Author: Jagharian Tania

RUSSIA AND CENTRAL ASIA TO SHARE POWER

Institute for War and Peace Reporting, UK
May 31 2007

Six members of the Commonwealth of Independent States countries have
agreed to set up a common market for electricity, which NBCentralAsia
experts say will help attract huge investment in Central Asian energy.

At a CIS summit in Yalta last week, Kazakstan, Kyrgyzstan, Tajikistan,
Russia, Belarus and Armenia signed up to a common electricity market.

The agreement will give each state free access to electricity supplies
from other participants under a common tariff system, and the right
to sign purchase contracts within those other countries.

The other six CIS members – Uzbekistan, Moldova, Ukraine, Georgia,
Azerbaijan and Turkmenistan – have refused to sign the agreement,
saying that the common market will mostly benefit Russia. They argue
that Russia’s subsidised energy market makes it unprofitable for
other states to export electricity there.

NBCentralAsia analysts agree that Russia will get the best deal,
but they say the agreement will open up more markets for Central
Asian countries and help them attract investment.

"Russia has the greatest interest in setting up this market because
it wants to buy cheap electricity from Central Asia for domestic
consumption and sell its own power to Europe at world prices," said
an NBCentralAsia economic expert based in Tajikistan.

The expert said that to function effectively, the Yalta agreement
would require the construction of a common electricity grid and new
power stations.

Tajikistan and Kyrgyzstan, with water resources located in high
mountains, have immense potential for exploiting hydroelectric power,
but they are unable to capitalise on it at the moment. According to
World Bank research, Kyrgyzstan has the potential to generate 163,000
gigawatt-hours a year, while Tajikistan could produce 317,000 gwh.

Since the emergence of independent states in 2001, the once unified
Soviet power network has been restructured by each CIS country
separately, as different approaches have left them unable to
coordinate, and there is no common market in electricity.

Analyst Eduard Poletaev believes the agreement will gradually become
a reality, and the principles established for a unified network in
the Soviet period will make the process easier.

While Kazakstan stands to gain most as the transit hub for electricity
destined for Russia and other countries, Poletaev argues that all
members will benefit from a reduction in the post-Soviet malaise
affecting the industry, such as lack of coordination and disjointed
development of the network.

Gulnur Rakhmatulina, a leading economic expert at the Kazakstan
Institute for Strategic Studies, sees the agreement as "a huge
breakthrough" that will improve the potential for energy investment
in Central Asia.

"It will be a major factor in securing sustained economic growth,
and will open up opportunities for investment to flow into Central
Asia to build powerful hydroelectrical plants," she said.

(News Briefing Central Asia draws comment and analysis from a broad
range of political observers across the region.)

COURT REJECTED ADVOCATES’ PETITION

A1+
[08:44 pm] 30 May, 2007

The Court of Tver rejected the petition of Educated Media Foundation to
consider the legal procedure towards Manana Aslamazyan, the President
of the foundation, unwarranted.

To remind, on 18 April, 2007, officers of the Department of Economic
Security of the Ministry of Internal Affairs of Russia carried out a
seizure of financial documents and electronic devices, the computer
servers, over a period of 11 hours in the offices of the Educated
Media Foundation, a non-governmental organization and the legal
successor of Internews Russia.

The raid was carried out in connection with the criminal charges
brought against Foundation President Manana Aslamazyan, who in January
2007 while going through customs after a private trip to Paris did
not fill out a declaration form for 9,550 Euros and 5,130 Rubles
(legally it is possible to bring $10,000 into the country without a
declaration form).

Thousands of journalists from every part of the country have signed
an open letter to President Putin in support of Manana Aslamazyan and
the Educated Media Foundation. Nevertheless, the pursuit is ongoing.

It is noteworthy that Armenian journalists also joined in solidarity
with fellow media professionals in Russia and in support of
Ms. Aslamazyan and the EMF,

Mesrop Movsesyan – President, "A1 + " TV and on-line news, Yerevan,
Armenia

Nouneh Sarkissian – Managing Director, Internews media support NGO,
Armenia

Boris Navasardian – President, Yerevan Press Club

Arthur Yezekyan – President , SHANT TV

Ara Shirinyan – filmmaker, producer, Shoghakat TV Company

Aram Abrahamyan – editor-in-chief, Aravot daily

David Aslanyan – Art Director, Yerkir Media TV, Yerevan, Armenia,
Member, International Federation of Journalists

Elina Pogosbekyan – Editor of the Weekly Bulletin and member of the
board, Yerevan Press Club

STRONG DRAM ‘GOOD FOR ARMENIAN GROWTH’
By Hovannes Shoghikian and Emil Danielyan

Radio Liberty, Czech Rep.
May 30 2007

The dramatic strengthening of the Armenian dram has been a major factor
behind Armenia’s double-digit economic growth recorded in recent
years, a senior economist from the International Monetary Fund said
on Wednesday.

The national currency has gained more than 50 percent in nominal value
against the U.S. dollar since the start of its appreciation in late
2003. The process slowed down in the first few months of this year
but seems to be again gaining momentum.

The Armenian government and Central Bank have attributed the exchange
rate fluctuation to a surge in hard currency remittances sent home by
hundreds of thousands of Armenians living and working abroad. They
also point to the dollar’s overall weakening against other major
world currencies.

Local manufacturers and economists critical of the government have
expressed serious concern at the trend, criticizing the authorities in
Yerevan for their refusal to heavily intervene in the foreign-exchange
market. They say the stronger dram has hurt Armenian exports and
widened the country’s huge trade deficit. Some of the critics have gone
as far as to accuse the authorities of "artificially" strengthening
the dram to benefit government-connected importers of fuel and other
basic commodities.

But both the IMF and the World Bank have dismissed the criticism,
voicing support for monetary policies pursued by the Armenian Central
Bank. David Owen, a senior advisor in the IMF’s Middle East and
Central Asia Department, insisted on Wednesday that the strong dram
has actually contributed to Armenian growth by suppressing inflation.

"We think that the relatively flexible approach to the exchange
rate — allowing more appreciation than elsewhere — combined with
tight fiscal policy have contributed to the very good performance
on inflation and to the high growth rate that has been achieved in
Armenia," he told reporters in Yerevan.

Owen argued that Armenian exports have grown by an average of 20
percent in the last few years even if they were largely flat in 2006.

He said the authorities should help to boost them by implementing
more economic reforms and strengthening business competition.

According to government data for the first quarter of this year, the
exports were up by 25 percent from the same period in 2006, totaling
$231 million. But they continued to pale in comparison with imports
that jumped by 52 percent to $645 million.

The first-quarter official figures also show the Armenian economy
growing by 11 percent year on year, putting it on track to expand at
a double-digit rate for a sixth consecutive year.

MURDERER OF 19-YEAR-OLD ARTHUR SARDARYAN JUSTIFIED

ArmRadio.am
30.05.2007 17:14

Yesterday the case of murder of 19-year-old Arthur Sardaryan in a
Moscow-Sofrino electric train was heard the local district court. The
strange thing is that the murderer was justified even though there
were witnesses of the crime.

In a phone talk with "Radiolur" the Director of the "Lex" firm
of attorneys Simon Tsaturyan expressed concern over the fact that
justification of the cruel crime on the basis of nationalism may
become a bad precedent.

The 17:04:51rial was carried out by the jury, which Simon Tsaturyan
considdered unacceptable from the very beginning, since he was assured
no objective decision could be taken this way. Â"The jury is comprised
of people from street having no legal knowledge,Â" the attorney said.

On the basis of the jury’s decision the judge reached a verdict and
justified the nationalist, who had brutally knifed 19-year-old Arthur
Sardaryan and jumped out of the train crying "Long live Russia."

"Of course, it is possible and necessary to appeal the verdict in the
courts of higher instance," Simon Tsaturyan considers. Yesterday he
spoke to the father of the killed Armenian young man and advised him
to appeal to the Court of Cassation.

Mr. Tsaturyan considers hat "such a verdict is a result of the
inactivity of Armenian organizations and the Armenian Embassy in
Russia.

–Boundary_(ID_lpGnTooiyHE7KgsEhlcQtQ) —

AGENDA OF AZERBAIJAN SPEAKER’S VISIT TO ST PETERSBURG ANNOUNCED

Trend News Agency, Azerbaijan
May 29 2007

Azerbaijan, Baku / corr. Trend I.Alizade / An Azerbaijani delegation
headed by the Speaker of the Parliament, Oktay Asadov, will visit St
Petersburg between 30 May and 1 June, the Parliament’s Press Secretary,
Akif Nasirov, said on 29 May.

According to him, the 28th plenary meeting of CIS Parliamentary
Assembly will take place in St Petersburg and the Azerbaijani
delegation will attend the meeting. Nasirov said that while at the
session, Asadov will hold a number of meetings, including one with
the Chairman of PACE, Rene Van der Lenden.

Nasirov did not exclude the possibility of a meeting between the
chairmen of the Azerbaijani and Armenian parliaments.

During the visit, Asadov will be accompanied by the Permanent
Parliamentary Commission on Regional Affairs, Arif Tafizade, Chairman
of Legal Policy Commission, Ali Huseynov, parliamentarians Rafael
Huseynov, Safa Mitzayev and others.

OSCE MINSK GROUP’S US CO-CHAIRMAN TO VISIT BAKU

Trend News Agency, Azerbaijan
May 29 2007

Azerbaijan, Baku / Òrend corr E. Huseynov / The US co-chairman of
the OSCE Minsk Group, Matthew Bryza, intends to visit Azerbaijan on
about the 5-8 June, the head of the Public Relations Department of
the United States Embassy to Azerbaijan, Johnatan Henik reported.

According to Henik, the US mediator of the OSCE Minsk Group will
hold talks on the current situation of the peaceful settlement of the
Armenian-Azerbaijani Nagorno-Karabakh conflict with the Azerbaijani
administration. As the Advisor on Europe and Eurasia of the US
Secretary of State, he will participate in the 14th International
Exhibition Conference ‘Caspian Sea – Oil, Gas, Oil Processing, and
Petrochemistry’ to be held in Baku on 5-8 June. The US Deputy Trade
Minister will also be in attendance.

The Russian and French co-chairmen of the OSCE Minsk Group visited the
Nagorno-Karabakh conflict region on 21-25 May. An agreement on the
next round of talks between the Armenian and Azerbaijani Presidents
was reached.

"During this stage of the settlement, the issue on the liberation
of 7 regions and the status of Nagorno-Karabakh will be the topic of
further discussions," Yuri Merzlakov, the Russian co-chairman of the
OSCE Minsk Group, said during the press conference in Baku. He noted
that it was too early to talk about co-ordinating the basic principles
with regards to the peaceful settlement between Armenia and Azerbaijan.

The conflict between the two countries of South Caucasus began in
1988 due to the territorial claims of Armenia against Azerbaijan.

Armenia occupied 20% of Azerbaijani land including the Nagorno-Karabakh
region and seven of the surrounding regions in the country. Since
1992, these territories have been under the occupation of the Armenian
Forces. In 1994, Azerbaijan and Armenia signed a cease-fire agreement
which put an end to the hostilities. The Co-chairmen of the OSCE Minsk
Group ( Russia, France and USA) are holding peaceful negotiations.

The OSCE Chairman-in-Office, Spanish Foreign Minister Miguel Angel
Moratinos will pay a visit to Baku and Yerevan on 4-5 June in order
to provide a new impetus to the negotiations.

–Boundary_(ID_TaO/XzuofC5YsYlzQEeJ Tw)–

STATUS QUO IN KARABAKH SETTLEMENT SHOULD BE CHANGED, U.S. EXPERT SAYS

PanARMENIAN.Net
23.05.2007 16:01 GMT+04:00

/PanARMENIAN.Net/ "Armenia is interested in status-quo that can
be observed in the Nagorno Karabakh process over 10 recent years,"
director of the institute of Central Asia and Caucasus studies at
John Hopkins university (U.S.) Svante E. Cornell said in Baku.

"Although status quo is convenient for Armenia, it’s not desirable
for Azerbaijan," the expert said adding that Russia and Armenia are
closely cooperating in the economic and military fields. "The Russian
government wants to demonstrate support both to Armenia and Azerbaijan,
However, the fact is that Russia’s troops are deployed in Armenia
and this damages relations with Azerbaijan," he said. "Azerbaijan
should expand and deepen relations with western states," he added,
Trend reports.

POSTBANK TO OPEN IN ARMENIA SOON

Noyan Tapan
May 23 2007

YEREVAN, MAY 23, NOYAN TAPAN. Postbank will open in Armenia soon. It
will start functioning in the autumn, NT correspondent was informed
by Hans Boon, representative of Haypost Trust Management company
(Netherlands) – the trust manager of Haypost.

To recap, according to the Chairman of the Central Bank of Armenia
(CBA) Tigran Sargsian, Postfinance (Netherlands) together with several
international organizations will found Postbank with a capital of 5
bln drams (about 14 mln USD) in Armenia. In cooperation with Haypost
Trust Management, Postbank will provide services related to savings,
card payments, monetary transfers, etc.

Haypost was transferred for a 5-year trust management in November 2006.

FEMALE SUICIDE BOMBER DETAINED IN TURKEY

PanARMENIAN.Net
23.05.2007 18:11 GMT+04:00

/PanARMENIAN.Net/ A female suicide bomber preparing for a terrorist act
was detained in Adana city in southern Turkey, NTV company reports
quoting a source in police. The woman has four kg of A-4 plastic
explosives like those detonated Tuesday in the trade center mall
in Ankara.

The female terrorist detained in Adana is a member of outlawed
Kurdistan Workers’ Party.

ELECTRONIC PAYMENTS GROW BY 39.74% IN ARMENIA IN FIRST QUARTER OF 2007 ON SAME PERIOD OF LAST YEAR

Noyan Tapan
May 23 2007

YEREVAN, MAY 23, NOYAN TAPAN. Most of electronic payments through
the payment systems of the Central Bank of Armenia (CBA) in the first
quarter of 2007 was made through the electronic payment system.

According to CBA data, electronic payments of the system’s participants
made up 63.10% of the total amount of payments and 95.3% of their
number. The amount of electronic payments increased by 39.74%
(564 bln drams or about 1 bln 568 mln USD), their number – by 15.86%
(40,670 payments) on the same period of last year. Transfers related
to stock exchange operations amounted to 27 bln drams. Payments made
by commercial banks through the electronic payment system (without
stock exchange related operations) made up about 40% (increase of 55
bln drams) of all payments, their number – about 99%.

The average daily number of monetary transfers through the electronic
payment system grew by 635 payments as compared with the first quarter
of 2006 and made 4,006 transfers, while their amount grew by 8 bln
817 mln drams to 22 bln 185 mln drams. The average daily amount
of transfers related to stock exchange operations made 6 bln 549
mln drams. The average amount of an electronic transfer through the
electronic payment system, without transfers related to stock exchange
operations, grew by about 1.7 mln drams to 3.9 mln drams. The average
amount of stock exchange related transfers by commercial banks through
the electronic payment system made 201 mln drams.