Author: Karagyozian Lena

FRENCH DEPARTMENT OF HAUTS-DE-SEINE GRANTS 500,000 EUROS TO ARMENIA FUND

armradio.am
29.01.2009 16:32

Patrick Devedjian, President of the French Department of
Hauts-de-Seine, and Bédros Terzian, President of Fonds Arménien
de France (the French affiliate of Hayastan All-Armenian Fund), have
signed a convention to set up a program for agricultural development
in the Tavush region, Northern Armenia.

Tavush is one of the poorest areas of Armenia, where the productivity
of the agricultural sector can be substantially improved with the
introduction of modern equipment and quality seeds. At present, only
45% of the arable land is exploited, mainly due to the lack of water
and insufficient technical equipment.

The 500,000 euro (US$675,000) grant by the French Department for
the year 2009 will be a major contribution for the financing of a
two-year program for revamping the irrigation network, setting up a
milk gathering station as well as an agricultural base with tractors
and combined harvesters. A particular effort will be made towards
technical training and the improvement of production quality.

The signing of the Convention was preceded by the unanimous vote
in favor of this grant by the Department’s Assembly, a sign of the
confidence inspired by the French affiliate of the Armenia Fund
as a partner for local and regional authorities in carrying out
development projects.

The criteria followed by the D epartment in choosing partners
for international cooperation include the latters’ skills, past
experience, transparency as well as the integral value of the
project itself. Armenia is one of the four countries included in the
Hauts-de-Seine poverty eradication program. Others include Cambodia,
Mali and Haiti.

–Boundary_(ID_dprvWmkZrux7SxwoBqGyfQ)–

‘ARMROSGAZPROM’ CJSC TO INCREASE INVESTMENTS BY 9,2% IN 2009

ArmInfo
2009-01-27 11:45:00

ArmInfo. The total volume of investments of "ArmRosgazprom" CJSC in
2009 will make up 78,6 bln drams ($257.7 mln) against the scheduled
72 bln drams ($236 mln) in 2008, Head of the Company press service
Shushan Sardaryan told ArmInfo.

She said the actual volume of investments in 2008 is still under
specification as the results of 2007 have not yet been summed up. She
also said 30,5 bln drams of the investment programme for 2009 fall on
the fifth power unit of Hrazdan HPP ("Hrazdan- 5"). It is scheduled
to invest these funds in completion and upgrading of the power unit,
in particular, for implementation of construction and assembling
operations and acquisition of equipment. Besides acquisition of assets
of incomplete construction of the 5th power unit of Hrazdan HPP at the
rate of $248,8 mln, ‘ArmRosgazprom’ CJSC carries out an investment
project of construction completion and upgrading of the power unit
with total volume of about $180 mln under the agreement from March 31,
2006 signed between the government of Armenia and "Gazprom" OJSC. Due
to the investments in 2010, a power plant equipped with up-to-date
and efficient gas-turbine facilities will be put into operation. The
indicated project is financed at the cost of the funds of additional
emission of shares of ‘Armrosgazprom’ in favour of ‘Gazprom’ OJSC. The
remaining 48 bln drams of investments in 2009 will be directed to
reconstruction and extension of the Abovyan gas storage, completion
of the engineering infrastructure of Iran-Armenia gas pipeline,
completion of construction of the technological communication, testing
of the gas pipeline and reconstructive measures, completion of the
primary gasification programme and installation of security systems
(alarm devices, shutoff valves).

FAILURE AT PIPE DELIVERING GAS TO ARMENIA, S. OSSETIA REPAIRED

Interfax
Jan 26 2009
Russia

A failure which happened in the early hours of Sunday at the Kveleti
gas measuring station at the Georgian portion of the North-South main
gas pipeline and which suspended the shipment of Russian natural gas
to South Ossetia and Armenia has been repaired, Tamara Shoshiashvili,
the head of press service of the Georgian Oil and Gas Corporation
(GOGC), told Interfax.

"The transit of Russian gas both to Armenia and in the South Ossetian
direction was fully resumed and is being carried out as usual,"
Shoshiashvili said.

EUROPEAN BANK POSTPONES THE START OF REDEMPTION OF THE FIRST TRANCHE OF SYNDICATED LOAN FOR ARMECONOMBANK FOR 1 YEAR

ArmInfo
2009-01-22 16:43:00

ArmInfo. The European Bank for Reconstruction and Development
(EBRD) has postponed the start of redemption of the first tranche
of syndicated loan for Armeconombank for 1 year, Chairman of Board
of Armeconombank David Sukiassyan told journalists, Thursday. He
recalled that the agreement on syndicated loan worth $15 mln was
signed by the EBRD on 14 December 2007.

Under this agreement, the first payment was to be made on 20 January
2009.

However, due to successful implementation of the program, the payment
has been postponed till 18 January 2010.

This fact shows that Armeconombank will steadily continue its activity
on involving itself in new credit programs, attracting new funds and
"digesting" new markets, Suakiassyan stressed.

Head of EBRD Office in Armenia Michael Weinstein said that this
agreement to postpone the redemption date, which was reached
in conditions of the crisis in interbank crediting, once again
demonstrates the international financial structures’ confidence
in Armeconombank. "It is important that the syndicate members,
i.e. the commercial banks feel quite confident in partnership with
Armeconombank. This shows the quality, reliability, and stability of
Armeconombank in conditions of the financial crisis",- he stressed.

For his part, Deputy Chairman of the Central Bank of Armenia (CBA)
Vache Gabrielyan said that Armeconombank is one of the most active
banks of the country by its participation in various international
programs. According to him, CBA contributes to cooperation of
international structures and banking system participants in a
worthy manner. At the same time, he pointed out the significance of
Armeconombank’s experience and skills in SME crediting, and stressed
that the bank will participate in the first governmental program on
SME support.

To recall, alongside with EBRD, 6 large international banks took part
in the loan issue, particularly, Commerzbank AG (Germany), Raiffeisen
Zentralbank Osterreich AG (Austria), Bank Austria Creditanstalt AG
(Austria), State Bank of India, Land Bank of Taiwan, and FBN Bank
(UK) Limited.

The syndicated loan consisted of 2 parts. In particular, EBRD allotted
$5 mln for a term of 36 months, the rest – $10 mln, of them $5 mln for
18 months with possible prolongation of the term for 18 more months;
the other $5 mln – for 12 months with possible prolongation of the
term for 12 more months. The funds are directed to SME crediting.

According to the data of Armeconombank, as of 1 January 2009, the total
capital of Armeconombank exceeded 8.6 bln AMD, assets – 52 bln AMD,
credit portfolio – 27 bln AMD, net profit – 460 mln AMD. The bank
has 46 branches in Armenia and Nagorno- Karabakh. 53.4% of shares
of Armeconombank belong to the family of entrepreneurs Sukiassyans,
25%+1 share is controlled by EBRD.

FINANCIAL CRISIS INFLUENCED ON GOLD JEWELLERY

Panorama.am
16:11 23/01/2009

Today the Prime Minister of Armenia held a discussion on gold and
diamond jewellery and the problems of the industry, reports the public
relations department of the Government. According to the source the
heads of gold and diamond enterprises, interested bodies of appropriate
ministries attended the discussion.

The Prime Minister and the representatives of the business have
mentioned that the problems are mainly connected with the world
financial crisis, which has had its impact on local market. The tax
privileges defined by the Government to ease the difficulties of the
current field are not sufficient any more.

The Minister of Economy Nerses Yeritsyan has presented the problems
and difficulties of the field, as well as how the crisis has its
influence upon gold industry in Armenia.

PEDAGOGICAL INSTITUTE WILL FINALLY BE RENOVATED

A1+
[12:33 pm] 19 January, 2009

The renovation of Gyumri’s State Pedagogical Institute will resume
this year. The works were terminated five years ago because of the
lack of finances. The government has earmarked 76 million 300 thousand
drams for the building renovation. The Ministry of Urban Development
will soon announce a tender for the overhaul.

Still in 2005, within the realms of an intergovernmental agreement
Russia promised to finance the renovation but the project failed. The
preliminary estimate for the overhaul was over 600 million drams. The
government has allocated 76 million drams, about 15 percent of the
required sum.

The Rector voices hope the government will finance the whole work
but he doesn’t know how long the renovation will take.

PACE WINTER SESSION GOING TO BE UNPRECEDENTED FOR ARMENIA
Lena Badeyan

"Radiolur"
19.01.2009 16:36

The winter session of the Parliamentary Assembly of the Council
of Europe (PACE) from January 26 to 30 will be unprecedented for
Armenia. Well aware of this this, this time almost all members of the
Armenian delegation will leave for Strasbourg. Only Raffi Hovhannisyan
from the "Heritage" faction will not attend PACE session. The other
seven members of the delegation – David Harutyunyan, Armen Rustamyan,
Avet Adonts, Naira Zohrabyan, Artsruni Aghajanyan, Grigori Margaryan
and Hermine Naghdalyan will be present at the sitting.

What strategy will be applied there? How will members of the Armenian
delegation work? What speeches will they make? Naira Zohrabyan and
Armen Rustamyan opened the brackets for "Radiolur."

"My speech will focus on the point that democracy cannot be built
within a day, that our value system is the European integration, we
accept the rules of that game and I do not think that application of
sanctions will be the best way for solving issues," Naira Zohrabyan
said.

"I will say the same things I said at the sitting of the Monitoring
Committee. The decision should be exceptionally a legal one and require
no political motivation. Otherwise it will result in domestic tension.

Secondly, there are countries in the world that are engaged in
0Acollecting facts against Armenia and using them."

According to Armen Rustamyan, this time the greatest difficulty
is that there is the resolution of the Monitoring Committee, which
demands application of sanctions. This is an opinion consolidated in
a document.

"We have the task to have it changed, but it’s not that easy,"
Rustamyan says.

Members of the Armenian delegation anticipate pro-Armenian speeches
from delegates of other countries. In particular, Armen Rustamyan
stresses that even during the sitting of the Monitoring Committee
the English Deputy drew everyone’s attention to the fact that for
many years there have been facts about the existence of political
prisoners in Azerbaijan, while the fact of existence of political
prisoners in Armenia has not been proved yet.

Although many assure that the sanctions of the Council of Europe will
not be a catastrophe for Armenia, the MPs say: "It will be bad for
Armenia, especially with regard to the settlement of the Karabakh
conflict. However,, Armenia will not feel the pressures deriving
from PACE sanctions tomorrow, when Minsk Group Co-Chairs are going
to visit Armenia," Armen Rustamyan says.

Panorama.am
12:31 17/01/2009

PRESIDENT TO LEAVE FOR MOSCOW

Today the President of Armenia Serzh Sargsyan leaves for Russian
Federation by the invitation of his Russian counterpart Dmitry
Medvedev, reports the press service of the President’s Administration.

To remind, that today an international gas summit will take place in
Moscow, where the gas consumer countries will take part. The objective
of the summit is to discuss the problem of providing gas to Europe
through Ukraine.

Source: Panorama.am

ARMENIA’S NEW YEAR RESOLUTION: CLOSER TIES WITH IRAN
Haroutiun Khachatrian

EurasiaNet
Jan 15 2009
NY

Plans for ambitious joint infrastructure projects between Armenia and
Iran may prove a key first test of President-Elect Barack Obama’s
policy intentions toward Tehran and Armenia’s own economic muscle
amidst the global economic crisis. Analysts note that international
reactions to the projects could prove a bane or blessing.

On the drawing board are a railroad between Iran and Armenia, an oil
pipeline from Iran’s Tabriz refinery to a special terminal to be built
in Armenia’s Ararat province, and a hydropower station on the Araks
river, which borders the two countries. Bringing Armenian-Iranian
trade relations into sync with World Trade Organization requirements
is also under consideration, Energy and Natural Resources Minister
Armen Movsisian Gevorgian, who co-chairs the Armenian-Iranian
intergovernmental commission, told reporters on December 26.

The Armenian government expects work on the railroad to begin by
late 2009, Prime Minister Tigran Sargsyan told a group of reporters
in late December.

With its Turkish and Azerbaijani borders closed, the projects present
a critical chance for Armenia to create alternative routes for
supplies and shipping. Its only open land border — with Georgia —
is considered highly insecure following Georgia’s war with Russia
last August.

Potential financial and political difficulties, however, mean that
opinions vary about the projects’ feasibility.

For now, Armenia appears to be betting that President-Elect Barack
Obama’s administration will not attempt to obstruct the projects,
commented one Middle East expert in Yerevan. In her January 13
confirmation hearings, Sen. Hillary Clinton (Democrat-New York),
Obama’s proposed Secretary of State, told senators that the
administration is looking at "a range of possibilities" for a new
approach to relations with Tehran.

"A change in U.S. policy towards Iran was an expected event, and even
the outgoing administration of George W. Bush was reported last spring
to undertake some rapprochement with Iran . . . ," commented David
Hovhannisian, a professor at Yerevan State University and a former
Armenian ambassador to Syria.

"The need for such changes is dictated by the fact that Iran is an
important regional player, and many problems — such as the problems
of Iraq, the Middle East, and even the complicated relations of
the U.S with Turkey — make a dialogue between Washington and Iran
important," said Hovhannisian, who also is a member of the unofficial
Turkish-Armenian Reconciliation Commission.

Analyst Sergei Shakariants, an expert on geopolitical issues with
the Institute of Political Problems, a Yerevan-based think tank,
expresses greater skepticism. In the end, he projected, the new
U.S. administration may simply opt to continue President George
W. Bush’s policy of isolating Iran.

The Armenian foreign ministry, meanwhile, is keeping its cards to
its chest. "Armenia has always been for solving all problems through
negotiation and for this reason it positively assesses dialogue
between Iran and the U.S," commented spokesperson Tigran Balaian.

Shakariants believes, however, that Iran’s interest in the projects,
and that of Russia and China, will override such concerns. Iran
already runs a gas pipeline from Tabriz to Armenia that can handle
2.5 billion cubic meters of gas annually.

"Iran is very interested in the railroad connecting it with Armenia,
and further with the Black Sea region, as this will give Tehran
an advantage against its competitor in the region, Turkey," he
commented. "These ambitions are supported by Russia, and most likely,
by China."

China was invited to take part in construction of the Iran-Armenia
railroad during a December 15-19, 2008, visit by an Armenian
parliamentary delegation to China. Beijing is reportedly considering
the proposal, according to parliament.

Finding such investors is critical to the projects, noted Noyan Tapan
news agency analyst David Petrosyan. The railroad, with a total
price tag of between $1.5 and $2 billion, would cut shortly into
Armenia’s budget amidst the global economic downturn. The entire
2009 budget is $2.38 billion, and the government faces difficulty
collecting even these revenues under the current economic crisis,
the analyst believed. The pipeline from Tabriz is estimated to run
another $200-$240 million, squeezing the budget still further.

Under the terms of the agreement, Iran and Armenia would split the
projects’ overall cost.

In a December 29 interview with local reporters, Prime Minister
Tigran Sargsyan stated that the Asian Development Bank has provided
a $1 million grant to perform feasibility studies for the railroad
project. Private investors, he claimed, have also expressed interest in
it. "The government is ready to allocate its money for this railroad,
and the participation of other governments and private investors is
also possible," Sargsyan said. He did not elaborate.

At the same time, the government is keeping a sharp eye on the
Parliamentary Assembly of the Council of Europe’s January 29 vote on
whether or not Armenia has met two resolutions related to the March
2008 crackdown on opposition protestors. A decision that Armenia has
not met the requirements, which could cost Armenia its PACE voting
powers, may impact Yerevan’s ability to attract outside investors to
the Iranian projects, said analyst Petrosyan.

While many investors may find the PACE vote no serious obstacle,
such concerns now run common. In late December, National Assembly
Chairperson Hovik Abrahamian appealed to the parliamentary heads of
other Council of Europe member states about the vote, saying that a
vote against Armenia "will be an additional and serious pressure on
the country’s economy by decreasing [the] trust of foreign investors."

IMPRISONED OPPOSITIONISTS ACCUSE CO-RAPPORTEURS OF PACE MONITORING COMMITTEE

Noyan Tapan

Jan 14, 2008

YEREVAN, JANUARY 14, NOYAN TAPAN. A group of opposition activists
imprisoned in connection with the criminal cases on March 1 events in
Yerevan have sent an open letter to the co-rapporteurs of the PACE
Monitoring Committee John Prescott and Georges Colombier, pointing
out their personal responsibility in the issue of implementation of
PACE Resolutions 1906 and 1920 by the Armenian authorities.

They remind that prior to the summer session of the PACE the
co-rapporteurs declared that Armenian authorities had made great
progress in the implementation of the requirements of Resolution 1609,
as a result of which the term of implementation of the resolution’s
requirements was extended for another six months. Whereas, according to
the authors of the letter, no step had been taken in this direction by
the Armenian authorities, and the co-rapporteurs were aware of it. "You
are certainly fully aware that among other harms, you contributed
to the political prisoners’ being held in custody for another six
months. In this way you contributed to the Armenian authorities’
plan of not revealing the March 1 slaughter," the letter reads.

According to the authors of the letter, after the December 17 decision
of the Monitoring Committee, political prisoners were subjected to
violence in their cells, some applications for a personal pardon
were extracted under torture, as a result of which 9 persons
were "generously" granted a pardon just before the visit of the
co-rapporteurs. "Have you come this time as well in order to take this
"fact" to the upcoming session of PACE as a "proof of considerable
progress?" the authors of the letter ask, expressing their fears that
the co-rapporteurs’ task is to save the authorities from the expected
punishment and extend the imprisonment of the political prisoners. "In
this way you will only increase the amount of personal responsibility
you will undoubtedly take," is said in the letter signed by Myasnik
Malkhasian, Sasun Mikaelian, Shant Harutyunian, Hakob Hakobian,
Grigor Voskerchian, Suren Sirunian, Mushegh Saghatelian and some
thirty other persons who presented themselves as political prisoners.