Author: Tatoyan Vazgen

Aravot, Armenia
Feb 6 2008

Inconsistency: Authorities and opposition change their opinion

by editor-in-chief Aram Abrahamyan

Until recently authorities have considered [leader of the Orinats
Yerkir party and presidential candidate] ArturBaghdasaryan not a bad
lad and directed all their hatred and spite against the first
Armenian president [andpresidential candidate] Levon Ter-Petrosyan.
Accidentally, something is not quite clear here: if the
governmentcandidate’s rating is 55 per cent [according to opinion
polls], and Ter-Petrosyan’s one – 5 per cent, thelatter can be
completely forgotten and his statements may not be paid attention to.
However, either the opinion pollsare not trustworthy, or the first
president’s criticism reaches the target and hits hard our
bureaucrats’gentle hearts.

But as soon as it became known that Ter-Petrosyan and Baghdasaryan
may unite, and the Orinats Yerkir party has beenmanaging to conduct
mass rallies, it turned out that the Orinats Yerkir party leader is
not that good. Out of the river of smear aimed at the first
president, a "small spring" was directed at Mr Baghdasaryan. One
more"spring" will run in [leader of the Heritage party and
presidential candidate] Raffi Hovhannisyan’sdirection.

Politics, needless to say, is a cruel thing, and the pre-election
period particularly is not a time for niceties -politicians spare
neither one another’s, nor our [listeners] ears. But politics is not
only a cruel thing, butversatile as well. When Artur Baghdasaryan
acted alone and took away votes from Levon [Ter-Petrosyan], he was
good. Now Baghdasaryan has turned into a bad guy. Likewise, two years
ago [leader of the National Unity party and presidentialcandidate]
Artashes Geghamyan was a politician not favoured by authorities, but
now he is considered a constructiveopposition politician, as he
directed all his talent on Ter-Petrosyan’s criticism. Here is a
conclusion: the first president is the only stable source of
potential danger for these authorities.

"UNIFICATION OF PARTIES SUPPORTING VAZGEN MANUKIAN IS MATTER OF
FUTURE," SHAVARSH KOCHARIAN SAYS

YEREVAN, FEBRUARY 7, NOYAN TAPAN. According to Shavarsh Kocharian, the
Chairman of the National Democratic Party, a false idea has been formed
in society for the past few months, according to which the electoral
struggle is, allegedly, to proceed between the representatives of the
current and former authorities. Because of that idea, as the Leader of
the National Democratic Party stated at the press conference held on
February 7, the rating of the acting authorities is rising
unintentionally, as the electorate tends to vote not in favour of the
former authorities. In the prevision of Shavarsh Kocharian, in case
that false idea is not eliminated, the candidate of the authorities
will win in the presidential elections. Therefore, in his words, the
task of the National Democratic Party and other forces supporting
Vazgen Manukian, the Head of the National Democratic Union and a
candidate running for the post of the RA President, is to eliminate
that "wrong and forced" idea.

"It is our task to tell people that they should not make a choice
between the past and the present but between the present and the
future," Shavarsh Kocharian said and added that the chances of Vazgen
Manukian to achieve success will increase under that circumstance: he
will appear in the second stage, where he will compete with Prime
Minister Serge Sargsian.

Touching upon the subject on the unification of the National Democratic
Party, the National Democratic Union, the Union of National Democrats,
the National State, and the Constitutional Right Union parties,
Shavarsh Kocharian mentioned that that is a goal connected with the
future, and, at present, the leaders of those political forces attach
importance, first of all, to the "formation of the stream of national
democracy" in the country. The expected unification, according to
Shavarsh Kocharian, is the demand of the young members of the
above-mentioned parties. The big party to be created in future, in his
words, will not be restricted only by the existence of the
above-mentioned forces: it will be able to expand.

What the Papers Say Part A (Russia)
February 7, 2008 Thursday

RUSSIAN GIFTS TO ARMENIA: SEA, ATOM, AND OLYMPIC GAMES

by Pyotr Netreba

BACKED BY RUSSIA, PRIME MINISTER SERZH SARKISJAN WILL CERTAINLY
BECOME THE NEXT PRESIDENT OF ARMENIA

Victor Zubkov flew to Yerevan on the eve of the presidential election
in Armenia slated for February 19. The visit began with a meeting
with Serzh Sarkisjan, Zubkov’s opposite number and candidate for
president. The Russian delegation is stone-cold confident that
Sarkisjan will win the election. "Continuity of the current trends in
the Russian-Armenian relations should be assured," a Russian official
was quoted as saying.

Armenian diaspora in Russia numbers nearly 2 million. Private
transactions from Russia to Armenia annually amount to $1 billion –
equalling sum total of Russian investments in Armenian economy
throughout years of cooperation. Russian capitals control nearly all
major economic objects in Armenia and objects of the financial
infrastructure, transportation, and communications. Inter RAO EES for
example runs the Sevan-Razdan Hydropower Project and Razdan Thermal
Power Plant, Gazprom manages ArmGazprom, and Russian Railroads took
over their Armenian analog barely a year ago.

Zubkov did his bit for the Russian expansion into Armenia, yesterday.
Sergei Kirienko of Rosatom accompanying Zubkov said the negotiations
were mostly centered around construction of a new nuclear power plant
in Armenia in 2010-2011 (the one Armenia has these days is old, to be
shut down in 2011). According to Kirienko, Russia’s chances of
winning the forthcoming international contest are fine. In any event,
the future nuclear power plant in Armenia will never find itself
short of fuel. A memorandum was signed on the Russian-Armenian joint
venture for geologic exploration and uranium mining in Armenia.
Russia and Armenia will have equal shares (50%) in the new outfit.
Kirienko recalled the first Russian expeditions to Armenia in 2007
that estimated uranium resources there at about 30,000 tons.

Transportation Minister Igor Levitin came up with a new idea of
including Armenia, a country without access to the sea, in the
would-be Black Sea Ring route. The project promoted by Russia
stipulates regular ferry runs after 2010-2011 between Varna in
Bulgaria, Kavkaz in Russia, Ilyichevsk in Ukraine, Poti in Georgia,
and Istanbul in Turkey. Armenia was advised to organize cargo traffic
via Poti (something the Georgians will have to be talked into yet).
Levitin in the meantime did not think that problematic relations
between Russia and Georgia would spell trouble for Armenia’s
participation in the project.

Along with everything else, Zubkov praised Armenian-made cement and
said it would probably be used in construction in Sochi where objects
for the future Olympic Games were already being built.

Sarkisjan kept saying in the meantime that no matter how important
solution to transport and other problems was, cordial relations with
Russia took precedence over everything else. "Being friends with
Russia benefits Armenia, and Russian capitals feel comfortable here
in Armenia," he said.

Source: Kommersant, February 7, 2008, p. 2

Translated by Aleksei Ignatkin

Robert Kocharian: Upcoming elections may become the best ones in the
history of Armenia

February 8, 2008

Yerevan /Mediamax/. `The upcoming presidential elections may become the
best ones in the history of Armenia’, President Robert Kocharian stated
in Yerevan today.

Mediamax reports that, speaking at a briefing in Yerevan today, the
President expressed content concerning the process of the pre-election
campaign in Armenia. He noted that the only negative factor is the
reciprocal accusations and insults of the candidates.

`The candidates should renounce reciprocal insults. This is a matter of
being civilized and I am sorry certain candidates lack it’, Robert
Kocharian.

HIGH TURNOUT EXPECTED IN PRESIDENTIAL ELECTION IN ARMENIA

ARKA News Agency, Armenia
Feb 7 2008

YEREVAN, February 7. /ARKA/. High turnout is expected in the
upcoming presidential election in Armenia, Karen Andreasyan, lawyer
for the program "Legal Initiative: Presidential Election 2008" and
representative of the American Bar Association (ABA/CEELI), told a
press conference.

"Even now, numerous citizens who intend to take part in the voting
in the presidential election apply to us for free legal advice and
protection of their voting rights," he said.

According to Andreasyan, by February 7, the legal initiative, which
launched its activities a fortnight ago, has processed over 300 calls,
which is more than the number of calls the initiative received during
its two-month activities in the 2007 parliamentary elections.

Andreasyan reported that many citizens ask about the voting procedure
for people registered in one region, but residing in another. He
pointed out that the second important question is the provision of
information on the location of poling stations, candidates’ election
staffs, and inaccuracies in voters’ lists.

"Our legal initiative also provides legal advice to the presidential
candidates. Particularly, Arman Melikyan applied to us for help,"
Andreasyan said.

The legal initiative was founded last December and first tested in
the parliamentary elections on May 12, 2007. At present, the Legal
Initiative: Presidential Election 2008 unites 52 nongovernmental
organizations in all Armenian regions.

The presidential election is to be held in Armenia on February 19.

PROCREDIT BANK ARMENIA OPENS IN YEREVAN

Noyan Tapan
Feb 6, 2008

YEREVAN, FEBRUARY 6, NOYAN TAPAN. The Armenian bank of ProCredit bank
group (Germany) – the 22nd one across the world – opened in Yerevan
on February 5.

The importance of opening of the bank’s head office was underlined by
the chairman of the Central Bank of Armenia (CBA) Tigran Sargsian,
the first csutomer of the bank – businessman Vardan Sukiasian who
opened a savings account in the bank, and by the executive director
of ProCredit Bank Armenia Bertolt Herzfeld.

During the press conference dedicated to the official opening
of ProCredit Bank Armenia, B. Herzfeld said that like in other
countries, in Armenia ProCredit will also be a customer-orientated
and socially responsible bank that attaches importance to crediting
of small and medium business and to further developing citizens’
tradition to deposit savings. The bank will offer business credits
of over 100 dollars. Customers may open savings accounts (there are
no restrictions on the minimum amount of a deposit).

According to B. Herzfeld, among shareholders of ProCredit Bank Armenia
CJSC are ProCredit Holding joint-stock company (66.66%), German
state KfW bank (16.67%) and the European Bank for Reconstruction and
Development (EBRD) (16.67%).

The deputy executive director of ProCredit Bank Armenia Ashot
Abrahamian announced that the authorized capital of the bank makes
5 bln 790 mln drams (over 18 mln 782 thousand USD). By late 2008,
the bank plans to open 4 branches in Yerevan, one branch in Vanadzor
and one branch in Artashat, as well as to install cash machines and
issue plastic cards by the first half of 2008. He expressed a hope
that their bank will become the first one to issue plastic cards with
chips in Armenia.

The chairman of ProCredit Bank Armenia’s board Kristoff Freitag
said that 6 billion drams has been invested in order to open the
bank. The bank also intends to provide mortgage credits. In the
words of B. Herzfeld, it is envisaged that in 2008 the bank will
form a credit portfolio of 30 million dollars and provide loans to
10 thousand customers. The bank plans to issue bonds.

Tigran Sargsian expressed confidence that ProCredit Bank Armenia will
contribute to development of financial intermediation in Armenia and
encourage competition in the sphere of banking services.

The opening ceremony was attended by the German ambassador to Armenia
Andrea Wiktorin, the first vice president of KfW Roland Siller, the
director of EBRD Small Business Group Chikako Kuno, and the director
general of ProCredit Bank Georgia Phillip Pott.

ProCredit group is composed of 22 banks in Africa, Latin America
and Eastern Europe. The group is managed by Frankfort-based ProCredit
Holding joint-stock company. In late 2007, the current credit portfolio
of ProCredit group made 2.82 bln euros, the number of current credits –
930 thousand, deposits – 2.43 bln euros, the number of current accounts
– 2 mln 822 thousand, the number of employees – 16.8 thousand, the
number of branches worldwide – 621.

AZERI PRESIDENT SAYS NO COOPERATION WITH ARMENIA UNTIL LANDS ‘LIBERATED’

ARMENPRESS
Feb 5, 2008

BAKU, FEBRUARY 5, ARMENPRESS: "Burgeoning economy, effective armed
forces and strong military and industrial resources are the guarantees
of resolving the Nagorno-Karabakh conflict in a way that will benefit
Azerbaijan and we are already seeing its signs,’ Azeri president
Ilham Aliyev said today as he was awarded The Man of the Year title.

Aliyev reiterated his government’s stance of no cooperation with
Armenia until it ‘liberates’ its regions, saying also all efforts
will be concentrated on liberating Azerbaijan’s occupied lands.

He said a greater attention will be paid to military sector. "Our
military spending is on the constant rise and we are building a strong
military and industrial complex which will be instrumental in freeing
our lands,’ he was quoted as saying by Trend news agency.

He simultaneously spoke about the ongoing negotiations for the peaceful
settlement of the conflict, adding that he hopes they would produce
a result. "But if the talks fail to yield any outcome then we shall
use force to liberate our lands,’ he said.

VAHAN HOVHANNESIAN: I CAN RESTORE COMPETITION IN ECONOMY

Yerkir
05.02.2008 14:45

Yerevan (Yerkir) – Presidential candidate Vahan Hovhannesian, a member
of the ARF Bureau, was campaigning in Aragatsotn Region on February 5.

"Aparan is a town where the national values were always preserved. You
will listen many promises but you have to which of them are true
and which are lies," Ruzan Arakelian, a member of the ARF faction in
parliament, said. She said no sector has been ignored in Hovhannesian’s
platform.

Former member of parliament Aghasi Arshakian said that Aparan people
are not the same: part of them can be deceived, but the other part
is not easy to deceive. "Who said that Aparan people should support
the candidate of the authorities?" he asked, reacting to Nig Aparan
union’s statement endorsing the authorities’ candidate. "I am a member
of that union too but I am with Vahan because he is the most humane,
most disciplined and the most patriot," Arshakian said.

"It is an honor for me to meet with the people of the historic Nig
province, people who are known for their patriotism, have fought
the enemy and one of them was Dro," Hovhannesian said. "No one had
any doubts about patriotism then. We have missed the moment for the
rise. Do we wish to change the faulty system, or just change the
names? There is injustice in all the sectors. Our economic growth
has helped only few people; they get rich and them become members
of parliament."

He also spoke about the tax policies, saying that business people
in regions should get privileges and not pressure with taxes. "I can
restore the competition in economy," he annouinced.

Some EU states oppose Kosovo bid

Story from BBC NEWS:
europe/7221816.stm

Published: 2008/02/01 11:07:13 GMT

Romania and Cyprus have warned that they will not recognise any
unilateral declaration of independence by Kosovo.
Romanian President Traian Basescu said recognition would send "a bad
signal" which could not be justified and cast a shadow over the United
Nations charter.

Cypriot Foreign Minister Erato Kozakou-Marcoullis said it could create
a precedent in international relations.

Kosovo Prime Minister Hashim Thaci said recently a declaration of
independence from Serbia could be made within days.

The United States and most EU countries are expected to recognise an
independent Kosovo without approval from the UN Security Council. They
back a UN special envoy’s plan for internationally supervised
independence.

Mr Basescu said Romania "will not be able to recognise a declaration of
independence by Kosovo, irrespective of the labels such an act will
have".

Separatist movements

In addition to Romania and Cyprus, EU members Spain, Greece and
Slovakia fear recognition could fuel separatist movements elsewhere.

Russia says independence should not go ahead until Belgrade agrees to
it. Serbian leaders strongly oppose independence for UN-administered
Kosovo, which broke away in 1999 after Nato intervened to stop Serb
persecution of the majority ethnic Albanians.
The Cypriot minister, speaking in Finland, said her country’s position
was a matter of principle and of respect for international law.

"There’s really no way that we can change our position," she said,
insisting that the stance had nothing to do with fear of a reaction
from Turkish-controlled northern Cyprus.

President Basescu rejected suggestions that ethnic Hungarians in
Romania could take Kosovo as an example, but expressed concern about
the response from pro-Russian separatists in Moldova.

The BBC’s Oana Lungescu in Brussels says that as a neighbour of Serbia,
Romania is keen to keep stability in the Balkans.

ROMANIA OPPOSES KOSOVO INDEPENDENCE

PanARMENIAN.Net
01.02.2008 14:18 GMT+04:00

/PanARMENIAN.Net/ Romania’s President Traian Basescu urged NATO
allies Thursday to refrain from encouraging Kosovo’s plans to declare
independence from Serbia, saying more time should be given to find
an agreement.

He warned that a declaration of independence without an agreement
with Serbia or full backing from the United Nations would violate
international law and set a dangerous precedent for separatist groups
elsewhere.

"What message are we sending to multiethnic societies, or to others
that are facing ethnic issues?" Basescu said.

"We could be violating the UN charter and Helsinki Act which have
guaranteed 60 years of peace in Europe," he continued.

Other European Union nations, including Spain, Cyprus and Slovakia,
also have misgivings about independence for Kosovo, ITAR-TASS reports.