Author: Kalantarian Kevo

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)–

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 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
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.

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 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 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.

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’.

AZG Armenian Daily #205, 27/10/2006

Home
SPECIALISTS IN CRIME DETECTION CLAIM MOST PROBABLE CAUSE OF A320’S
CRASH WAS INTERFERENCE OF BRUTE FORCE
The New Times Party gathered yesterday representatives of all other
anti-crime parties and unions for a social discussion. Though there is
no official theory of the May 3 crash of Armenian A320 airline and the
investigation is still in process, the specialist in crime detection
are trying to incline the society to the last crash theory that is
widely circulating in the media these days. This theory claims that
the cause of the surprising crash was interference of brute force and
activities of a criminal group inside the plane. This allegation was
presented by Vladimir Poghosian, former pilot of naval aviation. In
his opinion, there was a scuffle at the VIP lounge of Zvartnots
Airport prior to the flight. But it remained within the airport
walls. The Flight Security service was unaware of the scuffle. The
Passengers’ luggage was not properly checked either. The clash did not
vapor aboard the plane. The situation on the plane prevented the
pilots to take sound decisions, and the plane ran out of
control. Besides, the pilots disregarded warnings of bad weather
conditions in Sochi airport.
In Aram Karapetian’s words, the Russian mass media confirms the theory
of brute force interference. The Russian media reports that before
plunging into the Black Sea a few passengers called their friends and
relatives saying that there was a fight even shooting on the plane.
Arshak Nalbandian, head of the Flight security Service of Armavia Air
Carrier, completely rejected this theory saying that the crew was in
normal working state. A flight attendant was gaily speaking and
laughing with the pilots a few minutes prior to the crash. Therefore
he rules out that there was a skirmish on the plane. He said that he
had not signed the preliminary conclusion of the International
Aviation Committee that places the blame on the crew.
The specialists in crime detection suggested setting an independent
commission of experts that will carry out its own investigation.
Vladimir Poghosian reminded that the opposition’s such proposal was
turned down as the National Assembly had an order from above. Thus,
there is someone who will be in disadvantage once the commission is
created. He also stated that he has facts proving his theory but will
make them public only after a commission is set. Arshak Nalbandian
added that Armavia is for creation of such a commission.
By Karine Danielian

SECURITY ON BORDERS PRIORITISES RUSSIA’S POLICY, PUTIN SAYS
ITAR-TASS News Agency, Russia
October 25, 2006 Wednesday 09:55 AM EST
President Vladimir Putin said ensure security on Russia’s southern
borders and improve the immigration policy are priority tasks.
In a question-and-answer televised conference with the nation on
Wednesday, Putin said, “This is our task and we should invest in it.
We’ll spend 500 million U.S. dollars to ensure security in the Caucasus
– from the Caspian Sea to the Black Sea.”
“The total number of immigrants in our country (it is impossible
to calculate them exactly) is about from 10 million to 15 million
people. This is enormous. In Western Europe the situation is the
same, maybe less – about 10-12 million of immigrants. We should
defend our southern borders and improve our immigration policy. This
is our priority task. In order to ensure security in the Caucasus –
from the Caspian Sea to the Black Sea we intend to spend about 500
million U.S. dollars,” President Putin stressed.
“It’ll take more time. But till the end of 2007 we’ll close the border
in full (for illegal penetration,” he added.
“We have a huge border with Central Asia. It is the most dangerous
direction. It is becoming the most dangerous track because of drug
trafficking and organised crime,” Putin pointed out.
The protection of borders “is our common task and our
responsibility. It needs money and time. We have plans and we’ll
carry them out,” the president said.
The changes in Russia’s law regulating migration problems will be a
base for pursuing the policy of so-called selective migration, Minister
of Public Health and Social Development Mikhail Zurabov said. On
October 5, President Putin demanded to protect domestic producers
from racket and toughen the visa regime towards foreign citizens who
violate Russia’s legislation. Putin instructed the prime minister to
adopt corresponding normative enactments on ensuring national security.
Russia ranks first after the United States in migration volume.
According to different sources, at present from 10 million to
20 million foreign citizens who have no registration stay in the
country. Not more than 700,000 people are officially registered.
About 80 percent of migrants living in Russia are citizens of the
former USSR – Armenia (about 2.5 million), Azerbaijan (2 million),
Ukraine (one million), Georgia (one million), Tajikistan (504,000),
Moldova (over 154,000), and Belarus (70,000). Guest workers from China,
Vietnam, Turkey and Afghanistan arrive in Russia most of all.
Most guest workers work in the Moscow region – about three million
people. Labour migrants work in the construction sector – 42 percent,
trade – 28 percent, transport – 5 percent, agriculture and forestry –
7 percent.
Director of the Federal Migration Service Konstantin Romodanovsky
said illegal migration poses a threat to Russia’s national security.
Annually migrants bring out over 10 billion U.S. dollars. Economic
damage caused by illegal migrants because of tax non-payment reaches
over eight billion U.S. dollars every year.
In recent years much attention has been riveted to illegal migration.
Despite the fact that the deportation of illegal migrants is rather
expensive (about 1,000 U.S. dollars per people), a total of 89,000
foreign citizens were deported in 2004. In 2005 over 1.5 million
foreign citizens and stateless persons brought for administrative
responsibility for the violation of migration legislation. In 2006
certain amendments were made into the law that toughen responsibility
for crimes related to illegal migration.
The demographic situation in the country is not easy. In order
to prevent the decrease in labour force it is necessary to involve
about one million migrants in Russia annually. At the end of 2005 the
experiment was conducted to announce migration amnesty in 10 Russian
regions. About 7,500 migrants were legalised. Migration amnesty was
announced for residents of CIS countries with which Russia has a visa
regime, with the exception of Georgia and Turkmenistan.
Migrants should be involved due to the Russian economy’s needs. In
order to legalise the movement of labour migrants the Federation
Migration Service created a central database in January 2006 to take
account of those foreign citizens who crossed the Russian border.