Author: Kalantarian Kevo

IN 3-5 YEARS YEREVAN CENTER WILL LOSE ITS FACE
A1+
| 17:37:41 | 26-09-2005 | Social |
While “victims of state needs” gathered opposite the Yerevan
municipality and demanded a meeting with the Yerevan mayor, the
chief architect of the capital Samvel Danielyan told the journalists
inside the building how they will reconstruct the areas “bought”
for state needs.
Today during the usual briefing Mr. Danielyan spoke about the monuments
of historical-cultural importance. Their list has finally been verified
by the Government. The monuments have been divided to two groups –
of local and state importance. Those in the first group will not be
transported, and the 14 buildings in the second group are subject
to transportation.
So, according to the chief architect, in 3-5 years Yerevan will
have its center finished. As for how much money will be needed to
realize the project, Mr. Danielyan was not sure, but he informed
that a competition will be organized. The winners will make
corresponding investments and will realize the projects ratified by
the Government. Samvel Danielyan announced that there will also be
local rich people among the investors.

A1+
| 18:15:30 | 23-09-2005 | Official |
KHACHATRYAN GOING TO AMERICA
September 24-27 the official delegation with the RA Minister of Finance
Vardan Khachatryan at the head will leave for Washington to participate in
the 11th meeting of the Economic Cooperation Armenian-American working
group, the annual conference of the World Bank and Currency international
fund, as well as in the UN Millennium Challenges Corporation meeting.
According to the RA Finance Ministry information service, on September 26
the 11th meeting of the Economic Cooperation Armenian-American working group
will take place during which the Government representatives of the two
countries will refer to different issues about economic cooperation.

A1+
| 18:19:56 | 23-09-2005 | Social |
IS THE MINISTRY INTERESTED?
Today the Power Minister Armen Movsisyan finally gave some information about
the sale of the Armenian power network.
`The company `Midland Resources’ informs they are no more interested in the
power investments in the region, so they turned to us with the request to
pass the network to `RAO EES’, said the Minister. At the same time, he
praised the new customer – the Russian company, `When I was a newly
appointed Minister, everyone remembers the situation in the network –
strikes, etc. The company `RAO EES’ helped the restoration of the system a
lot, and I don’t know what we would do without them’, announced Armen
Movsisyan.
He also claimed that giving the network to `RAO EES’ will not make Armenia
completely dependent on Russia, and the company will act by our rules only,
and will not be able to decide the costs of power.
Asked the question why the costs are not reduced when most part of power is
produced by the atomic power station, which is cheaper, the Minister
answered, «You must ask that question to the Committee regulating public
services».

Dear Friend,
Please note, that the initially announced room B-369 Rayburn has
been changed to 1539 Longworth House Office Building. The updated
invitation is below.
We look forward to seeing you on Wednesday,
NKR Office
——————————————-
Embassy of the Republic of Armenia
Armenian Assembly of America
Armenian National Committee of America
Office of the Nagorno Karabakh Republic in the United States
In cooperation with Co-Chairs of the Congressional Armenian Caucus
Representatives Frank Pallone and Joe Knollenberg
Cordially invite You to a Capitol Hill Event
14 years of Nagorno Karabakh Independence:
Progress Toward Freedom, Democracy and Economic Development
With Keynote Speaker
Baroness Caroline Cox
September 28, 2005
1539 Longworth House Office Building
Washington, DC
5:30PM – 7:30PM
For additional information, please contact us at
Tel: (202) 223-4330, Fax: (202) 315-3339
Email: [email protected]
Office of the Nagorno Karabakh Republic in the United States
1140 19th Street, NW, Suite 600
Washington, DC 20036
Web:
* * *
This material is distributed by the Office of the Nagorno Karabakh
Republic in the USA on behalf of the Government of the Nagorno
Karabakh Republic. The NKR Office is registered with the U.S.
Government under the Foreign Agent Registration Act. Additional
information is available at the Department of Justice, Washington, D.C.
The Office of the Nagorno Karabakh Republic in the United States is
based in Washington, DC and works with the U.S. government, academia
and the public representing the official policies and interests of
the Nagorno Karabakh Republic.

ARMEN RUSTAMYAN: “THERE MAY BE NO TALKS WITHOUT NAGORNO KARABAKH’S
DIRECT PARTICIPATION”

DEFACTO NEWS SERVICE – 09/23/05: “The talks are not conducted at
present, as there may be no talks without an immediate participant of
the conflict – Nagorno Karabakh”, stated Chairman of the Parliamentary
Commission for Foreign Issues Armen Rustamyan in the course of the
press conference on September 22.
According to Armen Rustamyan, if Azerbaijan broaches the Karabakh
issue at the UN without participation of the NK representatives
Armenia will not participate in the discussions. He stressed Armenia
was the guarantor of Nagorno Karabakh independence and security. In
his opinion, the talks should be conducted on the settlement of
Nagorno Karabakh, and not “Armenian – Azeri” conflict with
participation of the three conflict sides.
A member of ARFD faction touched upon the issue referring to adoption
of the two resolutions on the Armenian Genocide by the US Congress
House of Representatives Committee on International Relations. In the
parliamentarian’s opinion it will play an important role in the
international recognition of the Genocide.
Armen Rustamyan noted the Turkish society was not ready to recognize
the Genocide. The reason is the Turkish authorities’ inactivity. In
his words, the agreement with Turkey on recognition of the Genocide
should be package, while the realization phased. A member of ARFD
faction thinks there are two options of the problem solution:
recognition of the Armenian Genocide by Turkey and opening of the
border; establishment of relations with Armenia and international
recognition of the Genocide.
In Armen Rustamyan’s words, the issue referring to recognition of the
Armenian Genocide has not only moral and historic, but also the
political aspect. “Recognition of the Armenian Genocide should become
the matter of all the countries, and the issue is not subject to
bargaining”, emphasized he. Armenian parliamentarian added there
should be no closed borders between Armenia and Turkey. “Unless Turkey
recognizes the fact of the Genocide there are no guarantees that the
history will not be repeated”, said Armen Rustamyan.

KUWAITI MPS MEET AZERI LAWMAKERS, GOV. OFFICIALS
Kuwait News Agency, Kuwait
Sept 22 2005
POL-KUWAIT-AZERBAIJAN
BAKU, Sept 22 (KUNA) — A delegation from the Kuwaiti parliament,
led by Humoud Al-Hajri, held talks here Thursday with chairpersons of
the friendship committees at the Azeri on ways of further cementing
bilateral cooperation.
Azeri parliament speaker Murtuz Aliskerov expressed relief over the
level of relations with Kuwait.
He appreciated the Kuwaiti position vis-a-vis the Nagorno-Karabakh
conflict with Armenia, as well as its support for the Azeri refugees.
The Kuwaiti delegation, which arrived here last night, held talks
with foreign minister Elmar Mammedyarov and Minister of Economic
Development Farhad Aliyev.
Al-Hajri told KUNA after the meetings the talks were very fruitful
and constructive.
He said they have discussed a host of issues falling under the
political, economic, touristic and cultural cooperation.
The lawmaker said the Azeri officials voiced great desire to further
bolster relations with Kuwait. He added that Aliyev called for
increasing the Kuwait investments in Azerbaijan.

CALIFORNIA REGIONAL TRADE CENTER TO OPEN IN ARMENIA IN OCTOBER
Pan Armenian News
22.09.2005 05:05
/PanARMENIAN.Net/ In October California Regional Trade Center will
open in Armenia under the aegis of the International Trade section
of the Department of Enterprise, Construction and Transportation of
California, stated California Senator Jack Scott. The Center will
launch activities not only in Armenia, but also in Georgia, Ukraine
and Russia. In the Senator’s words, a Memorandum of Understanding was
already signed between Armenia and California in 2001. He also noted
California will share experience in IT, agriculture, biotechnics,
while Armenia can export agricultural products.
Some half a million Armenians live in California. “Armenians of
California are devoted to their fatherland and do everything to assist
it,” Mr. Scott remarked. In his turn Armenian FM V. Oskanian informed
the commodity turnover between Armenia and the US makes some $60-70
million and California accounts for most of it, reported IA Regnum.
From: Emil Lazarian | Ararat NewsPress

ARKA News Agency, Armenia
Sept 20 2005
YEARLY PRESIDENTIAL EDUCATION BONUSES IN IT SPHERE AWARDED IN YEREVAN
YEREVAN, September 20. /ARKA/. Yearly presidential education bonuses
in the IT sphere have been awarded in Yerevan. The bonuses were
awarded to students of Yerevan State University (YSU) and State
Engineering University of Armenia (SEU) in the following categories:
“Best Bachelor” (the 1st and 2nd prizes, AMD 250,000 and AMD 200,000
respectively), “Best Master” (AMD 250,000 and AMD 375,000), “Best
Post-Graduate Student” (AMD 375,000 and AMD 500,000 respectively) and
“Best Student” (AMD 250,000). Bonuses were also given to the best
students of the YSU School of Physics & Mathematics, SEU Basic
Gymnasium and “Quant” gymnasium (AMD 50,000). Bonuses were given to
15 students. The bonus fund totaled AMD 5mln. Executive Director of
the All-Armenian “Hayastan” Fund Naira Melkumyan said that the
bonuses are the first step in realizing everyone’s hope, namely,
turning Armenia into one of the world’s IT-centers. “I am happy that
such a serious international organization as Synopsis is together
with us,” she said.
In his turn, Director General of the “Synopsis Armenia” company Rich
Goldman pointed out that the company attaches high importance to the
priority of high technologies in Armenia. A new generation of highly
qualified young engineers is the cornerstone of IT production growth,
he said. According to him, the receivers of presidential bonuses are
Armenia’s future.
RA Presidential Economic Advisor Vahram Nersisyants pointed out
two-digit indices of economic growth recorded in Armenia over the
last five years. He said that this trend will be maintained, and the
RA President attaches high importance to the involvement of young
people in Armenia’s economic development and in IT development. He
welcomed the fact that the “Hayastan” Fund and the “Synopsis” company
are realizing the President’s idea of supporting young people, which
promotes economic growth and allows them to be competitive and
successful in the international arena.
On April 28, 2005, the “Synopsis Armenia” CJSC and “Hayastan” Fund
signed an agreement on presentation of yearly bonuses to the best
students in the IT sphere. Thereafter, RA President Robert Kocharyan
issued a decree forming a bonus commission. P.T. -0–

PRESS RELEASE
MELKONIAN ALUMNI CYPRUS
Contact: Masis der Parthogh
P.O. Box 16077, CY 2085
Nicosia, Cyprus.
Tel. +357 22 678666
Fax. +357 22 678664
Email: [email protected]
____________________________
Melkonian issue tops Armenian MP by-election
Cyprus Mail – Wednesday, September 21, 2005
By Staff Reporter
THE small Armenian community goes to the polls in a by-election on
Sunday, October 9, to choose a new Representative for Parliament after
Bedros Kalaydjian, who held the seat for two terms, died on September 1.
Two candidates have already come forward, both young doctors, who are
already campaigning for the support of the 2,600-member community.
Dr. Vahak Atamyan is a graduate of the Melkonian Educational Institute
and Chairman of the governing board of the Nareg Armenian elementary
schools, and his main rival, Dr. Antranik Ashdjian, chairs the
Armenian National Committee in Cyprus that lobbies for Armenian issues
in Europe and on international fora.
In the eyes of the voters, however, the main issue is the struggle to
save the Melkonian school that was shut in June, depriving the local
community, as well as Armenians of Europe and the Middle East, of the
only boarding high-school with a history of 80 years.
“We need to know if either of the candidates will come clear and
declare their unconditional support for the struggle,” that is
spearheaded by the local and worldwide alumni, a parent told the
Cyprus Mail.
Community members argue that the survival and subsequent reopening of
the Melkonian is vital for the future of the religious group, as
defined by the Constitution of the Republic of Cyprus.
The Armenians, Maronites and Latins have a Representative each who can
only vote in the parliamentary committees on education, culture and
religion. They sit as observers in the plenary of the 56-seat House.
Other issues, such as the Armenian monastery and churches in the
Turkish occupied north, the reconstruction of the 19th century
cemetery near the Ledra Palace, as well as language and culture issues
are seen as insignificant if the community loses the Melkonian
forever.
“We are currently involved in a court battle to wrest control of the
school and its property, while the New York-based AGBU is adamant on
keeping the school shut and disposing of the assets, wiping out a
vital part of our post-Genocide history and identity,” said an Alumni
spokesman in Nicosia.
“The Armenian Patriarch in Constantinople has intervened and claims
the 125,000 square metre property, the listed historic buildings and
the protected forest are rightly his and not the AGBU’s to dispose of
as they like. He is suing the AGBU in the District Court of Nicosia
and in California,” the Alumni official added.
Copyright © Cyprus Mail 2005

The Moscow Times, Russia
Sept 21 2005
>From Soviet Trade Bank to Universal Lender
By Greg Walters
Staff Writer
Michael Eckels / MT
Vneshtorgbank is giving the competition a run for its money as it
expands into retail and corporate services.

Russia’s No. 2 bank, Vneshtorgbank, is emerging from its historic
role as the government’s foreign-trade facilitator and is pushing
hard to mold itself into a diversified financial institution.
Vneshtorgbank, or VTB — sometimes billed as the only bank that could
actually give industry leader Sberbank a run for its money — is
moving into retail and investment banking, expanding corporate
services and buying up smaller banks in the CIS and Western Europe.
The bank even has plans to list shares on a foreign exchange as early
as 2006, although some analysts say a foreign IPO may still be
several years away.
Given its aggressive plans, state-owned VTB appears set to become an
even more important player in the banking sector and economy as a
whole.
“It’s trying to transform itself from a Soviet trade bank into a
universal bank,” said Andrew Keeley, banking analyst at Renaissance
Capital. “It clearly has the support of the administration in what
it’s doing. It’s not to be taken lightly.”
VTB itself says the changes are part of its strategy to take on
global competition. “Only the big and the strong can compete with
foreign banks,” said Vasily Titov, VTB senior vice president and
board member, in an interview. “That’s why we’re doing all this.”

Despite this apparent dynamism, VTB came under blistering criticism
from former Central Bank Chairman Viktor Gerashchenko earlier this
month, who said the bank was in “financial deadlock” and compared it
to a sinking ship. “It seems our Titanic has holes enough to go
under, yet the orchestra is still playing a happy waltz,”
Gerashchenko said, Vedomosti reported.
Gerashchenko blasted VTB’s plans to purchase overseas banks owned by
the Central Bank — Moscow Narodny Bank of London, Eurobank of Paris
and Ost-West Handelsbank of Frankfurt — saying they would not help
keep the ship afloat. “A handful of dinghies won’t do any good. They
will just get drawn into the whirlpool,” he said.
Although VTB reported profit last year of $263 million, Gerashchenko
said that his analysis showed the bank’s core operations actually
lost money.
Titov declined to respond to Gerashchenko’s criticism, saying the
bank would not comment on the personal opinions of a private citizen.
Yekaterina Trofimova, banking analyst at Standard and Poor’s, called
Gerashchenko’s judgment too harsh.
“The bank is in an expansion stage right now,” she said. “The
financial results are, as expected, moderate, which is absolutely
normal for the bank at this stage of development.”
Trofimova said the current results should be weighed against
investments the bank was making in its network and products, as well
as in acquisitions.
The new foreign acquisitions appear to make long-term sense,
Trofimova said. “These links with Western Europe are very important
for VTB’s growing international business and export-import flows,”
she said.
Other analysts agreed that Gerashchenko probably went too far in
criticizing VTB in light of the government’s vested interest in
seeing its own bank succeed.
VTB may be planning to use the government’s proposed 37.5 billion
ruble ($1.25 billion) capital injection — ostensibly for purchasing
the Central Bank’s overseas assets — as a leverage point for
improving its domestic position, said Natalya Orlova, an analyst at
Alfa Bank. “Acquiring overseas banks is a way to secure an increase
of capital from the federal budget,” she said.
VTB’s strategy appeared to be geared toward using its position as a
state champion to move aggressively into new sectors such as retail
banking, Orlova said. “Increasing its capital will have a deeper
effect on VTB’s domestic position than … owning overseas banks,”
she said.
The country’s entire banking sector wobbled briefly in the summer of
2004, after the closure of two second tier banks spooked depositors.
VTB used the opportunity to gobble up Guta Bank, the mini-crisis’
main casualty, for a nominal 1 million rubles ($35,000).
Guta, now rebranded Vneshtorgbank 24, has been turned into VTB’s
retail arm, offering many services online.
Guta and the Central Bank’s biggest remaining European-based assets
are only part of VTB’s acquisition binge. The bank has been steadily
scooping up smaller Central Bank assets in Europe over the years, and
it recently shelled out for 25 percent of St. Petersburg-based
Promstroibank with an option to increase ownership to a controlling
stake.
In a little over a year, VTB has also made waves in the CIS, buying a
majority stake in Armenia’s ArmSavingsBank, and 50 percent plus one
share in United Georgian Bank. In March of this year, VTB opened a
subsidiary in Ukraine.
These CIS banks are “not very profitable, but they’re doing OK,”
Trofimova said.
They also could come in handy for servicing Russian companies
expanding abroad, analysts said.
After months of reports that the European Bank for Reconstruction and
Development and Deutsche Bank were both negotiating to buy a minority
stake, VTB now says it hopes to list shares on a foreign stock market
as early as next year. “We want to do an IPO, probably in London,”
Titov said. “But only the owner, the government, can decide that. We
have made this proposal, but they haven’t said anything.” Titov said
the listing could be anywhere from 6 percent to 20 percent of VTB.
Renaissance Capital’s Keeley said a VTB listing would be a
significant new target for portfolio investors.
“Investors are very eager to get exposure to Russian banks, but now
they basically have very little choice” about where to invest, Keeley
said.
Vneshtorgbank is still at best a head shorter than its bigger
adversary.
Sberbank’s deposits at the end of 2004, including retail and
corporate deposits, represented 36.3 percent of Russia’s total
deposits, according to an estimate by Standard and Poor’s. VTB came
in a distant second with 4.2 percent.
Sberbank also handled an impressive 29.5 percent of Russian loans,
compared with 7.5 percent at VTB.
Yet VTB is at least a minor giant in a country where most banks have
less than 2 percent in both categories.
In deposits, only Gazprombank (3.5 percent), Alfa Bank (3.2 percent),
Bank of Moscow (3 percent) and Rosbank (2 percent) broke the 2
percent barrier. In loans, only Gazprombank (3.8 percent), Alfa Bank
(3.1 percent) and Bank of Moscow (2.3 percent) did.
Many experts question whether VTB will ever really compete with
Sberbank, as they are both state-owned. As VTB puts down roots in
areas like retail, smaller banks could be left with little option but
to run between the legs of the two state-owned giants.
Russia’s Top 5 Banks by Assets
Bank Total Assets Share of Total
(millions of rubles)* Banking Assets
1. Sberbank 2,219,094 28.87%
2. Vneshtorgbank 504,769 6.57%
3. Gazprombank 379,657 4.94%
4. Bank of Moscow 210,136 2.73%
(Bank Moskvy)
5. Alfa Bank 208,017 2.71%
*Data as of July 1, 2005
Source: Interfax Center for Economic Analysis