Author: Torgomian Varazdat

RUDOLF PERINA APPOINTED CHARGE D’AFFAIRES OF U.S. EMBASSY TO ARMENIA

Noyan Tapan
Jul 10, 2007

YEREVAN, JULY 10, NOYAN TAPAN. From July 10, Ambassador Rudolf Perina
has assumed the post of the Charge d’Affaires of the U.S. Embassy
to RA.

According to the report provided to Noyan Tapan by the U.S. Embassy, R.

Perina’s profound knowledge and experience he had in Armenia, as
well as his personal and professional contacts with the RA leadership
will greatly contribute to ensuring the permanence of the bilateral
relations with Armenia. It was also mentioned that this is not a
long-term appointment, and the need of having a permanent ambassador
still remains. According to the report, Richard Hoagland still remains
the candidate offered by President George Bush for the post of the
U.S. Ambassador to Armenia.

PROTECTING THE COUNTRY IS IMPORTANT
Margarita Karamyan

KarabakhOpen
10-07-2007 10:41:03

The political parties of Karabakh risk becoming accomplices in the
return of the territories for which many got killed and lost their
friends. Thereby they cross out the idea of the liberation of Karabakh
and creation of a sovereign country, an idea that underlies the
Karabakh movement, and many who have now forgotten used to uphold it.

The conclusion is that the parties which support the common candidate
risk to be remembered as the parties which signed agreement and put an
end to the state named Nagorno-Karabakh. The visit of the Azerbaijani
delegation led by the Azerbaijani ambassador to Russia Polad Byul-Byul
oghli (the same Byul-Byul oghli who held a protest in Moscow against
the performance of our young singers of the Voices of Artsakh project,
and frightened the innocent children with a bomb laid in the hall),
and the warm welcome of the Karabakh government shows that the talk
about the return of territories, deployment of peacekeeping force
and establishment of friendly relations between the "communities"
of Karabakh and Azerbaijan is not just a talk. It is already the new
framework of the talks.

Perhaps the euphoria among the people who came together around the
"common candidate" and hail consolidation of the society does not
let them feel the danger of the move they made. Some think they will
save the nation from divide, others thereby settle their scores with
the nation, but apparently nobody thinks that all this may become
moot since today the Karabakh state faces the question to be or not
to be. If we become a civilized country, the questions will solve
themselves. And if we are ranked among the third world countries,
just there will be nobody to take revenge on. And there is no time
to think. Instead, there is time to acknowledge the crucial moment
and admit to mistakes. Protecting the country is important.

RUBBISH DISPOSAL MANAGEMENT PROJECT TO BE IMPLEMENTED IN IJEVAN

Noyan Tapan
Jul 09 2007

YEREVAN, JULY 9, NOYAN TAPAN. Great Britain’s Department of
Environment, Food and Rural Affairs (DEFRA) starts implementation of
the Ijevan Rubbish Disposal Management Project within the framework
of the assistance program aimed at Armenia’s development implemented
by that country’s government. The project’s goal is to encourage
investment of resources into the organic rubbish disposal system
in the town. Anthony Cantor, the Ambassador Extraordinary and
Plenipotentiary of Great Britain to Armenia, said this on July 6,
when presenting the above mentioned project at Ijevan’s Business and
Tourism Information Center.

In his words, the project, costing 84 thousand pounds sterling,
relates to the development program implemented in the Tavush region
since 2005. It is implemented with the assistance of Great Britain’s
International Development Department. The last program also includes
an environment protection component. The Ambassador expressed the
hope that the Ijevan Rubbish Disposal Management Project will be
successfully finished in nine months and will contribute to the
improval of the environment in the region and in the town.

Armen Ghularian, the Tavush Governor, attached importance to
the circumstance that the international structures respond to the
proposals to support the region’s development programs. In his words,
the community of Ijevan, on its own, could hardly solve the problem
of rubbish system modernization, including the modernization of
dump operations.

Gagik Minasian, the Head of the Business Consulting Department of
the Ameria Armenian consulting company, the advisor of the program’s
implementation, said that the above mentioned components are involved
in Ameria’s technical assistance stage to the program. Within the
framework of that assistance the company will work out the Ijevan
Rubbish Disposal Management Project.

Ijevan Mayor’s Office has registered success within the framework
of the 2003-12 rubbish disposal system improvement program. Varuzhan
Nersisian, the Mayor of Ijevan, said that the total amount of payments
for rubbish disposal program in the first six months of 2006 made 2m
drams (nearly 4.5 thousand USD), while the same index made 3m drams
in the same period of 2007, and it is envisaged to bring it to 8m
USD by the end of the year.

Small and accumulation dustbins have been placed in Ijevan, the town’s
dump has been fenced, the salary of 22 cleaners has been raised from
10 thousand drams to 30 thousand drams, and a rubbish removing machine
has been purchased with 14m drams allocated by the 2006 town budget,
within the framework of the program implemented by the Mayor’s Office.

RUSSIAN ‘INDUSTRIAL INVESTORS’ ACQUIRE ARMENIAN GOLD-MINER

arminfo
2007-07-04 22:01:00

Signing of a contract about sale of the Ararat Gold Recovery Company
(AGRC) is expected the next week between the "Madneuli" Georgian
Company, the owner of which is the "Industrial Investors" Russian
financial-industrial group and the chief beneficiary is the Russian
oligarch Sergey Generalov, and the Vedanta Indian Corporation, a
source in one of the biggest British Consulting companies told ArmInfo.

According to the source, the deal may sum to $80 mln-$100
mln. Consultations on a specific price are still underway, while a
memorandum about intentions was signed last Sunday. Earlier, Director
General of AGRC B.K. Sharma told ArmInfo that 30 companies took
part initially in the contest on sale of AGRC assets. Afterwards,
only 3-4 companies remained after aggravation of relations with RA
government. B. K. Sharma emphasized that the Company’s management
did not agree with the tax claims of the state at the rate of $12
mln. These claims were presented as a result of inspections of AGRC
activity in a period from 2000 to 2006. In the issue, the management
of Vedanta, owning the AGRC assets, had to start searching the buyers.

To recall, the shares of Madneuli ore mining and processing company
passed on to the Russian Group via its subsidiary "Stranton Equits
Corporation" British Company at $51,1 mln. The AGRC exploits the
Sodk gold deposit in Armenia, the reserves of which are estimated of
80 tons.

CENTRAL BANK GAVE PRELIMINARY CONSENT TO GRANT A LICENSE TO "PROCREDIT ARMENIA" BANK

Mediamax News Agency, Armenia
July 4 2007

Yerevan, July 4 /Mediamax/. The Board of the Central Bank of Armenia
gave preliminary consent to grant a license for banking activities to
"ProCredit Armenia" bank.

As Mediamax was told in CB press service, the given decision was
made after the consideration of the application, submitted by three
founders of "ProCredit Armenia": ProCredit Holding AG, The German KfW
Bank and the European Bank for Reconstruction and Development (EBRD).

Mediamax recalls that in April of 2007, the EBRD announced that it
would become the 20% shareholder of the "ProCredit Armenia" bank,
which would start functioning in Armenia in September of 2007.

The participation of EBRD in the capital of ProCredit Armenia Bank
will make 1.2bln AMD, or $3.2mln.

The EBRD statement read that the ProCredit Armenia Bank will be
specializing in financing of micro and small enterprises outside the
Armenian capital, and the European Bank will allocate a credit at
the sum of $7mln with maturity of up to five years financing micro
and small enterprises.

Mediamax notes that the ProCredit Group consists of 19 banks,
functioning in Eastern Europe, Africa and Latin America, whose
operations are overseen and guided by ProCredit Holding AG, located
in Frankfurt.

ITAR-TASS News Agency, Russia
July 3, 2007 Tuesday 09:19 PM EST

Inter-ethnic relations in Moscow assume a new tint

Moscow Mayor Yuri Luzhkov has said inter-ethnic relations in Moscow
are entering a new phase. The local population and the natives of the
southern republics of the former Soviet Union prepare and agree on
places of mass clashes and brawls.

In an interview with the TVTS television channel on Tuesday, Luzhkov
said that certain groups of young people continued to manifest
nationalism, chauvinism and xenophobia. According to Luzhkov, an
attempt to stage mass clashes in Moscow’s central district of Kitai
Gorod on June 22 revealed a totally new phenomenon. Both members of
nationalistic organizations and youths from southern ethnic
communities gathered with an equal desire to fight. “Both sides
showed an intention to fight. It is a totally new phenomenon,”
Luzhkov stressed.

The police acted quickly. Its actions were well organized.
“Everything was under control, every step was tracked,” Luzhkov
went on to say. However, imperfect laws didn’t allow law enforcers to
intervene and prevent the clashes. More than 20 people were detained.

“All the judicial procedures are under way now. A representative of
the Armenian community was wounded. We arrested a person who did
that. He will be tried very strictly,” Yuri Luzhkov said.

The mayor noted that all the participants in the clash would be
charged for “kindling inter-ethnic strife” and not with “ordinary
hooliganism” as it was done previously.

“This is right!,” he said. “Moscow is a multinational city. We
should learn to treat representatives of any other nationality
calmly, otherwise the country will fall apart,” the mayor went on to
say.

In conclusion, Luzhkov promised that the city will live calmly and
those who kindles inter-ethnic strife will be punished strictly.

MHER MKRTCHIAN HALL TO OPEN IN STATE DRAMATIC THEATER OF GYUMRI

YEREVAN, JULY 4, NOYAN TAPAN. A Mher Mkrtchian hall will open in the
State Dramatic Theater of Gyumri at the beginning of 2008 and
performances staged by the great artist, as well as new ones will be
performed there. According to the information provided to a Noyan Tapan
correspondent by Eduard Poghosian, the Head of the theater, the work
for which businessman Vahagn Hovnanian gave 25 thousand U.S. dollars
will be finished at the end of this year. According to Eduard
Poghosian, that is the very rehearsal hall, where Mher Mkrtchian played
his first role, that is, Baghdasar akhpar, in 1972.

Eduard Poghosian is convicted that the audience "is tired" of transient
shows and again returns to the theater: "The theater is like a black
suit, which is always in fashion," he mentioned.

KARABAKH GOVERNMENT’S RIGHT HAND IS UNAWARE OF WHAT ITS LEFT HAND IS DOING

Lragir.am
KarabakhOpen
03-07-2007 19:33:38

On July 3 an interesting thing happened at the Caucasus Analytical
Center which is based in Yerevan, where Armenian experts work,
but which is funded from a Russian source. The Caucasus Analytical
Center held a discussion on the presidential election of NKR headlined
View from Yerevan. Analysts, experts, politicians of Armenia had been
invited. From Masis Mayilyan’s team the head of Stepanakert Press Club,
editor of the Demo Public Newspaper, NKR Member of Parliament Gegham
Baghdasaryan was present. The representatives of Bako Sahakyan and
the other candidates did not turn up.

But since Sahakyan is the government’s candidate, NKR President
Ghukasyan had stated a few hours before the round-table meeting that
the former foreign minister of NKR, adviser to president Arman Melikyan
would represent Bako Sahakyan. However, this representation lasted
short although highly notable. After the address of the organizers
Arman Melikyan made an unexpected statement. The meaning of the
statement was the discussion was impertinent and in some sense also
highly unpleasant. According to Arman Melikyan, it would be acceptable
to discuss the settlement of the Karabakh conflict, or the territories,
but it is unacceptable when the presidential election of Karabakh
is discussed in Armenia at the Caucasus Analytical Center funded by
Russia. And it means that a third country is trying to influence the
outcome of the presidential election in Karabakh.

"What we are now discussing is apparently the disbelief that the people
of Karabakh may make a choice at best, or an effort to predetermine
the election, the outcome of the election, or try to influence
it at worst. It would be OK if an Armenian political party or NGO
held this discussion, but unfortunately – this is not an accusation
against my colleagues – unfortunately, this is a conference held by
a third country where the Armenian experts, in fact, there are also
representatives of Karabakh, must discuss the election of another
state," Arman Melikyan says.

He is right. But perhaps Arman Melikyan had better be guided by this
patriotic and dignified approach in performing his duties. And his
duties are to give advice to the president of NKR because he is adviser
to NKR president. For instance, like Arman Melikyan explained the
subtlety of the situation to the experts, perhaps he should explain
it to the NKR president as well who has recently addressed another
Russian institution based in Armenia, the Armenia-Russian Slavic
University and endorsed Bako Sahakyan.

Or does Arman Melikyan think Arkady Ghukasyan may speak about the
presidential election of Karabakh in Russian institutions, and other
may not? Or why did Arman Melikyan fail to advise the president of
Karabakh not to meet with the delegation from Russia led by the
Armenian and Azerbaijani ambassadors to Russia? Why? Because a
pre-election stage is underway in Karabakh, and this visit could
be viewed as support for the policy of the Karabakh government
and consequently for Bako Sahakyan who is ready to carry on this
policy. Why did Arman Melikyan fail to advise the president of Karabakh
to respond, not personally or maybe through advisers or ministers to
the articles in the Russian media on the NKR presidential election
which uphold the idea that everything is predetermined and Bako
Sahakyan will be elected.

Although perhaps Arman Melikyan gave advice to Arkady Ghukasyan but
Arkady Ghukasyan did not take it and all Melikyan can do is to give
advice to others. He cannot keep it all inside his head.

CAUCASUS ARMS RACE
By Vicken Cheterian

Le Monde Diplomatique, France

Jul y 3 2007

The Georgian defence minister, David Kezerashvili, caused a sensation
in May when he announced an increase in the 2007 military budget,
which will now be $550m. Budget revenue for the year will total
$2.1bn. According to the official figures, defence spending has
increased tenfold since the rose revolution, and the real figure
must be even higher. Tbilisi has also announced that it will send
reinforcements to Iraq soon, increasing the size of its contingent
from 850 to 2,000. Georgia will become the third largest military
contributor to the US-led occupation forces. Since 2001 Georgia has
received substantial US military aid in training and equipment.

But why does Georgia need to spend so much? It barely had an army
before the revolution and must make serious efforts if it wants to
join Nato in the near future, one of the government’s top priorities.

Military experts in Tbilisi are complaining that most of the best
officers trained under the US programme have now left the military,
citing the shortage of housing and low pay. Part of the current budget
increase will fund new officers’ quarters and higher wages.

But the government has other goals. The Georgian army has just
finished building a new base for more than 3,000 soldiers at Senaki,
near Abkhazia. A second base is being built at Gori, 30 minutes’ drive
from Tskhinvali, the capital of South Ossetia. Georgia also spends
much of its defence budget on procurement, including Ukrainian-built
tanks and field guns, and equipment from the arsenals of east European
countries that recently joined Nato and want to dispose of outdated
Soviet weaponry. Many of the Georgian army’s recent purchases are
not Nato-compatible but could be used in future combats in the
self-proclaimed independent republics of South Ossetia and Abkhazia.

Military spending in Azerbaijan has also increased dramatically,
from $135m in 2003 to $871m in 2007. With a steady flow of oil
revenue now that the Baku-Ceyhan pipeline is running, the Azerbaijani
president has promised military spending on a par with the entire
budget of Armenia. Baku has also purchased ground-attack jets,
tanks, artillery and multiple-launch rocket systems. Since 2003 the
Azerbaijani leadership has asserted that if the current negotiations
with Yerevan do not give it control over Karabakh and the six adjoining
Azerbaijani provinces, currently occupied by Armenian forces, then
it will use force to get its way.

Armenia is keen to catch up in the arms race, and spending has risen
from $100m in 2005 to $210m in 2007. It is determined to support the
Karabakh armed forces, financially and through military cooperation.

This tiny republic has a population of only 150,000. Yet it maintains
a fighting force of up to 20,000 and is spending heavily on a third
line of defences.

There are still three Russian bases in the region. Batumi and
Akhalkalaki in Georgia are being evacuated, but there are no plans to
close the base at Gumri in Armenia. There is also a large radar system
at Gabala in Azerbaijan. The US has increased military cooperation with
all three countries, particularly Georgia. The Georgian government
even announced that it would be prepared to locate parts of the US
anti-missile system on its territory, prompting a furious response
from Moscow.

This fast arms race might give political leaders in the Caucasus
a false but dangerous sense of strength. Since the collapse of the
Soviet Union there have been five wars in the region. Millions still
suffer the consequences. As recent events in the Middle East and
Central Asia have shown, it is easier to start a war than to end it.

ARMENIA IS IN PROCESS OF RECEIVING STATUS OF COUNTRY WITH STABLY DEVELOPING ECONOMY

Noyan Tapan
Jul 2, 2007

YEREVAN, JULY 2, NOYAN TAPAN. Armenia is in the process of receiving
the status of a stably developing country by the International Monetary
Fund (IMF). Ms. Marta Castello-Branco, the Head of the IMF delegation
being in Armenia from June 26, said at the July 2 press conference.

Answering Noyan Tapan correspondent’s question, she also said that
the rates of Armenia’s economic growth are high, for reorganizing
country’s economic status from "transitional" into "stably developing"
it is necessary that Armenian governmental bonds be circulated on
the stock markets of foreign countries.