Armenia Order Book On Seven-Year Bond Approaching USD2bn

ARMENIA ORDER BOOK ON SEVEN-YEAR BOND APPROACHING USD2BN

Reuters
Sept 19 2013

By Davide Scigliuzzo

Thu Sep 19, 2013 6:44pm IST

LONDON, Sept 19 (IFR) – Order books on the Republic of Armenia’s new
seven-year bond are heard approaching USD2bn with US orders still to
come in, according to market sources.

Initial price thoughts for the benchmark-sized issue, which is rated
Ba2 by Moody’s and BB- by Fitch, remain in the 6.375% area.

The senior unsecured 144a/Reg S bond is Thursday’s business. Deutsche
Bank, HSBC and JP Morgan are the lead managers. (Reporting by Davide
Scigliuzzo; Editing by Sudip Roy)

Customs Union Leads Nowhere

CUSTOMS UNION LEADS NOWHERE

Interview with economist Ashot Yeghiazaryan

Mr. Yeghiazaryan, what is the aftermath of the statement of Armenia on
joining the Customs Union and in your opinion what factors influenced
this statement?

The statement made in Moscow gave a surprise to many of us. It
could be described as change of the track of the foreign policy. The
fact is that Armenia thus chooses a dependent path of development,
which supposes recession and an underdeveloped economy. Armenia had
a chance to integrate with the European family which is a union with
the highest level of development and a pole of political and economic
power. In other words, Armenia had a chance to climb to a higher step
of the world economy and international political relations. It stood
a chance to be a subject of international relations at a new level
and in a new capacity. Armenia had a chance to upgrade its security.

This decision is not in line with the interests of the Armenian people
and Armenia, it leads nowhere, and there may be further surprises. The
model of integration of post-Soviet states initiated by Russia is not
a classic model of integration. It cannot compare to the EU because it
is initially artificial and lacks all the formal and informal elements
of integration. It resembles the European colonial empire, the Roman
Empire. Russia is trying to extend its political and economic influence
over a space and is driven by its own interests. In this case, the
level of exploitation of Armenia neither decreased, nor increased.

It is possible that the authorities were lobbied by big companies. I
don’t think that the Russian energy companies did not have a role in
this Eurasian integration model. Naturally, they are trying to expand
their markets in countries where they can have influence.

What awaits Armenia?

In fact, we could not predict what would happen on September 3.

Armenia will face big economic, political and security problems and
failures. Armenia will not do better in the nearest period. Armenia
will have a lot of issues because the country is deprived of the
possibility to make decisions. Others are going to make decisions for
us. It is not compatible with independence, besides it is dangerous,
full of uncertainty and risks. A lot will depend on the ongoing
processes in the region, as well as the U.S. stance, the stance
of European officials which may also be determined by global and
regional processes.

They say this step strengthens our security. In reality, Russia tried
to strengthen its security at the expense of Armenia, thus reducing
the level of security of Armenia.

What will the membership to the Customs Union bring and what would
DCFTA bring to Armenia?

The advocates of the Eurasian project say that their countries expand
their markets and boost the number of consumers. On the other hand,
there are studies. One of the World Bank surveys concluded that the
Eurasian initiative cannot boost technological development of its
member states. It supposes isolation and prevention of introduction
of modern technology. The economies of those countries will remain
as primitive as they are now. Armenia does not even have enough raw
materials to export. It is a social, political and demographic danger.

The Customs Union cannot promise any economic benefits, considering the
structure of Armenia’s economy and the peculiarities of the Customs
Union member states. Armenia will only suffer losses. The Armenian
economy is more liberal, and foreign trade is also more liberal,
customs duties are lower. Armenia will be cut from the world market
and appear in the space of Russian influence. It will ruin the budget
revenues. Technical costs will increase because Armenia does not have
a shared border with these countries. In other words, Armenia will
be deprived of the small income which it gets due to integration with
the global economy.

Integration is first of all based on machinery industry. Russia
tried to give a boost to its machinery industry, signed bilateral
agreements with Ukraine, Kazakhstan, Tajikistan, Kyrgyzstan, Armenia
and Georgia, hoping to revive its machinery industry by means of
industrial cooperation and scientific cooperation but all the attempts
ended in failure. I don’t think that these attempts will succeed,
economy will be revived, jobs will be created.

Instead, integration with the European Union would open up
opportunities for Armenia to enter into industrial cooperation.

Economy could be diversified, structure could be improved. If we
compare the two integration models, in countries with equal levels of
development trade is at the intra-industry level. It is north-south
integration. In this case, exchange will be at the inter-industry
level. Armenia does not have a lot to give to the member states of
the Customs Union so our welfare will be jeopardized.

I think all our approaches need to be reviewed. It turns out that
our business elite is hopeless.

Roza Hovhannisyan 20:50 19/09/2013 Story from Lragir.am News:

http://www.lragir.am/index/eng/0/interview/view/30927

Laure Delcour: EU Will Remain Engaged With Armenia, Only Modalities

LAURE DELCOUR: EU WILL REMAIN ENGAGED WITH ARMENIA, ONLY MODALITIES OF THIS ENGAGEMENT WILL CHANGE

19:21 19/09/2013 ” INTERVIEWS

Panorama presents an interview with Dr. Laure Delcour – Senior
Research Fellow at the Institute for International and Strategic
Relations (IRIS), France. Dr. Delcour specializes in the EU policies
in the post-Soviet area, the EU-Russia partnership and the European
Neighbourhood Policy.

– Dr. Delcour, you have written extensively on the European Union’s
policy towards Russia. Could you comment on the current EU policies
as regards to Russia’s neighbourhood and in particular on the recent
developments within countries like Ukraine, Moldova and Armenia?

– These countries are not only part of Russia’s neighbourhood; they
have also been part of the EU’s neighbourhood since 2004 and 2007
enlargements. With the Eastern Partnership the EU has significantly
upgraded its offer to partner countries. It offers association
agreements, deep and comprehensive free-trade areas, the perspective
of visa liberalisation subject to conditions being met, and enhanced
sectoral cooperation. Nevertheless, EU policies require considerable
efforts and costs on the part of partner countries, while they will
be able to reap the benefits only in the long-term. In addition, the
EU has only recently started to take into account the consequences
of Russia-led regional integration initiatives and the effects of
Russian policies (ie. Short-term benefits, but also strong pressure)
on partner countries. The effects of Russian pressure may however turn
out to be counter-productive and push some countries closer to the EU.

So the key point is that this is a dynamic process. Joining regional
integration schemes or initialling association agreement with the EU,
as expected in the case of Moldova and Georgia at the Vilnius summit,
is only the beginning.

– And if this is only the beginning then where are these countries
ultimately heading – to a geopolitical alliance with EU/NATO?

– By saying only the beginning I meant that for these countries there
is still a long way to go to fully implement the commitments that
will be taken under the AA/DCFTA.

– The Republic of Armenia has recently announced about Armenia’s
intention to join the Custom’s Union and few days later the European
Commissioner for Enlargement and Neighborhood Policy Stefan Fule
announced that it was no longer possible for Armenia to proceed with
the Association Agreement. Where exactly does this incompatibility
rest? Do you think these processes are incompatible in purely economic
or rather in political (geopolitical) terms?

– The incompatibility is clearly in economic terms. It lies in
deep economic integration that both schemes (the ECU and the Deep
Comprehensive and Free Trade Agreements) propose. For instance, being
a member of the two schemes would entail complying with, and applying
two different external trade tariffs, which is of course impossible.

– How would you assess the future prospects of cooperation between
the EU and Armenia after the recent developments?

– The situation is unprecedented and paradoxical. On the one hand,
Armenia has already achieved considerable progress in adopting
EU policy templates and approximating its legal framework with EU
acquis in a number of sectors. This was indeed a EU pre-condition
for launching DCFTA negotiations. On the other hand, given the
incompatibility between ECU and DCFTAs, the EU will not initial the
Association Agreement (of which DCFTA forms an integral part) with
Armenia at the Vilnius Eastern Partnership summit. However, no doubt
that the EU will remain engaged with Armenia, only the modalities
and probably the scale of this engagement will change.

– How would you characterise the prospects of Russia-led Customs
Union and the creation of the Eurasian Union?

Clearly, the Russia-led Customs Union differs from previous regional
integration projects in the former Soviet space. The ECU is more
ambitious. It is premised on a strong institutional framework
including a supranational body and deep economic integration through
regulatory convergence. However, there are several question marks as
to the cohesion of this initiative. First, the extent to which member
countries (currently Belarus, Russia and Kazakhstan’s interests are
actually compatible. For instance, Kazakhstan had to increase its
customs tariffs as a result of ECU membership. And second, ECU’s
actual ability to attract new members. Armenia has just decided to
join the ECU and Kyrgyzstan expressed an interest as well. However,
the question is whether this interest in ECU membership is genuine
or whether it results from external pressures.

– Dr. Rainer Lindner, Executive Director of the Committee on Eastern
European Economic Relations, in his latest interview has expressed an
opinion that the solution to the dilemma between the Custom’s Union
and the EU can lie in the dialogue between Russia and the EU. How
would you assess the prospects of such a dialogue?

– The dialogue between Russia and the EU is indeed critical to
promoting security and democracy in the neighbourhood. The Roadmap
on external security that was agreed upon in Saint-Petersbourg and
launched in Moscow in 2005 provided for the strengthening of EU-Russia
dialogue, and possibly joint initiatives, on crisis management and the
settlement of regional conflicts, inter alia in those regions adjacent
to the EU’s and Russia’s borders. Nonetheless, the EU-Russia dialogue
on the common neighbourhood has been limited, to say the least. Now
that Russia has launched the Customs Union, this dialogue is even
more unlikely to develop. This is because Russia hopes to initiate
an inter-regional, or inter-block, dialogue with the EU once the
Eurasian Union is in place.

– Dr. Delcour, thank you for your comments.

Source: Panorama.am

Hraparak: Who Presented First Lion To Prosperous Armenia Leader?

HRAPARAK: WHO PRESENTED FIRST LION TO PROSPEROUS ARMENIA LEADER?

08:31 19.09.13

The newspaper’s sources report “improved” relations between Chairman
of the Prosperous Armenia Party (PAP) Gagik Tsarukyan and Chief of
Armenia’s Police Viva Gasparyan.

The two have lately met frequently. They were on close terms even
before Tsarukyan engaged in politics. The fist lion was Gasparyan’s
present to Tsarukyan, who developed a liking for lions later. But
when Armenia’s ex-president Robert Kocharyan decided to create the
PAP, Gasparyan and Tsarukyan had a falling-out because Gasparyan and
Kocharyan were not on friendly terms after October 27, 1999.

http://www.tert.am/en/news/2013/09/19/hraparak2/

Armenia’s Ruling Party Delegation To Travel To Germany

ARMENIA’S RULING PARTY DELEGATION TO TRAVEL TO GERMANY

September 19, 2013 | 10:12

YEREVAN. – A delegation from the ruling Republican Party of Armenia
(RPA) will be in Germany, from Thursday to September 23, on a study
visit.

In capital city Berlin, the delegation will follow the German Bundestag
(Parliament) elections, which will be conducted on Sunday.

Along the lines of the visit, the RPA delegation will also attend
the final event of the election campaign by the Christian Democratic
Union (CDU) party of Germany, and meet with their colleagues at CDU
and representatives from the Konrad Adenauer Foundation.

http://news.am/eng/news/171966.html

Armenian FM Visits Italy

ARMENIAN FM VISITS ITALY

13:50 19.09.13

Armenian FM Edward Nalbandian arrived in Italy for an official visit
on Wednesday.

The same day he held a meeting with his Italian counterpart Emma
Bonino.

The Armenian FM thanked Ms Bonino for an invitation to visit Rome.

The Italian FM welcomed Minister Nalbandian, stating Italy is
interested in developing comprehensive cooperation with Armenia and
is ready for practical steps.

The sides thoroughly discussed the expansion of bilateral cooperation
in various areas.

They stressed the importance of mutual visits and promotion of
dialogue, as well as cooperation within international organizations.

The Armenian and Italian FMs pointed out favorable conditions for
expanding the bilateral trade and economic relations.

The sides also discussed Armenia-EU relations and cooperation under
the Eastern Partnership project.

Minister Nalbandian informed his Italian counterpart of the
Nagorno-Karabakh peace process and of the relevant efforts by Armenia
and by the international community.

The Armenian FM also held a meeting with Italian Minister of Defense
Mario Mauro.

The sides discussed Armenian-Italian cooperation. Minister Mario
Mauro re-affirmed Italy’s readiness to continue retraining courses
for Armenian military personnel.

On Wednesday evening, Minister Nalbandian participated in a reception
marking the 22nd anniversary of Armenia’s independence.

http://www.tert.am/en/news/2013/09/19/nalbandian-italy/

L’Armenie Et La Russie Vont Approfondir La Cooperation Dans La Spher

L’ARMENIE ET LA RUSSIE VONT APPROFONDIR LA COOPERATION DANS LA SPHERE DE LA PROTECTION SOCIALE

ARMENIE

Le ministre du Travail et des Affaires sociales de la Republique
d’Armenie Artem Asatryan a accueilli le 27 août l’ambassadeur
extraordinaire et plenipotentiaire de la Federation de Russie Ivan
Volynkin.

Lors de la reunion Artem Asatryan a introduit les reformes dans le
domaine social qui ont lieu dans notre pays.

” Je suis en Armenie, un pays ami avec lequel nous n’avons pas
des problèmes qui ne peuvent etre resolus. Je suis admiratifs des
Armeniens, je vais visiter non seulement les sites, mais les regions,
me familiariser avec les gens. Je suis toujours pret a rencontrer
mes collègues, discuter de toute question ” a declare l’ambassadeur.

” Nos relations ont une histoire de plusieurs siècles, nous avons
fait un long chemin dans le domaine de la protection sociale, nous
avons signe des documents strategiques qui sont très favorables pour
le developpement conjoint ” a souligne le ministre.

Les deux parties ont declare que le processus dans la sphère de la
protection sociale dans les 2 pays imposent une nouvelle qualite de
cooperation de sorte qu’il est necessaire d’examiner et mettre en
place de nouvelles bases pour les relations de partenariat.

jeudi 19 septembre 2013, Stephane ©armenews.com

De Nouvelles Protestations Contre La Hausse Des Transports

DE NOUVELLES PROTESTATIONS CONTRE LA HAUSSE DES TRANSPORTS

Transports

De jeunes militants lancent une nouvelle campagne de protestations
contre la hausse significative du coût du transport public annoncee
par la municipalite d’Erevan.

Dans une action commune, plus de 60 entreprises privees de bus et
minibus avaient exige au debut de la semaine une elevation du prix du
trajet de 100 drams a 150-200 drams, affirmant qu’ils continueraient
sinon a enregistrer de lourdes pertes.

La municipalite avait deja prevu d’augmenter les frais de transport
de plus de 50% en juillet. Mais elle n’a pas reussi a executer la
decision impopulaire en raison de manifestations sans precedent
organisees par des centaines de jeunes.

Le maire d’Erevan, Taron Markarian, n’avait alors pas exclu la
possibilite d’une nouvelle tentative d’augmentation des prix. Il avait
declare que sa decision finale serait basee sur les recommandations
de la commission sur le transport qu’il avait mis en place ad hoc.

Sevak Mamian, l’un des leaders charismatiques du mouvement de la
jeunesse, a decrit l’appel conjoint des entreprises de transport
comme le prelude a une nouvelle flambee des tarifs. Il a prevenu que
les militants se preparent donc a defiler de nouveau dans les rues.

” Je pense que les protestations seront plus importantes que les
precedentes parce que les armeniens ont compris que seule une lutte
massive pourrait produire un resultat “.

La municipalite avait declare en juillet que l’un des facteurs a
l’origine de cette augmentation etait la recente hausse de 50 % du
prix du gaz naturel russe livre a l’Armenie. Or, pratiquement tous
les bus et minibus du pays fonctionnent au gaz liquefie ou comprime.

Les protestataires rejettent cette explication, en fustigeant le
système de transport public d’Erevan mis a mal par la corruption du
gouvernement. Pour eux, la plupart des lignes de bus degageant du
profit sont contrôlees depuis longtemps par de hauts fonctionnaires,
dont le maire, et leurs proches.

jeudi 19 septembre 2013, Claire ©armenews.com

Retrial Begins Over Killing Of Turkish-Armenian Hrant Dink

RETRIAL BEGINS OVER KILLING OF TURKISH-ARMENIAN HRANT DINK

Deutsche Presse-Agentur, Germany
September 17, 2013 Tuesday 3:16 PM EST

Istanbul

DPA x Turkey justice Retrial begins over killing of Turkish-Armenian
Hrant Dink Istanbul The retrial of suspects in the killing of
Turkish-Armenian journalist Hrant Dink opened in Istanbul on Tuesday.

Dink, a vocal critic of the Turkish government, was shot dead in 2007.

A number of people have already been convicted over the killing, but
a retrial was ordered after an appeals court overturned the original
ruling that they had acted alone, stating they had been part of a
wider criminal conspiracy.

Relatives of Dink have long maintained that the Turkish state was
behind his murder.

Dink was the publisher of a Turkish-Armenian magazine, Agos, when he
was gunned down in an Istanbul street.

In 2010, the European Court of Human Rights said the Turkish government
had failed in its duty to protect him.

Armenia Supports Destruction Of Syria Chemical Weapons

ARMENIA SUPPORTS DESTRUCTION OF SYRIA CHEMICAL WEAPONS

Interfax, Russia
Sept 17 2013

YEREVAN. Sept 17

The Armenian Foreign Ministry has applauded the deal brokered by
Moscow and Washington that Syria’s chemical weapon stockpiles must
be destroyed or removed by mid-2014.

“Armenia welcomes the proposals that stem from the agreement reached
by Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State
John Kerry in Geneva that offers the opportunity to destroy these
chemical weapons and rule out their use in Syria,” ministry spokesman
Tigran Balayan told Radio Free Europe/Radio Liberty’s Armenian Service.

The Armenian ministry’s press service told Interfax, citing Balayan,
that these initiatives “may pave the way toward looking for a political
and peaceful solution to the Syrian crisis that will stop the suffering
of the Syrian people and tens of thousands of Syria’s Armenians,
who are an indivisible part of the Syrian nation.”

tm