Careful Policy Of Armenian Foreign Ministry Regarding South Ossetian

CAREFUL POLICY OF ARMENIAN FOREIGN MINISTRY REGARDING SOUTH OSSETIAN CONFLICT IS THE ONLY CORRECT ONE, ARMENIAN POLITICAL EXPERT THINKS

arminfo
2008-08-20 15:00:00

ArmInfo. Careful policy of Armenian Foreign Ministry regarding South
Ossetian conflict is the only correct one, Armenian political expert,
director of "Kavkaz" institute Aleksandr Iskandaryan told ArmInfo
correspondent.

He recalled that Iran with Iranian-American relations is on one side
of Armenia and Georgia with Russian-Georgian relations is on the other
side. At the same time Russia as well as America are very important
for Armenia just the same way as Georgia and Iran, since de-facto
they are the only neighbours of Armenia. For this reason it would
be very dangerous to make sharp steps and hold an active policy in
connection with the South Ossetian conflict.

Research and Markets releases: Armenia – Telecoms Market Overview &

Developing Telecoms (press release)
Aug 19 2008

Research and Markets releases "Armenia – Telecoms Market Overview & Statistics"

By Michael Schwartz
20 Aug 2008 at 00:00

Analysis, Armenia, Telecoms, Markets, Deregulation, CEE: Dublin-based Research and Markets has emerged as one of the most prolific publishers of telecoms analysis and forecasting. Reports on developing markets are no exception. We submit below just one of the many releases we have received from Research and Markets.

Armenia’s telecommunications sector is small but growing. With over 600,000 fixed-line subscribers for a population of around 3.5 million, the level of investment in infrastructure and new services has begun to increase. There are, however, major structural issues to be addressed in the sector.

For example, although ArmenTel, the country’s national telecoms provider, was granted exclusive rights to provide all telecoms services until 2013 (apart from data services), a second mobile service provider was launched in mid-2005 after the government awarded a licence to K-Telecom (trading as VivaCell). The mobile market has been growing strongly and in late 2007 plans to award a third mobile operator licence were announced.

The new report looks at the overall state of telecommunications in Armenia and provides a selection of pertinent market statistics. These include a brief overview of progress made to date in the Armenian market and the breakdown of ArmenTel’s monopoly. The new players are in turn discussed and assessed. To round off the report before it concludes with the statistical sections, the consequences of foreign investment are reviewed.

18,461.8 Liters Of Mineral Waters Bottled In Armenia In January-June

18,461.8 LITERS OF MINERAL WATERS BOTTLED IN ARMENIA IN JANUARY-JUNE 2008

ARKA
Aug 19, 2008

YEREVAN, August 19. /ARKA/. Armenia bottled 18,461.8 liters of mineral
waters as of end-June 2008 against 153,000 liters in the corresponding
period last year, the RA National Statistical Service reports.

Local producers increased the bottling of mineral waters by 20.7%
(3,161.8 liters) year-on-year as of end-June.

Armenian Energy Minister Meets Deputy Iranian Foreign Minister

ARMENIAN ENERGY MINISTER MEETS DEPUTY IRANIAN FOREIGN MINISTER

IRNA
Aug 18 2008
Iran

Tehran, 18 August: Visiting Armenian Energy and Natural Resources
Minister and Armenian head of Iran-Armenia Cooperation Council Armen
Movsisyan here Monday [18 August] met and conferred with Iran’s Deputy
Foreign Minister caretaker of Foreign Ministry’s Middle East and CIS
Affairs Office Ali Reza Sheykh-Attar.

According to the Information and Media Head Office of the Foreign
Ministry, during the meeting in the presence of the Deputy Armenian
Foreign Minister Qarib Janain, the two sides reviewed bilateral ties,
as well as the Caucasus region’s recent developments.

Sheykh-Attar in the meeting referred to the depth and wide span of
the bilateral ties, emphasizing that the two countries’ relations
are still in need of further development.

Movsisyan, too, stressed that Yerevan’s determination for expansion of
its level of cooperation with the Islamic Republic of Iran in various
fields is quite strong, reiterating, "Iran’s role in the region
is quite significant and your country enjoys a unique geographical
status."

Turkey, Iran: Ankara’s Priorities Shift

TURKEY, IRAN: ANKARA’S PRIORITIES SHIFT

The FINANCIAL
Aug 18 2008
Georgia

STRATFOR — Iranian President Mahmoud Ahmadinejad’s two-day trip to
Ankara ended Aug. 15. While the Iranian government and state media have
touted his trip as proof that Iran and Turkey are close allies, the
Turkish government is far more concerned with containing the current
situation in the Caucasus, which could have major implications for
Turkey’s ally Azerbaijan. Read STARTFOR analysis.

Iranian President Mahmoud Ahmadinejad wrapped up a two-day trip to
Ankara on Aug. 15. The Iranian government and state media have been
hyping Ahmadinejad’s visit to Turkey for days in an attempt to showcase
to the world the Iranian belief that Iran and Turkey, as the two
principle non-Arab regional powerhouses, are close and natural allies.

But while Iran is eager to forge closer ties with Turkey, the Turks
do not have much time for Ahmadinejad right now. Ankara has bigger
things on its mind, namely the Russians.

Turkey is heir to the Ottoman Empire, which once extended deep into the
southern Caucasus region where Russia just wrapped up an aggressive
military campaign against Georgia. Turkey’s geopolitical interests
in the Caucasus have primarily been defensive in nature, focused on
keeping the Russians and Persians at bay. Now that Russia is resurging
in the Caucasus, the Turks have no choice but to get involved.

The Turks primarily rely on their deep ethnic, historical and
linguistic ties to Azerbaijan to extend their influence into the
Caucasus. Azerbaijan was alarmed, to say the least, when it saw Russian
tanks crossing into Georgia. As far as Azerbaijan was concerned,
Baku could have been the next target in Russia’s military campaign.

However, Armenia — Azerbaijan’s primary rival — remembers well the
1915 Armenian genocide by the Turks, and looks to Iran and especially
Orthodox Christian Russia for its protection. Now that Russia has
shown it is willing to act on behalf of allies like South Ossetia and
Abkhazia in the Caucasus, the Armenians, while militarily outmatched
by the Azerbaijanis, are now feeling bolder and could see this as
their chance to preempt Azerbaijan in yet another battle for the
disputed Nagorno-Karabakh region– especially if it thinks it can
look to Russia to militarily intervene on its behalf.

The Turks and their ethnic kin in Azerbaijan are extremely wary of
Russia’s intentions for the southern Caucasus beyond Georgia. Sources
told Stratfor that Azerbaijan has learned that the Russian military
jets that bombed Gori and Poti were based out of Armenia. This
development not only signaled a significant expansion of Russia’s
military presence in the southern Caucasus, but it also implied
that Armenia had actually signed off on the Russian foray into
Georgia, knowing that Russian dominance over Georgia would guarantee
Armenian security and impose a geographic split between Turkey and
Azerbaijan. If the Armenians became overly confident and made a move
against Azerbaijan for Nagorno-Karabakh, expecting Russian support,
the resulting war would have a high potential of drawing the Turks
into a confrontation with the Russians — something that both NATO
member Turkey and Russia have every interest in avoiding.

The Turks also have a precarious economic relationship with Russia. The
two countries have expanded their trade with each other significantly
in recent years. In the first half of 2008, trade between Russia and
Turkey amounted to $19.9 billion, making Russia Turkey’s biggest
trading partner. Much of this trade is concentrated in the energy
sphere. The Turks currently import approximately 64 percent of the
natural gas they consume from the Russians. Though Turkey’s geographic
position enables it to pursue energy links in the Middle East and the
Caucasus that can bypass Russian territory, the Russians have made
it abundantly clear over the past few days that the region’s energy
security will still depend on MOSCOW ‘s good graces.

Turkey’s economic standing also largely depends on its ability to act
as a major energy transit hub for the West through pipelines such as
the Baku-Tbilisi-Ceyhan (BTC) pipeline, which was recently forced
offline due to a purported Kurdish militant attack and the war in
Georgia. Turkey simply cannot afford to see the Russians continue
their surge into the Caucasus and threaten its energy supply.

For these reasons, Turkey is on a mission to keep this tinderbox in
the Caucasus contained. Turkish Prime Minister Recep Tayyip Erdogan
spent the last couple of days meeting with top Russian leaders in
MOSCOW and then with the Georgian president in Tbilisi . During
his meetings with Russian Prime Minister Vladimir Putin, President
Dmitri Medvedev and Foreign Minister Sergei Lavrov, Erdogan pushed the
idea of creating a Caucasus union that would include both Russia and
Georgia. Though this organization would likely be little more than
a talk shop, it is a sign of Turkey’s interest in reaching a mutual
understanding with Russia that would allow both sides to maintain a
comfortable level of influence in the region without coming to blows.

The Iranians, meanwhile, are sitting in the backseat. Though Iran
has a foothold in the Caucasus through its support for Armenia,
the Iranians lack the level of political, military and economic
gravitas that Turkey and Russia currently hold in this region. Indeed,
Erdogan did not even include Iran in his list of proposed members
for the Caucasus union, even though Iran is one of the three major
powers bordering the region. The Turks also struck a blow to Iran
by holding back from giving Ahmadinejad the satisfaction of sealing
a key energy agreement for Iran to provide Turkey with natural gas,
preferring instead to preserve its close relationship with the United
States and Israel. Turkey simply is not compelled to give Iran the
attention that it is seeking at the moment.

The one thing that Turkey can look to Iran for, however, is keeping
the Armenia-Azerbaijan conflict under control. Iran’s support for
Armenia has naturally put Tehran on a collision course with Ankara
when dealing with the Caucasus in the past. But when faced with a
common threat of a resurgent Russia, both Turkey and Iran can agree
to disagree on their conflicting interests in this region and use
their leverage to keep Armenia or Azerbaijan from firing off a shot
and pulling the surrounding powers into a broader conflict. In light
of the recent BTC explosion claimed by the Kurdistan Workers’ Party
(PKK), Turkey can also look to Iran to play its part in cracking down
on PKK rebels in the region, many of whom have spent the past year
fleeing a Turkish crackdown in northern Iraq by traversing through
Iran to reach the southern Caucasus.

While Iran and Turkey can cooperate in fending off the Russians,
it will primarily be up to Turkey to fight the battle in the
Caucasus. Russia has thus far responded positively to Turkey’s
diplomatic engagements, but in a region with so many conflicting
interests, the situation could change in a heartbeat.

Serbian arms manufacturer denies exporting weapons to Georgia

Danas , Serbia
Aug 15 2008

Serbian arms manufacturer denies exporting weapons to Georgia

[Report by Zoran Radovanovic: "Serbian Government Banned Export of
Domestically Made Weaponry to Georgia in 2006"]

Kragujevac — The Russian Defence Ministry is quoted by the United
Kingdom’s BBC as saying that Serbia is on the list of countries that
assisted Georgia militarily ahead of the war in South Ossetia. On the
list of Georgia’s alleged helpers ahead of the war in South Ossetia,
apart from Serbia, are also the United States, the United Kingdom,
France, Greece, Turkey, Israel, Lithuania, Latvia, Estonia, Ukraine,
and some other countries.

Where Serbia is concerned, the Russian Defence Ministry’s statement
says that Kalashnikov assault rifles manufactured by Kragujevac-based
Zastava arms factory were used in attacks on South Ossetia and Russian
troops. In this connection, the BBC quoted former Serbian Foreign
Minister Vuk Draskovic as saying that he had had "warnings from
Russian diplomats that Georgians were shooting down their (Russian)
helicopters with so-called Strela [Arrow] missiles made in Serbia."

"I insisted that it was harmful to be selling arms to a country that
was in conflict with Russia, our biggest ally," Draskovic told the BBC
and added that the Serbian Government (in which he was the foreign
minister) had originally banned the export and then allowed it after
days of strikes by Kragujevac’s Zastava arms manufacturers.

At Zastava Oruzje arms factory yesterday they were surprised by the
Russian Defence Ministry’s statement and astonished by Vuk Draskovic’s
statement, which they said was "totally unfounded."

Zastava Oruzje CEO Rade Gromovic insists, for example, that for
decades past, the Kragujevac factory has not been exporting infantry
armament to Georgia, which he says can be verified at the Serbian
Defence Ministry, which used to issue permits and now gives approval
for the export of domestically made armament.

"I do not know how our Kalashnikovs came to be in Georgia. Perhaps
they were sold to the Georgians by Croatia or Bosnia-Herzegovina,
whose territorial defence forces at the time of the former SFRY
[Socialist Federative Republic of Yugoslavia] had this kind of
weaponry. Zastava Oruzje and the state of Serbia cannot, however,
dictate to the former Yugoslav republics, which have long been
independent states, what to do with their army surpluses," Gromovic
says.

Vuk Draskovic’s statement refers to late 2006, when three domestic
military factories — Zastava Oruzje, Cacak’s Sloboda, and Valjevo’s
Krusik — applied to the competent state authorities and the Serbian
Government for permission to export armament and military equipment to
some Eurasian countries. However, at that time, the Kragujevac-based
factory did not ask for permission to export infantry armament to
Georgia, but to Armenia, with whose Defence Ministry it had signed two
business contracts. On the other hand, Cacak-based Sloboda and
Valjevo-based Krusik (manufacturers of grenades, mines and explosives,
rockets, and so on) did apply for permits to export armament to
Georgia and, in late 2006, the government first issued the requested
permits pursuant to consent obtained earlier from the competent state
bodies, but shortly afterward rescinded this decision in response to
Russia’s position on settling the status of Kosovo and banned the
delivery of products made by the Valjevo and Cacak companies to
Georgian security forces.

Subsequently, the government indemnified these factories for their
losses. However, those well versed in this matter do not care to state
with any certainty that Krusik and Sloboda had not exported their
products to Georgia prior to 2006, but then again, that would have
nothing to do with what Vuk Draskovic was talking about.

In late 2006, the government did not issue export permits to Zastava
Oruzje for two deliveries of infantry weaponry to Armenia and did not
agree that the state should indemnify the Kragujevac arms
manufacturers as it had done in the case of Krusik and Sloboda. After
several futile attempts to persuade the government through
negotiations to either issue export permits or pay indemnity,
Kragujevac arms manufacturers again resorted to street protests in
late December 2006, seizing control in the process of part of the
Kragujevac City Administration building and holding it in a blockade
until Serbian President Boris Tadic came to Kragujevac. Not long after
Tadic’s visit, official information was received from Moscow that
Russia was not opposed to the export of Serbian infantry armament to
Armenia. The Serbian Government then issued a permit to Zastava Oruzje
to export one shipment of armament to Armenia. The permit for the
other shipment of infantry armament for the Armenian Defence Ministry
the Kragujevac factory has not yet received and probably never will.

[Box] Unfounded Statements

Jugoslav Ristic, who until recently was Zastava arms manufacturers
union leader and is now president of the United Labour Union of the
Serbian Defence Industry, told our newspaper yesterday that the
domestic armament factories did not export weaponry to Georgia,
because they did not have the permission from the state of Serbia to
do so.

"It is surprising that Vuk Draskovic, who was the foreign minister in
the government that banned the export of Serbian armament, primarily
to Georgia and partly also to Armenia, has already forgotten what
decisions that government made in this connection. Therefore, his
statement made to the BBC is confusing and contradictory and as such
totally unfounded," Ristic stressed.

[translated]

Atlantic Forfaitierungs AG to increase credit line to Armeconombank

Atlantic Forfaitierungs AG to increase credit line to Armeconombank

2008-08-15 21:43:00

ArmInfo. Armeconombank is waiting for growing of the credit line on the
programme of commerce financing of Swiss company Atlantic
Forfaitierungs AG. As deputy chairman of Armeconombank Board Hayk
Lazarian told ArmInfo correspondent, $1.75 mln were not enough because
of raising of demand of borrowers. Armeconombank has been also taking
part in the programme on commerce financing of European Bank for
Reconstruction and Development since 2002.

According to ArmInfo data, the share of the credits within the frames
of international programmes is about 21% in the credit portfolio of
Armeconombank, which exceeds 26 bln drams ($86.7 mln).Lazarian
predicts that the credit portfolio of the bank will be increased up to
29 bln drams by the end of the current year. The assets of the bank
have increased by 15 bln drams if compared with the end of March of the
current year and were more than 57 bln drams as of 11 August 2008.
According to Ranking of commercial banks prepared by ArmInfo, as of 1
July 2008 Armeconombank entered the ten of the leading banks by the
size of credit portfolio, total capital and investments in state
government securities.

Serzh Sargsyan Had a Phone Conversation with Saakashvili

Panorama.am

16:53 16/08/2008

Serzh Sargsyan Had a Phone Conversation with Saakashvili

Serzh Sargsyan had a telephone conversation with Georgian president
Mikhail Saakashvili on August 15.

According to the press bureau of the president, S.Sargsyan has sent
his condolences concerned with the recent events in Georgia which
caused death of hundreds of people. S.Sargsyan restated Armenia’s
willingness to provide necessary humanitarian support to those
suffered during the South Ossetia conflict.

Source: Panorama.am

Red Square Defended Against Georgians

RED SQUARE DEFENDED AGAINST GEORGIANS

Kommersant

Aug. 14, 2008
Russia

The hope to rally near St. Basil’s Cathedral in Moscow in support of
Georgia on the day of national mourning for victims of South Ossetia
didn’t materialize. Instead, leaders of Caucasus diasporas met to
condemn Georgian President Mikhail Saakashvili.

August 13 was the day of national mourning for victims of South
Ossetia’s war. A group of activists headed by Rusudan Strelkova
chose exactly that day to rally on the Red Square, near St. Basil’s
Cathedral, in solidarity with Georgia. The respective information
was released by one of the radio stations yesterday morning.

Strelkova urged the supporters to show up near St. Basil’s Cathedral
at 5:00 p.m. wearing white clothes symbolizing the call for peace. She
endeavored to attract the Union of Georgians in Russia to the rally,
to no avail though.

"We don’t know her and don’t trust her. Besides, if a crowd gathers
in the Red Square with transparencies it will be an unsanctioned
action with all consequences," people in the Union of Georgians in
Russia explained.

But the enforcement officers responded to Strelkova’s calls in no
time. The Red Square was closed at roughly 3.00 p.m. with all tourists
advised to move to Alexandrovsky Garden or Manezhnaya Square. Two
trucks with police officers were on alert near the Historic Museum
and the plans were to open the Red Square no sooner than 11:00 p.m.

Also yesterday, spokesmen of the Caucasus diasporas gathered in the
Moscow House of Nationalities to discuss military actions in South
Ossetia. The event was attended by chiefs of Georgian, Armenian, South
Ossetia’s and Azerbaijan’s diasporas. After two-hour debates, the
leaders called to put on trial Georgian President Mikhail Saakashvili
and condemned his "treacherous aggression."

But despite all efforts of Moscow Georgians to wear off the conflict,
it is burning on cultural level. Georgian famous singer and actor
Vakhtang Kikabidze rejected Russia’s Friendship Order and cancelled
the Moscow concert dedicated to his 70th anniversary. The event was
to be held in the Kremlin October 5.

www.kommersant.com

Two Candidates Nominated For September 7 Elections Of Nubarashen Dis

TWO CANDIDATES NOMINATED FOR SEPTEMBER 7 ELECTIONS OF NUBARASHEN DISTRICT HEAD

Noyan Tapan

Au g 13, 2008

YEREVAN, AUGUST 13, NOYAN TAPAN. By the established deadline:
6 pm August 13th, two candidates were nominated for elections of
the head of Yerevan’s Nubarashen community to be held on September
7. 14 candidates were nominated for elections of a 11-seat council
of aldermen in this community. NT was informed by spokesperson for
the RA Central Electoral Commission Tatev Ohanian that the current
head of the district, member of "Prosperous Armenia" party Mher
Hovhannisian and member of the Republican Party of Armenia (RPA)
Garik Hovsepian submitted bids by the self-nomination order for
running in the elections of the district head.

The deadline for registering the candidates is August 18th, 6 pm.

http://www.nt.am/news.php?shownews=116416