Analysis: Turkey And The EU Drift Apart

ANALYSIS: TURKEY AND THE EU DRIFT APART
By Benjamin Harvey

Washington Post
The Associated Press
Nov 5 2006

ISTANBUL, Turkey — The cautious courtship between Turkey and
the European Union looks like it might be headed for a messy and
acrimonious breakup.

They were a mismatched couple from the beginning: one wealthy, mostly
Christian and liberal, the other far poorer, overwhelmingly Muslim and
largely conservative. Perhaps it’s no surprise the initial optimism
over Turkey’s bid to join the bloc has deteriorated into mutual
recriminations and a seemingly hopeless inability to communicate.

The mood is likely to worsen after Wednesday when the EU releases
a progress report on Turkey’s bid which says Ankara is dragging its
feet on reform and failing to meet minimum human rights standards,
according to a draft copy viewed by The Associated Press.

The consequences of worsening relations between Turkey and the EU
could be dramatic and far-reaching: At stake is an ambitious vision
of bringing a Muslim nation into European society, proving that a
clash of civilizations between the West and Islam is not inevitable.

Many analysts say that is why negotiations are likely to continue
for the foreseeable future, with neither side committing to a clean
split that would send the message to Muslims everywhere that the West
is not prepared to deal with them on equal footing.

"Of course I support the EU (bid)," said Bayram Kapici, a 38-year-old
security guard in Istanbul. "But the question is, what will our place
in the EU be? I mean, we’re Muslims. Are we barbarians? How will they
see us?"

For the moment, enthusiasm toward Turkey’s bid has cooled dramatically
on both sides, and Turkish leaders’ passionate claims it could
bridge the gap between Europe and the Muslim world are starting to
ring hollow.

Turkish public support for membership has fallen below 50 percent,
and many believe that perceived insults from the EU _ in the form
of frequent criticism and seemingly endless demands for reform _
play directly into the hands of nationalists and Islamists who are
largely opposed to the bid.

Europeans, meanwhile, have a litany of complaints about Turkey,
including its poor record on human rights, intolerance to free speech
and hardline attitudes toward adultery and homosexuality.

Many Europeans also say Turkey has refused to look objectively at its
past, notably the massacre of Armenians after World War I that many
historians call a genocide. Turkey acknowledges that large numbers
of Armenians died, but says the overall figure is inflated and that
the deaths occurred in the civil unrest during the collapse of the
Ottoman Empire.

Many Turks fault the country’s old rivals Greece and Cyprus for the
growing acrimony, claiming they are lobbying the EU to take a hard
line over Turkey’s refusal to open its ports to planes and ships
from the Greek-speaking part of Cyprus. Turkey does not recognize
the Cypriot government and props up the internationally unrecognized
administration in the north of the island.

A last-ditch meeting last week to settle the Cyprus issue was canceled,
leaving the Turks with very little time to negotiate before the EU’s
year-end deadline to concede or see talks suspended.

German Chancellor Angela Merkel said in remarks released Sunday that
the standoff over Cyprus was "very serious." Asked if the talks
would be frozen, she said: "The EU cannot simply carry on. Turkey
must understand that there will be no simple ‘carry on’ if there is
no movement" on Cyprus.

If talks collapse, the symbolic value of having an overwhelmingly
Muslim, democratic nation firmly integrated into the West would be
lost. Turkey’s 71 million citizens, taught to look to Europe for
inspiration since the secular Turkish state was founded in the 1920s,
might look elsewhere for positive reinforcement.

The Islamic countries of the Middle East, Central Asia and North
Africa, with which Turkey’s Islamic-rooted government has been forging
increasingly close ties, could be natural surrogates.

"Nationalists are benefiting from this, there’s no question about it,"
said pollster and political science professor Hakan Yilmaz.

But many Turks feel that a complete breakup with the EU is out of
the question.

Yilmaz said many EU leaders were just playing to the crowd by publicly
belittling Turkey.

"Some in the European Union public love this humiliation _ particularly
in France," he said, alluding to a proposed French law that would
make it a crime to deny the Turkish genocide of Armenians.

Meanwhile, some leading politicians on both sides are trying to
make the relationship so miserable that Turkey will just walk away
on its own, said Ilter Turan, a political analyst at Istanbul Bilgi
University.

Turan said, however, the government would be excoriated by the Turkish
public if it walked away from the EU, despite the current anti-EU
mood in the country.

The key question appears to be how to persuade Turkey to reform
without damaging national pride.

"There is one thing where the Turkish public seems to be rather
adamant," Turan said. "If there is to be a union, it is to be on
equal grounds."

___

Associated Press Writer Stephen Graham contributed to this report
from Berlin.

Organizers Say CoE Film Screening Not A Violation Of Law

ORGANIZERS SAY CoE FILM SCREENING NOT A VIOLATION OF LAW

Panorama.am
15:18 04/11/06

Film campaign launched by Council of Europe kicked off today at
the National Gallery aimed to prevent trafficking, violence against
children and racism. The selected 16 films which won the competition
will be shown every Saturday and Sunday. The entrance is free.

The audience was shown a Spanish film "Forgotten" which is about
violence against children. As reported, the films are in original
languages with English subtitles. So, if someone does not know at
least English, the campaign has no meaning for him/her.

The Armenian Law on Language says that Armenian translations must be
provided during mass events.

However, Melik Karapetyan, manager of film project, believes there
was not violation of law. He said they would be very limited films,
if Armenian translations were provided for all.

Russian VimpelCom Became Owner Of ArmenTel Company

RUSSIAN VIMPELCOM BECAME OWNER OF ARMENTEL COMPANY

PanARMENIAN.Net
04.11.2006 13:47 GMT+04:00

/PanARMENIAN.Net/ VimpelCom Public Corporation announced November 3
the signing of an agreement with the Greek Hellenic Telecommunications
Organization SA (OTE) on purchase of 90% of ArmenTel CJSC shares,
which is communication services operator of Armenia.

The 90% of ArmenTel shares make EUR 341.9 million plus some EUR
40 million as the company pure debt and obligations. The deal is
planned to be formalized before the end of 2006, VimpelCom Press
Office reported.

ArmenTel is the major telecommunication company of Armenia of which
the Government has 10%. OTE Greek company, which holds 90% of its
shares, announced a tender on selling these this year. 16 companies
took part in it. Russian VimpelCom and MTC, as well as ETISALAT
(Emirates Telecommunications Corporation/Istithmar ETV -Emergent
Telecom Ventures) è VTEL Holdings/Knightsbridge Associates passed to
the second round of the tender, the results of which are not announced
yet. The OTE had bought ArmenTel at USD 142.47 million. Before
November 4, 2004 ArmenTel was the monopolist at the cellular market
of Armenia. In November 2004, in exchange for deprival of monopoly
rights for GSM services, ArmenTel got a prerogative for IP-telephone
services. Thus, K-Telecom came to Armenia with a trademark of VivaCell
– a branch structure of Nagorno Karabakh communication operator.

Armenian PM Manukyan had stated that the purchaser of ArmenTel should
refuse monopoly to a number of activities and the pretenders to the
buying of the shares agreed to that condition, reports IA Regnum.

–Boundary_(ID_H8cJQt21lXbL8qXgMWkItg)–

Vimpelcom buys Armenia telco for 382 mln euros

UPDATE 2-Vimpelcom buys Armenia telco for 382 mln euros
By Julie Tolkacheva

Reuters, UK
Nov 3 2006

MOSCOW, Nov 3 (Reuters) – Russia’s number two mobile phone firm
Vimpelcom (VIP.N: Quote, Profile, Research) outbid Abu Dhabi-based
Etisalat and Russian conglomerate Sistema (SSAq.L: Quote, Profile,
Research) to buy Armenian Armentel for 382 million euros ($488
million), Vimpelcom said on Friday.

Vimpelcom said in a statement that it had signed a deal to buy 90
percent of Armentel from Greece’s largest telecoms operator OTE
(OTEr.AT: Quote, Profile, Research) for 341.9 million euros for the
stake and assume around 40 million euros in net debt and obligations.

THE 21st CENTURY IN PICTURES

Power Politics
View Slideshow
Armentel is a fixed-line operator in Armenia with mobile licences on
the GSM, the world’s most widely used cell phone technology, and CDMA
standards, the dominant technology standard for U.S. cell phones. It
has 600,000 fixed-line subscribers and 400,000 GSM clients.

"With approximately 40 percent mobile market share, Armentel occupies
a strong position in the Armenian market and we will work to enhance
the position," the statement quoted Vimpelcom Chief Executive
Alexander Izosimov as saying.

"It is a wonderful deal," said Deutsche UFG analyst Alexei
Yakovitsky, adding that Armentel was acquired at 6 times 2005 EBITDA.

"This is very cheap."

By 1540 GMT, Vimpelcom traded down 0.33 percent at $64.43.

Yakovitsky said the deal did not have much impact on the price as it
was about 3 percent Vimpelcom’s enterprise value of $15 billion.

"This is not a major deal, but it is good and is certainly value
accretive," Yakovitsky said.

OTE bought Armentel in 1998 but said earlier this year it would sell
it because the unit was not in line with its strategic focus. In
June, OTE short-listed four bidders, including Etisalat and Sistema.

"It’s good news because OTE exited Armenia, a country away from its
core portfolio in the Balkans at a fair price," HSBC Pantelakis
analyst Vangelis Karanikas said.

OTE shares rose 0.48 percent to close at 20.80 euros in Athens.

THE 21st CENTURY IN PICTURES

Power Politics
View Slideshow
The bidding was over on Sept. 18 and since then the market has been
rife with rumours as to who had won the tender.

The world mobile phone market is now short of acquisition targets
with cash-rich international majors hunting for purchases to expand
beyond their satiated markets.

Russian cellphone companies have joined the rush as local market
penetration reaches more than 100 percent.

Vimpelcom spokeswoman Yekaterina Osadchaya said that Vimpelcom, a
purely mobile phone firm, did not plan to sell the fixed-line part of
Armentel.

"When we bid for the company, we understood pretty well that the
fixed-line business is very important for it. We will try to combine
fixed-line and mobile services for the first time," she said.

(Additional reporting by George Hatzidakis in Athens)

Gross Agricultural Output Of Armenia Grows By 15.6% In September On

GROSS AGRICULTURAL OUTPUT OF ARMENIA GROWS BY 15.6% IN SEPTEMBER ON AUGUST 2006

Noyan Tapan
Nov 02 2006

YEREVAN, NOVEMBER 2, NOYAN TAPAN. In January-September 2006, the
gross agricultural output of Armenian made 370.6 bln drams (about
861.7 mln USD), remaining at the level of the same period of last
year. According to the RA National Statistical Service, the gross
agricultural output grew by 15.6% in September on August 2006. In the
first nine months of 2006, the gross output of livestock farming made
138,427.3 mln drams, exceeding by 6.7% the index of the same period
of 2005, while the gross output of plant cultivation made 232,140.7
mln drams, declining by 3.6% on the same period of last year. There
was a growth in the production volumes of main livestock farming
foodstuffs, except eggs. Meat and poultry production exceeded by
9.7 thousand tons or 15.1% the index of the same months of 2005,
milk production increased by 26.7 thousand tons or 5.1%.

RA Defense Ministry Refuted Statements By Azeri MOD Head

RA DEFENSE MINISTRY REFUTED STATEMENTS BY AZERI MOD HEAD

PanARMENIAN.Net
01.11.2006 17:48 GMT+04:00

/PanARMENIAN.Net/ Safar Abiyev and Serge Sargsyan did not discuss the
"withdrawal of Armenian troops from the seized Azeri territories"
during the October 20 meeting at the Armenian-Azeri border. Abiev’s
statement does not correspond to reality, RA Defense Minister’s
Spokesman, Col. Seyran Shahsuvaryan told PanARMENIAN.Net. As it was
reported earlier Serge Sargsyan and Safar Abiyev discussed the issues
referring to control of borders and ceasefire maintenance.

BAKU: Head Of Department Of European Union Of RA FM Is Appointed Con

HEAD OF DEPARTMENT OF EUROPEAN UNION OF RA FM IS APPOINTED CONSUL GENERAL OF ARMENIA TO LOS ANGELES

Azeri Press Agency, Azerbaijan
Oct 31 2006

(ArmInfo) – By the order of RA FM, Vardan Oskanyan, the Head of the
Department of the European Union of RA Foreign Ministry, Armen Liloyan,
is appointed today to the post of the Consul General to Los Angeles,
reports Trend.

As ArmInfo was told in the RA FM’s press-service, Armen Liloyan was
born in 1971 in Yerevan. He has graduated from the Yerevan State
University, the Faculty of Oriental Studies. He received the master’s
degree in the London Academy. A. Liloyan has been working in the
system of Armenia’s Foreign Ministry since 1995. He had been working
in the diplomatic mission to Great Britain in 1998-2002. A. Liloyan
heads the Department of the European Union since 2002.

Center For Restoration And Keeping Musical Instruments To Be Founded

CENTER FOR RESTORATION AND KEEPING MUSICAL INSTRUMENTS TO BE FOUNDED IN ARMENIA

Noyan Tapan
Nov 01 2006

YEREVAN, NOVEMBER 1, NOYAN TAPAN. On the initiative of the RA Ministry
of Culture and Youth Issues and the "Culture and Cooperation"
European association restoring musical instruments, education
programs for masters, restoring, keeping and making new musical
instruments, are being implemented in Armenia during the period of
time from September, 2006 till July, 2007. As Philip Backman, the
Chairman of the association, the National Histrionic Art Director of
Chalons-en-Champagne, stated at the October 31 press conference this
program was adopted by the European Commission and is being implemented
in member countries of the European Union. "The idea of implementing
the program in Armenia appeared a year ago, when I visited Armenia and
saw what good music and what good specialists the Armenians have,"
Ph.Backman stated. He mentioned that within the framework of the
program, the Yerevan Komitas Conservatory, Al.Spendiarian Opera
and Ballet Academic Theater, Philharmonic Orchestra of Armenia,
State Chamber Orchestra of Armenia as well as Aram Khachaturian
House-Museum will be their partners in Armenia. In Pl.Backman’s words,
it is envisaged to organize during a year European specialists’
short term missions to Armenia and Armenian masters’ long-term
missions to European countries. Besides, a center for restoration of
musical instruments will be founded in Armenia, workshops will open
and exchange of experience in making Armenian people’s instruments
with European masters will be organized. Pl.Backman also stated that
the Philharmonic Orchestra of Armenia participating in the concert
to take place in France in February, 2007, will perform with already
restored instruments.

After Financial and Technical Audit Russian VTB Cap Yields on Buy

AFTER FINANCIAL AND TECHNICAL AUDIT RUSSIAN COMPANY VTB CAPITAL GIVES UP
INTENTION TO PURCHASE PROMETEY-KHIMPROM

YEREVAN, OCTOBER 27, NOYAN TAPAN. VTB Capital company – a subsidiary
of VTB Bank (Russia) gave up its intention to purchase and relaunch
the Vanadzor chemical enterprise – Prometey-Khimprom company. Chairman
of VTB Bank Armenia Alexander Vardanov stated this at the October 27
press conference. In his words, VTB Capital took this decision after
receiving the results of the financial and technical audits done by
several Russian audit companies. It was noted that the operation of
Prometey-Khimprom was not discontinued due to the negotiations on the
deal which have been conducted since May 2006.

Anachronism According to Cuny

A1+

ANACHRONISM ACCORDING TO CUNY
[03:43 pm] 27 October, 2006

Secretary of the Security Council adjunct to the RA President, Defense
Minister Serge Sargsyan received French Ambassador extraordinary and
plenipotentiary to Armenia in connection with fulfilling his
diplomatic mission.

Speaking about the relations between Armenia and France, the Minister
said that the visit of the French President was an important event in
the life of Armenia.

Henry Cuny informed that he highly appreciates the warm attitude of
Armenia towards his country and added, `I have a special attitude
towards the Armenians and their culture. I’m sure that next time I
visit your country the borders will be open. Closed borders are an
anachronism which is improper for c country which has applied to join
the European family’.