Author: Karabekian Emil

MARKARIAN DOWNPLAYS VOTER CYNICISM
By Armen Dulian and Anna Israelian

Radio Liberty, Czech Rep.
Dec 29 2006

Prime Minister Andranik Markarian on Friday downplayed opinion
polls suggesting that most Armenians believe their country is on the
wrong track.

Markarian also said that his government plans to draw up a new program
to combat endemic corruption in Armenia. In a yearend interview with
RFE/RL, he admitted that its anti-corruption measures taken so far
have not had desired effects.

A U.S.-funded nationwide opinion poll conducted last month found that
58 percent of voters think Armenia is going in the wrong direction.

Only one third of some 1,200 randomly polled people said the economic
situation in the country is improving. The two previous surveys
conducted the Armenian Sociological Association in August and May
produced similar results.

"In all normal countries, there is discontent," said Markarian. "Take
the United States or European Union countries. There is discontent
in all of them."

Markarian also complained that the question put to respondents was not
specific enough. "What track are they unhappy with? What government
steps are they unhappy with? Democracy? Yes, we admit that there is
a lack of democracy here, and we are taking legislative and other
steps to increase democracy."

"Isn’t the very fact that I am sitting in your studio today a gesture
of democracy?" he reasoned.

Markarian insisted that Armenia’s double-digit economic growth, which
is set to continue for a sixth consecutive year, has boosted living
standards despite the uneven distribution of its benefits. But he did
acknowledge increased income disparity resulting from widespread tax
evasion and government corruption.

"Our anti-corruption measures have not been as effective as we hoped,"
he said. "That is one of our failings."

The government unveiled in late 2003 a three-year plan of actions aimed
at tackling bribery and other corrupt practices. Many Armenians feel
that the scale of graft has not decreased and may have grown even
bigger since then. Local and international anti-graft watchdogs say
the plan has been ineffectual because of its excessive emphasis on
legislative measures.

The Organization for Economic Cooperation and Development made a
similar point in a special report released on December 18." The OECD
said that although Armenia has taken several steps to improve action
against corruption "the number of convictions for corruption is low,
especially for high-ranking officials, and more efforts must be made
to investigate allegations and bring cases to court."

Markarian revealed that the government will ask Western donors to
help it draw up a new strategy that will "ascertain mechanisms for
putting the [anti-graft] legislative framework into practice." But
he again rejected the idea of creating a powerful anti-corruption
agency which is favored by the Armenian Revolutionary Federation
(Dashnaktsutyun), a junior partner in his governing coalition.

"Dashnaktsutyun wanted to create a monster agency that would go after
people and solve some issues," he said. "That is, to do things that
are supposed to be done by the police or the prosecutor’s office …

The government was naturally against that because that would only
create new breeding ground for corruption."

Turning to internal political issues, the 51-year-old premier confirmed
that his Republican Party of Armenia (HHK) will be seeking to retain
its governing status and the largest faction in parliament in elections
due next May. He said the election results will determine who will
be the HHK’s candidate in the 2008 presidential election. The party
is widely expected to nominate Defense Minister Serzh Sarkisian for
the presidency.

Analysts believe that the HHK’s grip on power will be challenged not
only by the Armenian opposition but also a rapidly growing party set
up last year by Gagik Tsarukian, a millionaire businessman close to
President Robert Kocharian. The party called Prosperous Armenia has
already raised eyebrows by distributing relief aid and providing free
medical services to tens of thousands of poor voters. Representatives
of the country’s mainstream political forces, including some HHK
leaders, have denounced what they see as a massive vote buying
operation.

Markarian also disapproved of Tsarukian’s "benevolent actions." "Such
things have to be done by charities and private individuals,"
he said. "A party can not engage in such activities … I have a
negative attitude to such phenomena."

The HHK leader claimed at the same time that the politically motivated
benevolence will not influence the election outcome.

"Experience has shown that even if they accept handouts, the people
eventually do what they wanted to do [during elections]," he said.

Prosperous Armenia’s emergence is widely linked with President
Robert Kocharian’s intention to retain a key role in government
after he completes his second and final term in office in 2008. Some
commentators have speculated that Kocharian has set his sights on
the post of prime minister.

"The president did not express such a desire in his conversations
with me," countered Markarian.

RA PRESIDENT: YEAR 2006 WAS ONE OF MOST FRUITFUL FOR ARMENIA’S ECONOMY

Yerevan, December 26. ArmInfo. The year 2006 was one of the most
fruitful for Armenia’s economy, having fixed over 13% of GDP growth, RA
President, Robert Kocharyan, said at yesterday’s traditional meeting
with businessmen, it is said in today’s release of Presidential
press-service.

The President noted that the economy growth was recorded mainly at
the expense of construction, trade and services that enabled to fully
carry out the state budget and increase the incomes by 17 bln drams.

"The economic growth of 2005 and 2006 years enable to form a budget of
social direction. We increase the expenses in a social sphere, health,
education, the salaries grow stably year by year. We have planned the
growth of state incomes for the next year by 20%, while the growth
for some directions like science and education, will make up 30%. The
capital expenses, aimed at the development of infrastructures, have
sufficiently grown that is concerned with the assurance of the life
quality upgrade and creation of the necessary conditions for economic
activity", R. Kocharyan said. The President noted that a stable growth
of economy has reflected on the population welfare increase, the
evidence of which is a 40%-growth of the consumer equipment supplies:
25000 were supplied to Armenia in 2006, which is more by 5000 than
in 2005, while this indicator has increased by 1900 as compared with
2001. The President noted that the expensive cars make up only 3%
of this number. "This indicates that a middle class is being formed
in fact", R. Kocharyan said.

Among the problems, the President noted a sharp separation of the
population on the poor and rich and the difference between the rates
of development in Yerevan and the regions. "The first problem is to be
resolved by a more address social policy and a greater concentration of
attention on the development of a small and middle business. The second
problem’s solution is concerned with great budgetary deductions to the
regions", he said. In Robert Kocharyan’s opinion, the continuation of
reforms in all the spheres of economy, especially in the tax and custom
spheres, should become the pledge of successful development in 2007. He
noted that the Government has developed programs with international
financial organizations to fight with the shadow economy, that will
start in 2007. R. Kocharyan considers it necessary to increase the
efficiency of work of the executive power itself.

Talking of the year 2007, the President noted a number of large
programs, including the continuation of construction of Iran-Armenia
gas pipeline and upgrading of the fifth power unit of Hrazdan HPP,
the "Millennium Challenges" and "Linsi" programs, the second stage
of construction of the Yerevan "Zvartnots" airport, upgrading of the
airport in Giumri and the "Nairit" plant, as well as demonopolization
of "ArmenTel". RA President noted there are serious backgrounds for the
development of the mining field and the investments to the water supply
will be continued. "The approved investment programs indicate that
we may expect a serious economy growth in 2007", Robert Kocharyan said.

LAKE SEVAN LEVEL REMAINS UNCHANGED IN OCTOBER

Noyan Tapan
Dec 21 2006

YEREVAN, DECEMBER 21, NOYAN TAPAN. Lake Sevan level remained unchanged
in October and as of October 31, made 1898.34 m, which exceeds the
index of the same day of 2005 by 22 cm. According to the data of RA
National Statistical Service, in October, the average monthly water
outlets in most of country’s rivers made about 120-150% of norm.

YEREVAN SEEKS INTERNATIONAL CONDEMNATION OF MONUMENT DESTRUCTION

Radio Liberty, Czech Rep.
Dec 20 2006

The Armenian government has launched a traveling photo exhibition
of what it claims is destruction of monuments at an ethnic Armenian
cemetery in the Azerbaijani region of Nakhichevan.

"The Armenian side intends to get international condemnation of the
destruction," Foreign Minister Vartan Oskanian said Tuesday.

The monuments in question are intricate stone-carved crosses in the
cemetery at Jugha – alternately known as Djulfe – in Nakhichevan,
an exclave wedged between Armenia and Iran and Turkey.

Armenia claims Azerbaijani soldiers have systematically destroyed the
crosses. Photos aimed at supporting the claim are currently being
shown in Strasbourg, France, and will be moved to a new city every
two months.

Azeribajani officials earlier this year denied a report that the
cemetery had vanished.

Armenia and Azerbaijan remain strongly at odds over the final status
of Nagorno-Karabakh, a region in Azerbaijan that has been under the
control of Armenian and ethnic Armenian Karabakh forces since the
1994 end of a separatist war.

GEGHAMASAR IN DANGER OF BEING DEPRIVED OF DRINKING WATER

Noyan Tapan
Dec 19 2006

YEREVAN, DECEMBER 19, NOYAN TAPAN. The 10-km water pipe of the
Geghamasar community (Gegharkunik marz) is being removed without the
village inhabitants’ being warned about it. A 2-km section has already
been removed, Vladimir Abrahamian, a villager, told reporters during
the December 19 meeting. According to the official explanation of the
regional prosecutor’s office, the community has a social payment debt
of 1.7 mln drams (about 4.6 thousand USD), as a result of which the
water pipe was put under arrest, auctioned and sold.

Contrary to the letter of the prosecutor’s office, villagers say that
the water pipe is not old and unfit for use: it was built in 1991, its
operation term is 50 years, while the market value makes 100 thousand
USD at current market prices. V. Abrahamian is convinced that if the
1,500-inhabitant village mainly populated by refugees is deprived of
water, it will become deserted. Now Geghamasar is supplied with water
by a pipe built several decades ago. The locals intend to apply to the
RA president and the National Assembly in connection with this problem.

IF WORKS ON RUSSIAN GAS PIPELINE TAKES LONG, ARMENIA MAY BE WITHOUT GAS IN WINTER

Yerevan, December 19. ArmInfo. Armenia may be left without gas
supplies of the underground storages this winter if works on Russian
gas pipeline drag long, Sergey Koupriyanov, Official Representative
of Gasprom, told journalists today.

He said that the repairs will most probably drag on. However, Russian
and Armenian specialists are doing their best to restore the pipeline
as soon as possible. Now 1/3 of gas is supplied by lo capacity reserve
gas pipeline, while the rest is taken from underground storages
in Armenia.

Kupriyanov said that Gazprom does not know what caused the breakage.

For two days already Armenia has not been receiving enough Russian
gas because of gas pipeline breakage in Georgia. The Georgian side
says that the breakage was caused by landslides.

AzerTag, Azerbaijan
Dec 16 2006

OIC SPOKESMAN CONDEMNS `REFERENDUM’ IN NAGORNO-KARABAKH
[December 16, 2006, 18:29:56]

The Organization of the Islamic Conference (OIC) does not recognize
results of the recent so-called constitutional referendum in
Nagorno-Karabakh, said the Organization’s spokesman, Ambassador Atta
El-Manane.

He noted the so-called `referendum’ gravely violates relevant norms
and principles of international law, and interferes with an ongoing
peace process.

`The Organization of the Islamic Conference once again strongly
condemns the aggression of Armenia against Azerbaijan and urge
immediate, complete and unconditional withdrawal of Armenian
occupying forces from the occupied territories of Azerbaijan’, Atta
El-Manane said.

The spokesman stressed the OIC is well aware of the occupation and
ethnic cleansing carried out by the Armenian armed forces against
peaceful Azerbaijan population in the Nagorno-Karabakh region and
other occupied territories of Azerbaijan.

Atta El-Manane also said the OIC fully recognizes sovereignty and
territorial integrity of the Republic of Azerbaijan.

RUSSIAN YOUTHS SENTENCED TO JAIL FOR BRUTAL ATTACK ON AFRICAN REPORTER

MosNews, Russia
Dec 14 2006

Two Russian youths were sentenced to prison terms for a racially
motivated attack on a Somali television reporter in the eastern Russian
city of Yekaterinburg, RIA Novosti news agency reported Thursday.

21-year-old and 23-year-old men were sentenced to three years in jail
for brutally beating Somali national Martin Adams in September 2003.

Both men belonging to the skinhead movement were arrested two years
later in October 2005.

Non-white foreign nationals from Africa, Asia and Latin America are
being regularly attacked by aggressive nationalists in Russia as
well as migrants from former Soviet republics of the Caucasus and
Central Asia.

Earlier this month, four men were arrested on suspicion of killing
a 15-year-old Armenian boy on a commuter train near Moscow, and a
three-and-a-half-year jail term was handed down for the leader of an
extremist gang found guilty of several crimes against non-whites,
including the murder of a Senegalese student in April, RIA-Novosti
reported.

NEW ARMENIAN LOBBYING ORGANIZATION FOUNDED IN USA

PanARMENIAN.Net
14.12.2006 16:50 GMT+04:00

/PanARMENIAN.Net/ Gerard Cafesjian, an U.S. philanthropist
and businessman of Armenian descent, has set up a new lobbying
organization – U.S.-Armenia Public Affairs Committee (USAPAC). The
group will be run by Ross Vartian. The main goal of the organization
is to "complement" the existing Armenian-American advocacy groups
and match their considerable influence in Washington.

Vartian, insisted that the USAPAC is not a splinter group. "Our
primary purpose is to add to the community of the Armenian lobby in a
unique and collaborative way and make the Armenian lobby stronger in
Washington," he told. Following traditions in Jewish lobbying groups,
the organization will become one more link for forwarding the Armenian
issues in the power structures of the USA.

In his words, USAPAC will concentrate on countering the impact of
Azerbaijani oil on U.S. policy towards Armenia and pressing Washington
to take a pro-Armenian stance on the Nagorno-Karabakh conflict. He
said the Armenian Genocide recognition will also be on the USAPAC
agenda but indicated that the new group will favor a softer line on
Turkey’s membership in the European Union. "What concerns Turkey’s
EU bid and the issues of the Armenian Genocide, we think that Ankara
must do all the commitments for EU membership and join to the European
Union. As a fully mature member of the EU, Turkey would be a much more
friendly neighbor of Armenia. And the issue of the Armenian Genocide
is always in our agenda," said Vartian, RFL Radio Liberty reports.

EBRD: FURTHER STRENGTHENING OF AMD THREATENS COMPETITIVENESS OF REPUBLIC’S ECONOMY

ARKA News Agency, Armenia
Dec 12 2006

YEREVAN, December 12. /ARKA/. Today presenting the EBRD Transition
Report for 2006 an expert of the European Bank for Reconstruction
and Development Alexander Cirmiciu said that further strengthening
of AMD threatened the competitiveness of the republic’s economy,
however it could happen in case of absence of growth of the commercial
production", Cirmiciu emphasized.

At the he added that EBRD hoped for inflow of private investments into
the republic, which would enable to secure growth of the production.

In 11 months of 2006, AMD strengthen by 21,99% against USD – from AMD
450,19 for $1 at the beginning of the year to AMD 369,05 for $1 by the
end of November. During first 12 days of December AMD strengthened
against USD by 0,94%. Today average nominal exchange rate makes AMD
365,62 for $1.

During the period between 2003 and 2005, in Armenia USD has devaluated
20,92%. In 2003, the average exchange rate of the USD was equal to
AMD 578,77, in 2004 – AMD 533,45, and in 2005 – AMD 457,69.