Author: Emil Lazarian

OIL PRODUCTS PUT UP FOR SALES FOR THE FIRST TIME IN ARMENIA
YEREVAN, JUNE 3. ARMINFO. The first in Armenia auction of oil products
was held at the Adamand commodity exchange today. The client was the
biggest Armenian oil trader Flash company.
120,000 liters of Regular-91 petrol and 170,000 liters of Diesel fuel
have been sold. The demand was higher than the supply. As a result
only 44,000 liters of petrol and 60,000 liters of Diesel fuel was
sold at higher than the initial price. 6 entities took part in the
sale with 2 of them brokers. They say that the price was lower than
on the market by 10 AMD per liter.
Attending the auction was Deputy Director of Flash Musheg Elchyan
who bought 2 lots of 10 tons each and 1 lot of 20 tons.
The auction has proved successful. Elchyan says that the prices on
the commodity exchange were lower than those on Flash’s oil bases and
he hopes to sell the purchases lots at profit in the coming weeks.
Elchyan says that given growing world prices today it is more
profitable to invest money in oil than in gold. He says that Flash’s
oil reserves total 8 mln liters with the republican ones being 10
mln liters.
President of Adamand Grigor Vardikyan says that the sale of oil
products on the commodity exchange will raise the transparency of
pricing and cut the market prices.

The Economist
June 4, 2005
U.S. Edition
Reason to worry; Turkey and the EU
ankara
Fallout for Turkey from the no votes in France and the Netherlands
The country with most to lose from the EU referendums may be Turkey
WHAT do the French and Dutch rejections of the European Union
constitution imply for Turkey’s hopes of joining? If one believes the
country’s political leaders, nothing. “This result has nothing to do
with Turkey’s candidacy, we will continue on our path with the same
enthusiasm,” the Turkish prime minister, Recep Tayyip Erdogan, told
parliament this week. His rhetoric was echoed by EU officials. And in
theory they are right.
The constitution makes no reference to Turkey’s membership. In France
(as in some other anti-Turkey countries, notably Austria) voters have
been promised the chance to stop Turkey joining in a separate
referendum on further enlargement, when the time comes. Moreover,
last December’s decision by EU leaders to promise Turkey the start of
membership talks on October 3rd was a political one that can be
changed only by consensus of all 25 EU members. Some optimists even
venture to suggest that the defeat of the constitution could pave the
way for a looser EU that it would be easier for Turkey to fit into.
Yet the reality is more worrying for Turkey. The French and Dutch
noes may be “the EU’s internal problem”, as Mr Erdogan claims. But
they also reflect growing hostility around Europe to further
enlargement of the EU-and, specifically, to the idea of taking in
poor, big and Muslim Turkey. There is also a good chance that
Germany’s opposition Christian Democrats (CDU) will win the election
expected in September. The CDU leader, Angela Merkel, is firmly
opposed to Turkey’s membership and has lobbied instead for a
“privileged partnership” that has been roundly rejected by the Turks.
Her hostility to full membership for Turkey is shared by France’s
Nicolas Sarkozy, a would-be presidential candidate in 2007.
Against this gloomy background, the wisest course for Turkey,
according to the EU ambassador to Ankara, Hansjorg Kretschmer, is to
ignore the ructions in Europe and focus on implementing the sweeping
reforms that earned it the precious October date for talks. In one
hopeful sign, Mr Erdogan last week appointed Ali Babacan, his young
and pragmatic economy minister, to head the EU negotiations. Turkey
is also about to sign a protocol extending its customs union with the
EU to the ten new members that joined last year, including Cyprus.
This week a long-delayed new penal code came into effect. But despite
such radical provisions as making marital rape a crime, the code also
contains several controversial articles-for example one that allows
long prison terms for journalists who attack the Turkish military
presence in northern Cyprus or describe as “genocide” the mass
slaughter of Armenians during the first world war.
There are, indeed, disturbing signs that Mr Erdogan may be pandering
to a recent upsurge in nationalism that is being fanned both by
anti-Turkish sentiment in Europe and by the country’s hawkish
generals, whose power may be eroded by EU reforms. Besides continued
police harassment of Christians and other minorities, last month an
appeal court in Ankara upheld the banning of Turkey’s biggest
teachers’ union because it had said that the country’s 14m Kurds
should be able to educate their children in their mother tongue.
Turkish academics had to cancel a conference to debate the Armenian
tragedy after the justice minister, Cemil Cicek, accused them of
“knifing Turkey in the back”.
Mr Cicek’s outburst, concluded one senior EU diplomat, was
“confirmation that the government no longer believes in the EU
process.” That view may be exaggerated, but there is disillusion with
the EU among Mr Erdogan’s conservative base. One example is perceived
European indifference to restrictions on the Islamic headscarf. It
was surely with his conservative base in mind that Mr Erdogan last
week introduced legislation to reduce penalties for those who run
underground courses to teach the Koran. The move brought renewed
charges from Turkey’s fierce secularists that Mr Erdogan’s real
intention is to move the country closer to an Islamic theocracy, and
not to the EU. Turkey’s many enemies in Europe would surely take
pleasure in that.
GRAPHIC: Euro-anxiety in the markets?

AZG Armenian Daily #102, 04/06/2005
Concern
‘RA GOVERNMENT DOOMS THOUSANDS OF PENSIONERS TO HUNGER’
Accumulation of Signatures against Social Cards
RA Government had doomed to hunger thousands of pensioners. This
statement was made by the Armenian Constitutional Law Enforcement
Center on June 2.The government doesn’t deprive them of the right
to receive pensions, but they don’t pay it, as the pensioners have
no social cards. According to the data, submitted by RA Social
Security Minister, 600 thousand Armenian citizens refused to take
social cards. Gevorg Manukian, Head of ACLE, applied to RA National
Assembly for permission to apply to RA Constitutional Court to define
the law on Social cards. The appeal was signed by 30 deputies of RA
Parliament. They failed to accumulate the required 44 signatures. The
representatives of ACLE submitted a bill on making amendments to the
abovementioned law, accumulating 70 signatures given by the lectors of
ARF Dashnaktsutiun and Republican Party of Armenia. ACLE is determined
to organize a large-scale accumulation of signatures. The members of
the center are sure that they will gather thousands of signatures,
as the law was forced to the people. They believe that this action
will turn into an unofficial referendum for the law on social cards
and RA citizens will vote “against” that.
By Nana Petrosian

OSCE READY TO HELP ARMENIA IN ELABORATING AND IMPLEMENTING LAWS
Pan Armenian News
03.06.2005 07:35
/PanARMENIAN.Net/ Today Armenian Parliament Speaker Artur
Baghdasarian met with OSCE Office for Democratic Institutions and
Human Rights (OSCE-ODIHR) Director Christian Strohal, RA NA press
center reported. Artur Baghdasarian noted the efficient cooperation
with OSCE thanks to which the Election Code has been improved and
adopted. The NA Speaker also informed Mr. Strohal of the discussions
held over the process of constitutional reforms. The parties pointed
out to the necessity of joint work with the Venice Commission.
Christian Strohal confirmed OSCE’s readiness to promote reforms
adding that the organization is ready not only elaborate the laws
but to implement them as well.
From: Emil Lazarian | Ararat NewsPress

Leaders from ex-Soviet states look for ways to keep CIS afloat
Agence France Presse — English
June 3, 2005 Friday 12:27 PM GMT
TBILISI June 3 — Leaders of the Commonwealth of Independent States met
in the Georgian capital Tbilisi on Friday to discuss ways to breathe
life into the loose and increasingly divided alliance of Russia and
11 other ex-Soviet republics.
Russian Prime Minister Mikhail Fradkov responded to internal divisions
over the direction of the CIS with a call for unity. “We don’t see
any serious problems in relations with these countries… We are
still aiming for integration,” Fradkov said.
The group’s executive secretary, Russia’s former interior minister
Vladimir Rushailo, said: “It is too early to bury the CIS. It is
necessary to boost its effectiveness, even if there are certain
difficulties.”
“I believe that a new model and strategy for the CIS will be decided
in the very near future,” he said.
The new emphasis would be on economic and security ties, he said,
something which Ukraine’s Prime Minister Yulya Timoshenko indicated she
supported. “The future of the CIS is in the economic sphere,” she said.
The CIS, which includes all ex-Soviet republics except for the three
Baltic countries, has struggled since its creation at the fall of
the Soviet Union in December 1991 to establish its priorities.
Many of the former republics chafe at the sense that the
Russian-dominated CIS is a vehicle for Moscow to wield influence
in its backyard. Several of the autocratic regimes in the CIS have
also been unnerved by the revolutions that shook Georgia, Ukraine
and Kyrgyzstan in the last 18 months following rigged elections.
Georgia and Ukraine have expressed strong hopes of joining Western
institutions, further weakening CIS unity.
The split was particulary acute over Ukraine, where Russian
President Vladimir Putin supported the candidate accused of rigging
last year’s presidential election, which was later re-run amid huge
street protests, then won by pro-Western opposition candidate Viktor
Yushchenko.
Timoshenko has yet to visit Russia following a row over the Russian
authorities’ announcement that she is wanted on fraud charges.
Relations between Moscow and Tbilisi are also problematic, although
one major sticking point was recently cleared with a Russian agreement
to pull two military bases out by the end of 2008.
Fradkov said that Moscow is also looking into removing visa
requirements for Georgians, which were imposed in 2000 amid sharply
deteriorating relations.
The premiers of Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan,
Moldava, Tajikistan Ukraine and Russia attended the meeting, as well
as officials from Kyrygzstan, Turkmenistan and Uzbekistan.
From: Emil Lazarian | Ararat NewsPress

Russian armaments transferred from Georgia to Armenia will not exceed CFE Treaty norms
RIA Novosty, Russia
June 3 2005
MOSCOW, June 3 (RIA Novosti) – Russian armaments which will be
transferred from Georgia to Armenia will not exceed the norms set in
the Conventional Armed Forces in Europe (CFE) Treaty.
Russia’s permanent representative at the Organization for Security
and Cooperation in Europe Alexei Borodavkin said this at a session
of the OSCE Permanent Council.
Commenting on Azerbaijan’s concern over the transfer of Russian
armaments and military hardware from the bases in Georgia to Armenia,
Borodavkin said: “Such actions do not pose threat to the adjacent
states.”
Russian armaments and military hardware to be removed to Armenia
will not exceed the limits of CFE Treaty and will be under Russia’s
permanent and total control, he added.
Borodavkin said: “Russian and Georgian Foreign Ministers Sergei Lavrov
and Salome Zurabishvili instructed their delegations at the military
talks to draft an agreement on the terms, functioning and withdrawal
of the Russian military bases from Batumi and Akhalkalaki and other
Russian military facilities in Georgia.”
“This work has already begun,” Borodavkin added.
Moreover, the sides came out for the resumption of Germany’s efforts
in the OSCE to set up an international mission for monitoring the
situation on the territory of the former Russian military base
in Gudauta in Abkhazia (a self-proclaimed republic in Georgia),
Borodavkin said.
The Russian and Georgian foreign ministries said that the withdrawal of
military hardware from the Russian bases would begin in 2005. At least
40 pieces will be pulled out by September 1, 2005. The withdrawal of
the Akhalkalaki base will be over before by the end of 2007 depending
on the weather. The withdrawal of the Batumi base and the command
of the Russian group of forces in the Transcaucasian region will be
completed during 2008.

MACEDONIAN FOOTBALLERS ARRIVAL IN ARMENIA QUESTIONABLE
Pan Armenian News
03.06.2005 07:22
/PanARMENIAN.Net/ Yesterday Turkish authorities did not let the
plane conveying the Macedonian National Football Team to Armenia. The
footballers were coming to Yerevan to participate in an elimination
match of the World Championship-2006 scheduled for June 4. The plane
of MAT airlines remained in the Turkish airspace for half an hour 20
kilometers short of the Armenian border and had to turn back. As A1
Macedonian TV Company reported that yesterday Turkish authorities
apologized to MAT airlines assuring that similar incidents will
not take place any more. According to Utrensky Vestnik Macedonian
newspaper, Ankara explains the incident by the fact that the “crew did
not have appropriate documents for crossing the Turkish airspace.” At
the same time Makfax conditioned the incident by the tension available
between Armenia and Turkey. Presently Macedonian Football Federation
is searching for ways for conveying the team to Armenia via another
air route avoiding Turkey.
From: Emil Lazarian | Ararat NewsPress

THE ACTIVITY OF ARMENIA WILL BE EVALUATED IN ANOTHER CLOSED EUROPEAN SESSION
A1plus
| 18:11:33 | 03-06-2005 | Official |
On 3 June, Foreign Minister Vartan Oskanian received the GRECO
monitoring commission headed by Mr. Carlo Chiaramonte, a member of
the GRECO Secretariat.
Minister highly valued the work of the commission and noted that
Armenia seriously understands the need to take necessary steps to
make the fight against corruption more effective.
During the last five days, the GRECO delegation had met with officials
and specialists responsible for the fight against corruption, through
legislative reforms and other steps. During the next six months, the
commission will draft a report with conclusions and recommendations for
steps to be taken in Armenia to overcome this obstacle to democratic
and economic development.

ARMAVIA COMPANY PLANE ROLLED OUT OF VNUKOVO AIRPORT RUNWAY
Pan ArmenianNews
02.06.2005 05:59
/PanARMENIAN.Net/ Armenian Armavia company A-320 plane that was
executing Yerevan-Moscow flight rolled out of the runway in Vnukovo
Moscow airport. None of the passengers was wounded. The airport was
closed due to the incident, however resumed operation later. Airport
Press Secretary Konstantin Konanykhin reported that “there were no
circumstances indicating at the incident judging from the state of
the landing strip.” At present a commission is formed to find out
the causes of the incident, Regnum news agency reported.
From: Emil Lazarian | Ararat NewsPress

AZG Armenian Daily #100, 02/06/2005
Region
PART OF HEAVY ARTILLERY IN AKHALKALAKI WILL BE TRANSPORTED TO GYUMRI
Russia and Georgia Decide, Armenia Plays an ‘Outpost’
Georgian foreign minister did not exclude that part of military equipment in
Russian 62d base of Akhalkalaki will be transported to Armenia. “We did
everything possible to convey the major part of the equipment to Russia. But
we do not exclude that part of the equipment will be distributed in the
territory of Armenia where necessary infrastructures exist”, Novosti agency
quoted minister Salome Zurabishvili as saying. Earlier the foreign minister
told BBC about the possibility of ammunition transportation to Armenia
adding that Armenia is no threat for Georgia.
On May 30, Russian and Georgian foreign ministers signed a joint statement
of withdrawing the 12th base of Batumi and the 62d of Akhalkalaki by the
year 2008. The sides agreed on starting the removal this year. The base of
Akhalkalaki is first to be removed. 40 unites of armored vehicles, including
20 tanks, will get out of Akhalkalaki by September of the current year. By
the end of 2006 there will remain no heavy artillery in Akhalkalaki, and the
base will eventually close in October 1 of 2007.
Russian-Georgian agreement came for many as a surprised. Georgian President
hailed the event as “historic”. The joint statement points out that “the
bases will stop functioning to their purpose” from May 30.
Russian Commersant wrote that the equipment of Batumi base will head for its
new destination via sea and the ammunition of Akhalkalaki base will be
transported to Gyumri on “trailers”. On May 23 President Vladimir Putin
said, according to Interfax, “We have to create necessary conditions for the
withdrawal of our forces be it to Russia or any other place”.
Under “other place” Putin obviously meant Armenia. Earlier on May 19 head of
Russia’s armed forces Yuri Baluyevski said that part of the heavy artillery
of Georgia’s Russian bases will settle in Armenia. While in Yerevan Dmitri
Medvedev, chief of Russian President’s administration, answered a question
concerning the transportation of Russian military equipment to Armenia,
“That’s a complex issue, one that needs first to be discussed by Russia and
Georgia. But there are aspects that we would like to discuss with other
neighbors as well”.
This statement by Medvedev cannot but be viewed as offensive for a sovereign
state as Armenia. It turns out that Russia, preparing to convey its military
equipment, precisely rusty weapons of Soviet times, considers it first of
all an issue for Moscow and Tbilisi to discuss. Medvedev’s “other neighbors”
is undoubtedly a hint at Azerbaijan, which raises an alarm that Moscow keeps
on arming aggressor Armenia.
Meanwhile official Yerevan keeps silent about the issue of conveying Russian
equipment from Georgia to Gyumri. In this situation either Russia follows
its own wishes while using Armenia’s territory for its military aims, or
Armenia greets stationing of old Russian equipment in its territory. The
first variant seems more possible. Cooperation with Russia is certainly one
of the primary elements of Armenia’s safety. But Moscow visibly misuses the
reality called Armenian-Russian strategic cooperation.
By Tatoul Hakobian