Author: Nahapetian Zhanna

CONFLICT OF SHAREHOLDERS AT RUSSIAN VIMPELCOM, NEW OWNER OF ARMENTEL,
FLARES UP

Yerevan, December 16. ArmInfo. The Board of Director of the Russian
operator VimpelCom has not approved the company’s budget for 2007 for
disagreements of the shareholders: Norwegian Telenor (26.6% of voting
shares) and Russian Altimo (32.9% of voting shares). Telenor
representatives voted against the budget. They explain that they are
concerned over the business development in the Ukraine. In response,
Altimo Vice President Kirill Babayev urged Telenor to refuse from
destructive methods of work at VimpelCom. Nevertheless, VimpelCom
management will have to act on the basis of the draft budget.

ComNews reports that on December 14, VimpelCom Board of Directors did
not approve the consolidated budget for 2007. The Board of Directors
comprises three representatives of Alfa-Group, three representatives
of Telenor and three independent directors. One of the independent
directors was proposed by Alfa, one by Telenor and one by minority
shareholders. Eight of nine votes of the directors are required for
adoption of a decision.

The conflict between the key shareholders of VimpelCom especially
flared up after the Russian operator entered the Ukrainian market
wherein Alfa and Telenor had already been present as shareholders of
Kyevstar operator. Telenor holds 56.5% shares of Kyevstar, Altimo
branch Storm – 43.5%. It is for the third time that Board fails to
approve the budget. Earlier the company failed to approve the budget
for 2006 twice. Then the company’s management was allowed to act in
accordance with the draft budget. The management saw no big problem in
the lack of an approved budget, but it was concerned over the lack of
a long-term strategic development plan.

Analysts see no threat to the activity of VimpelCom because of the
unapproved budget for 2007, on the whole. "Judging from the previous
experience, this situation will have no impact on the operating
activity of VimpelCom and its structures, including in the Ukraine,"
supposes an analyst of Aton investment group, Nadezhda
Golubeva. "Ukrainian Radio Systems (URS) does not need as many
investments as before. So Vimpelcom can redistribute the budget of
2005 directing more funds to the CIS countries than to Russia," an
Uralsib analyst, Konstantin Chernyshev says.

In the meantime, they in Telenor are concerned over the business in
the Ukraine. "Figures show that the business of Ukrainian Radio
Systems develops worse than VimpelCom management planned from the very
beginning. This proves that Telenor’s concerns are justified," Telenor
Russia Director for External Ties Anna Ivanova-Golitsina told ComNews.

Telenor press-service reports that the latest data on the number of
URS’s subscribers and the share of the market in the Ukraine do not
meet the promises of VimpelCom. While, they in VimpelCom insist that
the company develops in accordance with its plans. Thus, now URS has
almost 1.6 million subscribers.

According to URS data, in November, Beeline connected 323,730 new
subscribers, which is by 25% more than in October 2006. The financial
report of VimpelCom OJSC, incomes of Beeline in the Ukraine in the 3rd
quarter of 2006 grew by 98%, to $11.5 million.

Unlike their Russian colleagues, Ukrainian analysts are less
optimistic about the disapproval of the budget for 2007. They think it
was the revenge of Telenor to Russia Altimo for regular breaches of
the meetings of Kyevstar Board of Directors. "The situation at URS is
not good enough. Thus, the subscribers base indicators are not so
good. There is lack of a strategic development plan and incomes from
investments. VimpelCom covers the expenses of the Ukrainian branch.
Moreover, there are rumors in the telecommunications market of the
Ukraine that Altimo is also dissatisfied with the development of URS,"
says Dmitry Sholomko, an analyst of the Ukrainian company UBL. "If
Telenor manages to block the budget, it will be a severe blow upon
Altimo as the break-even of URS is still far enough," says Roman
Khimich, an expert of the Ukrainian Consulting company Netton CG.

In their turn, Armenian analysts refrain themselves from comments so
far. Nevertheless, they believe that the conflict between the key
shareholders will have a definite impact on the development plans of
ArmenTel from the point of view of expenses for modernization of the
telecommunications net in Armenia. To recap, Greek OTE announced the
closing of the transaction for acquisition of the 90pct stake in
ArmenTel by VimpelCom yet last month. The transaction cost $420
million according to OTE’s data.

A1+

INTOXICATED BY GAS
[05:07 pm] 15 December, 2006

On December 14, at 11:50 resident of Vanadzor Hamlet Haroutyunyan
(b. 1983) has been taken to hospital with severe gas intoxication
which he received while having a bath.

According to the Emergency Administration, on December 15 at 05:40
p.m. residents of the village of Lernahovit Azniv (b. 1966) and Bella
(b. 1988) Galoyans have been taken to hospital with gas intoxication.

According to the doctors, the situation of the patients is grave.

ATAK HELICOPTERS TO WAIT, TURKEY TO GET F-35S FROM US

New Anatolian, Turkey
Dec 14 2006

Tuesday’s Defense Industry Executive Committee delayed the final
decision on a helicopter tender attended by a South African and an
Italian firm, reinforcing the speculation that the tender may be
canceled and the helicopters may be directly purchased from the U.S.

The committee, which is made up of Prime Minister Recep Tayyip Erdogan,
Chief of General Staff Gen. Yasar Buyukanit and Defense Minister Vecdi
Gonul, decided to buy 100 F-35 stealth fighter jets while authorizing
the defense industry undersecretary to hold talks for the purchase
of 30 new F-16 warplanes.

The F-35 Lightning II, also called the joint strike fighter, will be
assembled at Lockheed Martin’s plant in Fort Worth, Texas.

However the committee, at request of the General Staff, decided
to delay a final decision for the controversial Tactical and
Reconnaissance Attack Helicopter Project (ATAK).

The General Staff asked for further tests on the helicopters, said
Vecdi Gonul, adding that the final decision will be given in a couple
of weeks.

The committee’s meeting, and along with it the decision, on the ATAK
tender had already been delayed two months ago due to the earlier
sudden illness of the premier, who heads the committee.

The tender for the production of 50 helicopters — 30 decided and 20
additional — sparked controversy between the General Staff and the
government, as the military is said to be not willing to approve
either of the two firms remaining in the tender, Italian Agusta
Westland and the South African Rooivalk.

Defense bureaucrats say that the recently passed French bill to
penalize the denial of Armenian genocide claims in France will further
complicate the decision process, as the South African company uses
French engines.

Former Chief of General Staff Gen. Hilmi Ozkok, who retired four
months ago, had expressed objection to the Italian firm.

I AM HAPPY THAT FOREIGNERS HIGHLY ESTIMATE MY PERFORMANCE, SILVA HAKOBIAN SAYS

Noyan Tapan
Dec 14 2006

YEREVAN, DECEMBER 14, NOYAN TAPAN. "I do not believe yet that I was
awarded with the BBC first prize, but I am glad that foreigners highly
estimated my performance." Silva Hakobian, who won the "The world’s
young band" first prize in the Next Big Thing competition announced
by the BBS, stated about it at the December 14 press conference. The
first-year student of the Yerevan State Jazz College participated in
the competition with performance of the "I Like" song the author of
which is the singer’s sister Mane, and instrumented by her brother
Edgar. Singer’s producer, composer Aram Avagian mentioned that more
than 2000 works were presented to the competition. The organizers
chose only 20 of them. Then S.Hakobian was involved in the best seven
by the open internet votion. "It was already a victory to be in the
20, but when they stated that Silva won the first prize, we were
surprised," A.Avagian said. Young singers from England, U.S., Brazil,
Ghana, Malawi took part in the competition. In A.Avagian’s words,
the competition jury members mentioned that Silva, with her talent,
may conquer international stages. Some of them expressed wish to
cooperate with the young singer. A.Avagian also informed that the
video clip of the "I like" song as well as S.Hakobian’s first disk
will be presented to the spectators soon.

KAZIMIROV: AZERI MEDIA DISTORTED OSCE MINSK GROUP STATEMENT

PanARMENIAN.Net
13.12.2006 13:38 GMT+04:00

/PanARMENIAN.Net/ On December 11 APA and Trend Azeri news agencies
distorted the OSCE Minsk Group’s statement on the referendum in
Nagorno Karabakh. At that there is no doubt it was not accidentally
(for example over insufficient knowledge of English or French)
but a cynic and purposeful pretence targeted at deceiving media,
using the materials of these agencies, and their audience, OSCE MG
Russian Co-chair in 1995-96, Ambassador Vladimir Kazimirov said in
the statement addressed to PanARMENIAN.Net.

"As once a participant of the OSCE Minsk process I closely watch
the documentation and must tell you the following: the falsifiers
did not satisfy with the fact that the OSCE MG hasn’t recognized the
referendum in Nagorno Karabakh. They tried to create an impression
that the mediators do not recognize Nagorno Karabakh as a side in
conflict and negotiation process on its settlement. Here is an extract
from the mediators’ statement: ‘any future legal status of NK should
be determined without threats or appliance of force but via political
talks between all the conflicting sides within the Minsk process.’ The
APA interpreted it the following way: ‘Nagorno Karabakh cannot be
imposed a status by threats or weapons. The conflict should be resolved
only within the OSCE MG framework with obligatory participation of both
sides.’ The point is not incoherent stylistics but semantic meaning. As
you see the phrase was turned out as if referring to the referendum
itself (whether it was held under threats or with the help of weapons).

The forgery with the number of the sides is obvious (Kazimirov’s note)

Trend news agency did not prove more conscientious.

"Any status of Nagorno Karabakh should be determined without threats
or appliance of force but only as a result of political talks between
the two states within the Minsk process. The number is distorted; the
term ‘states’ is used instead of ‘sides’. Can two agencies coincide
in distortion? Or is there any directive? We should give due to Day.az
information webside, which presented the document correctly.

Zerkalo Baku-based newspaper appeared either as a victim of accomplice
to the deceit (reporter Bayramova quotes ARA). This is the way the
handweel of lie and deception of their own people functions. Isn’t
it clear that the authors of the falsifications cast a shadow on all
Azeri media and call in question other publications? Both nations
involved into the Karabakh conflict need true information on every
point referring to it.

I would like to believe that both agencies and the newspaper will
have the courage to correct the ‘mistakes’ and publish the proper text
of the statement issue by the OSCE MG Co-chairs. This sentence is of
course dictated by the naivete of belief in the truth, professional
honesty and responsibility before their public. But there is no
belief. Just on the contrary. I can bet it won’t happen. Paradoxically
such media ‘save their face’ with shamefully passing over in silence,
Amb.

Kazimirov’s letter says.

NAGORNY KARABAKH TO GET A CONSTITUTION
Samvel Martirosyan

RusData Dialine – Russian Press Digest
December 12, 2006 Tuesday

The breakaway Nagorny Karabakh region overwhelmingly approved a
new pro-independence constitution, returns from a Sunday referendum
showed. Azerbaijan shrugged off the vote as a "farce," and the European
Union said it would not recognize it. The region broke away from
Azerbaijan in the early 1990’s and has no international recognition.

But Karabakh’s leader described the plebiscite, seen as a signal of
the region’s commitment to independence, as a factor which could help
revive languishing talks on its future status. Karabakh wants to be
part of the talks underway between Armenia and Azerbaijan over the
status of the region.

According to official figures released Monday by the Karabakh elections
commission, 98.6 percent of voters approved the constitution, which
describes Karabakh as a sovereign state.

REFERENDUM ON NKR CONSTITUTION MEETS MOST OF STANDARDS OF OSCE, CE AND OTHER INTERNATIONAL STRUCTURES, OBSERVERS’ REPORT MENTIONS

Noyan Tapan
Dec 12 2006

STEPANAKERT, DECEMBER 12, NOYAN TAPAN. "The referendum on adoption of
the Constitution held on December 10 in NKR meets most of the standards
of OSCE, Council of Europe and other international European structures
relating to democratic elections equally used towards referendums as
well," the resume of the independent observers on the results of the
referendum on adoption of the NKR Constitution read. The process
of preparation for the referendum and the referendum itself was
observed by more than 100 international observers and journalists
from Russia, U.S., France, Armenia, Italy, Croatia, Israel, Serbia,
Georgia, Ukraine, Denmark, Kosovo, Republic of Abkhazia, Republic
of South Ossetia, Transdniestrian Moldavian Republic in the presence
of correspondents of TV companies Russia Today, First Channel (RF),
Rustavi-2 (Georgia), radio BBC, agencies France-press, EurasiaNet
(U.S.), Regnum (Russia), Interfax and a number of information
agencies of Armenia. On the day of the referendum the observers
visited 137 polling stations, participated in calculation of votes
at 32 polling stations and "registered no significant violation on
the day of the referendum." As the document mentions, "wide public
confidence the process of elections enjoys in Nagorno Karabakh made
a great impression." 89 044 persons were on electoral rolls. During
the whole day once in every three hours they reported about the
turnout level. In the final result the turnout made 87.02%. "We did
not register any significant violations either in the procedure
of electors’ registration and organization of voting or in the
procedure of working up of votes and transportation of protocols of
vote calculation from polling stations to regional (town) commissions
and further to the Central Commission on Referendum," the document
read. At the same time, the observers mentioned the necessity to
improve accessibility of polling stations, in particular, for disabled
persons to be able to exercise their right of vote, undertaking of
measures for full provision of secret ballot and increase of number
of cabins for voting. As a recommendation they mentioned necessity of
international community’s providing support to democratic processes
in Nagorno Karabakh, including holding of elections.

ARMENIANS HOLD REFERENDUM IN NAGORNY KARABAKH

Agence France Presse — English
December 10, 2006 Sunday 4:03 AM GMT

Armenians in Nagorny Karabakh on Sunday celebrate the 15th anniversary
of their decision to break away from Azerbaijan with a referendum
on a constitution for their separatist region in a move slammed by
central authorities in Baku.

The Karabakh vote follows on the heels of similar polls in a number
of unrecognized mini-states in the former Soviet Union, including
Georgia’s breakaway South Ossetia and Moldova’s Transdniestr earlier
this year.

The vote is seen by outsiders as an attempt to draw attention to
the plight of Karabakh’s separatist government, which has sought
recognition since it won de-facto independence from Azerbaijan in a
grueling early 1990s war.

Nagorny Karabakh, which has its own military, flag and government,
displays many of the characteristics of an independent state but is
internationally considered part of Azerbaijan.

Azerbaijan’s foreign ministry criticized the upcoming vote last week,
saying it "interferes with an ongoing peace process" adding that a
poll in Karabakh could not be considered legitimate until the area’s
exiled Azerbaijani population was allowed to return.

Despite years of talks little has changed on the ground in Karabakh,
a region of some 140,000 people which subsists on aid from neighboring
Armenia and generous donations from millions of Armenians living in
the West and Russia, since the war’s end.

Exchanges of gunfire over a tense cease fire line with Azerbaijan
are a common occurrence and dozens of soldiers die on both sides of
the fixed front line each year.

The conflict between Armenia and Azerbaijan erupted in the late 1980s
when a wave of independence movements swept across Soviet territory.

Some 25,000 people died in the conflict and up to a million people
were displaced, with some 250,000 Armenians fleeing Azerbaijani cities
and some 750,000 Azerbaijanis escaping from Karabakh and other areas
captured by Armenian forces.

NKR PRESIDENT: CONSTITUTION’S ADOPTION WILL HAVE POSITIVE IMPACT ON KARABAKH SETTLEMENT

DeFacto Agency, Armenia
Dec 11 2006

"I believe the Constitution’s adoption will have a positive impact
on the Karabakh settlement, as it is in the negotiation process’s
logic", the Nagorno-Karabakh Republic President Arkady Ghoukassian
told journalists in Stepanakert, while commenting on the conduct
of a referendum on the Republic’s first Constitution in the
Nagorno-Karabakh.

The President underscored the matter concerned the realization of
the right to self-determination. "Democracy is a historic chance for
Nagorno-Karabakh, there is no other way for us. We must be able to
build a democratic state, and from this viewpoint the referendum is
of great importance for us", Arkady Ghoukassian said.

Speaking about the international community’s possible reaction to
the referendum, Arkady Ghoukassian remarked, "we are not isolated
from the world, and I think it will see and estimate the true worth
of the referendum’s conduct". At the same time the President noted
it was possible that "under Azerbaijan’s pressure the international
community may flaunt, making various statements". Arkady Ghoukassian
stated the only way to achieve peace was to recognize the NKR, and
the international community had already realized it.

While commenting on Azerbaijan’s negative response to the referendum,
the NKR President said he had not expected another reaction.

"Azerbaijan is guided by the principle "the worse the better", and
this stand hampers to achieve the progress in the conflict settlement".

The Nagorno-Karabakh head added, "our society is ready for compromises,
however, they cannot be unilateral".

CLEAR WATER PROVISION ENSURED IN METS PARNI VILLAGE

ArmRadio.am
08.12.2006 16:42

On December 8, 2006 the official opening ceremony of the drinking
water distribution reservoir of Mets Parni village took place. The
reservoir was reconstructed through the US Embassy and USAID-funded
Community Self-Help Fund (CSHF) program, which is implemented by
Save the Children. Representatives of the US Embassy, USAID, Save
the Children, Lori Marzpetaran, Mets Parni local government and the
community will participate in the event.

Mets Parni village greatly suffered due to the devastating earthquake
in 1988. Many residential buildings and social infrastructures were
ruined. The entire water system became out of work too. The village was
reconstructed in a new location, due to which it became consisted of
two parts – new and old with 4km distance between them. 100 houses
were constructed in the new village. A water pipeline with 19km
length was constructed to ensure water provision of the village,
but this work was not finished. A water reservoir necessary for daily
water regulation was not constructed, and the pipeline was directly
connected to the internal water network of the village. As a result,
the water pressure was not regulated, which periodically caused damage
to pipelines and absence of drinking water for weeks. Moreover, due
to 30-40% of water loss several districts of the village did not get
water at all, and people had to carry water from 1km distance. Water
was not chlorinated, and no sanitary norms were maintained, which
might cause epidemic outbreaks.

Given the acute necessity of reconstructing the water reservoir,
the Village Mayor’s Office applied to Save the Children for a CSHF
program grant.

Through the program the water provision system was renovated. A water
reservoir with 300 cub m capacity and a water drainage pipeline were
constructed, the surrounding area was improved, and the water provision
and chlorination were regulated. 1870 residents (460 households)
of the village benefited from the program. 8 people were provided
with temporary jobs.