BAKU: Serious Political Obstacles Exist In South Caucasus To Settle

SERIOUS POLITICAL OBSTACLES EXIST IN SOUTH CAUCASUS TO SETTLE ECOLOGICAL PROBLEMS: OSCE ENVOY

Trend News Agency
April 10 2008
Azerbaijan

Azerbaijan, Baku, 10 April /corr. TrendNews K.Ramazanova / Destroying
natural resources in occupied Azerbaijani territories adversely
affect the population in the neighboring countries, the UN Resident
Co-ordinator in Azerbaijan, Bruno Pueza, said on 10 April in Baku
during the seminar ‘Environment and security initiatives’.

"As a result of the Nagorno-Karabakh conflict, 20% of the Azerbaijani
territories has been occupied, where the forests are being cut down
and burnt, water of rivers and other sources are being polluted and
incorrectly utilized," Pueza said.

The conflict between the two South Caucasus countries appeared in 1988
due to Armenian territorial claims against Azerbaijan. Armenia has
occupied 20% of the Azerbaijani lands including the Nagorno-Karabakh
region and its seven surrounding districts. Since 1992 to the present
time, these territories have been under Armenian occupation. In 1994,
Azerbaijan and Armenia signed a cease-fire agreement at which time
the active hostilities ended. The Co-Chairs of the OSCE Minsk Group
(Russia, France and USA) are holding peaceful negotiations.

According to the UN representative, the ecological problems affect
the future development of the country. "Azerbaijan should attentively
approach its natural resources," he said.

There are serious political obstacles in South Caucasus to settle
the ecological problems, said the Head of the OSCE Office in Baku,
Luis Herrero Ansola.

Additionally, Herrero highlighted the importance of realizing joint
measures to prevent the problem with pollution of the rivers and the
Caspian Sea, as well as the cutting down of the forests.

"Ecological problems present a threat to the Country’s security,"
he said.

Some 60% of the Azerbaijan section of the Caspian Sea has become
polluted due to the Volga River. Azerbaijan has repeatedly expressed
its dissatisfaction to Russia in this regard.

As Armenia and Georgia have not joined the Convention on clean-up of
trans-border waters, the Rivers of Kur and Araz have become polluted
in these countries. Azerbaijan, who joined the Convention, installed
clean-up equipment on the borders with these countries to monitor
the pollution level of Kur and Araz.

Last year 31,400 cu.m of Azerbaijani forest area was cut down
illegally. The forests make up 11.4% of the Azerbaijani territories.

"It Is Not Excluded That Turkey Reconsiders Its Approaches In Estab

"IT IS NOT EXCLUDED THAT TURKEY RECONSIDERS ITS APPROACHES IN ESTABLISHING RELATIONS WITH ARMENIA," RUBEN SAFRASTIAN BELIEVES

Noyan Tapan
April 10, 2008

YEREVAN, APRIL 10, NOYAN TAPAN. The statements of Serge Sargsian
in the pre-election period about establishing Armenian-Turkish
relations without preconditions and holding open discussions, had
a positive response both in the west and in the very Turkey. This
was mentioned by Ruben Safrastian at the press conference, which was
held on April 10, who also added that the evidence of that response
is the congratulatory telegram sent by Abdullah Gul, the President
of Turkey, to Serge Sargsian on the occasion of being elected. In
addition to this, according to Ruben Safrastian, if the Justice
and Development party preserves its ruling positions, it is not
excluded that the official Ankara will reconsider its approaches in
establishing relations with Armenia. The Turkologist also reminded
the words of Ali Babajan, the Minister of Foreign Affairs of Turkey,
according to which economic and not political interests should be
taken into consideration in Armenian-Turkish relations.

Touching upon the home political situation of Turkey, Ruben Safrastian
mentioned that the permanent struggle between Kemals and Islamists
has been moved to a legal sphere. The Kemals, according to him, have
been trying since March 14 to hit the Islamist Justice and Development
party, striving for reaching the stopping of the activities of that
political force for at least five years. The ruling party in its turn,
in the prevision of Ruben Safrastian, will try to avoid that danger
in a few ways. In particular, they will try to speed up the European
integration process, which in the past years was considerably slowed
down. In addition to this, the Justice and Development party will also
try to come to a certain compromise with Kemals, thus keeping away
from amending the Constitution, which was considered to be the main
objective of that party. And finally, according to Ruben Safrastian,
in case of stopping, the members of the Justice and Development will
penetrate into smaller parties and will again come to power through
making them bigger. Negotiations with the above-mentioned small
political forces on that very subject have already started.

BAKU: Azerbaijan To Demand Explanation From Countries Voting Against

AZERBAIJAN TO DEMAND EXPLANATION FROM COUNTRIES VOTING AGAINST RESOLUTION

TREND News Agency
April 9 2008
Azerbaijan

Azerbaijan, Baku, 9 April / corr TrendNews I.Alizade / Azerbaijan will
submit an issue on situation around the Nagorno-Karabakh conflict to
agenda of the spring session of Parliamentary Assembly of the Council
Europe (PACE).

"The Azerbaijani delegation will demand clarification from the
countries which came out against or abstained during the voting for
the ‘Resolution on situation in the occupied territory of Azerbaijan’
at the UN General Assembly," MP Gultakin Hajiyeva, the deputy chairman
of Azerbaijani delegation to the PACE, said in talks with journalists
on 9 April.

On 14 March the UN General Assembly supported the ‘Resolution on
Situation in Occupied Territories of Azerbaijan’, which was presented
by the Azerbaijani side. Most CE member-countries abstained from
voting. Furthermore, the OSCE Minsk Group co-chairs, the United States,
Russia and France voted against the Resolution. Some 39 countries
voted for and seven countries against the resolution and 100 members
abstained from voting.

The resolution requires an immediate, complete and unconditional
withdrawal of all Armenian Armed Forces from the occupied territories
of Azerbaijan.

Meanwhile, Baku sent an inquiry to OSCE to receive information about
replacement of co-chairing countries, or the OSCE Minsk Group co-chairs
themselves. Azerbaijan also protested to India, which voted against
the resolution.

Hajiyeva said that Azerbaijani delegation will inform the PACE about
the essence of the Resolution at the UN.

PACE spring session will be held in Strasbourg from 14 to 18 April.

The conflict between the two countries of the South Caucasus began
in 1988 due to Armenian territorial claims against Azerbaijan. Since
1992, Armenian Armed Forces have occupied 20% of Azerbaijan including
the Nagorno-Karabakh region and its seven surrounding districts. In
1994, Azerbaijan and Armenia signed a ceasefire agreement at which
time the active hostilities ended. The Co-Chairs of the OSCE Minsk
Group ( Russia, France, and the US) are currently holding peaceful
negotiations.

Flashpoint: Separation Anxiety – Kosovo’s Split With Serbia Fuels Re

FLASHPOINT: SEPARATION ANXIETY – KOSOVO’S SPLIT WITH SERBIA FUELS REGIONAL TENSIONS
Peter Brookes

Family Security Matters
l.php?id=1387172
April 8 2008
NJ

While it was welcomed in some parts of the world – including
Washington, London, Paris and Berlin – many other capitals viewed
Kosovo’s declaration of independence from Serbia in mid-February as
nothing if not controversial.

Kosovo’s earlier-than-expected secession sent shivers up the spines of
the leaders of countries with their own concerns about independence
movements as they braced for a tidal wave of renewed separatist
sentiment.

As the recently elected, pro-West president of Serbia, Boris Tadic,
cautioned: "Who guarantees that parts of your countries will not
declare independence in the same way?"

Balkanization, a term used to describe the fragmenting of a larger
state into a number of (often hostile) smaller states, such as in the
former Yugoslavia in the early 1990s, has found its latest textbook
example – not surprisingly, once again, in the Balkans.

But the real concern is that the breakaway of the province of 2
million will not only shake the international system but also rattle
an already fragile region, where the interests of major powers –
including the U.S., Russia and Europe – collide.

Serbian Sorrow

Calling Kosovo’s independence a historic injustice, Belgrade says
it will not give up its claim to the predominantly ethnic Albanian
province, a region the Serbs consider the cradle of their culture
and Orthodox Christian faith, going back to the 14th century.

The attachment is also grounded in an epic battle the Serbs fought in
Kosovo against the invading Turks in 1389, and the many (even older)
historic and religious structures located there that hold significance
in the history of the Serbian people.

The current Serbian government also feels victimized, believing its
democratic government is suffering retribution for the acts of the
Serbian strongman Slobodan Milosevic, who marched into Kosovo in 1999,
ostensibly to drive out the Kosovo Liberation Army.

During the conflict, the Serbian Army’s mission turned into an
ethnic-cleansing campaign, forcing roughly 1 million ethnic Albanians
to flee Connecticut-sized Kosovo. An estimated 10,000 to 15,000 were
killed before a NATO air campaign ended the fighting.

Since then, Kosovo has been administered by the United Nations and
protected by NATO’s Kosovo Force (KFOR) under an interim agreement.

(Milosevic was overthrown in 2000 and died as a war crimes defendant
at a tribunal at The Hague in 2006.)

So far, the level of violence has been low, including demonstrations
by both sides in Kosovo and attacks on the U.S. and other embassies
in Belgrade in late February that Serbian police turned a blind eye
to initially. But things could easily get much worse. Although Tadic
told a Spanish newspaper that "we are not going to relinquish Kosovo.

We are going to utilize all of our diplomatic and political recourses
in defense of this, but without violence," not all Serbian politicians
agree.

Serbian Prime Minister Vojislav Kostunica, closely aligned with Moscow,
wants a rollback of Kosovo’s new status, proclaiming: "As long as we
live, Kosovo is Serbia." Other Serb nationalist leaders have promised
violence if the Kosovar capital, Pristina, moves to exert control
over the Serb-populated north.

This could be the case: Testifying before the Senate in late February,
Director of National Intelligence Mike McConnell said that some level
of violence over Kosovo is probable – without giving specifics as to
what that level might be.

There is reason for concern. Between 100,000 and 200,000 ethnic Serbs
live in Kosovo. Many have ignored the independence declaration,
promising to cut off contact with Pristina and instead establish
diplomatic ties with Belgrade.

The Kosovar Serbs also have threatened to establish their own
government, or even declare independence themselves, separate from
Serbia and Kosovo. (Washington quickly rejected any further dividing
of Kosovo, while pledging to protect the rights of the Kosovar Serb
minority.)

In another sign of a deepening divide, Serb officers in the Kosovo
police are leaving the force or failing to report for duty.

Heretofore, the police force had been a positive example of multiethnic
cooperation in Kosovo.

Some are also concerned about the possibility of ethnic cleansing
by the majority Albanians against the minority Serbs in Kosovo this
time. (Nor should anyone forget the nightmare in Bosnia involving
the Serbs, Croats and Bosniaks, i.e. Bosnian Muslims, in the early
1990s with the dissolution of the former Yugoslavia.)

Sensing vulnerability, the Kosovar Serbs called for a return of Russian
peacekeepers to the area, perhaps concerned about the reliability
of the 16,000 largely European, NATO-led KFOR peacekeepers already
deployed to Kosovo to protect their interests.

Although Russia withdrew its troops from Kosovo in mid-2003 after
a four-year deployment, its involvement at some level in this issue
likely is far from over.

Russian Roulette

The Russians and the Serbians have a special kinship, sharing similar
cultural, linguistic and religious origins, so it was no surprise
when Moscow demanded that Kosovo’s break from Serbia, a country of
over 10 million, be declared "null and void."

Outgoing Russian President Vladimir Putin condemned the decision,
likely with Chechnya in mind. Kosovo, he said, is a "terrible
precedent. In fact, it breaks up the entire system of international
relations, developed not over decades, but over centuries."

Later, on Russian state television, Putin said of Kosovo and its
supporters: "They have not thought through the results of what they
are doing. At the end of the day it is a two-ended stick, and the
second end will come back and hit them on the head someday."

Russia’s new ambassador to NATO, nationalist Dmitry Rogozin, said
Kosovo’s independence bid was a "strategic mistake" and warned NATO
not to overstep its peacekeeping mandate there. A threat to use
"brute military force" in Kosovo was later retracted.

So what might Russia have in mind? Russia has not ruled out returning
peacekeepers to the region, possibly to protect, or back, ethnic Serbs
in areas that resist Kosovar Albanian rule, although the presence of
KFOR makes that a risky undertaking without prior agreement.

As a permanent member of the U.N. Security Council with veto rights,
Russia certainly could support Serbia by blocking diplomatic efforts
at the U.N., such as the seating of Kosovo in the General Assembly.

With Moscow’s support, Belgrade will attempt to make Kosovo an issue
of international law and try to retain the U.N. Interim Administration
Mission in Kosovo in an effort to somehow symbolize that Kosovo is
not yet independent. The Russians also could attempt to turn up the
heat over Kosovo by fomenting separatism among pro-Moscow groups
in possible future NATO member Georgia’s South Ossetia or Abkhazia
regions, or in Moldova’s Transdniester.

Geopolitical Jitters

The response to Kosovo’s succession was initially underwhelming –
to say the least. Only about 30 of the 192 U.N. members recognized
the new state early on – likely out of concern about the possible
international law precedent.

Many states expressed concern about the lack of a U.N. resolution
authorizing Kosovo’s independence, which could open the door to any
number of secessionist movements and their characteristic political
strife, violence and refugee flows. Spanish Minister for Europe
Alberto Navarro, undoubtedly thinking of Madrid’s Basque and Catalan
concerns, told the BBC: "Many people have many doubts about the
international legality of what it is going on about this declaration
of independence."

Regional neighbors such as Bulgaria and Greece also are expected
to decline to recognize Kosovo. Cyprus is now more worried about
unification prospects for the island. Romania fears its own Hungarian
minority will get agitated.

The Europeans are not the only ones fretting.

Azerbaijan is concerned about new problems in the Armenian-contested
region of Nagorno-Karabakh. Sri Lanka has its issues with the Tamils.

China worries about how the "Kosovo precedent" will affect the politics
of its cross-strait rival, Taiwan.

In addition, will Kosovo stir the Quebecois in Canada toward
independence? What about the Palestinians in the Middle East? Could
the world’s largest ethnic group without a homeland, the Kurds of Iraq,
Turkey, Syria and Iran, push for their own state? U.N.

Secretary General Ban Ki-moon skirted the question, noting that the
world body would support Kosovo’s transition, but "the recognition
of states is for the states and not for the U.N. Secretariat. … I’m
not here to say if it is legal or illegal."

Others have expressed concern about the new state. Kosovo is
impoverished and landlocked with an unemployment rate between 40
percent and 60 percent. The prospects for a marked improvement soon
are not good, especially after Serbia cuts off trade and electricity.

Drastic scenarios for a new – possibly failed – state include
rampant lawlessness, a possible sanctuary for Islamic radicals and
terrorists, or a global hub for organized crime, plagued by drug-
and arms-trafficking and widespread corruption.

In the end, there will be consequences – both intended and unintended –
of Kosovo’s split with Serbia. Serbia likely will try to control the
territory of those Kosovars who do not want to join an independent
Kosovo, making ethnically divided towns such as Mitrovica and border
crossings potential flashpoints. The European Union will try to salve
Serbia’s open wounds with talks of early accession to the Brussels-led
group, closer political ties, generous aid, increased trade and an
easing of visa requirements, among other enticements.

While the prospect of Serbia joining NATO at any time in the near
future dims, the real challenge will be trying to keep Belgrade
from falling fully into Moscow’s sphere of influence. The Kremlin is
already making its own overtures.

Russian leaders have made a number of high-level visits to Serbia since
Kosovo’s independence to show solidarity, including Dmitry Medvedev,
then a deputy prime minister but now Russia’s president-elect. Moscow
also brokered a $1.5 billion Gazprom natural gas pipeline deal with
Belgrade, including a project known as South Stream, which will
compete directly with an E.U. and U.S.-backed Nabucco pipeline project.

Kosovo also will strain U.S.-Russian relations, which are already
pretty frosty because of the U.S.-proposed missile defense system
in Poland and the Czech Republic, and Russia’s nuclear ties to Iran,
among other matters.

While some optimistically see the resolution of Kosovo as the last
unanswered issue in the troubled history of the former Yugoslavia,
others believe there easily could be even more Balkanization in
the Balkans. For instance, a quarter of neighboring Macedonia is
ethnic Albanian, with ties to Kosovo. Bosnia is also a fragile state,
politically divided between Serbs on one side and Bosniaks and Croats
on the other, as agreed under the 1995 Dayton Accords.

But after years of failed diplomacy, many decided that Pristina’s
independence was the only reasonable outcome, especially considering
the horrors of 1999 and its alienation from Belgrade. Others are not
so convinced, despite Kosovo’s uniqueness.

While conflict, or even violence, is possible, the battle for Kosovo
likely will be more political and economic than military – all the
time bearing in mind the admonition that history is filled with wars
people said would never happen, especially in the Balkans. AFJ

Story originally ran in The Armed Forces Journal.

# #

FamilySecurityMatters.org contributing editor Peter Brookes is
a Senior Fellow for National Security Affairs at the Heritage
Foundation and is a member of the U.S.-China Economic and Security
Review Commission. He writes a weekly column for the New York Post and
frequently appears on FOX, CNN, MSNBC, CNBC, NPR and BBC. He is the
author of: "A Devil’s Triangle: Terrorism, Weapons of Mass Destruction
and Rogue States." Mr. Brookes served in the U.S. Navy and is now a
Commander in the naval reserves. He has over 1300 flight hours aboard
Navy EP-3 aircraft. He is a graduate of the U.S. Naval Academy; the
Defense Language Institute; the Naval War College; the Johns Hopkins
University; and is pursuing a Doctorate at Georgetown University.

http://www.familysecuritymatters.org/globa

First Matches Of Armenian Football Higher League Championship Held

FIRST MATCHES OF ARMENIAN FOOTBALL HIGHER LEAGUE CHAMPIONSHIP HELD

Noyan Tapan
April 7, 2008

YEREVAN, APRIL 7, NOYAN TAPAN. The first matches of Armenian Football
Higher League Championship took place on April 6. The following results
were recorded: Ararat – Kilikia 5 to 0, Pyunik – Ulis 1 to 0, Mika –
Shirak 3 to 1, and Gandzasar – Banants 0 to 0.

The matches of the 2nd tour are fixed for April 19.

According To Alexander Stubb, Finnish OSCE Chairmanship To Push Ahea

ACCORDING TO ALEXANDER STUBB, FINNISH OSCE CHAIRMANSHIP TO PUSH AHEAD WITH FINLAND’S CHAIRMANSHIP PRIORITIES

Noyan Tapan
April 7, 2008

HELSINKI, APRIL 7, NOYAN TAPAN. Alexander Stubb was appointed as
Foreign Minister of Finland on April 4. The new Minister, serving also
as the OSCE Chairman-in-Office, pledged to push ahead with Finland’s
Chairmanship priorities, NT was informed by the OSCE Yerevan Office.

"My team will continue the work started by my predecessor Ilkka
Kanerva," A. Stubb stated, adding: "The Finnish Chairmanship will
pursue the detailed schedule of work that builds on the OSCE’s
strengths as a forum for dialogue and a platform for action across
Europe."

Priorities of the 2008 Finnish OSCE Chairmanship include progress
towards resolving the region’s protracted conflicts, enhancing
engagement with Afghanistan as well as co-operation on maritime and
inland waterways, combating trafficking in human beings, promoting
tolerance and non-discrimination and gender equality.

HayPost Executive To Introduce Company’s Reorganization

HAYPOST EXECUTIVE TO INTRODUCE COMPANY’S REORGANIZATION

ARKA
April 8, 2008

YEREVAN, April 8. /ARKA/. Executive Director of the HayPost (Armenian
Post) Hans Boon will introduce the company’s reorganization on
April 10.

The reorganized HayPost departments will carry out specific activities,
which will enhance the company’s effectiveness, the press service of
HayPost reports.

The company will pay a particular attention to implementation of new
services and modernization of traditional mail service.

HayPost also focuses on upgrading professional skills of its employees.

The HayPost CJSC is the official national postal operator of
the Republic of Armenia which provides postal, payment and retail
services. HayPost currently operates through 900 of its postal offices
across Armenia, from urban to the most remote rural regions.

On November 30, 2006, the Dutch HayPost Trust Management B.V. was
given the responsibility to operate HayPost. The purpose of
the Trust Management is to make HayPost increasingly commercial,
transparent, efficient and accountable for its customers in Armenia
and abroad. Finally, the HayPost Trust Management will establish
HayPost as a world class postal and financial services operator.

Principles of Madrid are inadmissible but talks will continue

Principles of Madrid are inadmissible but talks will continue

05-04-2008 15:05:34 – KarabakhOpen

The principles of Madrid are initially inadmissible for the Karabakh
side since some of them contradict to the NKR Constitution, stated the
chair of the NKR National Assembly Committee of Foreign Relations
Vahram Atanesyan. On the same day the NKR minister of foreign affairs
Georgy Petrosyan said the Armenian side needs to correct its approaches
toward the talks, especially in the context of the changing
geopolitical reality.

In the meantime, after the NATO summit in Bucharest the president elect
of Armenia, Prime Minister Serge Sargsyan voiced concern about the
diplomatic moves of Azerbaijan and the recent incident on the line of
contact between the armed force of Azerbaijan and Nagorno-Karabakh, as
well as reasserted the readiness of Armenia to resolve the
Nagorno-Karabakh conflict through peace talks mediated by the OSCE
Minsk Group, on the basis of the document on the table of the talks.

During the press conference in Bucharest Serge Sargsyan stated that he
will share impressions from the talks after he meets with the other
side of the conflict. According to him, the co-chairs are optimistic
and they have every reason for that. Answering the question of the
journalist when a meeting with the president of Azerbaijan may take
place, Sargsyan said he has already stated that he is not against
meetings during the summit, if the other side is also willing.

The Minsk Group co-chair Matthew Bryza also shared his impressions with
the Armenian reporters. He said they know the president elect, they
know what kind of person he is and they can continue the talks with
him. Most importantly, he said, after the inauguration of the president
of Armenia the presidents will have a possibility to meet and get in
touch and they are waiting for such an opportunity, Matthew Bryza said.

With regard to the rejection of Azerbaijan, the U.S. co-chair said he
thinks Azerbaijan also agrees that the process should continue despite
some disagreement. He is convinced that the process will continue, at
the same time voicing hope that it will last not very long and will
soon be over.

Bryza said today was the beginning, the inauguration of the president
of Armenia has not taken place yet, and we must go on step by step. He
also said that the OSCE Minsk Group mediates the talks and there is no
urgent need for changing the current format of the talks.

Earlier the OSCE Minsk Group proposed a meeting of the president elect
of Armenia Serge Sargsyan with the president of Azerbaijan Ilham
Aliyev, however, Baku rejected the proposal.

The president of Azerbaijan Ilham Aliyev who participated in the NATO
summit in Bucharest met with the OSCE Minks Group co-chairs on April 2.
The head of the department of international relations of the
Azerbaijani president administration Novruz Mammedov told the
Azerbaijani media that the meeting took place in a tense atmosphere.

Mammedov said a wide-range of issues regarding the talks for Karabakh
were discussed, Ilham Aliyev demanded explanation from the Minsk Group
co-chairs regarding their stance during the vote to the UN resolution.

`For their part, the co-chairs said they uphold the territorial
integrity of Azerbaijan,’ APA reports.

BAKU: Democratic party calls on gov’t to reject coop with OSCE MG

Today, Azerbaijan
April 5 2008

Democratic party calls on Azerbaijani authorities to reject
cooperation with OSCE Minsk Group co-chairs

05 April 2008 [10:10] – Today.Az

The Democratic Party of Azerbaijan calls on the authorities to reject
cooperation with the OSCE Minsk Group co-chairs in the settlement of
Nagorno Karabakh conflict, Day.Az reports with reference to the press
service for the party.

"The OSCE Minsk Group seems not to be interested in the resolution
of the Karabakh problem, taking into account the recent agreements.
The co-chairs expressed will for the peaceful resolution of the said
conflict, by way of compromise and definition of status.

If Azerbaijan agrees to such a demand, this will mean that the said
decision does not comply with national requirements.

The party calls on the authorities to settle this issue on basis of
proposals, put forward during the NATO summit in Bucharest, that is
the recognition of the territorial integrity of Azerbaijan", the
statement says.

/Day.Az/

URL:

http://www.today.az/news/politics/44060.html

New Armenian President To Receive Sound Economy

NEW ARMENIAN PRESIDENT TO RECEIVE SOUND ECONOMY

ARKA
April 4, 2008

YEREVAN, April 4. /ARKA/. "If the economic situation in Armenia is
assessed in conformity with the 2007 indices, I am handing over a
sound economy to the new head of state Serge Sargsyan," RA President
Robert Kocharyan told reporters.

The RA Statistical Service reports that 10.1% economic growth was
recorded in Armenia in January-February 2008 as compared with the
corresponding period last year. During the period under review,
221,550.2mln AMD GDP was recorded (in current prices). 10% GDP is
budgeted in Armenia for this year.

Armenia’s economy is steadily developing. Some recession has been
recorded, but only in trade in March alone, Kocharyan said. "I think
it is normal in the context of the domestic political situation,"
Kocharyan said.

However, all the problems are being resolved, and Armenia has serious
potential to end the year with rather serious indices.

"We should consider the fact that global economy is experiencing a
recession, which may influence the economic growth rates in Armenia.

However, I would like to assure you that, even under the circumstances,
we can pursue a policy and find solutions that will prevent the global
economic recession from affecting Armenia," Kocharyan said.

He pointed out that an unstable domestic political situation or similar
global trends produce amore serious impact on developed capital and
securities markets.

However, this sector is underdeveloped in Armenia, the country has
not a completely formed securities market and investments are mainly
made in the real economic sector. These investments will never vanish,
be it the banking sector or the metal mining industry, Kocharyan said.

He pointed out that a waiting attitude may to a certain extent be
shown, and lower business activity in the trade of durables may
be recorded.

"However, I think that the businessmen trying to secure themselves
against risks may sustain serious losses. On the contrary, they need
to be rather active on the market, and they will only benefit from
that. To elaborate on the subject, I do not see any problems for
Armenia for the near future," Kocharyan said.

He pointed out that every country see such phenomena every 10-15 years,
but it must be strong enough to get out of the situation even stronger,
which will be the case with Armenia.