Armenia Launches Price-Fixing Probe

EurasiaNet, NY
March 9 2009

ARMENIA LAUNCHES PRICE-FIXING PROBE
3/09/09

Armenia’s state anti-trust agency will investigate alleged retail
price-fixing, as consumer prices continue to climb following the
Central Bank’s move to devalue the national currency.

The State Commission on Protection of Economic Competition announced
on March 6 that prices on some foodstuffs and home improvement goods
have soared to a "disproportionate and unfounded" degree. The agency
suspects that some importers and suppliers are colluding to fix
prices, Armenian news services reported Commission Chairman Ashot
Shahnazarian as saying. Commission investigators intend to compare
retail stores’ profit margins both before and after the dram’s
collapse. [For background see the Eurasia Insight archive].

The dram lost more than 20 percent of its value after Central Bank
officials announced March 3 that they would no longer defend the
Armenian currency. The decision caused panic buying in Yerevan and
elsewhere. Since then, the dram has increased moderately against
dollar, closing at 359.37 on March 9, the Central Bank of Armenia
reported.

ANKARA: Turkey is likely to take steps toward Armenia

Hürriyet, Turkey
March 9 2009

Turkey is likely to take steps toward Armenia

WASHINGTON – US President Barack Obama’s planned visit to Turkey
weakens the possibility in the short term of Washington’s recognition
of the Armenians’ claims of "genocide", according to analysts.

As U.S. President Barack Obama prepares to visit Turkey in early
April, Ankara is likely to start taking concrete measures soon toward
reconciliation with Armenia, diplomatic sources and analysts say.

U.S. Secretary of State Hillary Clinton announced during a visit to
Ankara on Saturday that Obama would visit Turkey "within a month or
so."

The unexpected visit will underscore Turkey’s growing importance in
Obama’s new Middle East strategies, analysts suggest.

They also say the planned visit weakens the possibility in the short
term of U.S. recognition of the Armenians’ claims of "genocide".

Turkish efforts

But Turkey, in return, should move soon to boost relations with
Armenia, including taking steps to set up diplomatic relations and
open the land border, they say.

"So, Obama can tell U.S. Armenian groups, ‘Look, there is major
reconciliation between Turkey and Armenia, it’s not the right time to
get involved in the genocide issue," said one analyst.

Turkey became one of the first nations to recognize Armenia’s
independence amid the former Soviet Union’s disintegration in 1991.

But Armenia’s invasion and occupation of Nagorno-Karabakh and part of
Azerbaijan proper in 1993 prompted Ankara to close the border with
Armenia and decline to establish diplomatic ties with Yerevan.

During his election campaign last year, Obama pledged to recognize the
Armenians’ claims of "genocide". Some analysts and pro-Turkey
politicians have been suggesting that a Turkish-Armenian rapprochement
may prevent Washington from recognizing these claims.

Robert Wexler, a leading pro-Turkey lawmaker in the U.S. House of
Representatives, said recently that he saw a historic opportunity for
rapprochement between Turkey and Armenia that may lead to the opening
of the land border and a normalization of diplomatic relations this
year.

"I came back from Turkey last week, and it seems to me that we are on
the cusp of a historic opportunity with respect to Turkish-Armenian
relations and the possibility in 2009 for extraordinary engagement
between those two countries, and the possibility of opening of borders
and then things that might follow, such as normalization," Wexler said
in the U.S. Congress on March 1.

Armenians not hopeful

Brad Sherman, a key pro-Armenian lawmaker in the U.S. House of
Representatives, recently said he was "not particularly hopeful" that
Obama’s planned message to the Armenian-American community on April 24
this year "will contain the word genocide," according to the Armenian
Reporter, a weekly newspaper.

Sherman cited Turkey’s importance to the Obama administration’s Middle
East priorities as the key reason.

Top agenda items during Obama’s planned talks in Turkey will likely
include Afghanistan, Iran, Iraq and peace in the Middle East.

Russian Foreign Ministry: "The Concession Of The Negotiation Process

RUSSIAN FOREIGN MINISTRY: "THE CONCESSION OF THE NEGOTIATION PROCESS WAS PRESERVED IN THE KARABAKH CONFLICT RESOLUTION"

Today.Az
s/politics/50947.html
March 6 2009
Azerbaijan

"The concession of the negotiation process was preserved in the
Karabakh conflict resolution despite the peculiarities of the internal
political situation in the year of presidential elections both in
Armenia and Azerbaijan, says the review of the external political
activity of Russia in 2008.

"For the first time in the electoral period, international mediators
– OSCE MG co-chairs on Nagorno Karabakh resolution (Russia, USA,
France) got an opportunity to continue consultations with the
sides in the region and out of its bounds. During the meetings
international mediators tried to ensure continuation of direct
contacts of the sides for the coordination of the basic principles
of resolution. Armenian-Azerbaijani meetings on the high level were
held twice (in Saint-Petersburg on June 6 and in Moscow on November 2).

The repeated meetings of Dmitri Medvedev with Ilham Aliyev and Serzh
Sargsyan during which the sides spoke in details about the Karabakh
problem, promoted provision of the leading role of Russia in the
Nagorno Karabakh conflict resolution.

The result of the meeting of Presidens Aliyev and Sargsyan in Moscow,
held by invitation and with participation of the Russian president
was the adoption of a trilateral declaration aimed at attainment of
peaceful resolution of the Karabakh conflict by political means. This
is the first document, related to the Nagorno Karabakh conflict,
undersigned by the presidents of Azerbaijan and Armenia", says the
document.

http://www.today.az/new

Wings Cut Off While Soaring

WINGS CUT OFF WHILE SOARING

A1+
[06:44 pm] 05 March, 2009

"Vazgen loved his country and his people. Vazgen is a legend with
his good and bad deeds and we feel the need of that legend today,"
said head of the "Heritage" party board Anahit Bakhshyan, who is the
wife of Yuri Bakhshyan murdered on October 27.

She knew more about Vazgen Sargsyan after his death. "If Vazgen were
alive today, there would be more people loving this country."

Leader of the People’s Party of Armenia Stepan Demirchyan believes that
Vazgen Sargsyan’s memory should live on "to strengthen our statehood
and our country." He truly feels the need of "Miasnutyun" today.

"The creation of that unprecedented alliance gave hope, but that hope
died on October 27," said Stepan Demirchyan.

Head of the Armenian National Movement board Ararat Zurabyan noted
that the spirit, soul and energy of Vazgen Sargsyan in forming the
army was what helped Armenia win the war.

"We would be soaring and moving forward if Vazgen were alive. He had
so much energy, strength inside and it was contagious. We could solve
any issue quickly. We were almost there, but they cut off our wings,"
told "A1+" Vazgen Sargsyan’s combat friend, member of the "Republic"
party board Artak Zeynalyan.

Which camp would Vazgen Sargsyan be in today? In response to that
Artak Zeynalyan said:

"If Vazgen were alive, the division of camps would not be so
noticeable, but the majority of people would be on Vazgen’s side."

"Vazgen would be in the camp that would create a strong Armenia, and
not the one that robs from the Armenian people," told "A1+" coordinator
of the Armenian National Congress central office Levon Zurabyan.

According to him, Vazgen’s dream was to see a modern-day Armenia.

"It is clear today who is leading the course and I have no doubt
that he would be one of the leaders. As he participated in the first
movement, implemented the goals and contributed to the liberation of
Karabakh, he is also participating in our movement today as well,"
said Levon Zurabyan.

Chanchuryan Was A Meritorious Popular Artist

CHANCHURYAN WAS A MERITORIOUS POPULAR ARTIST

A1+
[06:57 pm] 05 March, 2009

President Serzh Sargsyan sent an address of condolence to the
Chanchuryan family on the occasion of the death of Armenian popular
artist, long-standing artistic director of the Armenian State Dance
Ensemble Surn Chanchuryan.

The address reads as follows:

"I received with pain the news regarding the death of popular artist
of Armenia, long-standing artistic director of the Armenian State
Dance Ensemble Suren Chanchuryan.

Suren Chanchuryan is one of our merited cultural figures and has made
a significant contribution to the development of the art of Armenian
dance. His art has been highly praised by experts and audiences and
he has gained popularity.

I express my deep condolences to the family, friends, relatives and
fans of Suren Chanchuryan."

A Tale Of Survival

A TALE OF SURVIVAL

By Metro Ã~Iireann
Thursday, February 26, 2009, 17:56

Dublin businessman Ohan Yergainharsian is founder of the well-known
Sona Nutrition Company. He talks to Catherine Reilly about his Armenian
heritage, and how his family survived the genocide that took like
lives of so many

Ohan Yergainharsian is on holidays, but the Dublin entrepreneur’s
eagerness to speak about his Armenian roots means that Metro
Ã~Iireann’s telephone call – to faraway Dubai – is answered
immediately.

Armenia’s diaspora is proportionally massive, with estimates putting it
at around eight million (to Armenia’s population of three million),
and Ohan Yergainharsian was among those who grew up outside the
present-day borders of his motherland.

His family history is laced with trauma, but ultimately is a tale
of survival.

"My grandparents were people who managed to escape the genocide
during the First World War in Armenia," reveals Yergainharsian,
in reference to the brutal onslaught on the Armenian people by the
Ottoman authorities, which is thought to have claimed the lives of
one-and-a-half million Armenians. "That’s why you’ll find that the
Armenian diaspora are mostly, if not completely, the descendents of
those who managed to escape."

Yergainharsian’s grandparents fled on foot, and his grandmother would
later recall a 12,000-mile desert trek.

"My mother, for example, was born in a desert town in Jordan," says
Yergainharsian, "and I was born in Jerusalem. When I was growing up
there were 300,000 Armenians in Lebanon, there were 600,000 Armenians
in Iran, and maybe 250,000 Armenians in Syria."

Yergainharsian – who later attended university in Lebanon – was always
surrounded by ethnic Armenians, and the concentrated populations of
Armenians in the diaspora ensured that the cultural and linguistic
heritage wasn’t easily forgotten.

"You’ll find that they’d congregate together, build up schools,
churches, organise sporting activities which kept the community
together, so it was easier to maintain the cultural and linguistic
links with your roots," he remembers.

His first holiday on his own as a 17-year-old was to Armenia, where
he still has family. "In fact, I have relatives who immigrated to
Armenia from the diaspora," he adds.

Yergainharsian married an Irish woman in 1977, and they settled in
Ireland permanently in 1983. His Armenian family thought he was mad
for moving to a recession-hit Ireland ("They were telling me ‘You are
crazy, the VAT in Ireland is 35 per cent!’") but he stuck it out and
established Sona, which today is a highly successful company producing
nutritional supplements and herbal remedies.

And Yergainharsian seems genuinely modest about his business
success. "I think in some way s it was partly to do with hard work
but also partly to do with the fact that over the past 25 years the
Irish economy has – it’s the old story of the tide lifting all boats
– it has benefited me the same as everyone else. Hard work is always
compensated by opportunities, even in the middle of recessions."

Despite his strong ties to Ireland, Yergainharsian still maintains
close links with Armenia, and his last visit was in December.

"I think Armenia is suffering just like everyone else in this global
economic crisis. It is impacted a bit less on account of not being in
the mainstream economy – this has shielded it a bit from the ravages
of the global downturn," he comments. "But still, it is coming out
of a collapsed Soviet system, war, a blockade, an earthquake. People
who suffered during the earthquake became homeless, and some of them
still are 20 years later.

"The economy in Armenia is very slow, very limited, very poor, and
it’s trying to cope with issues," he continues. "Remitt-ances are
very important to Armenia, and remittances have dried up, and that’s
probably the biggest result that Armenia is experiencing in terms of
the global downturn.

"But I think in some ways, it reminds me of the old adage that ‘those
who expect nothing shall not be disappointed’. There’s a bit of an
acceptance that Armeni a was already poor and it couldn’t get any
worse on the part of some of the Armenians over there."

Nevertheless, Yergainharsian believes that significant investment
prospects do exist in Armenia.

"I think there are huge investment opportunities in Armenia… the
resource that it has is the very highly educated population, and
also the area geographically that it’s in, in that within a couple of
hundred miles there are probably 60 million people who would benefit
from what Armenia can do: Armenia would not only be serving its own
local market but also the neighbouring markets."

Armenians are hard-working, individualistic ("Bring two Armenians
together and they’ll have three political parties established," jokes
Yergainharsian), family-orientated and outward-looking. "We are very,
proud of our Christian heritage and yet in a social sense as opposed
to a religious sense," he adds. "We are very tenaciously clinging to
our heritage, we see it as something worth preserving, and that is
something that has sustained Armenians for the past 3.000 years."

He believes Armenians’ history of occupation has impacted on their
very selves: "It’s shaped our characters. When you are always forced
to change, you cling to what you know or what you are a bit more,
you fight for it a bit harder," he says.

In Ireland, too, Yergainharsian has been involved in efforts to keep
the Armenian language and culture alive among the small population of
Armenians, numbering around 100 individuals. One idea in the pipeline
is a Sunday school. "We’ve managed to get eight kids but they range
in age from five to 12."

Many Armenians in Ireland are Armenian by descent, rather than through
nationality, and grew up in other former Soviet countries. As a result,
the proposed school would play a key role in sustaining the Armenian
language among their children.

CBA Stops Its Interventions In Foreign Currency Market

CBA STOPS ITS INTERVENTIONS IN FOREIGN CURRENCY MARKET

Noyan Tapan

M arch 4, 2009

YEREVAN, MARCH 4, NOYAN TAPAN. The Central Bank of Armenia (CBA)
stopped its interventions in the foreign currency market and returned
to a floating exchange rate regime. The CBA Chairman Arthur Javadian
said at the press conference on the same day that in this way the
exchange rate of the dollar will find its equilibrium level, which
will promote economic activity and job creation in the country and
increase the competitiveness of Armenian goods.

According to the CBA chairman, the equilibrium exchange rate of the
dollar will make 360-380 drams in Armenia in 2009. By his forecast,
the exchange rate is likely to reach this level in the foreign currency
market within two days. In his words, the policy conducted by the CBA
so far was aimed at ensuring financial stability in the country. In
the past 3 months the capital of the banks grew by 40 billion drams
and they purchased more than 250 million USD. The CBA chairman said
it means that the financial state of the banks is currently quite
stable and they can withstand the economic crisis.

At the same time the CBA expects that the shift to a floating exchange
rate may result in a rise of prices. For that reason the refinancing
rate was raised by 1 percentage point to 7.75%.

http://www.nt.am/news.php?shownews=1012678

Andranik Tevanyan: Exchange Rate Surge Won’t Last More Than A Week

ANDRANIK TEVANYAN: EXCHANGE RATE SURGE WON’T LAST MORE THAN A WEEK

PanARMENIAN.Net
03.03.2009 18:00 GMT+04:00

/PanARMENIAN.Net/ "The current situation in Armenia is the result of
monetary, budget, and financial policy of Armenia’s Government and
the Central Bank," as the head of "Polyteconomia" Research Center,
economist Andranik Tevanyan, informed the PanARMENIAN.Net reporters. As
he claims since 2007 about $2.5 billion have been aimed at keeping
the dram rate in balance and the budget became an end in itself. Now
when Armenia has failed to receive financial support in the amount
she expected and less than $1billion have been left from the means
"talked-up," the problem of bankruptcy has arisen. So the Central
Bank had to act as a dilettante, i.e. had to decrease the dram rate,
thinks the analyst. Tevanyan also mentioned that considering the
experience of developed countries, the fluctuating rate policy should
have been implemented in due time and in small corridors, In our case
the Central Bank of RA and the Government, pleading the world crisis,
announced about the fluctuating dram rate, allowing the market to
set up the rate.

When asked how long the dram rate surge will last,Tevanyan answered
that according to his calculations- one week at most, then it will
balance. What refers to the highest point, the basic factor here is
the expectancy factor of the population-it will cut down on consumption
in order to save up.

Central Bank’s new policy will have a negative effect on the
least protected areas of the market, in particular, on a small and
average-scale business as well as on the country’s population. As
Tevanyan informed society is panic-stricken, some stores have been
shut down, the work in the Customs is suspended, the prices on imported
goods are expected to rise. So, under the current inflation pressure,
in order to avoid the situation of the 90’s, the RA Government has to
take up adequate measures, i.e. to weaken the tax burden according to
the proportion of national currency slump. As a result, the budget’s
revenues, according to Tevanyan, will decrease by 20%, whereas the
dram has fallen in much the same amount.

Only yesterday the dollar rate at currency exchange offices was 305-310
drams for one dollar, the euro rate was 387 drams. The basic cause
for such a sudden boost of currency rates against the dram was the
statement made by the head of the Central Bank, Arthur Javadyan. It
said that that the Central Bank had come up with the decision to
restrict its interference in the foreign exchange market and to go
back to the policy of fluctuating rates. Besides, accordong to Central
Bank’s calculations, the average dollar rate in 2009 is expected to
be between 360-380 drams.

Clinton To Meet Young Europeans In The Parliament

CLINTON TO MEET YOUNG EUROPEANS IN THE PARLIAMENT
By Toby Vogel

European Voice
ton-to-meet-young-europeans-in-the-parliament/6415 5.aspx
March 3 2009

US secretary of state to join Parliament president in town hall
meeting.

Hillary Clinton, the US secretary of state, is to meet Hans-Gert
Pöttering, the president of the European Parliament, in Brussels
on Friday morning (6 March). After their talks, the two officials
will participate in a ‘town hall’ meeting with young Europeans it
the Parliament at 10am.

As previously reported, Clinton will also on Friday hold talks with
Karel Schwarzenberg, the foreign minister of the Czech Republic, the
current holder of the rotating EU presidency, Benita Ferrero-Waldner,
the European external affairs commissioner, and Javier Solana, the
EU’s foreign policy chief.

Clinton’s first tour to Europe since taking office will begin with an
informal dinner with foreign ministers from EU and NATO member states
plus Switzerland tomorrow evening (4 March). On Thursday (5 March),
she will attend a meeting of NATO foreign ministers, where the main
business is the preparation of the summit co-hosted by France and
Germany next month.

Clinton will then travel to Geneva for a meeting with Swiss Foreign
Minister Micheline Calmy-Rey and with Sergei Lavrov, the foreign
minister of Russia, before travelling to the Turkish capital, Ankara,
where she will discuss a recent Turkish initiative for resolving the
conflict between Armenia and Azerbaijan over Nagorno-Karabakh and
the situation in Georgia.

http://www.europeanvoice.com/article/2009/03/clin

Dram/Dollar Exchange Rate Goes Up To AMD360/$1 In Few Hours In Armen

DRAM/DOLLAR EXCHANGE RATE GOES UP TO AMD360/$1 IN FEW HOURS IN ARMENIA

PanARMENIAN.Net
03.03.2009 12:25 GMT+04:00

/PanARMENIAN.Net/ The dram-to-dollar exchange rate has gone up to AMD
360/$1 in few hours today against yesterday’s 305 -310 index for sale
and purchase respectively.

Dram/euro exchange rate reached AMD 440 (against 387).

The upsurge followed CB President Arthur Javadian’s statement on
cessation of control over the foreign currency market and return to
floating rate policy.

According to the Central Bank, the dollar exchange rate will fluctuate
from AMD 360 to 380 in 2009.

In the past days, the purchase of U.S. dollar was extremely limited.

Some sources say that the Central Bank decreed to suspend all dollar
exchange operations.