Author: Talalian Arpi

Russia and Georgia Don’t Need Mediators

PanARMENIAN.Net
03.11.2006 17:46 GMT+04:00

/PanARMENIAN.Net/ "Armenia will welcome the Russia-Georgia dialogue,
normalization of relations and alleviation of tension," RA Foreign
Minister Vartan Oskanian said when commenting on Armenia’s role in
the normalization of the Russian-Georgian relations. In his words, the
discussion of the existing complex questions should be held by these
two states and there is no need in mediators. "Russia and Georgia also
said this," the Minister remarked, reports the Public Radio of Armenia.

THE REFERENDUM IS FIXED FOR DECEMBER 10

A1+
[03:19 pm] 03 November, 2006

NKR President Arkadi Ghoukasyan has signed a decree about "Fixing
the Constitutional Referendum of the Nagorno Karabakh Republic"
according to which December 10, 2006 is the day of the Referendum.

The Parliament of Artsakh adopted the draft Constitution two days ago.

ARMENIA REPORTS 46 PERCENT TRADE GROWTH WITH TURKEY

Armenpress

YEREVAN, NOVEMBER 3, ARMENPRESS: Armenia’s foreign trade in
January-September of 2006 rose 12. 1 percent to $2.208.2 billion in
real prices.

According to the latest figures of the National Statistical Committee,
Armenian exports made $699.4 million while exports surged to $1.508.7
billion resulting in an impressive foreign trade imbalance of $809.3
million. Humanitarian assistance deducted the foreign trade gap was
$772.5 million.

Nearly 29 percent of foreign trade fell on former Soviet
republics. Russia with 13.3 percent remained Armenia’s biggest trade
partner in the Commonwealth of Independent States (CIS). The share
of foreign trade with members of the European Union rose top 34
percent. Germany and Belgium were Armenia’s biggest trade partners
in the European Union with 9.6 and 7.7 percent respectively.

Growth of trader with Russia was 18.1 percent and with EU members
12 percent. Trade with USA and Israel declined 3.6 and 10.2 percent
respectively, but trade with Turkey rose 46 percent making nearly 3
percent of Armenia’s overall foreign trade.

Exports in year-over-year terms declined 0.9 percent, prompted
largely by decrease in exports of items produced from precious and
semi-precious metals while imports sprang nearly 20 percent.

IN TWO YEARS WE MAY FACE SERIOUS PROBLEMS
Norair Hovsepian

Azat Artsakh, Republic of Nagorno Karabakh
Nov 2 2006

While highlighting the necessity of developing wine growing in
Armenia we often forget about the major problems we might be facing
when the grapes ripen. There are no many processing factories in
Karabakh. For instance, Karabakh Gold, one of the biggest companies
in Karabakh, producing about 30 brands of wine and vodka, bought
about 6000 tons of grapes in 2005. The company had foreseen to buy
7000 tons in 2006, but the harvest was poor, and the company bought
only 1000 tons. In 2005, 700 tons of grapes was used for wine,
2000 tons was sold to Yerevan Brandy Factory, and 2300 tons is kept
in the factory to produce brandy. Vladik Alibabayan, the production
manager says, "Presently, the production of grapes in Karabakh must be
limited. Armenia produces the amount of grapes it needs, and does not
need to import more." A. Harutiunian, a shareholder of Karabakh Gold
says, "In two years we’ll be facing serious problems in processing
grapes. The potential of the existing factories doesn’t correspond
to the rates of development of the production of grapes. Even today
the factories are unable to keep up," he says. Another major problem
is the sale of the production of processing factories. The consumers
of Karabakh cannot consume this much. A. Harutiunian says Karabakh
can consume the production of hardly 10 percent of grapes grown
in Karabakh. Nevertheless, the company seeks to increase the sales
and the volume of processing. Karabakh Gold increases the volume of
grapes by an annual 500 tons. The company is also planning to make
new brands. In 2007 the company will produce brandy. The company
is likely to operate another factory in Stepanakert, but it will
not start buying more grapes from farmers. Arthur Gabrielian, CEO
of Artsakh Alco says, "How can the entrepreneur buy more grapes if
he is not sure what will happen to his production?" "The grapes we
produce is too much for the market in Karabakh, and Armenia doesn’t
need to import grapes." Artsakh Alco focuses on the production of
eau de vies, and only 15 percent of its production is consumed on the
local market. The rest is exported to Armenia, Russia, Ukraine and the
United States. Arthur Gabrielian says the only way out is to produce
competitive products, but the conclusion is not encouraging because no
Karabakh-based company has this possibility. "The factories inherited
from the USSR cannot guarantee a high quality, and new technologies
are costly and take time," he says. For instance, he says, if the
company has considerable achievements in the production of eau de
vies, the same cannot be said about wines. "We can also export some
amount of wines but we are not sure that it will be competitive,"
Arthur Gabrielian says. The representatives of both companies said
their companies, nevertheless, attend to the problems of the farmers,
and Karabakh Gold, which rents 100 hectares of vineyard, helps the
owners of vineyards with chemicals. The CEO of Artsakh Alco said in
2006 they opened offices in the villages of Sos and Machkalashen to
buy grapes. Next year Artsakh Alco is likely to provide farmers with
chemicals. "Buying a small amount of chemicals and having it tested
in a laboratory may be a problem for a farmer because he has to waste
considerable time, whereas for the company it is a matter of finance
but we do not suffer losses because it is included in the price of
the grapes," says Arthur Gabrielian. In other words, both the producer
and the processor are interested in the quality of their production.

Press Release
Catholicosate of Cilicia
Communication and Information Department
Contact: V.Rev.Father Krikor Chiftjian, Communications Officer
Tel: (04) 410001, 410003
Fax: (04) 419724
E-mail: [email protected]
Web:

PO Box 70 317
Antelias-Lebanon

Armenian version:

HIS HOLINESS MEETS EU FOREIGN POLICY CHIEF

His Holiness Aram I met with Xavier Solana, the European Union High
Commissioner for foreign and security policy, on his return from Geneva. The
meeting, which lasted about half an hour, was held in the VIP hall at the
Beirut airport.

His Holiness Aram I and the EU official discussed the Middle East crisis and
particularly the international efforts to end the conflict in Lebanon. Aram
I expressed his views on the peaceful ways of solving the conflict.

Catholicos Aram I had held several ecumenical meetings in Geneva, in the
past couple of days.

##

View the photo here: 2
*****

The Armenian Catholicosate of Cilicia is one of the two Catholicosates of
the Armenian Orthodox Church. For detailed information about the history and
mission of the Cilician Catholicosate, you may refer to the web page of the
Catholicosate, The Cilician Catholicosate, the
administrative center of the church is located in Antelias, Lebanon.

MINISTRY OF NATURE PROTECTION BASIN MANAGEMENT OFFICE OPENS IN THE AKHURYAN BASIN

ArmRadio.am
30.10.2006 18:03

On October 31, the USAID, with support from its implementing partner,
PA Government Services Inc. (PA), will hold an opening ceremony at the
newly rehabilitated offices of the Akhuryan Basin Management Office
(BMO). The ceremony will be presided over by Deputy Minister of Nature
Protection Hakob Matilyan and USAID Project Management Specialist
Marina Vardanyan.

The Akhuryan BMO is one of five BMOs in Armenia established in 2003
under the Water Resources Management Agency (WRMA) of the Ministry of
Nature Protection. USAID and PA, through the "Program for Institutional
and Regulatory Strengthening of Water Management in Armenia," have
been working closely to assist with development of the Akhuryan,
Sevan-Hrazdan, Ararat, and Southern Basin BMOs. The Akhuryan office
opening marks a major step forward in water resources management for
the country.

As fledgling organizations with an important mandate and diverse
responsibilities, the BMOs have developed and become fully
operational. To assist with BMO development the USAID Program has
provided numerous strategic interventions in the form of training
courses and technical expertise while also providing commodity support
in the form of office rehabilitation, computer and office equipment,
furnishings, technical equipment.

Soon this will be followed by a vehicle for the BMO’s field use. BMOs
are designated to play a critical role in water sector management in
Armenia. They are tasked with developing and implementing water basin
management plans under the National Water Policy and the National
Water Program. They also accept water use permit applications
and record water use permits issued by the WRMA while assuring
water users’ compliance with conditions set forth in the water use
permits. Developing water extraction regimes and ensuring water
resource protection are other BMO responsibilities.

One of the BMO’s new and expanding roles is to serve as a direct link
between the WRMA and the local water users served by the BMO. This
function is nascent but as the BMO grows and develops, community
and water user relations will become a core function of the BMO and
its staff.

USAID looks forward to future BMO office opening ceremonies in the
Southern, Ararat, and Sevan-Hrazdan BMOs.

NAGORNO KARABAKH PRESIDENT: "POSITION OF KARABAKH SIDE HAS NOT AND WILL NOT CHANGE"

Regnum, Russia
Oct 30 2006

"I believe that our servicemen fulfill their duties very well;
outcomes of the exercises evidently prove it once again. Our army
has risen to the occasion," Nagorno Karabakh President, Supreme
Commander-in-Chief of the NKR armed forces Arkady Gukasyan is quoted
by a REGNUM correspondent as stating after planned military exercises
were over in Nagorno Karabakh.

Commenting on Baku reaction to the maneuvers and in particular on
statements "about Armenian forces’ concentration in Agdam section,"
Arkady Gukasyan said: "It is not worth seriously to relate
to Azerbaijani mass media’s statements because they constantly
spread propaganda. Our army should always be strong, ready for any
developments. The maneuvers have been aimed exactly at achieving the
goals". Responding to question on meeting of Armenian and Azerbaijani
foreign ministers in Paris, Arkady Gukasyan stressed: "We should be
optimists because if we loose belief in talks, war will be alternative
of talks that is undesirable for both us and Azerbaijan.

Surely, we all are interested in talks’ continuation. As for outcomes,
there is no sense to speak about them because our agreement may be
approved only after its all items will be coordinated. There is no
such result yet. The more often Armenian and Azerbaijani FMs will meet
the better it will be because every such meeting is a new chance to
coordinate items on which no consensus has been achieved yet." At
that the Karabakh state head expressed hope that Nagorno Karabakh
participation in talks will be real soon: "We repeatedly stressed
that it is impossible to settle problem without NKR because there
are many questions which immediately concern Nagorno Karabakh."

Arkady Gukasyan stressed; position of the Karabakh side "has not
change and it will not change." "We know very well what we want. We
will not reject our independence and any obstacle in the problem is
unacceptable for us," the NKR president said.

THE DANGEROUS GAMES OF A NEW "TURKMENBASHI"
Haik Aramyan

Lragir, Armenia
Oct 30 2006

NKR President Arkady Ghukasyan’s statement that he is unlikely to run
a third term running not to ruin the reputation of NKR as a democratic
country, first appeared to most people as a diplomatic farce. People
who know the NKR president know that Ghukasyan started to think about
his career long ago, and the idea of prolonging his presidency has
been carried along with the incessant efforts to find an alternative
to his personality.

Arkady Ghukasyan’s personal concern can be understood. In the
current political situation it is highly difficult for any figure in
Karabakh to find a worthy place in the government of Armenia. It is
not accidental that so far these efforts have been in the trajectory
of relations with the Armenian Diaspora. They even say that the deep
conflict between Ghukasyan and Naira Melkumyan, his brother-in-arms
not long ago, now the chief executive officer of Armenia Foundation,
stems from the aspiration of both figures to the post of the chief
executive officer of the foundation.

One way or another, unfortunately for the people of Karabakh, the
question of the alternative to Arkady Ghukasyan remained up in the
air. And it is not accidental that in a very short period the NKR
government got down to the rapid adoption of the NKR Constitution.

This hastiness to appoint the day to the referendum on the
Constitution, the formal way of writing the text and the debates in
the parliament gave rise to anxiety and caused to be watchful. The
circumstance became clear that Ghukasyan has lost the hope of finding
an alternative occupation for himself and has decided to go all the
way and remain at the post of president at any price.

Realizing how complicated his plan is, considering its danger prom
the aspect of the NKR national interest, Ghukasyan decided to put
responsibility for the consequences of his unthoughtful action on the
society, and even the people of NKR. After declaring that he would
not run a third term, Ghukasyan launched the option of the "demand
of the working class" when "the masses beg Ghukasyan to remain at the
post of president and not to leave them in such a difficult time". At
the same time, they have also thought about the ideological basis of
this "request" by circulating without excess modesty the thesis of
"the foreign political irreplaceability of Ghukasyan for Karabakh".

This option is originally vicious considering that in the years of
Arkady Ghukasyan’s office Nagorno Karabakh appeared overboard of the
talks over settlement. Moreover, any leader who make head or tail of
international diplomacy should have realized that "turkmenbashism"
is a monstrous idea for a young and still unrecognized state.

Apparently, either Arkady Ghukasyan is unable to grasp the ABC of
diplomacy or by the end of his presidency he takes a step which is
known only to him, and he cannot state it publicly.

In this case, it is interesting to know the opinion of President
Kocharyan on the actions of his "superdiplomat" subject in Nagorno
Karabakh, when he watches him make the law comply with his own
interest. Or maybe Kocharyan personally "imposed" the right for
arbitrariness on Ghukasyan. Even though the accusations of "usurping
the talks" against the Armenian president are justified, they overlook
one circumstance: over these years Robert Kocharyan has unintentionally
"concealed" President Ghukasyan’s diplomatic nude. If someone else
was the president of NKR, Armenia and the international community
might have had a different approach to the participation of NKR in the
talks. If he has concealed over all those years, he may conceal now,
especially if there is a serious reason for it. Why, some people may
ask. For instance, in order to create a precedent of decision making,
when the presidents of Armenia and Karabakh deny responsibility for the
fate of Karabakh and make antinational decisions "under the pressure
of the people of Nagorno Karabakh."

Today they are threatening and misleading the public, ruining the
international reputation of NKR, tomorrow they will make people accept
the "defensive decision" on the settlement. And the presidents will
say later that we didn’t want, you compelled us.

COMSTAR UTS ANNOUNCES ACQUISITION OF ARMENIAN TELECOMMUNICATIONS GROUP

SKRIN Market & Corporate News
October 30, 2006 Monday

Comstar UTS announced the acquisition of 75% plus one share in the
Armenian transit operator CallNet, which also owns 100% of Cornet,
an ISP with an extended corporate customer base, Aton Capital said.

According to a company press release, Cornet provides Internet services
to 76% of the Armenian banking sector and is the sole provider of
WiMax services in the country. The purchase price was not disclosed,
but with $4.3mn in consolidated 2005 revenue for Callnet and Cornet,
Aton estimates it could be around $15mn. Comstar-UTS also has an
option to acquire the remaining 25% stake in the group.

Aton sees the acquisition of telecommunications assets in the CIS as
positive news for Comstar-UTS: since the IPO in February, investors
have waited for expansion outside Russia.

A1+

PRESIDENT PROMISED TO INVITE OBSERVERS
[07:32 pm] 27 October, 2006

President Robert Kocharyan had a meeting today with
the heads of the diplomatic representations of EU
member countries accredited in Armenia.

The President of the country welcomed the end of the
negotiations about the Individual Partnership Action
Plan within the framework of the European New
Neighborhood Policy and voiced hope that in November
it will finally be adopted after which the relations
between Armenia and the EU will be more systematized.

`The pack of offers introduced by Armenia testifies
that we are inclined to serious work and expect joint
efficient activity’, the head of the country
mentioned.

During the conversation a reference was made to the
coming elections in Armenia. The sides underlined the
necessity of free and fair elections. Robert Kocharyan
said that he will invite both long-term and short-term
international observation missions to Armenia for
monitoring the course of elections.