Author: Kajoyan Gevork

UNE ROUTE CONSTRUITE SUR UN CIMETIERE ARMENIEN EN TURQUIE
Stephane

armenews.com
vendredi 7 decembre 2012

Les medias turcs ont revele que pendant la construction d’une route
dans la province de Siirt en Turquie un cimetière armenien a ete mis
a jour.

Selon l’agence de presse turque Dogan les os d’environ 100 tombes
ont ete exhumes. Des villageois kurdes les ont rassembles et les ont
remis dans des tombes autant que possible.

Un des residents du village de Kayabogaz a indique a l’agence Dogan
que ” certains os sont toujours exhumes. Une partie des tombes est
restee ouverte. Nous savons que c’est un cimetière armenien et qu’il
y avait une Eglise armenienne sur la colline au-dessus. Les armeniens
ont vecu ici il y a des annees. Mais personne ne vit la maintenant “.

Les villageois se plaignent depuis un mois que les autorites turque
ignorent ce problème.

vendredi 7 decembre 2012, Stephane ©armenews.com

OSCARS BECOME EMBROILED IN DISPUTE BETWEEN ARMENIA, AZERBAIJAN
By VAHE HARUTYUNYAN

Modesto Bee
Dec 6 2012
CA

The Institute for War & Peace Reporting Thursday, Dec. 06, 2012
Thursday, Dec. 06, 2012

YERAVAN, Armenia — Armenia’s entry for Best Foreign Film at the
Academy Awards was conceived as a story of how humanity triumphs over
prejudice. But since it also deals with Azerbaijan, it has become
yet another element in the toxic feud between the two nations.

The film, “If Only Everyone,” tells the story of an Armenian man who
helps a half-Russian, half-Armenian woman go to her father’s grave
and plant a tree there. The father died in the early-1990s conflict
over Nagorny Karabakh, which pitted Armenians against Azerbaijanis.

Since a ceasefire was signed in 1994, Karabakh has been controlled
by an Armenian administration. No peace deal has been signed, and
little progress has been made toward an agreement on a final status
for Karabakh. The Armenians – who call the disputed territory Artsakh
– are not prepared to cede control, while Azerbaijan demands the
restoration of sovereignty over Karabakh.

The film’s protagonists have to cross over the front line from
Armenian-held to Azerbaijani-held territory. There they befriend a
local shepherd, an Azerbaijani, who asks them to plant a tree on his
son’s grave when they return to the Armenian side.

“This story perhaps touches on the most sensitive issue for our nation
today – Artsakh. Why did people die, what was the war about, what
motivated the heroic deeds? Some have found the answers; others are
still searching,” a synopsis on the film’s website says.”But these
questions eclipse the real lives of real people, who we often think
about the least, unfortunately.”

It is the fourth work that Armenia’s film academy has submitted for
consideration for an Oscar, but the first to be officially nominated.

The Academy of Motion Pictures Arts and Sciences accepts a single
submission from each country for the best foreign-language film prize,
and its members vote for a shortlist and then the winner. This year,
a record 71 films have been accepted as submissions, including entries
from Azerbaijan.

In Azerbaijan, writer Elchin Huseynbayli, has stepped forward to
insist that the idea for the film was stolen from his 2010 story
“Dazzled by the Sun.” He described his story in an interview on
the website ann.az. “The story I wrote goes like this: an ailing
Azerbaijani doctor enters the occupied territories of Karabakh to
fulfill his grandfather’s wishes by planting a tree in the yard of his
house. The hero wants to see his father’s grave, but the territory
is controlled by the Armenians and they take him prisoner. However,
after long negotiations, they allow him to fulfill his wish.

“They used my story, but changed it to favor themselves. If you watch
the film you’d think we are occupying Armenian land, when in fact
it’s our land that’s occupied, and they are the occupiers. … More
than half of the film coincides fully with my story.”

Huseynbayli has asked Azerbaijan’s copyright agency to contact the
academy and tell them the film is not an original work. It’s not yet
known if they will comply with his request.

Michael Poghosyan, who wrote the screenplay for “If Only Everyone,”
insists the movie was conceived before Huseynbayli’s story was
published.

“The story for the film was written in early 2010, and filming began
in spring 2010. Before we wrote the story, we met people who had lived
through the war. It was after our meetings and talks with these people
that the idea of the film was born,” he said. “We could similarly
accuse the Azerbaijanis of stealing the story of our film ‘Longing,’
where the main hero crossed a border to die in his homeland,” he said.

Poghosyan said the film sought to encourage harmony and peace between
different peoples.

“There is nothing anti-Azerbaijani in the film. It preaches peace and
love, which is why it has won prizes … We would not have been able
to win such awards if the film contained inhumanity or spread enmity
between nations.”

ABOUT THE WRITER

Vahe Harutyunyan is a reporter in Armenia who writes for The Institute
for War & Peace Reporting, a nonprofit organization that trains
journalists in areas of conflict. Readers may write to the author at
the Institute for War & Peace Reporting, 48 Grays Inn Road, London
WC1X 8LT, U.K.; Web site: For information about IWPR’s
funding, please go to

House Foreign Affairs Subcommittee on Europe and Eurasia Hearing

Congressional Documents and Publications
December 5, 2012

“Iranian Influence in the South Caucasus and the Surrounding Region.”

Testimony by Rep. Meeks, Gregory W. – (D-NY)

Thank you Chairman Burton, for holding this hearing, which I am sad
to say is likely your last on this committee, after almost three
decades of service in the House of Representatives. Mr. Chairman,
it has been an honor to serve on this subcommittee with you, and
I hope that you will continue to prosper and enjoy life with your
wonderful wife and your family.

We are dealing with an important question today, as the South Caucasus
region represents a complex web of both regional alliances and
conflicts, bitter rivalries, varying degrees of western orientation,
disparate economic trajectories and a potential venue for instability
or even violence.

In terms of viewing the South Caucasus region from the perspective of
this subcommittee, it is important to note that some of our strongest
instruments, the Euro-Atlantic institutions of NATO and the European
Union, have a weak presence in this region, and therefore are not as
influential as they are in the Balkans, for instance. Ultimately,
this means that Europe and the United States have less leverage in
the region.

This allows other countries in the region to compete for political,
economic and military influence. I believe that Armenia, Azerbaijan
and Georgia represent trustworthy allies of the United States, but I
realize full well that their bilateral relationships are complicated,
and that they all have to take their immediate neighborhood into
account.

With only two open borders, and one of them being with Iran, Armenia
faces the constant threat of isolation, and this is a core driver in
managing Armenia’s relationship with Iran.

Azerbaijan has a sizeable Diaspora in northern Iran, but a vastly
different strategic, social and political orientation than Iran’s
leadership. Despite a potential religious kinship between Iran
and Azerbaijan, Iran has historically sided with Armenia over the
contested region of Nagorno-Karabakh. Furthermore, Azerbaijan enjoys
a solid relationship with Israel, which further distances Baku and
Tehran from one another.

Georgia has the strongest western orientation in the region, and
my sense is that this will remain intact even after their change of
government. But like any other country, Georgia is seeking economic
opportunities everywhere, including potential trade or investment
relations with Iran.

I believe there is a potential for Iran to exploit the complicated
relationships between each of these countries, and that others in
the region have interests that compete or overlap with Iran.

Simultaneously, each of the South Caucasus nations play an important
role in western relations with Iran, particularly their ability to
comply with international sanctions, and I think it is important for
US policy towards the region to find ways to facilitate and strengthen
this compliance.

Russia appears to want to limit both the influence of the United States
and Turkey in the South Caucasus, so I am curious to hear our panel’s
views on how Russia and Iran manage their relationship in the region.

I have followed with great interest Turkey’s attempts to normalize
relations with Armenia, and my sense is that such a step holds the
greatest potential to improve both stability and prosperity in the
region. Lifting Armenia’s isolation would not only allow Yerevan
greater independence from Iranian and Russian influence, it would
also be mutually beneficial for Turkey and Armenia in a number of
ways. I am interested in hearing the panel’s perspectives on whether
this is an issue the Turkish and Armenian governments might be able
to re-engage on.

What we can all agree on, is that it is in no one’s interest to see
a nuclear armed Iran, and I look forward to exploring how the South
Caucasus region can help the United States and Europe to prevent
this outcome.

Thank you, I yield back.

Read this original document at:

NA PRESIDENT RECEIVES THE EXTRAORDINARY AND PLENIPOTENTIARY AMBASSADOR OF GREECE TO THE RA

05.12.2012

On December 5 the RA NA President Hovik Abrahamyan received the
Extraordinary and Plenipotentiary Ambassador of the Hellenic Republic
to the RA Ioannis Taghis.

Welcoming the Ambassador the President of the parliament congratulated
him on assuming the post and expressed conviction that due to his
activity the Armenian-Greek bilateral relations would be strengthened.

In his word, the traditional friendly relations established
between Armenia and Greece, serve as an important pledge for
further development and deepening of cooperation in different
spheres. Hovik Abrahamyan has noted that Armenia highlights the
multi-lateral development of the relations with Greece and has
documented with satisfaction that the political relations with Greece
are at high level. In this context he highly assessed the deepening
of Armenian-Greek inter-parliamentary cooperation, mutual visits,
the activity of the friendship groups. The NA President reaffirmed
his invitation of the official visit of the President of the Greek
Parliament to Armenia.

Thanking for reception the Ambassador noted that Armenia and Greece
were traditional friendly countries and the friendship of the two
peoples comes from old centuries. The Ambassador underlined that
during his tenure he would do his best to more deepen and develop
the Armenian-Greek relations. Mr Taghis also highlighted the further
development of inter-parliamentary cooperation, which, in his word,
would greatly promote the reinforcement of inter-state relations.

In the course of the meeting other issues of bilateral interest were
also discussed.

L’ARMENIE, TOUJOURS CORROMPUE
Laetitia

armenews.com
jeudi 6 decembre 2012

Malgre les efforts de son gouvernement pour lutter contre la
corruption, l’Armenie n’a pas encore fait un net progrès, selon une
enquete annuelle mondiale publiee par Transparency International.

L’Armenie et sept autres pays, dont le Mexique et les Philippines,
partagent la 105ème place sur la liste, qui compte 176 pays. Le Caucase
du Sud Etat se classait 129ème dans la precedente enquete sur 183 pays.

Varuzhan Hoktanian, directeur de la branche armenienne de Transparency
International, centre de lutte contre la corruption, a minimise
l’amelioration de la situation de l’Armenie dans les derniers
classements.

” Le tableau d’ensemble est assez triste “, a declare Hoktanian lors
d’une conference de presse. ” La corruption ces dernières annees a
continue de croître a l’echelle mondiale. ”

Hoktanian a insiste sur le fait que l’ampleur de la corruption et
d’autres pratiques de corruption en Armenie n’ont pas diminue au
cours des dernières annees, malgre les promesses du gouvernement
d’intensifier ses efforts pour lutter contre ces problèmes. Le
Premier ministre, Tigran Sarkissian, a declare le mois dernier
que le president a charge le gouvernement armenien de prendre des
mesures anti-corruption ” afin d’apporter des changements tangibles
et visibles. ” L’annonce fait suite a une serie d’enquetes de
corruption ordonnees par les autorites armeniennes après une reunion
du gouvernement au cours de laquelle le president Sarkissian a denonce
la corruption generalisee dans l’administration des marches de l’Etat.

Plusieurs hauts fonctionnaires ont ete licencies au cours des semaines
suivantes au milieu de poursuites penales lancees par la police.

Les dirigeants de l’opposition et des critiques du gouvernement
ont rejete cette repression comme un coup de publicite visant a
accroître les chances de reelection de Serge Sarkissian lors du
scrutin presidentiel de 2013.

jeudi 6 decembre 2012, Laetitia ©armenews.com

NAREK BELIEVES HE CAN BEAT LEUKEMIA WITH YOUR HELP
Mаry Mamyan

00:12, December 6, 2012

Six year-old Narek was diagnosed with leukemia three years ago.

He underwent a three stage round of chemotherapy but the disease
has returned.

Doctors say he needs an immediate bone marrow transplant to survive.

Such a procedure will cost money, lots of money.

A group of concerned individuals have bandied together to launch an
initiative called “You will surely live”.

The group has organized various fundraising events to assist Narek.

They have even prepared a song and DVD about Narek and his struggle
to live.

A large portion of the funds covered the expense to take Narek to
Moscow for vital medical tests.

Naira Martirosyan, the boy’s mother, hopes those who read this will
find it in their hearts to contribute whatever they can.

“God willing, kind hearted people will read this and be moved to assist
my little boy. Narek’s doctors are optimistic about his chances with
the operation. Narek is hopeful as well. We go to church to pray and
Narek’s faith is boundless,” says Naira.

Donations to help Narek can be made at:

VTB Bank Armenia

16 07 60 08 83 79 04 / ARM

16 07 60 08 83 79 05 / USD

16 07 60 08 83 79 06 / EUR

16 07 60 08 83 79 07 / RUS

Naira Martirosyan, Narek’s mother, can be reached at: 093-67-47-78

ATROCITIES GALLERY ‘TOO MUCH’: MUSEUM TO REVAMP CONTENT; EX-WORKERS DISPARAGE MOVE

Winnipeg Free Press
Nov 30 2012
Canada

By: Bartley Kives
Posted: 11/30/2012 1:00 AM

The Canadian Museum for Human Rights is being criticized for its plan
to focus on fewer atrocities and include more Canadian content when
it opens in 2014.

Against the wishes of former employees, Winnipeg’s first national
museum has done away with a plan to feature more than 80 genocides
in an atrocities gallery in favour of focusing on five officially
recognized by the federal government. The museum has expanded its
Canadian content to ensure visitors are more aware of domestic
human-rights success stories and failures.

Museum officials describe the changes to the content as the result of
several years of engagement with the public and human rights experts.

Disappointed former employees, however, accuse the museum of kowtowing
to a board directive to ensure “positive Canadian stories” are given
prominence in the $351-million institution, which will receive $22
million in annual federal operating funding.

The original plans for the museum’s atrocities exhibit garnered
negative feedback during the public-engagement process that deemed
80 serious incidents “too much” for a single gallery, communications
director Angela Cassie said.

“People said this gallery felt like a little shop of horrors,” Cassie
said Thursday. Planners don’t want visitors to get so depressed they
would be compelled to leave, added assistant communications manager
Maureen Fitzhenry.

CMHR president and CEO Stuart Murray said curators could not properly
represent more than 80 mass atrocities. “How could we possibly do
them all justice?” he asked.

The museum’s inauguration will focus on Ukraine’s Holodomor, the
Holocaust in Europe, the Armenian genocide, the Rwandan genocide and
the Srebrenica massacre. The Canadian government has recognized all
five 20th-century events as genocides, Murray said.

Notably absent from this list is the largest Asian genocide of the
20th century — the slayings and starvation of at least two million
Cambodians by the Khmer Rouge regime between 1975 and 1979. Murray
said the CMHR may feature the Cambodian genocide at some point in the
future, noting the museum’s touchscreen displays allow for regular
content updates.

“Because of the technology we employ, we’re not beholden to fixed
dioramas,” he said, vowing to do a better job of explaining the
museum’s multi-layered approach to content.

Another content change will be more Canadian stories throughout the
museum’s galleries. While the museum was always supposed to have
Canadian content, its layout — a series of galleries that spiral
from the ground to the top — wound up placing the nation’s stories
at the end of the “journey,” Cassie said.

“We realized you were walking through three-quarters of the museum
before you get Canadian content,” she said. “We can’t expect everyone
will go through the entire museum… we needed to answer the question:
Is this a Canadian museum for human rights?”

Departed museum staff, speaking on condition of anonymity, claim
the institution’s board issued a directive to feature more positive
Canadian stories. Some complained of museum-board fears of upsetting
the federal government or potential trade partners.

Murray denied the allegation, insisting the museum strives to maintain
a balance between human rights success stories and failures. “If there
are gritty stories to tell, they will be in the museum,” he said,
insisting there is no way to glamourize human rights.

At the same time, the museum cannot be simply depressing, said Murray,
noting one scholar told him, “I hope to hell this is not a museum of
human wrongs.”

Cassie and Fitzhenry said disgruntled former museum staff may have
different ideas about presentation due to their academic backgrounds.

Actual museum-goers have different expectations from scholars,
they said.

That concept is problematic, two University of Toronto professors
suggested in a 2011 paper that makes direct reference to the Canadian
Museum for Human Rights.

If the museum presents human rights success stories about First
Nations, for example, “its visitors might not consider taking action
to address current rights violations,” museum studies Prof. Jennifer
Carter and human rights law Prof. Jennifer Orange wrote in a paper
presented to a British conference. Orange and Carter questioned
whether a state-funded museum can freely criticize government actions
and policies.

Canadian human rights failures such as the forced placement of
First Nations students in residential schools, the internment of
Japanese-Canadians and the ban on South Asian immigration will be
featured prominently in the museum, Cassie said.

Murray said he is under no pressure from the federal government
regarding the museum’s content. The Harper government recently changed
the mandate of Gatineau’s Museum of Civilization to focus more on
Canadian history.

REPORTS: RUSSIA STOPS CONVERTING ARMENIAN “COMPATRIOTS” INTO RUSSIANS
by Giorgi Lomsadze

EurasiaNet.org
Dec 5 2012
NY

If Armenia ever decided to adapt “A West Side Story,” it’s conceivable
that “I Like to Be in America” might well be changed into “I Like to
Be in Russia” to describe the choices faced by thousands of Armenian
migrants each year.

But those choices are slightly less tempting now. A controversial
Russian state program that grants jobs and citizenship to foreign
nationals from former Soviet republics has stopped accepting
applications from Armenians, Armenian news sources report.

Grappling with the double whammy of a low birthrate and a population
exodus, Yerevan repeatedly has urged Moscow to stop the program,
called Compatriots, which Armenian officials say has become a floodgate
for emigration.

“We have a serious demographic problem in Armenia… and the organized
outflow of the population is a blow to our national interests,”
Armenian Prime Minister Tigran Sarkisian said of the program last
month.

According to official numbers, some 26,000 Armenians have applied
for the program since its start in 2007; 2,500 have actually left
for Russia.

Moscow reported recently that, all told, some 30,000 “compatriots”
have moved to Russia since the program’s launch in 2006. The numbers
are way short of the annual 300,000 settlers that Russian President
Vladimir Putin expected, but the fact that more than eight percent
of the inflow came from Armenia was enough to unsettle Yerevan.

Before, Russian officials shrugged off Armenian concerns. “We are
not dragging Armenians to Russia by force,”said Russian Ambassador
to Armenia Vyacheslav Kovalenko. “The reasons for them leaving are
elsewhere.”

As may well be the reasons for stopping the acceptance of Armenian
applications for the program. No official reasons could be found in
Russian-language sources.

Given Moscow’s past indifference to Armenian officials’ complaints,
sourly noted the opposition-minded daily Haykakan Zhamanak, the
suspension of the program in Armenia might well prove to be only
“temporary.”

REPUBLIC OF ARMENIA POLITICIAN CLAIMS THE MARJAN LICENSE IS ILLEGAL

The Newswire
Dec 5 2012
Canada

Montreal – Tuesday, December 5, 2012 – Mr. Bill Mavridis,
the President of Caldera Resources Inc. (the “Company”
or “Caldera”) issued the following release with respect to
certain media reports published in Armenia, stating the Marjan
Special Mining License HA-L 14/256 (the “License”) was issued
illegally to Global Gold Corporation’s (“GBGD”) subsidiary on
April 22, 2008. (see copy of NR online including all links:
)

This statement was made by Mr. Vardan Ayvazyan, the former Minister
of Environmental Protection (2001 to 2007), who currently sits as
an elected Deputy of the National Assembly (“NA”) of the Republic of
Armenia and Chairman of the NA Standing Committee on Economic Affairs.

These recent developments revolve around a public scandal in Armenia,
between GBGD and the former Minister of the Environment of Armenia,
Mr. Ayvazyan, over bribery claims made by GBGD back in 2007.

In a recent interview on Armenian Television, Mr. Vardan Ayvazyan
stated:

There has never, in the history of RA, been an example where a mining
license is given for a mine whose resources are not confirmed. This
means that without knowing the amount of material in a mine, I give
it to someone else to take that material away. However, I don’t know
why Global Gold receives a mining exploitation license for Marjan
mine whose resources are not confirmed. Meaning, no one can say how
much gold it contains (translation- see Caldera’s President’s Log at:
).

If the allegations made by Mr. Vardan Ayvazyan are true, that the
License was issued to GBGD without approved reserves, then Mr. Van
Krikorian and GBGD would be potentially liable for fraud and indeed
GBGD may actually be mixed up in the corruption of certain government
official, to game the system in their favor to extract this from this
License from the Government of Armenia.

In early 2011 Caldera commenced a review of the License in preparation
for the Arbitration case, which Caldera filed against GBGD. During
the review Caldera discovered that the reserves posted in the License
were historical in nature and the data reported in the License was
extracted from a 1995 report prepared by the local geological survey
team from Southern Armenia and not from the data prepared and filed by
GBGD’s exploration team for verification and approval by the Armenian
State Natural Resources Agency, also referred by its Russian acronym,
the “GKZ”.

Also in early 2011, Caldera made requests to the Ministry of Energy
and Natural Resources in Armenia for any and all correspondences
between GBGD and all government bodies, related to the Marjan project.

The search uncovered numerous documents that were never handed over
to Caldera during our initial due diligence review in 2009 and 2010.

Of interest was one letter issued by the Armenian State Natural
Resources Agency (“GKZ”) on December 26, 2008, signed by its Chairman
Mr. Khachik Saponjian. The letter was informing GBGD that their
application for verifying and confirming their reserves, submitted on
December 28, 2007, was terminated due defects and omissions in their
application. Oddly enough, the letter was issued 8 months after the
License was given to GBGD. The translated letter reads as follows:

No 020 – N/ 95

26.12.2008 To Mr. A. Boghosyan

The Director of “Global Gold Hankavan” LLC

Respectable Mr. Boghosyan

By the letter of the Agency of State reserves of the Minerals of RA
Natural No 020/11 dated August 05, 2008 you had been informed, that
the processing of the state mineral expertise of the justification
of the documents of the parameters of the conditions of Marjan
polymetallic deposit presented by your letter dated December 28,
2007 to the Agency was delayed because the authors of the documents
didn’t ensure that revealed defects and omissions are fixed.

Taking to consideration, that up to date the situation with fixation
of the documents is the same, the expertise of these materials has
been terminated.

You can take back your Report from the Agency of State Reserves of
Minerals of the Administration of the Ministry of Energy and Natural
Resources RA.

(s) Kh. Saponjian

By hand : Documents received on 29.12. 2008

(s)Karapet Vardanian

It is evident that the License was issued without verified and approved
reserves by the GKZ, as is required under Article 28 of the Mining
Code and the application for the License did not include approved
reserves as stipulated under Article 37 of the Concession Code.

Mr. Mavridis stated: “Given the context of our transaction with GBGD
and emails I received from Mr. Van Krikorian and Mr. Ashot Poghossyan
in 2009, where they admit that they were still working on the reserve
calculations, I personally believe Mr. Vardan Ayvazyan, when he claims
the License was issued illegally.

“From the facts outlined here, one can clearly adduce that Mr. Van
Krikorian and GBGD were aware that the License issued on April 22,
2008 did not include certified and approved reserves from the Armenian
State Natural Resources Agency. Considering that that Mr. Van Krikorian
is also operating other mining properties in Armenia, he knew or
should have known that it is impossible to receive a mining license
without certified and approved reserves. To make matters worse,
Mr. Van Z. Krikorian concealed the “termination” letter issued by
the GKZ from Caldera to fraudulently induce Caldera into entering
into an agreement with them to benefit from payments from Caldera.

“At the time, It never occurred to me that the License was issued
illegally, considering Mr. Krikorian signed an Officer’s Certificate
in April 20, 2010 claiming “there are no circumstances which are
likely to give rise to the revocation, suspension, modification or
non-renewal of the mining license”.

“I believe these developments will help Caldera to continue its fight
to protect its rights and maintain its interests in Armenia.

“I will be reporting back on this matter as soon as I have additional
information.”

Cautionary Statement

The forward-looking statements contained in this release are subject
to certain risks and uncertainties that could cause actual results
to differ materially from the statements made.

Additional information related to the Company is filed electronically
on the System for Electronic Document Analysis and Retrieval
(SEDAR) at Neither the TSX Venture Exchange nor the
Investment Industry Regulatory Organization of Canada (IIROC) accepts
responsibility for the adequacy or accuracy of this release.

For additional information:

Contact:

Bill Mavridis President, Caldera Resources Inc.

1155 Rene-Levesque Blvd. West , Suite 2500 Montreal, Qc., H3B 2K4 Tel:
514-813-9200 new emails: [email protected] web site:

AID-DEPENDENT ARMENIA NUDGES UP SPENDING BEFORE POLL

Trust Law

Dec 5 2012

* Budget deficit seen at 2.6 pct of GDP in 2013 vs expected 2.8 pct in 2012
* Revenues, spending to rise

YEREVAN, Dec 5 (Reuters) – Armenia’s parliament adopted a 2013 budget
on Wednesday that aims to hold down the fiscal deficit and assumes
the economy, which depends heavily on aid and on Russian investment,
will grow by 6.2 percent.

With a presidential election due in February 2013, state spending was
set at 1.153 trillion drams ($2.8 billion) and revenues estimated
at 1.033 trillion drams, both higher than in 2012. Social spending
accounts for more than 40 percent.

The government called the budget “balanced and realistic.”

“The government has refrained from the temptation to submit a big
rise (in social spending) ahead of the (presidential) election,”
Prime Minister Tigran Sarksyan said on Tuesday during discussion of
the budget draft in parliament.

President Serzh Sarksyan plans to run in the poll for a second term.

The economy of 3.2 million people, whose income is supported by
remittances and construction, averaged a rapid growth rate of 12
percent from 2000 to 2007 but shrank by more than 14 percent in 2009
after the global crisis hit.

The International Monetary Fund has criticised the business culture
of the ex-Soviet republic, saying corruption is widespread in
business-related state agencies.

In 2011, foreign direct investment of $539 million amounted to 5.3
percent of gross domestic product (GDP), and the IMF expects it to
reach $574 million in 2012 with the telecom, energy and mining sectors
the top investment targets.

The 2013 budget targets a fiscal deficit of 2.6 percent of GDP, from
2.8 percent expected this year. The government estimates the economy
to grow at around 7.0 percent this year, after GDP grew 9.3 percent
in the first nine months of 2012 compared with 6.4 percent in the
same period of 2011.

The IMF said earlier this month that Armenia’s economy would grow by
around 5.0 percent in 2012 and 5.8 percent in 2013.

The 2013 budget forecasts inflation of 4.0 percent, give or take 1.5
percentage points, the same as in 2012. Annual inflation in November
2012 was 3.6 percent.

($1=407.2 drams) (Reporting by Hasmik Lazarian; Writing by Margarita
Antidze in Tbilisi; Editing by Jason Bush/Ruth Pitchford)