Author: Toneyan Mark

Ria Novosti, Russia
July 20 2004
RUSSIA NOT TO TAKE PART IN NATO EXERCISE IN LATVIA
RIGA, July 20. (RIA Novosti) – On July 20th, the Latvian city of
Aluksne will host the opening of the NATO international military
exercise Rescue Medcare.
This will be the year’s largest exercise, reported the Latvian
Defense Ministry’s press service. In April Latvia together with other
six East and Central European nations became a full-fledged member of
the Alliance.
According to the ministry’s spokesman Ivars Grinbergs, the
headquarters of the two-week exercise will be located in Aluksne, not
far from the Russian border.
The exercise itself will take place in the Latvian port of Liepaja,
where a naval base is stationed, the Lithuanian port of Klaipeda, in
the Estonian cities of Tallinn and Tapa and in the Bulgarian capital
of Sofia.
It will involve about 2,000 servicemen and civilians from 18
countries – Latvia, Estonia, Lithuania, Bulgaria, the USA, Germany,
Sweden, Belgium, the Netherlands, Poland, Romania, Croatia, Moldova,
Ukraine, Georgia, Armenia, Azerbaijan, and Uzbekistan.
The exercise aims at “improving cooperation of armed forces with
state and non-state structures in managing critical situations,” the
press service reported.
Among other things, the participants will train methods of
anti-terrorist fight, humanitarian and medical assistance to
eliminate consequences of natural calamities.
The exercise is held as part of the NATO program Partnership for
Peace. It will be coordinated by the command of the US troops in
Europe.
From: Emil Lazarian | Ararat NewsPress

Romania
Divers Bulletin no. 26 (109) / July 19, 2004
News
ETHNIC MINORITIES MPs ASK FOR A MINORITY LAW
BUCHAREST – Representatives of national minorities in the Romanian
Chamber of Deputies last week proposed the enactment of a special law on
the national minorities, which clearly defines their statute, according
to Varujan Pambuccian, representative of the Armenian minority. “I did
not ground upon the idea a law must solve everything. Simple elements
are missing – the definition of ethnic minorities, the recognized
national minorities, the meaning of the Council of National Minorities.
On the basis of years ahead experience, we proposed the establishment of
a National Authority for Ethnic Minorities that confers us continuity
and stability. This law would give a clear statute to our organization”,
stated Varujan Pambuccian. Altogether, parliamentarians drew an alarm
signal for the education in the mother tongue, stressing out upon the
necessity of ensuring teachers of for the schools with a reduced number
of children. In Romania, there are 19 ethnic minorities who are
officially recognized, and 18 of them with one representative in the
Parliament.
Author: DIVERS
DIVERS – News bulletin about ethnic minorities living in Romania is
edited every week by MEDIAFAX, with the financial support of
Ethnocultural Diversity Resource Center. Partial or full reproduction of
the information contained in DIVERS is allowed only if the source is
mentioned. You can send messages and suggestions regarding the content
of DIVERS bulletin at MEDIAFAX, Str. Tudor Arghezi, Nr. 3B, Sector 2 –
Bucharest, tel: 021/ 305.31.91 or at the e-mail address:
[email protected]

Interfax
July 19 2004
Azeri foreign minister to visit U.S., meet with Armenian counterpart
Baku. (Interfax-Azerbaijan) – Azeri Foreign Minister Elmar Mamedyarov
is expected to visit the U.S. later in July. He also plans to meet
with his Armenian counterpart Vardan Oskanian in August.
“The foreign minister’s visit to the U.S. has been set for July 20-
21. Its goal is to promote relations between Azerbaijan and the
U.S.,” the Azerbaijani Foreign Ministry’s press service told
Interfax.
“Mamedyarov plans to hold talks with U.S. Secretary of State Colin
Powell,” it said.
“And in August, Mamedyarov is expected to meet with his Armenian
counterpart. The exact date and place of the talks are still to be
negotiated. The talks will deal with ways to settle the Karabakh
conflict in the context of the latest visit to the region by the co-
chairmen of the Organization for Security and Cooperation in Europe’s
Minsk Group,” the press service said.

The Hill, DC
July 19 2004
Hastert slices Turkey bill
By Jonathan E. Kaplan

House GOP leaders are vowing to kill a controversial amendment that
chastises a key U.S. ally following a successful Democratic maneuver
to pass the bill late last week.
Rep. Jim Kolbe (R-Ariz.), chairman of the Appropriations Foreign
Operations Subcommittee, exasperated House leaders last Thursday when
he accepted a Democratic amendment, which would bar Turkey from
lobbying against a Republican-backed resolution that would call the
Ottoman Empire’s killings of 1.5 Armenians during World War I
`genocide.’

patrick g. ryan
Turkey would be barred from lobbying against a bill sponsored by Rep.
George Radanovich (Calif.) under a foreigh-operations amendment.
—————————————————————-

Rep. Adam Schiff’s (D-Calif.) amendment would deny Turkey the use of
U.S. foreign aid money to lobby against the Armenian genocide
resolution sponsored by GOP Rep. George Radanovich (Calif.). If
enacted, Radanovich’s resolution would be the first time Congress
formally marked the deaths of 1.5 million Armenians between 1915 and
1923.
But House Speaker J. Dennis Hastert (R-Ill.) said he will not schedule
Radanovich’s bill for a vote this Congress even though the Judiciary
Committee has passed it.
Schiff, who represents one of the highest concentrations of Armenians
in the United States, said he used the appropriations process because
Hastert has not scheduled a vote. `Leadership understands the House
will vote overwhelmingly to recognize Armenian genocide. … They chose
wisely to let it be voice voted,’ he told The Hill.
Radanovich told The Hill: `I think [the amendment] was a good way to
keep Armenian genocide in front of people,’ adding that his bill will
never be passed because `of the force of the Turkish lobby.’
Turkey has tapped former House Appropriations Committee Chairman Bob
Livingston, a lobbying powerhouse, as its Washington representative.
Livingston’s associate referred calls to the Turkish Embassy,.
`There is a Turkish-American presence here. [But] the Turkish lobby
is not considered a very strong lobby,’ said Timur Soylemez, a
Turkish Embassy official. `We are not putting [this issue] at heart
of the Turkish American relationships. Some on the Hill are trying to
poison that relationship. I would very much doubt either the
Armenians or Turks would call it symbolic.’
Schiff had redrafted his original proposal, which could not have been
considered under the House rules. But his redrafted account caught
House leaders off guard. During the debate, Kolbe said that was the
first time he had seen the amendment and complained that the language
was not clear.
Republican sources told The Hill that they did not think the House
parliamentarian was going to make Schiff’s amendment `in order’ and
were surprised when the parliamentarian decided it was. With a few
minutes’ notice, appropriators and their aides chose to accept the
amendment. The alternative choice was to risk losing a roll call
vote.
In a harshly worded statement, Hastert, Majority Leader Tom DeLay
(R-Texas) and Majority Whip Roy Blunt (R-Mo.) acknowledged their
displeasure with Kolbe and the amendment.
`We are strongly opposed to the Schiff Amendment to the
foreign-operations appropriations bill, and we will insist that
conferees drop that provision in conference. We have also conveyed
our opposition to Chairman Kolbe, and he has assured us that he will
insist on it being dropped in the conference committee,’ Hastert
said.
Kolbe said, `I allowed this because I determined that the amendment
had no practical effect. … As the chair of pending conference
committee on the Foreign Operations bill, I will insist this
meaningless language be removed in conference.’
Armenian genocide has flummoxed Hastert and House Republicans over
the past several years. Many lawmakers want the House to acknowledge
the genocide even though Turkey, a longtime U.S. ally and NATO
member, objects to any such legislation.
In 2000, Hastert promised Schiff’s predecessor, then GOP Rep. Jim
Rogan, a vote on a resolution condemning the genocide. But the
Clinton administration lobbied against a vote and Hastert yanked the
bill minutes before its consideration.
Also that year, George W. Bush said that as president, he would
`ensure that our nation properly recognizes the tragic suffering of
the Armenian people.’
The White House was less involved this time, said John Feehery,
Hastert’s spokesman, simply because House leaders knew the
administration’s position.
Even if GOP leaders strip his amendment in a conference committee,
Schiff said:
`I think amendment succeeded in drawing out opposition into the open.
The battle has been joined.’
Debate over spending bills has grown increasingly bitter as lawmakers
push their own projects or gain political points. On the foreign aid
bill, lawmakers used the process to object to Bush administration
policies toward Iran, Saudi Arabia and Egypt.
Rep. Steve Buyer (R-Ind.) introduced an amendment that would bar the
government from using taxpayer money to have United Nations officials
monitor the 2004 elections.

Tuesday 20th July, 2004
NATO holds exercises in Baltic states
Big News Network.com
Tuesday 20th July, 2004
NATO has launched massive exercises with former Soviet republics in
the Baltic states, the Interfax news agency reported Monday.
Forces from the former Soviet republics of Armenia, Georgia, Ukraine,
Estonia, Latvia and Lithuania are participating in the exercises,
along with troops from the former Soviet satellite nations of
Bulgaria, Poland, Croatia and Romania alongside U.S. forces, the press
service of the Ukrainian Defense Ministry said.
The servicemen will train how to clean up the aftermath of a natural
disaster and prevent terrorist acts in the Baltic states, Interfax
said. They are also developing cooperation between military and
civilian agencies in the prevention of humanitarian and natural
disasters.
Divers will train to expose terrorist groups and de-mine a sea area
and hydro-technical facilities, the news agency said.
From: Emil Lazarian | Ararat NewsPress

Ra¤ola keeps Armenian GM within reach
Philippine Daily Inquirer
Jul 19, 2004
Standings after round 4:
4.0 pts.-GM Karen Movsziszian (Armenia); 3.5-NM Yves Ra¤ola (Philippines), GM
Aleksander Delchev (Bulgaria), GM Vladim Burmakin (Russia), GM Mikhail Suba
(Romania), IM Yuri Gonzales (Italy), IM Fernando Braga (Italy), IM Ioan Cosma
(Romania), IM Petr Velicha (Czech Republic), IM Herman Van Riemsdijk (Brazil),
IM Bernd Kohlweyer (Germany); 3.0-GM Lazaro Bruzon (Cuba), IM Ronald Bancod
(RP), IM Jayson Gonzales (RP).
FILIPINO National Master Yves Ra¤ola outplayed Spain’s Jose Luis Ramon Perez
in the third round and then halved the point with Cuban International Master
Yuri Gonzales in the fourth to share second place with 10 others yesterday in
the Balaguer International Open chess tournament in Spain.
Ra¤ola, the former national junior champion who is eyeing his third and final
IM norm in the event, pushed his output to 3.5 points, half a point behind
undefeated pacesetter Grandmaster Karen Movsziszian of Armenia.
Ra¤ola shared second place with super GM Aleksander Delchev of Bulgaria, GM
Vladim Burmakin of Russia, GM Mihkail Suba of Romania, IM Fernando Braga of
Italy, Ioan Cosma of Romania, IM Petr Velicha of Czech Republic, IM Herman Van
Riemsdijk of Brazil and IM Bernd Kohlweyer of Germany.
The bunch stood another half point in front of a big group that includes
Filipino IMs Jayson Gonzales, who drew his third- and fourth-round matches,and
Ronald Bancod, who lost his fourth-round match to Delchev.
Filipina Winona Tan shared 56th place with 37 others at 2.0 points.Marlon
Bernardino

AZERI PRESSURE GROUP STOPS HUNGER STRIKE OVER ARRESTED MEMBERS
Ekho, Baku
17 Jul 04
Text of X. Qasimova’s report by Azerbaijani newspaper Ekho on 17 July
headlined “The KLO has stopped the hunger strike”
Activists of the Karabakh Liberation Organization (KLO) stopped their
hunger strike yesterday, the KLO deputy chairman, Barat Imani, has
told Ekho. According to him, the action stopped at 1200 (0700 gmt) at
the request of the chairman of the committee to protect the rights of
the arrested KLO activists, Isaxan Asurov, and lawyer Elcin Qambarov.
Imani said that the hunger strikers agreed with Asurov and Qambarov
that the judiciary could see the hunger strike as pressure on the
court.
“The action caused an outcry in society. But we were simply surprised
at the attitude of MPs from the Karabakh region. With the exception of
MP Karam Aliyev, they did not even try to express their opinion on the
issue. As for Karam Aliyev’s statement on the populist actions of the
KLO activists, we try not to react to utterances of this kind,” Imani
said.
(Three KLO members began a hunger strike on 12 July, demanding the
release of six of their colleagues arrested for protesting against the
participation of Armenian officers in a NATO conference in Baku)
From: Emil Lazarian | Ararat NewsPress

Agency WPS
DEFENSE and SECURITY (Russia)
July 16, 2004, Friday
SAAKASHVILI’S SCENARIOS
SOURCE: Voyenno-Promyshlenny Kurier, No 26, July 14 – 20, 2004, p. 2
by Colonel Anatoly Tsyganok, Candidate of Military Sciences,
Professor of the Academy of Military Sciences
THE GEORGIAN-OSSETIAN CONFLICT: SAAKASHVILI’S SCENARIOS, RUSSIA’S
POSITION, PROBABLE OUTCOME
Escalation of tension in South Ossetia may reach the boiling point
any moment and a shooting war will follow. Meantime, Georgian
newspapers are full of articles on how much Moscow needs a Georgia
without stability and on how Moscow’s tactic is being executed by
Tskhinvali.
Georgian Prime Minister Zurab Zhvania said, “Promises of the Russian
leaders to take measures have remained promises so far.” Koba
Davitashvili of the parliament of Georgia agrees with the premier.
“Russian peacekeepers are occupiers. They must immediately leave,” he
said. Interior Minister Irakly Okruashvili doubts the necessity of
the Russian contingent’s presence in the region. “Unless Russian
peacekeepers provide peace in South Ossetia, expediency of their
presence in the conflict area may be questioned,” he said.
In fact, Tbilisi has never lifted a finger to gather the lands around
it. It has Russia to thank for the process. It was Russia that
unified Georgia into an integral formation and saved it from
disintegration in the space of almost two centuries. Moscow finances
the republic all through the history of the Soviet Union. Should
Russia stops exerting political, economic, financial, and military
effort to preserve Georgia, nothing – not even the United States,
NATO, or the European Union – will save it from disintegration into
several states.
According to Western sources, Georgia is the poorest country in the
Commonwealth. Annual per capita income there amounts to only about
$400. Tbilisi’s foreign debts exceed $1.5 billion, and $150 million
of them are owed to Russia for gas and electricity. Economic
dependence of most Georgian families on Russia is colossal. Their
relatives working in Russia send over $1 billion to Georgia. All of
that makes one wonder about statements of Georgian state officials
undermining the system of existence itself of the population of
Georgia and provoking disintegration of the security framework in the
South Ossetian area.
“Peace” option by Saakashvili
Here are some facts enabling observers to judge the option (or plan).
Demonstrating his determination to unify Georgia, its president used
peace-loving rhetoric and propagandistic methods to appeal to the
residents of South Ossetia. Saakashvili spoke of the payment of
pensions as of July 1, free fertilizers and medical services (just
like in Adjaria), broadcasts in the Ossetian language. Along with
that, Georgia began reconstruction of the railroad between Gori and
Tskhinvali and of the detour road bypassing the capital of South
Ossetia and leading to the Georgian villages of Tamarisheni,
Achibeti, Kurta, Kekhvi to the north. This is where the Military
Ossetian Road (30 kilometers of it, at any rate) runs. It is possible
to isolate Tskhinvali from the rest of the world only by cutting the
road there. Three officers of the State Security Ministry of Georgia
were sent to Tskhinvali supposedly to “oversee the construction”.
Defense Ministry of Georgia disbanded its peacekeeping battalion on
January 3, 2004. It was formed again soon, and (according to South
Ossetian sources) its numerical strength increased to 1,500 men by
late May and to between 2,000 and 3,000 by the middle of June.
Battalion of the Internal Troops trained by American instructors was
included in the formation. Internal Troops backed by artillery pieces
and multiple rocket launchers were sent into the conflict area
allegedly for the purpose of a special operation against smugglers.
Additional roadblocks and checkpoints were established in the
villages and along the border with South Ossetia. Tbilisi proclaimed
the move of tank units to Gori. The town is known as the location
where repaired and chalked-off tanks are stored. On July 11, Russian
and OSCE observers noticed two attack and three transport helicopters
(MI-24 and MI-8) in the Georgian army group.
The population of Georgia is brainwashed into believing in existence
of an enemy. The implication is that Russia is the enemy. Society is
constantly updated on what Saakashvili is doing to repel the
potential aggression. TV channels regularly show the motorized
infantry battalion of the Georgian Internal Troops in brand-new NATO
uniforms. The battalion is commanded by Internal Troops Commander
General Georgy Tavtukhashvili.
Resolute and no-nonsense statements made by state officials are
broadcast again and again.
In short, no effort is spared to make the population believe that the
government of Georgia has its own opinion on how the South Ossetian
problem should be tackled, that the government has determination and
a powerful (by standards of the Caucasus) army that would not balk at
anything for the sake of territorial integrity of the country.
The impression is that Georgia is trying to test the level of
Russia’s support (first), gauge the level of Russian peacekeepers’
tolerance (second), and change single-handed the format of the 1992
Dagomys Accords (third). In accordance with them, the
Georgian-Ossetian conflict area should be manned by international
peacekeeping forces comprising Russian, Georgian, and South Ossetian
battalions 500 men each. The Russian battalion should include two
MI-8 helicopters.
Along with everything else, Tskhinvali is irritated by neglect of the
accord to dismantle additional police and customs roadblocks and
checkpoints by Georgia. And that Georgia still retains South Ossetian
vehicles that ferried goods to Georgia.
Nocturnal marches of 200 Georgian servicemen commanded by interior
and state security ministers in South Ossetia may be regarded as a
provocation. These servicemen forced the Russian convoy to pull over
under the threat of weapons. This particular episode persuades some
observers that official Tbilisi deliberately aggravates the situation
in the hope to settle the old conflict to its satisfaction as soon as
possible.
Moscow’s point of view
As far as Russia is concerned, a peaceful solution to the South
Ossetian problem is only possible on the basis of the previous
accords. First and foremost, the matter concerns the 1992 (July 24)
Dagomys Accords on settlement of the Georgian-Ossetian conflict.
Within their framework, the involved parties should discuss the terms
of gradual reduction of the numerical strength of peacekeeping
contingents. Restoration of trust between the warring sides will play
a significant role in the peace process. In March, the European Union
initiated the program of the Georgian-Ossetian conflict area
rehabilitation. The program realization protocol was signed by
Georgia, South Ossetia, North Ossetia – Alania, OSCE, and European
Union. The European Union allotted 2.5 million euro for the program
and Georgia began receiving the few installments.
The situation being what it is, pugnacious statements of Georgian
leaders perplex observers. Particularly since the new foreign
minister of Georgia is called by her former colleagues a seasoned
negotiator.
Over 10,000 people left South Ossetia for North and almost 30,000
Ossetians left Georgia in the war of the early 1990’s. The new
shooting war will probably bring about some similar results. As far
as Russia is concerned, a calm border in the Ossetian direction is a
priority in development of relations with countries of the Caucasus.
If Georgia proceeds in the direction of a forceful annexation of
South Ossetia, state interests of Russia and Georgia will certainly
part company because the war will both deteriorate the situation in
the border regions and echo all over the Caucasus. It is also
important for Moscow that most residents of South Ossetia are
citizens of the Russian Federation.
For the time being, the situation is only beginning to deteriorate
into an armed confrontation. As before, 12 years ago, cars carrying
women and children leave South Ossetia for Russia.
The worst outcome
Does Tbilisi really count on victory in the hostilities? If it thinks
so, it had better think again.
Firstly, the rugged terrain typical of South Ossetia will certainly
cut down combat capacities of the offensive and particularly
efficiency of armored vehicles. Relatively small units – properly
trained, knowing the terrain, camouflaged, and wielding modern
weapons – can hold narrow roads in the foothills for a long time.
Secondly, Tskhinvali is bare kilometers from the southern border of
the republic that is denied recognition by the international
community and its location is not favorable for defense. All the
same, drawing on the experience of the previous war, South Ossetians
will probably emplace their artillery pieces on the tops of the
nearby mountains currently controlled by them. It follows that the
capture of the capital of South Ossetia will take a lot of effort and
losses. Moreover, nobody can give any guarantees that the city will
be held afterwards.
Moreover, even despite Russia’s official statement on non-involvement
in the armed conflict, Ossetians will not abandon their brothers in
the south. They will help offering shelter, providing weaponry,
treating the wounded, and helping families of combatants with
finances.
In any case, the use of force will inevitably split Georgian society
– even despite the brainwashing campaign. Not all Georgians will
support the escapade. It stands to reason to assume that instead of
rallying all of Georgia, the war will accelerate processes of
decentralization in Abkhazia, South Ossetia, and even the
Armenian-populated Samtskhe-Dvavakhetia, and Azerbaijani-populated
areas. It will generate instability not even Saakashvili or his
predecessors will manage to do away with in decades.
From: Emil Lazarian | Ararat NewsPress

Investment Opportunities in Armenia & Georgia
BISNIS Search for Partners
15 July 2004
BISNIS publishes Search for Partners leads to help U.S. companies find
partner and investment opportunities in the expanding markets of the
former Soviet Union.
To receive Search for Partner leads regularly, email BISNIS at
[email protected] or call (202) 482-4655. To search previously
published Search for Partner leads online, visit
************************************************************
CONSTRUCTION SECTOR
Location: Yerevan, Armenia
Industry: Construction Materials
Company: Comfort R&V
The company seeks a U.S. partner to co-invest in a project to establish
a large trade center specializing in the wholesale and retail
distribution of building materials.
LeadLink,
*************************************************************
MEDICAL/PHARMACEUTICALS/EYE CARE
Location: Tbilisi, Georgia
Industry: Pharmaceuticals
Company: Tbilkhimparmi
The company is seeking financing and new technology in order to expand
its production volume and types of pharmaceutical products, and to
improve the distribution network as well. LeadLink,
*************************************************************
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.
Note: Although BISNIS representatives in Eurasia occasionally provide
last resort assistance in contacting local companies listed in leads,
they do not assist with negotiations or conduct due diligence on local
companies.
For additional commercial information about industries, regions, and
companies in Eurasia, visit BISNIS Online at

CENN – July 12, 2004 Daily Digest – Armenia
Table of Contents:
Armenian NPP to shut down for overhaul on July 23
NCI Determines Trends of Armenian Economic Growth
Armenian agriculture set to receive $10m loans in 2005
Cyprus, Armenia sign health cooperation agreement
Embassy in DC Hosts Presentation on Armenian Science and Lake Sevan
EU wants Armenia to close its nuclear power plant
1. Armenian NPP to shut down for overhaul on July 23
Source: Interfax, July 8 2004
The Armenian nuclear power plant, operated by ZAO Inter UES of Russia, will
shut down for an overhaul and refueling on July 23 and not, as planned, on
July 15, stated Armenian State Atomic Energy Oversight head Ashot
Martirosian. The decision was made because the plant is currently low on
fuel.
The plant was originally scheduled to shut down on July 15, “but the plant
reduced capacity because of high waters from the spring flooding and the
diversion of water resources to generate electricity,” Martirosian said.
The works will last 65 days, during which, after the nuclear fuel is loaded,
an overhaul is planned for the reactor and two operating turbines of the
second generating unit. One-third of the new fuel consignment, some 100
cassettes, will be loaded and paid for by Russia. This should be sufficient
for the plant to work until summer 2005, Martirosian said.
The Armenian NPP generated 1.9 billion kilowatt-hours of electricity in
2003, 36% of total electricity generation in Armenia.
ZAO Inter UES of Russia, which exports and imports electricity to Russia and
other countries, took over management of the plant in September 2003. Inter
UES is a subsidiary of Unified Energy System (UES) of Russia, with 60% of
the shares, and state-run enterprise Rosenergoatom, with 40%.
2. NCI Determines Trends of Armenian Economic Growth
PRESS RELEASE
The National Citizens’ Initiative
75 Yerznkian Street
Yerevan 375033, Armenia
Tel: (+374 – 1) 27.16.00, 27.00.03
Fax: (+374 – 1) 52.48.46
E-mail: [email protected]
Website:
July 8, 2004
National Citizens’ Initiative Determines Trends of Armenian Economic Growth
Yerevan–The National Citizens’ Initiative (NCI) today convened a
specialized policy roundtable on “The Trends of Economic Growth in Armenia.”
The discussion, focusing on the challenges of this vital issue of public
concern, brought together government officials, academic circles, experts of
the field, public figures, and the media community to define the priorities
and development opportunities in the economic sphere, to make realistic
assessments of the current state of affairs, and to address the imperative
of a true struggle against corruption and the shadow economy.
Karapet Kalenchian, director of administration of the Armenian Center for
National and International Studies (ACNIS), greeted the audience with
opening remarks. He stressed the significance of economic reforms and
pointed to several mechanisms for achieving the objective. “In order to
settle a number of issues of strategic importance, in particular
strengthening the new independent state system and improving the living
standards of the population, we need to create prerequisites for the
proportional development of modern industry, the agricultural sector and
other fields of the economy, to improve tax policy, and to provide sustained
economic growth so that every Armenian family really enjoys its benefits,”
Kalenchian said.
Gagik Vardanian, the Republic’s deputy minister for trade and economic
development, addressed “The Strategic Directions of Armenia’s Economic
Development in Light of the Global Information Revolution,” detailing key
issues of efficiency and productivity in the Armenian economy. In his
opinion, information technologies provide great access and thus facilitate
quick orientation in the market as well as application of state-of-the-art
networks and electronic equipment, all of which lead to sustained progress
in the economy. “Given their efficiency in all spheres of life, the Armenian
government attaches primary importance to ITs. It has worked out a
development concept and a program of activities to face the challenges of
the world market,” he noted. “The government of Armenia has adopted
strategic programs for the country’s sustainable regional economic
development in order to play an active role in integrating into the global
information field.”
Gagik Makarian, director of the “Haiconsult” firm, delivered an illustrated
paper on “The Key Obstacles to Armenia’s Economic Growth and the Ways to
Overcome Them.” “It is senseless to speak of sustained economic growth
unless we struggle against corruption and the shadow economy, make a due
assessment of the operational branches of industry, provide mechanisms for
an attractive investment climate, make export volumes predictable, and draft
appropriate tax and customs legislation,” Makarian opined. According to him,
there are about 20 negative factors that impede economic growth in Armenia
in view of the relevant transportation expenses, unfair and unequal
competition, poor marketing experience, the political situation in the
country, and a number of other circumstances.
Yerevan State University economics professor Gagik Galstian entitled his
presentation “The Anatomy of Armenian Economic Growth.” “Economic growth is
not an end unto itself.” he said. “If there is growth there should be
prosperity, whereas the living standard of the population as measured by
substantive food intake per capita has been reduced twice over the last
decade.” An analysis of the data from 2003 brought Galstian to a pessimistic
conclusion: Armenia’s living standard is today on par with that of 1977 in
terms of its Gross Domestic Product, with 1980 in terms of its industrial
productivity, and with 1956 in terms of its cargo transportation and
residential construction. Thus, society is lagging behind by more than 25
years.
The formal interventions were followed by exchanges of views and policy
recommendations among the public figures and policy specialists in
attendance. Noteworthy were contributions by MP Shavarsh Kocharian of the
National Democratic Party; former minister of state Hrach Hakobian;
economist Edward Aghajanov; Artak Zeinalian of the Republic Party; Stepan
Mantarlian of Armaveni consulting company; Alexander Butaev of National
Democratic Union; Petros Makeyan of the Democratic Fatherland Party; Ruzanna
Khachaturian of the People’s Party of Armenia; law professor Hrair
Tovmasian; and many others.
ACNIS analyst Hovsep Khurshudian closed the meeting with summary remarks.
“Unfortunately, it is difficult to conclude the seminar on an optimistic
note regarding Armenia’s economic growth,” he said, underlining that
economic growth remains erratic, illusory, and narrow-based despite
government assurances. “Moreover, the authorities have demonstrated little
or no political will to struggle against corruption, as they are mired in
the very clan system which impedes competition.”
The National Citizens’ Initiative is a public non-profit association founded
in 2001 by former foreign minister Raffi K. Hovannisian, his colleagues, and
fellow citizens with the purpose of realizing the rule of law and overall
improvements in the state of the state, society, and public institutions.
The National Citizens’ Initiative is guided by Coordinating Council, which
includes individual citizens and representatives of various public,
scientific, and educational establishments. Five commissions on Law and
State Administration, Socioeconomic Issues, Foreign Policy, Spiritual and
Cultural Challenges, and the Youth constitute the vehicles for the
Initiative’s work and outreach.
For further information, please contact:
Phone: (3741) 27-16-00 or 27-00-03;
Fax (3741) 52-48-46;
E-mail [email protected];
Web site:
3. Armenian agriculture set to receive $10m loans in 2005
Source: ArmenPress, July 6, 2004
Last week the minister of Agriculture of Armenia David Lokian stated that
the government is set to receive two new credits in 2005 to direct them to
agricultural development. The main components of the credits, according to
the minister, are leasing of technologies and machine building.
The minister said the government would provide 25-50 percent loan guarantees
to farmers in order to ensure collaterals for small and medium- sized
enterprises dealing with agriculture. He also said new loans would be made
available at lower interest rates. “President Kocharian has directly
instructed the Central bank and the ministry that the interest rates must
not exceed 10 percent,” the minister said, adding that this issue must be
also reconciled with World Bank.
A World Bank representative in Armenia said the anticipated amount of loans
is approximately $10 million.
4. Cyprus, Armenia sign health cooperation agreement
Source: Xinhua General News Service, July 5, 2004
Cyprus and Armenia signed on Monday a cooperation agreement in the field of
health and medicine.
Cyprus Minister of Health Constantia Akkelidou, who inked the pact, told
reporters after the signing ceremony that this agreement would provide
numerous exchange visits between the two countries and other ways of
cooperation.
Cyprus has fulfilled an old pledge it gave to Armenia by sending medicine
and medical equipments to the country, she said.
Armenian Ambassador to Cyprus Vahram Kazhoyan who represented his country
said there had been a long experience of cooperation in the field of medical
sciences and health care between the two countries.
“I am glad that finally we were able to sign the agreement which puts all
this cooperation in a legal framework,” he said.
As a good gesture stemming up from this agreement, Cyprus will send a
container of medicine to Armenia soon, he added.
5. Embassy in DC Hosts Presentation on Armenian Science and
Lake Sevan
PRESS RELEASE
July 9, 2004
Embassy of the Republic of Armenia
2225 R Street, NW, Washington, DC, 20008
Tel: 202-319-1976, x. 348; Fax: 202-319-2982
Email: [email protected]
Web:
Embassy of Armenia Hosts Presentation on Armenian Science and Lake Sevan
On July 7, 2004, the Embassy of Armenia hosted members of the Federal Water
Quality Association and the Greater Metropolitan Washington Area Section of
the Armenian Engineers and Scientists of America for a presentation on
Armenian science and environmental issues. Dr. Arman Kirakossian, Armenian
Ambassador to the U.S., delivered the keynote address, entitled “The State
of the Science in Armenia, with a View Toward the Water Environment of Lake
Sevan,” to an audience of some 60 experts, researchers, and officials from
the U.S. Environmental Protection Agency, Department of Agriculture, Nuclear
Regulatory Commission, Civilian Research & Development Foundation, and other
public and private entities.
In his presentation and the Q&A that followed, Ambassador Kirakossian
presented the modern state of scientific infrastructure, policies, and
directions in Armenia. He described the many challenges facing the Armenian
scientists today, such as drastic decrease in government funding, greater
need for commercial viability and involvement of the private sector in
directing and funding R&D, and curtailing the so-called ‘brain-drain.’
Despite these challenges, the Armenian scientists continue to make progress
in many areas of fundamental and applied science due to perseverance and
support from their foreign colleagues and international donors, the
Ambassador noted. He also presented the government’s plans to strengthen
science and education sectors.
Turning to Lake Sevan, Ambassador Kirakossian described the severity of the
anthropogenic ecological problems in Lake Sevan during the twentieth
century, caused by extensive irrigation and hydropower usage. The resulting
18-meter drop in water level and disruption of water balance in the lake was
a good example of Soviet era environmental damage, he added. The Ambassador
then noted the current positive trends in Lake Sevan ecology, but stressed
the need for continuing attention for and greater international cooperation
to preserve the unique environment of Lake Sevan.
6. EU wants Armenia to close its nuclear power plant
Source: RosBusinessConsulting, July 9, 2004
The European Union is planning to collect funds to close the Armenian
nuclear power plant, Janez Potocnik, a junior EU commissioner working with
enlargement commissioner Guenter Verheugen, declared at a briefing in
Yerevan, Armenia. According to him, the EU is ready to allocate up to
EUR100m for this purpose and attract its partners to this project, the ARKA
news agency reported.
The closing of the nuclear facility is necessary for technological and
seismic safety reasons, the commissioner specified noting that Bulgaria and
Baltic states also faced such problems.
At the same time, Potocnik admitted that this was a pretty complicated
process, since new sources of energy were to be found. According to Armenian
experts, some EUR1bn is necessary to create other energy generating
facilities that would replace the capacity of the Armenian nuclear power
plant.
The facility was put into operation in January 1980. Due to some political
circumstances it was closed in 1989. A second rector of the plant resumed
generating energy in 1995. The capacity of each reactor is 407.5 megawatts.
Experts believe that the power plant can operate until 2018.
Financial flows of the Armenian nuclear power plant are managed by Inter RAO
UES, which is a subsidiary of RAO UES (60 percent) and Rosenergoatom (40
percent).
CENN INFO
Caucasus Environmental NGO Network (CENN)
Tel: ++995 32 92 39 46
Fax: ++995 32 92 39 47
E-mail: [email protected]
URL: