continues by stating that "no further progress has been achieved
in terms of strengthening parliamentary overseeing of the military
budget and expenditure."

The report is highly critical of restrictions on freedom of speech
in the EU candidate country – targeting in particular the notorious
article 301 of Turkey’s recently adopted penal code, which penalises
insults against "Turkishness".

"The prosecutions and convictions for the expression of non-violent
opinion under certain provisions of the new Penal Code are a cause
for serious concern and may contribute to a climate of self-censorship
in the country."

"Freedom of expression in line with European standards is not yet
guaranteed in the present legal framework," Brussels concludes in the
draft, which was however prepared before Turkish leader Recep Tayyip
Erdogan over the weekend indicated he is ready to revise article 301.

The European Commission on Monday welcomed Turkish Prime Minister Recep
Tayyip Erdogan’s pledge to revise a key article of the Turkish penal
code which is widely viewed as a serious breach of freedom of speech.

The commission insisted, however, that Erodogan’s promise must be
followed by quick action to change the code’s disputed article 301,
that makes it illegal to dispute the national policy, including
the denial of discussing, let alone adopting, views related to the
Armenian genocide and the persecution of Kurds.

Under the code a number of journalists and authors have been charged
for ‘insulting Turkishness,’ including Nobel Literature laureate
Orhan Pamuk.

Brussels in the report welcomes a "downward trend" in the number
of cases of torture and ill-treatment but notes at the same time
that torture cases are "still being reported, in particular outside
detention centres."

The report further says that non-Muslim religious communities
"continued to face restricted property rights" while "full respect
of women’s rights remains a critical problem, particularly in the
poorest areas of the country."

Two local TV stations have been allowed to air in the Kurdish language
– but they are not allowed to show educational programmes in Kurdish.

— No progress on Cyprus

As expected, Brussels has condemned Turkey’s continued blocking of
trade from EU member state Cyprus.

"Turkey has continued to deny access to its ports to vessels flying
the Republic of Cyprus flag or where the last port of call is Cyprus,"
Brussels notes, adding Ankara’s restrictions "infringe the customs
union agreement" it signed with the EU.

A passage added to the report after the weekend and cited by
the Financial Times said however that Brussels will postpone
a recommendation on whether or not to suspend the accession talks
because of Turkey’s stance on Cyprus – until a later date before an
EU leaders’ summit in December.

— Some positive notes

Despite the generally critical tone of the report – with "limited"
or "no" progress reported also in the areas of agriculture, the
environment and in many internal market-related areas – the commission
also has some praise for Turkey.

"Turkey’s overall alignment with EU common foreign and security policy
has continued," the document says referring to the country’s positive
role in the Middle East.

As for education and culture, "alignment is nearly complete and overall
Turkey is well prepared for accession in this area," according to
the draft.

"Education and culture" is among the next negotiating chapters waiting
in line to be opened as part of the accession talks – but Cyprus has
said it will veto the opening of any new chapter unless Turkey gives
in on opening its ports and airports to Cypriot traffic before the
end of the year.

PRESS: Russia’s VimpelCom May Get 100% In Armenia’s ArmenTel

PRESS: RUSSIA’S VIMPELCOM MAY GET 100% IN ARMENIA’S ARMENTEL

Prime-Tass Business News Agency, Russia
November 8, 2006 Wednesday

Russia’s second largest mobile operator VimpelCom may get full
control over ArmenTel, the incumbent telecoms operator in Armenia,
a source in the Armenian government said, Vedomosti business daily
reported Wednesday.

The government may sell its 10% stake in ArmenTel to VimpelCom if the
Russian operator agrees to give up ArmenTel’s current monopoly status
on the fixed-line market, the source said, the daily reported. A
spokesperson with VimpelCom said that the company was ready to
meet the condition and start talks with the Armenian government,
the daily reported.

On November 3, VimpelCom said that it had signed an agreement
to acquire a 90% stake in ArmenTel from Greece’s Hellenic
Telecommunications Organization SA (OTE) for 341.9 million euros plus
assuming ArmenTel’s debt of about 40 million euros.

The Armenian government holds the remaining 10% stake in ArmenTel.

ArmenTel is a fixed-line and mobile operator in Armenia with licenses
in the GSM 900 and CDMA standards. ArmenTel’s subscriber base
includes approximately 600,000 fixed-line subscribers and 400,000
GSM subscribers.

Armenia’s population is about 3.2 million people.

VimpelCom operates in Russia, Kazakhstan, Tajikistan, Ukraine and
Uzbekistan and plans to launch services in Georgia soon.

Azerbaijan Between East And West

AZERBAIJAN BETWEEN EAST AND WEST

RIA Novosti, Russia
Nov 8 2006

MOSCOW. (Dzheikhun Nadzhafov for RIA Novosti) – Before coming to
Moscow on November 8, Azerbaijani President Ilkham Aliyev visited the
opposite geopolitical pole, Brussels. He is carrying on his father’s
policy of balancing and maneuvering.

The Azerbaijani president wants to maintain and develop constructive
relations with Moscow, although the country is also trying to strike
a geopolitical balance between East and West. Aliyev has to tread
very carefully so as not to irritate either side. However, it looks
as if relations with the Kremlin are reaching a new level.

Moscow’s influence in Azerbaijan is focused on political factors.

Azerbaijan does not receive Russian state investment, loans or grants,
and Russian capital does not play a major role in the Azerbaijani
economy.

A year ago, Baku signed a framework agreement with Russian aluminum
giant RusAl on the construction in Azerbaijan of an aluminum plant
worth $1 billion, but ground has still not been broken on the project.

In early December, Russian Prime Minister Mikhail Fradkov will
visit Baku, becoming the first Russian premier to visit Azerbaijan
since Soviet times. His visit should add zest to bilateral economic
relations.

The Kremlin has a strong political standing in Azerbaijan, notably in
settling the Nagorno-Karabakh problem. Jaap de Hoop Scheffer, NATO’s
Secretary General, said during his visit to Moscow that Russia played
a major role in resolving South Caucasian conflicts. He said Russia
was an irreplaceable factor in the efforts to restore peace in areas
of ethnic tension in the former Soviet states.

Some Azerbaijani politicians think NATO might join forces with Russia
to settle the Karabakh problem.

Now that the Baku-Tbilisi-Ceyhan oil pipeline, which bypasses
Russia, has been inaugurated, the West intends to ensure the safe
and uninterrupted flow of oil along it. This calls for settling the
Karabakh problem, which is impossible without Russia.

The pipeline can be described as an American political and economic
project in a region that is in the sphere of Russian interests. The
parties may decide to follow up the oil pipeline with a gas pipeline
from Baku through Tbilisi to Erzurum.

President Aliyev recently made an interesting comment, with Moscow
and Tehran in mind. He said in an interview with the Qatar-based
television channel Al Jazeera: "The [Baku-Tbilisi-Ceyhan] pipeline
is not spearheaded against anyone. On the contrary, we hope that
it will also benefit our neighbors after we expand it and build a
parallel pipeline."

He did not specify what kind of "parallel pipeline" might be built
and how Azerbaijan’s neighbors would use it, but he had an important
reason for disclosing the possibility.

In principle, the Baku-Tbilisi-Ceyhan (BTC) pipeline will have
sufficient capacity for delivering oil from Azerbaijan and Kazakhstan,
which means that Aliyev has offered a purely political project (the
parallel pipeline) to the neighboring oil producers, Russia and Iran.

Russia will be able to use the BTC pipeline to transport its oil
only after 2015-2020, when Azerbaijan’s Azeri, Chyrag and Gyuheshli
oilfields become depleted.

However, the presidents of Russia and Azerbaijan will discuss not
only oil projects in Moscow, but also Azerbaijan’s relations with
NATO. Political analysts in Azerbaijan say uncertainty surrounding
Azerbaijan’s admission to NATO is creating problems in the
Baku-Moscow-Brussels triangle.

When Geidar Aliyev, the father of the current president, came to
power in Azerbaijan, he made certain promises to NATO in a bid to
strengthen his own and the country’s position. After the dissolution
of the Soviet Union, Azerbaijan intuitively moved toward the West.

But when Russia got back on its feet, Baku halted its incorporation
into NATO.

The current balancing act between Moscow and NATO suits the Azerbaijani
elite, because it offers them a chance to obtain support from both
sides. Moreover, a vague foreign policy allows the government to avoid
"cumbersome commitments."

So, where will Azerbaijan move? Ilkham Aliyev may have to answer this
question on his trip to Moscow.

Dzheikhun Nadzhafov is deputy editor-in-chief of the Azerbaijani
weekly Obozrevatel.

The opinions expressed in this article are those of the author and
may not necessarily represent the opinions of the editorial board.