Author: Kajoyan Gevork

GAZPROM PLANNING $90M WORTH INVESTMENT IN ARMENIA

22:13 ~U 05.12.13

Gazprom, the Russian gas company whichpurchased 20% of Hayrusgazard’s
shares earlier this week, is going to invest $90 million in Armenia’s
natural gas sector from 2014 until 2016.

Citing Hayrusgazard, the Russian ITAR-TASS reports that the company
is expected to increase its shares from 80% to 100%.

Hayrusgazard, which is Gazprom’s affiliate in Armenia, is planning
to make investments amounting to $37 billion in the coming three years.

As for 2014-2016, the company intends to spend 13,460,000 Armenian
Drams (approx. $550,000) in that period for the reconstruction and
expansion of the underground gas reserves of Abovyan (Kotayk region).

It also plans to direct resources to the reconstruction of the natural
gas delivery and distribution system.

Armenian News – Tert.am

AZERBAIJANI AND ARMENIAN FOREIGN MINISTERS AGREE TO MEET AGAIN EARLY NEXT YEAR

APA, Azerbaijan
Dec 5 2013

[ 05 December 2013 13:35 ]

Heads of delegations from the OSCE co-chairing countries, Azerbaijani
and Armenian foreign ministers have issued a joint statement in Kiev

Kiev. Victoria Dementyeva – APA. Heads of the delegations from the
OSCE co-chairing countries that are attending the meeting of the OSCE
Ministerial Council in Kiev – Russian Foreign Minister Sergei Lavrov,
French Minister Delegate for European Affairs Thierry Repentin, U.S.

Assistant Secretary of State for European and Eurasian Affairs Victoria
Nuland, as well as Azerbaijani Foreign Minister Elmar Mammadyarov
and Armenian Foreign Minister Edward Nalbandian have issued a joint
statement, APA’s correspondent reports from Kiev.

The statement says that the parties have agreed to continue working
towards a fair and peaceful resolution of the Nagorno Karabakh conflict
basing on the agreements achieved up to now.

The co-chairing countries welcomed the resumption of the dialogue
between Azerbaijani and Armenian presidents and expressed confidence
that the upcoming meetings will advance the peace process. They
called on the parties to consider measures that will reduce tension
in the region.

The Azerbaijani and Armenian foreign ministers have agreed to meet
again early in 2014 for the preparation of the further high-level
negotiations. The ministers noted that the region’s population expects
progress in resolving the conflict and deserves it. They also highly
assessed the mediation of the co-chairs.

TURKEY, AZERBAIJAN DISCUSS NAGORNO-KARABAKH CONFLICT

The Trend, Azerbaijan
Dec 5 2013

Baku, Azerbaijan, Dec. 5
Trend:

Turkey’s top foreign affairs diplomat, Ahmet Davutoglu met on Thursday
with Azeri Foreign Minister Elmar Mammadyarov in Kiev to discuss the
Armenia-Azerbaijan conflict and future steps to be taken regarding
regional peace and stability, World Bulletin reported.

Diplomatic sources say the two ministers met in Brussels for a NATO
meeting but met again following Mammadyarov’s meeting on Wednesday in
Kiev with Armenian foreign minister Edward Nalbandyan. Sources also
say that the ministers agreed on close coordination between Turkey
and Azerbaijan.

Davutoglu is in the Ukrainian capital to attend a council of ministers
meeting held by the Organization for Security and Co-operation
in Europe.

Davutoglu also held a meeting with Russian FM Sergei Lavrov yesterday
to discuss efforts in obtaining regional peace in the Caucasus region.

CHRISTMAS `GIFTS` FROM PUTIN TO ARMENIA

Turan Information Agency, Azerbaijan
December 4, 2013 Wednesday

Yerevan/03.11.13/Turan:

Russia welcomes resumption of direct contacts between the leaders of
Armenia and Azerbaijan. This was stated by Russian President Vladimir
Putin at a briefing in Yerevan after talks with ArmenianPresident
Sargsyan.

” I was recently on a visit to Baku. We also talked with the
Azerbaijani President in detail about the prospects of settlement. I
am very pleased to note that the meeting, which was held in Vienna on
November 19, was clearly positive. We hope for common sense and the
desire to settle on both sides, and we will do everything to promote
it within the framework of the OSCE Minsk Group,” said Putin.

Asked about Russia’s actions in the case of “aggression” by Azerbaijan
against Nagorno-Karabakh, Putin said that he hoped that blood
would be never shed in Nagorno-Karabakh – either byArmenians or by
Azerbaijanis. “The more often to repeat the words aloud, the less will
be the conditions for a peaceful settlement in the region. We would
like no bloodshed forever in this region of the world, located so close
to the Russian border, – no by Armenian citizens or citizens of the
Republic of Azerbaijan,” Putin said, calling “counterproductive” the
talk about the alleged decisions in case of possible military action.

Putin reported further reduce in the gas prices for Armenia to 189
dollars per thousand cubic meters from the current $ 270. At the same
time, Putin said that Russia sells gas to Europe for $ 500.

Another outcome of the negotiations and agreements with Putin in
Yerevan was that Armenia will be able to buy Russian weapons for the
inside Russian prices. Azerbaijan buys same weapons from Moscow at
international prices that are 30-40% higher.

Note that for the first time in the history the Armenian opposition
met the Russian President with street protests So a few hundred people
organized protests in various parts of Yerevan, urging Putin to get
out of Armenia and criticizing the country’s authorities for refusing
of European integration. -02D-

RUSSIA OFFERS TO BUILD COMMUNICATION SATELLITE FOR ARMENIA

Vestnik Kavkaza, Russia
Dec 4 2013

4 December 2013 – 2:12pm

The Academician M.F. Reshetnikov Information Satellite Systems
(Russia) has offered to build a communication satellite for Armenia,
Deputy Head of the company Deniz Nikolayev said, News.am reports.

The company will be responsible for ground infrastructure,the training
of specialists and technical support for the project. The satellite
will cover Europe, Asia and the CIS. It may be based on the express
model and launched using the Proton and Zenit rockets.

Armenia is searching for investors to build the Armsat
telecommunication satellite. Armenian Minister for Transportation and
Communications Gagik Beglaryan has already met investors in Germany
and Canada.

The Academician M.F. Reshetnikov Information Satellite Systems
(Russia) has offered to build a communication satellite for Armenia,
Deputy Head of the company Deniz Nikolayev said, News.am reports.

The company will be responsible for ground infrastructure,the training
of specialists and technical support for the project. The satellite
will cover Europe, Asia and the CIS. It may be based on the express
model and launched using the Proton and Zenit rockets.

Armenia is searching for investors to build the Armsat
telecommunication satellite. Armenian Minister for Transportation and
Communications Gagik Beglaryan has already met investors in Germany
and Canada.

“SUFFERING” IN BULGARIA AND ARMENIA HIGHEST WORLDWIDE

Gallup.com
Dec 4 2013

At least a quarter considered suffering in 20 out of 143 countries
in 2012

by Jan Sonnenschein

WASHINGTON, D.C. — For the third year in a row, Bulgaria in 2012 once
again had the negative distinction of leading the global suffering
list, with 39% of Bulgarians rating their lives poorly enough to be
considered “suffering.” However, this time, Bulgaria is not alone
at the top. Thirty-seven percent of Armenians were suffering, and
Cambodians, Haitians, Hungarians, Malagasy, Macedonians, and Iranians
followed closely behind.

Gallup classifies respondents as “thriving,” “struggling,” or
“suffering” according to how they rate their current and future lives
on a ladder scale with steps numbered from zero to 10 based on the
Cantril Self-Anchoring Striving Scale. Gallup considers people to be
suffering if they rate their current lives a 4 or lower and their lives
in five years a 4 or lower. The respondents do not label themselves
as suffering.

In 20 out of 143 countries and areas surveyed in 2012, at least a
quarter of the adult population rated their lives poorly enough to
be considered suffering. Those countries span most world regions,
including six places in crisis-hit Europe. Worldwide, one in seven
adults was suffering in 2012. South Asia led the world in suffering
at 24%, followed by 21% in the Balkans and the Middle East and North
Africa regions.

Low Levels of Suffering Mostly Seen in Wealthier Countries

Suffering was 2% or less in 17 countries and areas — most of them
wealthier and more developed countries. Some developing countries also
made this list: Thailand, Venezuela, Nigeria, the Somaliland region,
and Libya. Gallup trend data show suffering in the first four countries
and areas has been consistently low since Gallup started surveying
in these places. The 2012 study in Libya is the only nationally
representative study Gallup conducted so far in this country.

Suffering in Venezuela has always been in the single digits, yet in
2012, suffering was exceptionally low. With fieldwork being conducted
in the run-up to the presidential elections in October 2012, the
government’s spending spree ahead of the elections might at least
partially explain the drop in suffering from 7% in 2011 to 2%.

In Libya, many people were probably still enthused by having rid the
country of Moammar Gadhafi, who ruled in a dictatorship lasting more
than four decades.

Four percent of Americans were suffering in 2012.

Implications

Across countries, measures of well-being are highly related to income,
education levels, and reported disease conditions. Individuals who are
thriving have fewer disease conditions, fewer sick days, and higher
incomes; are more highly educated; and have better work environments.

Residents in countries with higher percentages of thriving respondents
also report that the area they live in is a good place to live for
people of different ethnicities, races, and cultures.

Compared with thriving respondents, struggling respondents are much
more likely to worry about money on a daily basis, and suffering
respondents are less likely to have necessities such as food and
shelter.

Leaders in Bulgaria started to face the likely consequences of high
levels of suffering among the country’s residents in 2013. Protests
that spread throughout the country resulted in the resignation of the
center-right government of Boyko Borisov. However, in the poorest state
in the European Union, conflict over poverty and corruption continues
despite the early elections that happened in May of this year.

For complete data sets or custom research from the more than 150
countries Gallup continually surveys, please contact us.

Survey Methods

Results are based on telephone and face-to-face interviews with
approximately 1,000 adults, aged 15 and older, per country. For
results based on the total sample of national adults, one can say
with 95% confidence that the maximum margin of sampling error ranged
from a low of ±1.7 percentage points to ±5.6 percentage points. The
margin of error reflects the influence of data weighting. In addition
to sampling error, question wording and practical difficulties in
conducting surveys can introduce error or bias into the findings of
public opinion polls.

For more complete methodology and specific survey dates, please review
Gallup’s Country Data Set details.

See tables at

RUSSIA INTENDS TO STRENGTHEN ITS POWER IN THE SOUTH CAUCASUS

The Messenger, Georgia
Dec 4 2013

By Gvantsa Gabekhadze
Wednesday, December 4

Russia intends to strengthen its position in the South Caucasus.

President Vladimir Putin made a statement concerning the issue at
the Russian-Armenian Interregional Forum in Yerevan on December 2.

According to Putin, Russia has never planned to leave the region.

“On the contrary, we are going to strengthen our position in the
South Caucasus,” Putin said.

He emphasized that the Russian position would strengthen, “relying
on the best inheritance from our ancestors and good relations with
all countries of the region, including Armenia.”

Georgian Foreign Minister Maia Panjikidze “does not want to believe
that Russia might create a threat for Georgia.”

She admitted that the Federation has already used all its levers
against our country.

“However, despite the fact, we might face certain threats from Russia.

It is known to us from where the threat might emerge,” Panjikidze
stated.

She noted that Georgia has chosen its way of development and,
presumably, Russia will not take actions aimed at disrupting the
signing of the agreement with the European Union.

“Georgia and Russia are holding fruitful negotiations. We stand
for changes in our relations and I think that Russia is unlikely to
exacerbate them,” she said.

Parliamentary majority member Davit Zurabishvili emphasized that
Georgia should respond to Russian attempts with more steps forward
to Europe.

Member of the United National Movement (UNM) Zurab Tchiaberashvili
made clear that Russia’s aims are obvious. According to him, Russia
is trying to divide the world into various spheres of influence.

“Russia wants the states of the former Soviet Union to be under the
Federation’s supervision. The attempt is illegal as it restricts the
freedom of states. The situation taking place in Ukraine is a vivid
example of the Russian policy,” Tchiaberashvili stated.

Military analyst Tengiz Pkhaladze thinks that Russia does not wish
to lose its levers in the Caucasus region and will do its best to
retain them.

“Putin’s visit to Armenia and the statements made to them serve
Russia’s aim to preserve power in the region,” Pkhaladze stressed.

Political analyst Vazha Beridze believes that the situation in Ukraine
and the developments there will result in serious effect on Russian
influence.

“If the West loses Ukraine, Russia might become the major leading
force for the post-Soviet states very soon,” Beridze states.

ARMENIA HAS NO RIGHT TO SELL SHARES OF ARMRUSGASPROM AND VOROTAN CASCADE WITHOUT PRIVATIZATION – MP

December 04, 2013 | 18:32

YEREVAN. – Armenia has no right to sell the shares of ArmRusgasprom
and the Vorotan cascade without privatization program, MP Artsvik
Minasyan said.

He recalled that privatization of the Vorotan cascade of hydro power
plants was included in the program in early 2000s, but was excluded
in 2006-2007.

“Twenty percent of ArmRusgasprom shares have never been included
in the program. Then, what is the legal basis for Armenia to hold
negotiations on ArmRusgasprom shares with Gazprom and with Contour
Global on Vorotan cascade,” Minasyan wonders.

In reply, the Minister of Energy Armen Movsisyan said that the law
does not prohibit talks on selling state assets, even if they are
not included in the privatization program

“It’s not about selling but about preliminary agreement. Well, when
it comes to selling, then we will find legal justification with the
help of parliament,” Minister said.

AZERBAIJANI AND ARMENIAN FOREIGN MINISTERS TO MEET IN KIEV, DECEMBER 5

APA, Azerbaijan
Dec 3 2013

[ 03 December 2013 14:50 ]

Edward Nalbandian: “We want to achieve progress in the negotiations
as much as possible”

Baku – APA. The Azerbaijani and Armenian foreign ministers will meet
in Kiev on December 5 as a part of the meeting of the OSCE Foreign
Ministers’ Council, said Armenian Foreign Minister Edward Nalbandian,
APA reports quoting Armenia today. He said that they want to achieve
progress in the negotiations as much as possible: “Of course, it is
important that both sides have a desire to resolve the conflict.”

Nalbandian said that Armenia is committed to the peaceful resolution
of the Nagorno Karabakh conflict. If Azerbaijan takes such a position,
it will be possible to advance the negotiation process and approach
to the resolution of the conflict.

At the meeting of the Azerbaijani and Armenian presidents in Vienna,
November 19, the foreign ministers of both countries were tasked to
meet as soon as possible.

ARMENIANS RALLY AGAINST CUSTOMS UNION AS PUTIN DELIVERS REWARDS

Business New Europe
Dec 3 2013

bne
December 3, 2013

Armenians picketed a visit from Russian President Vladimir Putin on
December 2, in protest over Yerevan’s surprise decision in September
to join the Customs Union. The Russian leader came bearing gifts,
confirming a huge discount on gas prices.

Around 500 people protested in Yerevan on December 2 over the plan for
Armenia to enter the Russian-led Customs Union. Echoing the feelings
of frustration at movement back towards the east being expressed
on the streets of Ukraine, demonstrators carried banners demanding
“Putin, go home,” reports Reuters.

Others insisted “”No to the USSR”, in protest against Armenian
President Serzh Sargsyan’s decision to turn his back on closer
integration with the European Union. His country had spent months
negotiating an association and trade pact with Brussels, but that
process was turned on its head by a surprise announcement – in the
wake of another meeting with Putin – that Armenia would instead join
the Customs Union on September 3.

The protest march ended outside Sargsyan’s residence, where
demonstrators submitted a letter calling on the president to reverse
the decision. Demonstrators also voiced solidarity with protesters in
Ukraine, where mass protests have taken place in recent days after
President Viktor Yanukovych failed to sign a similar agreement with
Brussels, citing pressure from Moscow.

Yerevan police blocked the protesters’ way, saying their demonstration
was unsanctioned and arrested around 110 people, ArmInfo reports.

Opposition leaders claim that police beat several demonstrators.

Members of the Aizan, Free Democrats and Heritage parties are believed
to be among those arrested. Several leading anti-Russian activists were
detained in Yerevan before the rallies started, according to RFE/RL.

Speaking at a parliament session, Armenian National Congress MP Nikol
Pashinyan criticised the arrests. He claims the demonstrators were
“fighting to preserve the sovereignty and honour of Armenia”, Hetq
Online reported.

Sargsyan’s decision to move further into the Russian sphere of
influence was a shock to many Armenians, coming just two months before
the Eastern Partnership summit that took place last week in Vilnius.

Pressure

Under no little pressure from Russia, Armenia was the first of the
six countries expected to initial or sign EU association agreement
and trade pacts to drop out. In the end, only Georgia and Moldova
made the commitment. Ukraine is the big fish however, and speculation
swirls over Yanukovych’s next move. Russia is pushing hard to swell
the ranks of its own trade club, which it founded alongside Belarus
and Kazakhstan in 2011. Critics have often accused Putin of trying
to recreate the USSR.

Yanukovych told the EU that he cannot sign the deal due to pressure
from Russia, which openly threatened to erect trade barriers if he did
so. At the same time, Ukraine is in a fiscal hole, and a cut in gas
prices and cheap loan would help enormously. The Ukraine leader is due
to meet Putin next week, but is also in close contact with Brussels.

Any definite move towards the east would raise the tension on the
streets, which are occupied by tens of thousands of protestors across
the country.

In Armenia, Sargsyan does not face similar pressure pushing westwards.

A survey by the Eurasian Development Bank published in October found
that 67% of Armenians were in favour of Customs Union membership.

However, the opposition has accused Moscow of exerting heavy pressure.

Armenian consumer gas prices spiked by 18% in July, following a
price hike by Russian state-controlled export monopoly Gazprom. The
previous month, Russia completed an arms delivery worth around $1bn
to Armenia’s long time rival Azerbaijan, potentially escalating the
long-standing conflict over the breakaway Nagorno Karabakh Republic.

Speaking at a Russian-Armenian regional forum in Yerevan during his
visit, Putin stressed the importance of the South Caucasus region
to the Russian government. “We are going to strengthen our position
in the South Caucasus, drawing on the best of what we have inherited
from ancestors and good relations with all countries in the region,”
he said, according to Reuters.

He also confirmed that Sarysyan’s government will be rewarded for its
decision to join the Customs Union. Putin announced the signing of
an agreement under which Russia will give up its 30% export duties
on gas sent to Armenia. Russia will export gas to Armenia at $189
per 1,000 cubic metres, which is less than half the price charged to
Ukraine and EU consumers.

Armenia will also see the 35% duty on Russian exports of petroleum
products scrapped. The charge is causing problems in more than one CIS
country that is not currently part of the Customs Union. Uzbekistan
and Tajikistan are currently facing fuel shortages.

Gazprom also confirmed that it will acquire the Armenian government’s
20% stake in ArmRosgazprom, which will give it full control of the
gas distribution company. Armenia will also be able to buy weapons
from Russia at domestic prices, and oil at a 30% discount, Putin told
the forum.