Author: Nanijanian Alex

REPRESENTATIVES OF TURKEY AND AZERBAIJAN REFUSE TO COME TO YEREVAN

Panorama.am
12:43 14/11/06

The conference on planning of NATO Joint Efforts – 2007 exercises
is held in Yerevan. The conference will develop a document outlining
principles of compatibility of communication equipment and personnel.

Samvel Atoyan, employees of department of communication and automated
system administration of the Armenian armed forces, said the exercises
aim to plan specific tasks in the sphere of communication. In his
words, Joint Efforts – 2007 will take place from April 26 to May
13. The first part of exercises will be held in Germany and the second
part – in Armenia.

Turkish and Azeri representatives refused to come to the conference in
Armenia. Atoyan said they will take part in the exercises in Germany
but he could not say whether they will come to Armenia for the second
part.

PAY $230 OR SAY "NO" TO RUSSIAN GAS

Georgian Times, Georgia
Nov 14 2006

The countdown has started. Georgia will either have to bow to
Russian pressure and buy Russian gas at European prices or cut off
consumption. On December 31st of this year, the agreement that allows
Georgian gas companies to buy gas from Russia at $110 USD per 1000
cubic meters will expire. Russia will agree to lower the gas tariff
only if the government of Georgia sells them its main gas pipelines
and distribution networks.

After bargaining with Ukraine and Armenia, GazProm headed to bargaining
table with Georgia, where it offered a trade of sorts: Georgia’s
strategic assets in exchange for cheap gas. Aleksandr Medvedev,
Deputy Head of the GazProm Supervisory Board said that if Georgia
conceded some assets to Russia, it would receive gas at a lower
price. Medvedev referred primarily to the main gas pipeline that
delivers Russian gas from Georgia’s northern border to Armenia.

Why does Russia need Georgia’s gas pipeline?

That Russia wants to take over the pipeline is not news. Several
years ago, while Shevardnadze was in power, GazProm asked for the gas
pipeline in exchange for relief of the Georgian government’s debt
to Russia. Later, GazProm offered cash and the creation of a joint
venture through which it would acquire control over the pipeline.

If not for strict warnings from the United States, Shevardnadze’s
government might have conceded the pipeline to Russia. The US State
Department advised Georgia to retain the pipeline, and assigned
$40 million USD from its central budget for the renovation of
the pipeline. (Renovation starts in about a week and is due to be
completed in two years). Moreover, the agreement that Georgia signed
with Millennium Challenge Corporation forbids Georgia from selling
the pipeline for the next five years.

There are two reasons driving Russia’s interest in the gas pipeline.

One reason is that, by acquiring the pipeline, Russia will ensure
uninterrupted gas deliveries to Armenia – its strategic ally in the
South Caucasus region. Even were Russia to cut off gas deliveries to
Georgia, it would still be able to deliver gas to Armenia. (When an
accident disrupted gas delivery to Georgia last winter, Armenia was
also left without gas). The second reason for Russia’s interest in
the pipeline is that by acquiring it, Russia would be able to block
Iranian gas, restricting its transit to Europe.

Before Iranian gas reaches Georgia via Azerbaijan, it has to travel
through the main gas pipeline network. Iran, which is second biggest
gas supplier in the world (holding about 27 billion cubic gas reserves,
or 18 percent of world supply), has been wanting to deliver gas to
Europe since 1994. By taking over Georgia’s gas pipeline, Russia
would get rid of its strongest rival.

The government of Georgia says it is not going to give its pipeline
to GazProm. Therefore, Georgia will either have to pay GazProm’s
asking price of $230 USD per 1000 cubic meters of gas or switch
to alternative gas suppliers. Even Belarus – which enjoys better
relations with Russia – refused to sell its gas pipeline network,
opting instead to paying the asked-for $200 USD for Russian gas.

Georgia’s Prime Minister, Zurab Noghaideli, says Georgia will not
pay a political price for gas and will not pay more to GazProm than
Armenia and Azerbaijan pay. If this is to be the case, Georgia will
have to completely switch to alternative gas suppliers.

Deal between Russia and Armenia

To squeeze Georgia into a tight energy blockade, Russia seeks to
create an energy alliance and wants to lure Armenia and Azerbaijan
into this coalition. After a meeting at the Kremlin a week ago,
Russian President Putin talked his Armenian counterpart into the
sale of the Armenian gas distribution network to Russia. In return
for cheap gas-$110 USD per 1000 cubic meters-GazProm is increasing
its interests from 45 percent to 58 percent in ArmzRosGazProm (the
Armenian gas distribution company that controls the Iran-Armenian
gas pipeline). By doing so, Russia has cut off one possible route
for Iranian gas to get to Europe. Russia spent millions renovating
the pipeline. The pipeline will be operational in about two months.

Armenia will receive Iranian gas and after some time Russian analysts
say it will not have to use Georgia’s conduits to receive Russian
gas. Georgian experts maintain that even after Armenia launches
gas imports from Iran, it will have to use Georgia for transit, as
Iranian imports will not fully satisfy the gas demand. Russia did not
allow Armenians build a high-capacity pipeline, as this would have
minimized its dependence on Russia. Georgian analysts argue that at
best, Yerevan will receive 1.5 billion cubic meters of Iranian gas.

Its annual consumption now is 2 billion cubic meters and is likely
to rise to 2.5-3 billion cubic meters next year.

Even though Armenia has managed to diversity its gas supplies to some
extent, it will still need Russian gas and thus the Georgian pipeline
this winter. Therefore, Armenia is likely to refrain from joining
the Kremlin’s coalition and will not cut electricity supply to Tbilisi.

(On the eve of the meeting between Putin and Kocharian, the Russian
media speculated that the Kremlin would demand that Armenia suspend
the delivery of power to Georgia during the energy blockade).

Will Azerbaijan join the anti-Georgian Energy Alliance?

Even more important for Georgia was what arrangement Putin and Alyev,
the President of Azerbaijan, agreed to on November 10. Before Alyev’s
depature to Moscow, analysts predicted that if Alyev declined to join
an anti-Georgian energy alliance, Moscow would charge Azerbaijan $230
USD per 1000 cubic meters of gas. The Azeri route still one without
alternatives for Georgia, and Azerbaijan still has to decide how much
gas produced from Shahdeniz deposit it will allot to Georgia.

Alyev’s visit to Europe and his high-profile meetings on energy
issues in Brussels eclipsed the issue of Russia’s proposed energy
alliance and its impact on Georgia’s suppliers. And the question of
Georgia’s energy supply has become much more important to Moscow than
what Alyev promised to European leaders.

Russian Kommersant reports that Alyev told Europeans that Azerbaijan
cannot become an alternative to Russia. Alyev told Putin that he
prefers to partner with Russia and would not give energy guarantees
to European leaders. After receiving such assurances, Putin will
not require Azerbaijan to mount pressure on Georgia, especially as
Alyev does not show any inclination of doing so. Alyev said that the
strained relations between Russia and Georgia has spilled over into
Azerbaijan, and that he hopes that Georgian-Russian relations will
improve in the near future as Azerbaijan "plans to expand strategic
cooperation" with both countries.

The latest developments leave room for hope that Georgia’s negotiations
with Azerbaijan will be successful and that Georgia will receive
additional supplies from Shahdeniz pipeline if Russia turns off its
gas taps to Georgia.

RUSSIA’S STAKE IN IRAN-ARMENIA PIPELINE YET TO BE STUDIED: ARMENIAN PM

Mehr News Agency, Iran
Nov 13 2006

TEHRAN, Nov. 13 (MNA) – Armenia has not studied offering of any
sector of the Iran-Armenia gas pipeline project to Russia yet,
Armenian Prime Minister Andranik Margaryan announced.

Construction of 40 km of Iran-Armenia gas pipeline by the Russian
side has not been discussed yet, Margaryan added.

"We are not talking about selling the pipeline to Russia. We are
only discussing the possibility of Russia’s preliminary investment
in the project," the Persian service of ISNA quoted Margaryan as
saying on Monday. "Everything will become clear when the project
comes on stream."

In late June 2006 Deputy Chair of Gazprom Board Alexander Ryazanov
had noted that the company was going to buy the Iran-Armenia gas
pipeline. According to him, the putting into operation of the gas
pipeline would secure gas supplies to Armenia.

Referring to the recent comments on the increase in the prices of
Russia’s gas to Armenia, the Transcaucasian nation’s prime minister
pointed out that his country had not been officially informed of the
issue yet. Therefore, it would be better for the media not to mention
it before it was approved by the relevant commissions.

The Armenian official has referred to the agreement on the pipeline
construction as a priority for the West Asian nation. Based on earlier
planning, the pumping of Iranian gas to Armenia via the pipeline is
expected to begin by the end of the year.

INSTANT COMPENSATION – CEMENTO MORE
10-11-2006
LRAGIR.AM

The Armenian government sold the fifth generating unit of the thermal power
plant of Hrazdan to direct 250 million dollars at subsidizing gas for
producers and the population. It is clear that thereby the government tried
to relieve the consequences of expensive gas and appear to the public as a
committed government. Perhaps the government had better spend this money on
plastic surgery and had at least a pair of angel’s wings attached to each of
the ministers. It would be at least interesting and amusing for the public,
and people would appreciate the sense of humor of the government. In the
meantime, subsidizing gas is not only uninteresting but also useless,
pointless and ineffective. Several days ago Prime Minister Andranik
Margaryan announced that the mechanism of subsidizing needs to be revised.
Yet several days before Karen Karapetyan, CEO of ARG, had announced about
the ineffectiveness of this subsidy. The culmination was Michael
Baghdasarov, who described a situation which made it clear that the
government does not subsidize but gives about 20 million dollars to some
companies.
The owner of the factory of cement said the cement factories of Armenia
hardly manage to supply the foreign demand. Baghdasarov said the demand
caused the price of the cement to go up. Nevertheless, the Armenian cement
is cheaper than the cement produced in other countries. It appears that
there are almost perfect conditions for the Armenian cement factories:
demand they hardly manage to supply, a cheap price. In this case, it is
strange that the government susidizes Ararat Cement owned by Tsarukyan and
Hrazdan Cement owned by Baghdasarov, and the subsidy totals 20 million
dollars. They may say that the subsidy keeps the price low, which causes
demand to go up. However, Michael Baghdasarov the cement producer says they
increased the price because the demand is high. In other words, it is
pointless to subsidize these companies because the cement producers could
increase the price and the price of gas would not affect the production of
cement. Only the profit of these companies would be concerned. It would
decline, of course. But if the government can say that they gave immense
subsidies to these companies to sustain their profit, it is not clear where
this profit goes. Of course, to the state budget. Let us suppose, the amount
set down legally. How about the rest? The owners, in fact, put the profit in
their pockets. Meanwhile, it is not the government who should think about
the profit of these companies but their owners.
If one of them, Michael Baghdasarov states that they hardly manage to supply
the demand, it means these companies do not boost their capacity and
production. Meanwhile, a factory which produces a competitive product, which
is highly demanded, should think about boosting production to get more
profit. However, why should Michael Baghdasaryan and Gagik Tsarukyan think
about increasing their profit if the government has assumed this function
and sells the state property to subsidize private giants for them not to
disturb themselves and display management skills to boost their profits.
In this respect, the action of the government is far from logic but is
closer to morality. It does not want to load its faithful and committed
businessmen who have more serious problems to tackle. Only
economist-theorists think that a businessman should invest profits in
production. There are countries where the goal of the businessman is far
from production, although it is defined by the same root – reproduction. Not
that of cement, of course, but power.
JAMES HAKOBYAN

New archbishop of Cyprus enthroned
12/11/2006
The Financial Mirror
The new Archbishop of the Greek Orthodox Church of Cyprus, Chrysostomos II,
was enthroned during a special ceremony Sunday, after the throne was vacated
when his predecessor was declared unfit following a four-year illness.
In his first address as the new leader of the ‘autocephalous’ or independent
church of Cyprus, Chrysostomos II said that his main concern would be to
upgrade the spiritual work of the church so that it reaches the people in an
understandable language.
The new archbishop declared a number of reforms, ranging from education to
church finances, and policy statements such as the issue of the destruction
of churches by the Turkish occupation army in the north of the island.
He said he intends to enlarge the governing council of the Holy Synod to 14
bishops, which has not been achieved since Frankish rule in the 13th
century.
Referring "to our Turkish Cypriot compatriots" he said that there is nothing
that divides them from the Greek Cypriots.
"We are not bothered by the voice of the muezzin," the Islamic preacher who
prays from a mosque tower every Friday, some 200 metres from the
Archbishopric.
"But we are upset by the Turkish occupation, and the violation of the human
rights of all Cypriots by Turkey", he stressed.
He referred to the destruction of 133 occupied churches in northern Cyprus
and their desecration by Turkey since 1974. Of these, 78 churches, chapels
and monasteries have been converted into mosques, 28 are used as military
depots and hospitals, and 13 are used as stockyards.
"No matter how much this saddens me, I cannot visit those religious sites.
I cannot give any sort of legality to the illegal occupation regime", he
said.
The enthronement took place in the small Cathedral of Saint John, adjacent
to the Archbishopric, in the presence of the nine Cyprus bishops who
comprise the Holy Synod, as well as clerics from Cyprus and abroad,
including archbishops Christodoulos of Athens and Gregorios of Britain who
represented the ecumenical leader of all Orthodoxy, Patriarch Bartholomeus
who sits in Istanbul.
Also present were Greek Cypriot President Tassos Papadopoulos and all the
island’s political leadership, the Greek Minister of Public Order Vyron
Polydoras, representatives of the Armenian Orthodox Church and the Maronite
Catholic Church of the centuries-old Lebanese community in Cyprus, officials
of the Egyptian Coptic and the Anglican churches and the Greek Orthodox
patriarchates from around the world, as well as an official of the Holy See,
represented in Cyprus by the Latin catholic community.
The Archbishop signed the code of acceptance in red ink, one of the three
privileges maintained throughout the centuries by the church of Cyprus, in
addition to holding an imperial scepter from 1869 and a red tunic.
An evening church service was held in honour of the new archbishop who
celebrates his name day on Monday, a holiday for all schools on the island.
On Tuesday, the new archbishop will travel to the monastery at Kykkos in the
Troodos mountains for a special service at the tomb of Archbishop Makarios
III, the first President of Cyprus, who died in 1977 and was replaced by
Archbishop Chrysostomos.
The Church of Cyprus was declared autocephalous in 478 AD when the remains
of its founder, Saint Barnabas, were located on the island, in a tomb
together with a copy of the gospel by Saint Mathew. The church is presently
occupied by Turkey.

Aravot, Armenia
Nov 10 2006

LONG LASTING TREATMENT

If you aren’t sick in cough or tonsillitis but in a serious chronic
disease, each conscientious physician will tell you: 2-3 months
lasting treatment may have a short- date effect, you must do my
demands in all your life, or at least for years. And the sick person
must be consistent; otherwise the organism will again catch that
disease.

In this case, it is meaningless to hold 10 days or a month of
security traffic. The drivers and passengers who used to break the
rules of traffic won’t learn the rules in a month. They won’t respect
the laws so soon. Or another example; the policemen make the buses
stop only on bus stops and not there where the drivers want. If that
obligation lasts a day or a month or even a year, it won’t be useful.
But if the policemen do it for three years, stopping on bus stops
will become a conditional reflex for drivers.

It’s all the same in every sphere. The entrance examinations for the
institutes of higher education will be replaced by final examinations
at schools in the coming summer, the schools will produce false marks
of their pupils to the institutes of higher education. Which is the
antidote? The Institute mustn’t accept graduates from the schools,
which have produced false marks for about five years. So the school
will understand that falsifying the mark is meaningless.

If the prosecutor’s office brings a criminal case by «slander»
accusation, no TV Company will show the same material given by the
ruling clique. Certainly we may accuse A. Hovsepian for double
standards: on the one hand he suggests to put the right hand on the
Bible, on the other hand when anybody suspects him he calls that
person to his office and investigates. But the Prosecutor is right:
we, the media representatives must train such kind of readers and TV
watchers for whom reading each `compromise’ won’t be interesting. It
is a problem for 50 year every day work.

Aram Abrahamian

Lragir, Armenia
Nov 10 2006

MINISTER OF DEFENSE IS AGAINST SUSTAINING ARMY AT THE EXPENSE OF
OLIGARCHS

I am against boosting the army’s budget by extorting money from
oligarchs, stated the minister of defense Serge Sargsyan in a
briefing on November 10. During the meeting with the professors of
Yerevan State University, where the draft strategy of National
Security was discussed, there was a proposal to impose more taxes on
the oligarchs and boost the budget of the army, and the news
reporters inquired about Serge Sargsyan’s attitude towards this
proposal.

`There was no such opinion, they proposed extorting money from
oligarchs and transfering it to the army’s budget, and I am
categorically against it. And if legal taxes are concerned, why the
oligarchs only? The legal taxes should be collected, the black
economy should be battled. There is no reason for doubt,’ says Serge
Sargsyan.

RA FOREIGN MINISTER RECEIVED THOMAS ADAMS

Public Radio. Armenia
Nov 9 2006

November 9 RA Foreign Minister Vartan Oskanian received Thomas Adams,
Co-Chair of the Armenian-American Economic Cooperation Task Group,
Coordinator of the US Office for Assistance to Europe and Eurasia.

He parties discussed issues related to bilateral cooperation, turning
to the activity and future plans of the Armenian-American Economic
Cooperation Task Group. In this context special importance was attached
to the program to be jointly accomplished by the Millennium Challenge
Corporation and the Government of Armenia and timely completion of
Armenia’s obligations.

Thomas Adams assured that the US Government will continue promoting
the process of democratization in Armenia, emphasizing the importance
of conducting free and fair elections.

The interlocutors turned to regional developments and the Karabakh
conflict settlement, expressing hope that the November 14th meeting
of the Foreign Ministers of Armenia and Azerbaijan will register
considerable progress in the settlement process.

SERGE SMESOV TO REPRESENT FRANCE IN ARMENIA FOR NEXT 4 YEARS
By Nan Petrosian

AZG Armenian Daily
09/11/2006

Newly appointed French ambassador to Armenia, Serge Smesov, handed
the copies of his credentials to Armenian foreign minister Vartan
Oskanian yesterday.

The new ambassador said that he is well familiar with the CIS
region. The minister wished good luck to Mr. Smesov in accomplishing
his mission.

Serge Smesov, 59, represented France in a few CIS countries and speaks
French, English, German, Russian, Spanish and Romanian.

RUSSIA READY TO ACT AS GUARANTOR OF THE KARABAKH CONFLICT SETTLEMENT

Public Radio, Armenia
Nov 8 2006

Official representative of the Russian Ministry of Foreign Affairs
Mikhail Kaminin said in an interview with RIA Novosti that "Moscow
is ready to act as a guarantor of settlement of the Karabakh conflict
in case the parties reach mutual concessions."

"We proceed from the fact that the main responsibility for the final
choice falls on Armenia and Azerbaijan. Russia is ready to back the
way of settlement of the question, which will satisfy the parties
involved in the conflict and to act as guarantor of settlement in
case an agreement is reached," said Kaminin.

He underlined that Russia intends to continue assisting the parties
to find a solution though mutual concessions.