Author: Tambiyan Samvel

ARMENIA: GAS PRICE HIKE POSES CHALLENGE FOR GOVERNMENT
Marianna Grigoryan

EurasiaNet, NY
April 24 2008

While striving to repair the rift created by the March 1 political
violence in Yerevan, Armenia’s new government is confronting a new
challenge over rising natural gas prices.

In his first press conference as prime minister, Tigran Sarkisian
announced on April 18 that the government will lift natural gas
subsidies beginning May 1, meaning retail gas prices will increase
from the current 59 drams per cubic meter (about 19 cents) to 84 drams
(about 27 cents).

In April 2006, the government opted to subsidize prices for imported
gas in a bid to soften the burden placed on private consumers and
companies. Officials indicated that roughly $190 million dollars from
the 2006 sale of Unit No. 5 of the Hrazdan Thermal Power Plant would
be allocated to cover the subsidy for three years. But now, almost a
year ahead of schedule, the government is saying that funds for the
subsidy have run out.

In April 18 remarks on Public Television, Energy Minister Armen
Movsisian told viewers that "an unprecedented growth in gas consumption
meant that just under $2 million from that amount remained by the
beginning of this year.

"As a result, the compensation was to have been discontinued in
January, but on [then] Prime Minister Serzh Sarkisian’s immediate
instruction, measures were taken to ensure the continuation of the
compensation until the end of the heating season," Movsisian said.

Measures are reportedly in the works to provide compensation to 130,000
families "to protect the socially vulnerable strata [of society] from
rising prices," according to Prime Minister Tigran Sarkisian. How
these families will be defined is not yet known in detail.

Some economists say that the higher gas prices could carry heavy
consequences for many Armenians. Over 26 percent of the population
still lives beneath the poverty line, according to official
figures. "No matter how much authorities speak about ‘targeted
measures’, the increase in gas prices will badly hit people’s wallets,"
pro-opposition analyst Aghasi Yenokian commented. Increased political
tensions will be the result, he added.

Slavonic University economist Eduard Aghajanov fears a domino
effect. "The increase in the gas price will entail a sharp increase
in prices for consumer goods, building materials [and] cargo
transportation," Aghajanov said. "People, especially pensioners and
needy people, will find themselves in quite a hard situation."

Yerevan State University professor of economics Tatul Manaserian
believes there will be an adverse impact on agricultural product
prices and the competitiveness of those products geared for export. A
value-added tax on agricultural products which goes into effect in
2009 will add to the burden, he says. "[I]t becomes clear what the
future holds in store both for village farmers and town residents,"
Manaserian said.

Government officials were not available on April 24, a national
holiday in Armenia, to respond to the criticism.

Prime Minister Sarkisian, however, has stated that it is impossible to
protect against increases in energy price, since Russia has adopted
a clear policy of liberalizing the market. Russian company Gazprom,
which supplies Armenia with gas, recently agreed to raise the prices
it pays for imported natural gas from Central Asia to "European"
levels. [For background see the Eurasia Insight archive].

Many pensioners are having a hard time coming to grips with the new
reality. Pensions were increased the month before Armenia’s February
presidential elections, but many elderly Armenians complain that they
are still scrambling to keep up with steadily rising prices for food
and utilities. "Inflation is so high that at present . . . we simply
run up big debts," complained Yerevan pensioner Gayane Hakobian,
who receives a pension of 13,000 drams (about $42) per month.

The International Monetary Fund in February announced that Armenia’s
6.6 percent inflation rate was the lowest of any country in the
Commonwealth of Independent States. The IMF’s Armenia representative
Nienke Oomes noted, though, that if gas subsidies were removed,
inflation would likely take a big jump. Armenia’s economy grew by
13.8 percent in 2007, according to official figures, but wages have
not managed to keep up with price increases. The average monthly wage
stands at just over $242, or about 75,000 drams.

Individuals interviewed by EurasiaNet complained bitterly about
the move. For example, Hasmik Harutiunian, who lives in western
Armenia’s Armavir region, said that her family installed gas heating
in their home last winter thinking that they would be able to heat
their house at a more affordable price. With the subsidies gone, so
are the potential savings, she said. The family now faces potential
costs of 40,000 dram (about $146) on a monthly budget of 110,000 drams
($356). "[I]t is not clear why the authorities could not keep their
promise and subsidize people for another year."

Despite the broad gulf that divides the government from
opposition political forces, exacerbated by the March 1 events,
some administration critics nevertheless applauded the move to
lift subsidies. Suren Sureniants, a member of the Republic Party’s
political council, described the subsidies as "artificial assistance
from the state, and mostly unrealistic from the point of view of
economic development."

APPLICATION OF MICROSOFT TECHNOLOGIES TO ALLOW ARMENIA CREATING ABOUT 2,000 JOBS OVER 1-2 YEARS

ARKA
April 23, 2008

YEREVAN, April 23. /ARKA/. Application of Microsoft technologies will
allow Armenia creating about 2,000 jobs over 1-2 years, Microsoft
Armenia Country Manager Grigor Barseghian said.

Quite extensive works need to be carried out for this, particularly
in terms of education and training of young specialists, Barseghian
said at the signing of the agreement with "Haypost" company.

The Microsoft has already established cooperation on this matter with
a number of Armenian higher schools, Barseghian said.

Under the agreement, the Microsoft will communicate its experience
to its Armenian partner, apply advanced technologies in the work of
"Haypost" and help the company train the personnel. The value of the
agreement is a commercial secret. The document provides for a serious
policy of up to 15% discounts.

Barseghian refuted the popular view that application of IT in economy
brings to reduction in jobs. The format of the personnel activities
is changed and the staff is trained, he said. Microsoft representative
office was opened in Armenia in 2006.

"Haypost" closed joint stock company is the national post operator
of the Republic of Armenia. It has 900 post offices and 41 regional
departments throughout the country. The company’s staff is 4,000
people.

Under the agreement of November 30 "Haypost" was transferred in trust
to the Dutch "Haypost Trust Management" company.

TIGRAN DAVTIAN APPOINTED RA MINISTER OF FINANCE

Noyan Tapan
April 22, 2008

YEREVAN, APRIL 22, NOYAN TAPAN. Tigran Davtian, the former RA Deputy
Minister of Trade and Economic Development, the Director General of
the Armenian Development Agency since September 2007, was appointed
RA Minister of Finance. Noyan Tapan was informed about it by the RA
President’s Press Office.

ARMENIAN TEAM IN FIRST PLACE BY NUMBER OF MEDALS WON AT EUROPEAN WEIGHT-LIFTING CHAMPIONSHIP

Noyan Tapan
April 21, 2008

YEREVAN, APRIL 21, NOYAN TAPAN. The European Weight-Lifting
Championship ended in the Italian city of Lignano. Armenian sportsman
Ara Khachatrian (77 k, city of Gyumri) lifted 165 kg (snatch) and
won a gold medal. He also won a bronze in clean and jerk (191 kg),
while in the double-event he took second place (361 kg) and received
the title of vice-champion. Tigran V. Martirosian (85 kg, Gyumri) won
three gold medals by showing the following results: 172 kg (snatch),
205 kg (clean and jerk) and 377 kg (double-event).

Edgar Gevorgian (94 kg, city of Vanadzor) won a silver medal and took
second place in snatch (176 kg).

Thus the national team of Armenia won 17 medals: 13 golds, 3 silvers
and one bronze at the European Weight-Lifting Championship and took
first place by the number of medals won by the national teams.

‘WINE CENTERS’ SHOULD BE OPENED AT DIPLOMATIC MISSIONS OF ARMENIA IN RUSSIA TO STRENGTHEN THE POSITIONS OF ARMENIAN WINE IN ABROAD

arminfo
2008-04-21 18:05:00

ArmInfo. ‘Wine centers’ should be opened at diplomatic missions and
trade offices of Armenia in Russia to strengthen the positions of
Armenian wine in abroad, Chairman of the Union of Armenian Winemakers
Avag Haroutunyan says.

‘For instance, Armimport organization at the Armenian Trade Office
in Moscow organizes presentation of Armenian wine. However, it is
insufficient for such a big market as the Russian. In case of good
marketing, much can be achieved’, he said. Haroutunyan believes that
tax privileges for import of equipment may become another step to boost
wine industry. ‘If importers of winemaking equipment were exempted
at least from VAT, it would greatly help the branch to develop’,
A. Haroutunyan says. He is sure that lack of up-to-date equipment is
the key obstacle to upgrading wine industry in Armenia.

ARMENIA TREE PROJECT
65 Main Street
Watertown, MA 02472
Toll Free: (866) 965-TREE
Email: [email protected]
Web:

PRESS RELEASE
April 21, 2008

Armenia Tree Project Concludes Spring Planting Season at Tsitsernakaberd and
90 Other Sites in Time for Earth Day Celebrations

YEREVAN–Every day is Earth Day for Armenia Tree Project (ATP). Upon the eve
of Earth Day this month, ATP completed its spring planting of 23,385 trees
at 91 sites around the country. ATP planted 22,085 decorative and fruit
trees from its Karin and Khachpar nurseries, as well as 1,300 pine trees
>From the Mirak Family Reforestation Nursery in Margahovit.

"We are proud of the work of our Community Tree Planting program which
plants trees all over Armenia, from public sites in Yerevan to rural
villages around the country," stated Executive Director Jeff Masarjian.
"Each year we are especially proud to accomplish this work in time for Earth
Day, which is celebrated around the world on April 22, although our
environmental restoration programs are conducted throughout the year."

ATP has continued its partnerships with a number of institutions and
community sites in Armenia this spring, including the Tsitsernakaberd
Genocide Memorial, the Sardarabad Museum, and the Diaconia Settlement of
Hope. Tsitsernakaberd received more than 800 new trees, including 100
indigenous ash trees planted on April 12 in collaboration with HSBC Bank’s
Climate Partnership program.

In the field of environmental education ATP plans to train another 540
public school teachers this year to use its "Plant an Idea, Plant a Tree"
curriculum, and already more than 120 teachers have participated in seminars
in Yerevan, Sisian, Goris, and Gyumri. ATP also planted 50 trees at the
Berdzor Reception House, which is located in the strategic Lachin Corridor
linking Armenia with Karabagh.

"This work is vital for Armenia’s future because the country has less than
eight percent forest cover as highlighted in a recent study conducted by the
Economy and Values Research Center," noted Masarjian. "Deforestation is a
significant environmental threat because of its impact on ecosystem
habitats, its role in biodiversity loss, and lost revenue from the
associated benefits of forests."

"Our work seeks to reverse this trend, and we’ve been successful in planting
and restoring more than two million trees at over 725 sites around Armenia
and Karabagh since 1994," added Masarjian. "We’ve made a pledge to the UN
Environment Program’s Billion Tree Campaign to plant at least 650,000 trees
in Armenia this year."

Since 1994, ATP has planted and restored more than two million trees and
created hundreds of jobs for impoverished Armenians in tree-regeneration
programs. The organization’s three tiered initiatives are tree planting,
community development to reduce poverty and promote self-sufficiency, and
environmental education to protect Armenia’s precious natural resources. For
more information, visit the ATP web site at

PHOTO CAPTIONS

Armenia Tree Project has pledged to plant another 650,000 trees in Armenia
this year as part of the UN Environment Program’s Billion Tree Campaign; ATP
has already planted 23,385 trees this spring at 91 sites including the
Yerevan State Medical University (ATP Medical University planting April
2008.jpg)

ATP has continued its partnerships with institutions and communities in
Armenia this spring including the Tsitsernakaberd Genocide Memorial, the
Sardarabad Museum, and the Diaconia Settlement of Hope; these children
participated in a planting in Lernanist Village on April 11, 2008 (ATP
Lernanist Village planting April 2008.jpg)

ANC-PAC HOLDS FUNDRAISER FOR REPUBLICAN CONGRESSMAN FROM ILLINOIS

armradio.am
21.04.2008 10:40

Friends and supporters of the Armenian National Committee – Political
Action Committee (ANC-PAC) gathered at the California Club in downtown
Los Angeles to support the reelection campaign of Congressman Mark Kirk
(R-IL).

The Congressman, who has long been a staunch supporter on Armenian
issues in the U.S. House of Representatives, is a member of
the powerful House Committee on Appropriations. He serves on the
spending committee’s State, Foreign Operations and Related Programs
subcommittee, which sets spending levels for all U.S. foreign aid
programs, including those for Armenia and Nagorno-Karabakh.

"Congressman Kirk is a strong ally of the Armenian Cause on Capitol
Hill," commented ANC-PAC Chairman Armen Martin after the event.

"Congressman Kirk’s reelection this November is one of the ANC-PAC’s
foremost priorities. The ANC-PAC, which has always stood by our friends
in Congress, is proud to be backing the Congressman’s congressional
campaign," he added.

Congressman Kirk represents the 10th Congressional District of Illinois
located in the suburbs north of Chicago. The Congressional District
is home to thousands of Armenian American constituents, All Saints
Armenian Church and Community Center, and a very strong chapter of the
Armenian National Committee. During the last election cycle in 2006,
Kirk received a grade of "A" from the Armenian National Committee of
America’s congressional report card.

Also in attendance, was a representative from The National Organization
of Republican Armenians (NORA), Peter Musurlian. "NORA appreciates
Congressman Kirk’s efforts on behalf of his constituents," remarked
Mr. Musurlian. "His strong support for U.S. assistance for Armenia and
Nagorno-Karabagh and his role in carefully examining whether our tax
dollars should be spent to prop up the oil oligarchy in Azerbaijan,
is very much appreciated by NORA’s thousands of supporters in Illinois
and across the nation," Musurlian added.

Now in his fourth term, Congressman Kirk was first elected to Congress
in 2000 with the strong support of the Armenian American community. In
his first election, he faced over a dozen opponents in the Republican
Primary.

As he well remembers, Armenian American voters came out in record
numbers to give him the boost he needed to win the primary and then
succeed in the general election months later. The Congressman’s
familiarity with Armenian issues began nearly two decades ago when he
started his political career as an aide to Congressman John Porter,
the founding chairman of the Congressional Caucus on Armenian Issues.

Congressman Kirk is a Naval Reserve intelligence officer who served
during conflicts with Iraq, Haiti, and Bosnia. He served four tours
at sea and three in Panama. The U.S. Navy named Kirk ‘Intelligence
Officer of the Year’ in 1999 for his combat service in Kosovo. Kirk
flew on missions over Iraq and continues to serve one weekend a
month in the Pentagon. Kirk is the only member of Congress to serve
stateside during Operation Iraqi Freedom and was an air crewman over
Iraq during Operation Northern Watch.

HOW MANY BOSSES EACH WORKER SHOULD HAVE

KarabakhOpen
19-04-2008 16:37:30

The quarterly statements of all the companies are submitted to one
officer.

And since the period of submission is only 20 days, every quarter
accountants stand in line in the narrow and dark corridor of the tax
service where there are no romantic benches and candles. The mood of
the accountants is not romantic either: there is nothing pleasant
about standing in line for hours. They even do not want to talk to
their colleagues.

Instead, the only tax officer has a lot of bosses. They all have
light offices, with security in front of the doors, who still need
to think to let you in or not.

There is no logic in this bureaucratic administration. The government
says there are too many unnecessary positions which must be eliminated,
as a result the supervisory positions remain while those positions
which directly deal with customers are becoming fewer and fewer.

The bureaucratic culture in Karabakh is hypertrophied. Bosses of
all kinds and sizes acknowledge their importance and demand special
attitude toward them. For instance, the issue is discussed very
seriously whose salary the cashier must bring to the office, and who
must go to the cashier to get the money earned in the sweat of their
brow. Or who has the right to call to their office. For instance,
can the head of a department of the government invite to his office
the deputy-chair of the parliament committee?

And cars are already an unsolvable issue. For instance, the officials
are going to visit a region. They are seven and can go in two
cars. But how can a minister sit on the back seat of the car of the
other minister? So seven cars ride to the region, one minister in each.

And while the high-ranking officials are racking their brains over
these complicated issues, the only officer of the tax service patiently
explains to the anxious accountants the peculiarities of book-keeping
in Karabakh.

Speaker of Armenian parliament: "Borders of our country begin with the borders of "Nagorno Karabakh Republic""

Today.Az, Azerbaijan
April 19 2008

19 April 2008 [10:17] – Today.Az

A session of the commission for interparliamentary cooperation of
the so-called "Nagorno Karabakh Republic" and Armenia is going on in
Nagorno Karabakh.

Ashot Gulyan, "chairman" of the "National Assembly" of the unrecognized
"Nagorno Karabakh Republic", stressed the need to deepen cooperation
between the parliaments of both countries in line with modern
requirements.

"The speaker" noted that the current session differs with being held
on the background of discussions on Nagorno-Karabakh problem in the
parliaments of Armenia and the so-called "Nagorno Karabakh Republic".

The speaker of Armenian parliament Tigran Torosyan also stressed need
for further deepening of cooperation between the legislative bodies
of both Armenia and "Nagorno Karabakh Republic".

"Each man of sense is aware that the borders of our country begin
from the borders of the "Nagorno Karabakh Republic". The visit to
Stepanakert (Khankendi) is a happiness, joy and honor. Each visit
here is important. We have come to listen to you and we will certainly
take your opinion into account in our work".

Touching upon the issue of European integration, Torosyan noted:
"This is not a fashion, we should clarify what is important to us
and assimilate the system of values, which is close to us".

The meeting with "Prime Minister" of the unrecognized separatist
formation Ara Arutyunyan and teaching staff and students of the
Karabakh State University was also held.

/Regnum/

URL:

THREE MORE MINISTERS OF RA GOVERNMENT REAPPOINTED ON THEIR POSTS

Noyan Tapan
April 18, 2008

YEREVAN, APRIL 18, NOYAN TAPAN. By the April 17 decrees of Serge
Sargsian, the President of the Republic of Armenia, Hasmik Poghosian
has been appointed Minister of Culture, Levon Mkrtchian Minister
of Education and Science, and Vardan Vardanian Minister of Urban
Development. This information was provided to Noyan Tapan by the RA
President’s Press Office.