Author: Tambiyan Samvel

The Messenger, Georgia
Nov 16 2004
Electricity imports to continue
Ministers dismiss claims that Telasi’s import agreement corrupt
By Christina Tashkevich
Imports of electricity from Armenia will not be stopped, as had
previously been suggested, while imports from Russia will begin in
the next few days, Minister of Energy Nika Gilauri said on Monday.
On Friday Telasi returned the license it received just two weeks ago
from the National Energy Regulation Commission (GNERC) after
accusations against the company’s import contracts.
Director General of Telasi Dangiras Mikalajunas explained the
company’s decision to return the license relates to a recent letter
sent by the Energy Ombudsman David Ebralidze to the General
Prosecutor of Georgia.
Ebralidze together with the MP Gia Natsvlishvili blamed Telasi for
signing one-sided agreements on imports from Armenia and Russia which
were profitable for Armenia and Russia but not for the Georgian
government. The letter claimed that the price of one imported
kilowatt/hour had been increased by 0.15 U.S. cents.
On Friday Mikalajunas said the Georgian government must evaluate this
letter and then decide over the future of electricity imports from
Armenia.
As a result, on Monday Minister Gilauri met with Minister of Security
Vano Merabishvili, General Prosecutor Gia Adeishvili and Director
General of Telasi Dangiras Mikalajunas to discuss the situation over
Telasi and electricity imports.
After the meeting, Gilauri stated that the imports from Armenia would
continue, while Merabishvili stated that Telasi received a full
guarantee from the government at the meeting that “there would be no
problem with importing electricity into the country.”
“There are forces in Georgia who do not want Tbilisi to have a
24-hour electricity supply,” Merabishvili said, adding however that
law enforcers “are currently studying the statements” made in
Ebralidze’s letter.
Telasi’s press officer told The Messenger on Monday the government
expressed its support to Telasi, saying, “there was no corrupt deal
behind the electricity imports from Armenia.”
Telasi said that while it was true that the price of imports has
increased comparing with last year, this is “a worldwide matter.”
The company, which distributes electricity to Tbilisi, claims,
however, that there is no item in the agreement which prohibits
Telasi from raising the price of imported energy.
Telasi also confirmed that imports from Russia will begin in a few
days, leading Deputy Minister of Energy Aleko Khetaguri to state at a
press conference on Friday that Tbilisi will receive electricity
without limitations.
Last Wednesday, November 10, Prime Minister Zurab Zhvania threatened
minister Gilauri by saying that unless problems in the sector were
resolved in two weeks, the minister would face dismissal.
Minister Gilauri responded that the ministry has formulated a plan
for improved payment collection, as well as a schedule for
electricity distribution, whereby the regions will receive eight
hours per day, large cities 18 hours, and the capital 24 hours of
electricity.
“Such schedules will be formulated monthly and will be published in
regional newspapers and also will be announced by television and on
the internet. In this way the population will be able to check the
schedule of their region or city,” stated Gilauri.

MOSNEWS, Russia
Nov 15 2004
How to Deal With a Russian Hangover
Polina Moroz
MosNews
For one reason or another, what people know about Russia is often
linked to alcohol. Experience of Russian drinking culture is the
subject of one well known joke, when a foreigner writes in his
journal: `Monday. Drank with the Russians. Tuesday. Almost died.
Wednesday. Drank with the Russians some more. Thursday. Should have
died on Tuesday.’ So it is necessary to give homage to the way Russia
deals with the after-effects of drink, both on a national and a
personal level. The misery of a hangover has not changed for
centuries, neither has the campaign against misbehaving drunks, so
the question of post-drinking blues has a long history.
People that roam the city after their drinking escapades risk ending
up in a vytrezvitel, a ‘drunk tank’, a place that has inspired fear
in generations of Russians. It was conceived as an institution in
tsarist times, the first one opening in 1902 in Tula to save local
army men from freezing to death after their squad had a bit too much.
It was reinstated in the Soviet Union in 1931 and came under the
control of the Interior Ministry in 1940.
During the prohibitionist years, the police had a daily norm of
picked-up drunks. They drove around in a special wagon nicknamed a
kopilka (piggy bank) and singled out people that threatened public
safety: quite often the victims were chosen at random, especially on
cold nights when the patrols got tired and bored.
Even though prohibition was short-lived in Russia, putting stray
drunkards into the kopilka is still in practice; moreover, it’s
profitable for the officers. When morning comes to the vytrezvitel
and you find out that half of your money was gone overnight, the
police cheerfully tell you to be more careful next time you go out to
a bar. After all, it’s not called a piggy-bank for nothing!
If you manage to get home without event, there are a few traditional
Russian hangover cures for the morning-after that have been popular
for centuries. The most popular is the brine from either pickles or
Russian sauerkraut (called rassol in Russian) as it contains the
necessary potassium and magnesium. Another handy liquid is kvass,
which is a brown malt beverage made of fermented rye bread.
Many Russians believe that it’s better to fight fire with fire and
sip warm beer from the night before, but there is the risk of getting
carried away and continuing the previous night’s debauchery and
spiralling into the vicious circle of a zapoy, or drinking binge.
For the more ambitious, there are also Russian hangover cocktails
that juggle the classic ingredients like eggs, spices and tomato
juice. For one, known as `Sick head,’ the directions are as follows:
you have to cover a glass with a thin coat of vegetable oil, break
one egg into the glass, a pinch of salt, and red and black pepper.
Pour in two tablespoons of vodka and mix well. Close your eyes and
nose, forget what is in the glass, and gulp down the contents. After
the procedure the victim should lie down and rest with a cold towel
over the forehead.
There is also traditional hangover food. The classic greasy burger
and shake never really took off in Russia, but there is one dish that
is recognized as a guaranteed hangover remedy. It is a thick stew
called haash, which actually comes from the Caucasus and is even
served in Moscow’s Armenian restaurants on January 1st to alleviate
the morning-after misery. Haash is a pain to prepare: you have to
cook tripe and beef trotters for six hours and consume the result
with radish and a lot of garlic.
Another curing `snack’ was allegedly discovered by Tsar Nicholas II,
and is called `Nikolashka’: take a slice of lemon, put a teaspoon of
sugar and a teaspoon of coffee on top, and eat in one bite.
All of these may be helpful and tested by generations of Russians,
but when that morning comes, most people can’t find the strength to
prepare a complicated recipe. Some opt for `Alka-Seltzer and sleep’,
others put instant coffee into coca-cola, and some, like my friend
Alina, choose `rassol and a guillotine’.

Russia’s Gazprom drops plans to bid for Iran gas field development
ITAR-TASS News Agency
November 12, 2004 Friday 2:49 AM Eastern Time
MOSCOW, November 12 — Russia’s company Gazprom has dropped plans to
take part in biddings for the construction of facilities at Iran’s
South Pars gas field.
A member of Gazprom’s law department, Sergei Kuznetsov, said “we
have held preliminary talks, have taken a look at the economy of the
project and have passed the decision not to send a binding bid for
the participation in the tender”.
He added that Gazrpom was interested in Armenia’s energy projects.
In particular Gazprom is considering a possibility of taking part
in the construction of a gas pipeline from Iran to Armenia and in
privatisation of Georgia’s stretches of gas pipelines linking Russia
and Armenia.
If terms of denationalisation in Georgia suit Gazprom, the company
will find it promising to take part in privatisation of a mains gas
pipeline and gas distribution companies, Kuznets said.
This is “important for Gazprom, as these gas pipelines link Russia
with Armenia”, PRIME-TASS quoted him as saying.

ARMENIA ADVOCATES AGREEMENT ON IGLA, STRELA SYSTEMS
RIA Novosti, Russia
Nov 12 2004
YEREVAN, November 12 (RIA Novosti’s Gamlet Matevosyan) – The
Armenian government advocates signing of the agreement on exchange of
information between the CIS member states on sold (handed over) and
acquired Igla and Strela anti-aircraft defense systems, RIA Novosti
learned from the Armenian government’s PR and press department.
In September 2003 CIS heads of state endorsed and adopted at the Yalta
summit decisions on measures to control sale of portable anti-aircraft
defense systems like Igla and Strela within the Commonwealth of
Independent States, as proposed by the Russian Defense Ministry
and taking into account the results of the G8 Evian summit in June
2003. Then Turkmenistan was the only country not to sign the agreement
referring to its neutral status.
“Everyone understands how dangerous the weapons are and that they are
already used by all kinds of terrorists,” Russian Defense Minister
Sergei Ivanov emphasized then.
Every CIS member undertakes to inform others about exports and imports
of the systems, as well as to provide information about systems it has,
he explained.
The authorized body from the Russian side is the Defense Ministry’s
committee for military and technical cooperation.
The work on the decision was intensive, but hard, the minister
pointed out. At first Georgia, Ukraine and Azerbaijan had objects,
but later were convinced in the need to take the decision, which is in
line with interests of all states in the fight against international
terrorism. The minister believes the decision is a great accomplishment
of the CIS Yalta summit.

Russia, CIS remain traditional markets for Armenian brandy
ITAR-TASS, Russia
Nov 10 2004
YEREVAN, November 10 (Itar-Tass) – Counties of the Commonwealth of
Independent States (CIS) are still traditional markets for Armenian
brandy, although products of Yerevansky Konyachny Zavod (Yerevan
Brandy Plant) are supplied in minor quantities to Japan, the United
States and Europe, the plant’s director general Erve Karoff said.
According to him, about 70 percent of the plant’s products are sold
in Russia.
The plant’s second largest sales market is Ukraine, third – Armenia.
Brandy price rise in mid-2004 has not affected the sales volume, the
director said. He pointed out that the price growth has been
determined by the market situation.
According to Karoff, the plant’s sales volume will exceed four
million litres this year, which will be slightly above last year’s
level.
He also said the main part of grape purchases for Armenian brandy is
made in Armenia. A small portion of grape has been purchased in
Nagorno-Karabakh this year.
Karoff said in 2005 Yerevan Brandy Plant will start a new line of
products. The plant will change the trade dress of its products –
bottles and labels.
The changes will be made for the sake of market promotion. The new
line of Armenian brandy Ararat will be presented in Russia, Ukraine
and Armenia next spring.
The plant general director said the changes are also made for the
sake of fighting counterfeit. According to him, the volumes of
counterfeit products has considerably dwindled since the plant was
purchased by Pernot Ricard French group in 1998.
Karoff recalled a number of illegal companies producing Armenian
brandy in Russia were eliminated through court.
The Yerevan Brandy Plant head said the strategy of the distillery is
aimed at market promotion of its premium brandy – Akhtamar and VSOP
Nairi. This year the plant has increased the sale of these very
brands.

Azerbaijan says officer killed along Nagorno-Karabakh ‘line of control’
Associated Press Worldstream
November 8, 2004 Monday 10:17 AM Eastern Time
BAKU, Azerbaijan — An Azerbaijani army officer was killed in firing
along the no man’s land separating the country’s military from
ethnic Armenian forces in Nagorno-Karabakh and surrounding territory,
Defense Ministry spokesman Ilgar Verdieyv said Monday.
He said the officer died Sunday in the Agdam region. Agdam is
a destroyed, deserted city within territory occupied by ethnic
Armenian forces.
Armenian forces drove the Azerbaijani army out of Nagorno-Karabakh,
an ethnic Armenian enclave, in the 1990s and took control of several
areas outside the enclave as well. Since a 1994 cease-fire, the sides
have been separated by the so-called “line of control,” a demilitarized
buffer zone, but occasional shooting breaks out and each side accuses
the other of mounting small incursions.
Negotiators under the auspices of the Organization for Security
and Cooperation in Europe are trying to work out an agreement on
Nagorno-Karabakh’s final status, but no visible progress has been made
in recent years and Azerbaijani President Ilham Aliev has repeatedly
raised the prospect of military action if no negotiated solution
is reached.
Also Monday, an Armenian organization issued an appeal to the OSCE
negotiators to press Azerbaijan for information about Armenians and
Nagorno-Karabakh residents who disappeared during the conflict.
The appeal did not specify how many such people are believed held,
but other estimates have placed the number at several hundred.

BISNIS Trades & Tenders
10/08/04 – 11/05/04
BISNIS Trades & Tenders program designed to help U.S. companies secure
export transactions and take advantage of tender opportunities in the
region. Trades & Tenders summary reports are distributed via email. To
search previously distributed Trades & Tenders leads online, visit
This issue of BISNIS Trades & Tenders includes opportunities in:
– Agribusiness
– Food Products and Services
** Companies replying to these leads should consider using the BISNIS
FinanceLink program, which distributes information about planned
transactions seeking financing to organizations open to financing
business activities in the region. Please see:
**
*********************
AGRIBUSINESS LEADS
MSM Group – Sausage casings – Yerevan, Armenia
For more information on the Agribusiness Sector in the NIS, please
contact Charles Raether at BISNIS at [email protected]
**************************************
FOOD PRODUCTS AND SERVICES LEADS
Tbilisi LLC – Unrefined soybean oil, Yerevan Armenia
For more information on the Food Products and Services Sector in the
NIS, please contact Charles Raether at BISNIS at
[email protected]
These opportunities are provided solely as an informational service and
do not represent an endorsement by the U.S. Department of Commerce.
Verification of these leads is the responsibility of the reader.
INTRODUCING U.S. DEPARTMENT OF COMMERCE TRADE ADVOCACY CENTER:
The Advocacy Center is a unique, central coordination office marshaling
the resources of nineteen U.S. government agencies in the Trade
Promotion Coordinating Committee (TPCC). The Advocacy Center encourages
U.S. companies to contact the Center at the outset of their projects.
Early contact enables the Center to offer U.S. government assistance
throughout the life of a project to ensure that U.S. companies benefit
from the same level of coordinated government support as their foreign
competitors receive from their host governments, particularly in the
initial stages of a project.
The Advocacy Center Contact Information:
Phone: 202/482-3896
Fax: 202/482-3508
Email: [email protected]
Web:
This report is provided courtesy of the Business Information Service for
the Newly Independent States (BISNIS). BISNIS is the U.S. Government’s
primary resource center for U.S. companies exploring business
opportunities in Russia and other Newly Independent States of the former
Soviet Union. BISNIS website:

South China Morning Post
November 4, 2004
Mario’s home goes against the grain
Paggie Leung
While most people are happy to buy plastic furniture, Mario Joao
DeSouza refuses to have such items in his house.
The 40-year-old partner in a furniture shop is in love with the beauty
of wood.
“History,” he says when explaining why he is so fond of classy old
furniture. “It’s because I’m from a refugee family.”
Mr DeSouza speaks fluent Cantonese and says he is an Armenian, although
he was born in Macau and holds a Portuguese passport. His family had
been running for their lives from country to country, first migrating
from Armenia to Mexico, and then moving from Shanghai to Macau “because
of communism”.
When he was five, he moved to Hong Kong, where he has spent most of his
life. “Refugee families need their homes, their temporary homes.
Whenever they go it’s never their original homes, never where they came
from, so you lose a lot of history and miss stories of the past and the
faces,” he says.
“With old furniture in your house or even new furniture that you
cherish, you can rebuild the history. I guess that’s important,
especially for the new generation.”
So when he got a chance to renovate his house about two years ago, he
looked for old Chinese or rustic Indonesian furniture – items he
believes that can last for hundreds of years.
He consulted his friend Jonathan Chong, who sells furniture made from
recycled and old wood. Attracted by the beauty and longevity of the
traditional pieces at the shop, he joined with Mr Chong to develop the
furniture business.
“There’s no way you can own all of them but there’s a way to get in
contact with them – that is to join the business,” he says.
Mr DeSouza has no plastic furniture in his home and is very much
concerned about environmental protection and energy conservation. He
says he tries to recycle as much as possible – glass, plastic, paper –
and criticises Hong Kong people for being too wasteful.
“The throw-away culture is very strong. It’s a very fashion-conscious
city, constantly trying to obtain new things to outdo the people around
them, and this creates a lot of waste,” he says, adding that other than
Japanese, Hongkongers are the only people in the world who change their
mobile phones every six months.
Pointing out that pollution in Hong Kong is getting worse, Mr DeSouza
says the government should take the lead in protecting the environment,
and promote the use of alternative energies.
“I will definitely leave this city if the pollution problems go on,” he
says, although Hong Kong is the place he likes most. “I don’t want to
suffer from that.”
GRAPHIC: (Photo: Jonathan Wong); After his family’s rootlessness, Mario
Joao DeSouza has come to value old furniture for the permanency it
gives to a home.

Russia nearly the last in CIS in GDP growth, A.Illarionov said.
Gateway 2 Russia, Russia
Oct 28, 2004
Russia is ranked one of the last amid CIS in the GDP growth, Andrei
Ilarionov, an aide to the RF President Vladimir Putin, said at the
investment conference today.
Calculated for 4 years and with 9 months of 2004 taken into account,
the cumulative growth of the GDP stood at 26.2%, though the indicator
was up 53% in Armenia. Russia’s GDP grows 6% annually, on average.
These are not bad indicators, however Russia is the 9th amid 10
countries of CIS with data provided, the aide said.

ASHOT GHULIAN-STEVEN MANN MEETING IN WASHINGTON
Azg/am
28 Oct 04
According to Mediamax news agency, in the end of the last week, Ashot
Ghulian, NKR foreign minister, met with Steven Mann, US co-chair of
OSCE Minsk group, in Washington. In the course of the meeting, the
prospects for the settlement of Nagorno Karabakh issue were discussed
and the participants of the meeting touched on the factors hindering
the peaceful solution of the problem.
“Particularly, we touched upon the militant statements made by
Azerbaijan and the country’s official policy that arouses hatred
towards the Armenian nation,” ministry informed. Ghulian emphasized
the importance of utilizing the potential of the publicities involved
in the conflict, which doesn’t work as a result of Azerbaijan’s
position. Steven Man said that displaying the political will among
the sides in conflict, as well as beneficial public opinion are the
necessary preconditions that secure achievement of the final peace.
Ashot Ghulian left for the USA to participate in the conference of
representatives dedicated to Nagorno Karabakh conflict settlement and
held at Michigan University. Particularly, Tofik Zulfugarov, former
Azeri foreign minister, Vladimir Kazimirov, RF former diplomat,
and other experts on Nagorno Karabakh conflict held speeches at
the conference.