Anonymous people finance purchase of plane for Armenian leader

Haykakan Zhamanak, Armenia
Dec 4 2007

ANONYMOUS PEOPLE FINANCE PURCHASE OF PLANE FOR ARMENIAN LEADER

People who wish to remain anonymous financed the purchase of a new
aircraft for the Armenian president. That their names remain unknown
gives grounds for suspicions that in return they may have received
some economic benefits, a major Armenian daily reports. The following
is the text of Vahagn Hovakimyan report by Armenian newspaper
Haykakan Zhamanak on 4 December headlined "New aircraft purchased";
subheadings have been inserted editorially:

The press services of the Armenian president spread information about
the purchase of a new aircraft for the president’s service yesterday.

During the last months of staying in office, [President] Robert
Kocharyan will fly abroad an Airbus A-319, manufactured in 1998.
According to the official publication, the aircraft was purchased for
45m dollars, of which 15m have already been paid. This amount,
according to the president’s press service was paid by some
philanthropists, who wanted their names to remain anonymous. A loan
to be repaid over 10 years has been secured to pay the remaining 30m
dollars.

The aircraft has so far flown nearly 3,700 flight hours. This is a
rather small figure an Airbus A-319 and therefore the plane can be
considered fresh and little-used.

Issues with older aircraft

Now let us describe the president’s old aircraft, TU-134, which was
produced in 1977 and this year reached its 30th anniversary. First it
was a so-called passenger airplane, which was later used by the
president. TU-134 was made in the USSR and was supposed to carry 34
passengers. This trademark aircraft has the maximum speed of 850-900
km per hour, maximum takeoff weight 47.5 t, of a little more than 8 t
are reserved for commercial payload. With a certain quality of
equipment a TU-134 can fly without landing at most 2,000-3,000 km.

The Armenian press has sometimes featured reports about the
presidential aircraft occasionally encountering problems connected
with permissions to enter and landing in Europe. The reason is that
starting back in 2000 European countries strictly banned the landing
of such old aircraft in their airports, because of the excessive
level of noise and environmental damage. According to unverified
sources, during every visit to Europe Robert Kocharyan had to pay a
fine, a handsome sum of money for not complying with European
standards of aircraft operation. In such cases the fines constitute
more than 10,000 euros for every take-off and landing. It is typical
that issues related to using TU-134 are also mentioned in the release
the presidential press service.

Airbus A-319 specifications

The serial production of the president’s new Airbus A-319 type of
aircraft started in 1992. The average specifications for Airbus A-319
are the following: the average flight speed is 900 kmh, maximum
takeoff weight 70-77 t, depending on which engine is installed in a
given aircraft. Airbus A-319 can fly without landing up to 6,000 km.
However, what makes it attractive is that the model was originally
designed for representation aims. The aircraft purchased for the
Armenian president is one of those: it was originally designed and
furnished as a representative aircraft. Certainly it is now kept in
secret by whom and in what country it was operated previously.

A-319 of the representation modification can fly without landing
nearly 12,000 km and can carry up to 20 t. It can seat at most 50
passengers. Specifically, the Armenian president’s aircraft is
envisaged for 34 passengers. In contrast with TU-134, which has a
crew of four people , A-319 is operated by two pilots. Aboard it has
a furnished conference room, a bedroom, a gym and a lavatory. In
other words, these aircraft actually resemble a flying apartment.

Uncertainty breeds suspicions

The Armenian president’s aircraft will be operated by the Armavia air
company. incidentally, the fact that the source of the 15m dollars
paid for the aircraft is not named in the media gives grounds for
speculation. The point is that here we deal with the fact of the
purchase of a piece of equipment for the state’s number one person,
and for which the funds were paid not from the state budget, but from
some individuals’ pockets. This all would seem less suspicious,
should the payers’ names were published. In that case Armenian
society would have an opportunity to draw a conclusion. In
particular, in case of publishing these philanthropists’ names it
would be clear, why they have decided to make such a gift to Armenia.

In other words, the confidentiality of the sources of the funds
generates suspicions that possibly the payers were allowed to get
some kind of reimbursement for acquiring monopoly in a sector in
Armenia or for undertake activity in some field. In brief, generous
philanthropy of this kind can be actually motivated by different
reasons, and in this case it is not clear which of them is real. We
repeat ourselves, the most important is the fact that the Armenian
president’s aircraft was paid for not by the Armenian government out
of the state budget funds, but by some individuals, from their own
pockets.

Translated

VTB Provides Funds For Opereation Of Teghut Mines

VTB PROVIDES FUNDS FOR OPERATION OF TEGHUT MINES

Panorama.am
13:40 08/12/2007

Armenian Prime Minister received today Russian VTB Bank president
Andrei Kostin who is in Armenia in relation to signing of a cooperation
agreement between VTB Bank and Armenia Copper Program. After signing
the agreement, VTB Bank Director and Central Bank Director held a
press conference.

According to the document, VTB will provide $257 million for the
commissioning of Teghut mines on a term of 12 years. VTB director said
this is the largest program of its sort. According to the agreement,
VTB Armenia Bank will provide financial consultations and bank service
during the implementation of the project.

Before signing the document, Andrei Kostin and Prime Minister Serzh
Sargsyan discussed the cooperation of the bank with our country. The
two also discussed large scale foreign investment and the creation of
favorable conditions for the business environment in our country. The
parties expressed their satisfaction with the current pace of
cooperation of VTB Bank with Armenia.

VTB has a capital of $52 million in Armenia.

Elite community to be built in Stepanakert

Panorama.am

18:18 06/12/2007

ELITE COMMUNITY TO BE BUILT IN STEPANAKERT

Several persons from Armenia have expressed intention to build an
elite community in Stepanakert. This was informed by Karabakh Prime
Minister Ara Harutunyan. The government has taken a decision in its
recent session to change the cadastre category of Khnatukh, Krasni and
Dashushen communities.

More than 10 houses are built for the refugees from Azerbaijan in the
Ajapniak community of Stepanakert. The houses are supplied with
gas. However, the refugees do not want to move because of
non-convenient conditions. The source says houses are being built in
Aresh community as well.

Source: Panorama.am

Exhibition Of Sme Production Opens In Yerevan

EXHIBITION OF SME PRODUCTION OPENS IN YEREVAN

Noyan Tapan
Dec 03 2007

YEREVAN, DECEMBER 3, NOYAN TAPAN. The 18 million-dollar project
on Armenian Agribusiness Small and Medium Enterprise (SME) Market
Development has provided assistance to Armenian SMEs, particularly
those engaged in food processing, for over 7 years, the project
director Gary Kilmer stated at the opening ceremony of the exhibition
of production Armenian SMEs on December 3. According to him, more than
500 farms have received assistance under this project, with the total
amount of their export and domestic sale making 55 million dollars
over these years.

The U.S. charge d’affaires in Armenia Joseph Pennington said that
a greater growth in the Armenian economy will be registered in case
of agribusiness’ development. In his opinion, a number of programs
should be worked out in this direction in Armenia, and if the private
sector is promoted, Armenia will also develop.

The director of the Yeghvard yeast factory Arsen Khachatrian informed
those present that new workshops have been built and modern conveyers
have been installed at the factory with 41 thousand dollars invested
under the SME program. In his words, in 2000, their production made up
10% of the domestic market, whereas in 2007 – 75%. Dry and wet yeast
produced by their factory is now exported to Ukraine and Georgia,
and it is envisaged to start exporting it to Iran in the near future.

During the opening ceremony, G. Kilmer was presented with a gold
medal of the RA ministry of agriculture.

German And Russian Guides Published

GERMAN AND RUSSIAN GUIDES PUBLISHED

Panorama.am
21:47 04/12/2007

The guides of German and Russian united exams are also published
said Armen Asryan, a specialist of the Evaluation and Testing Center
organizational department. According to him all the guides will be
sent to the schools on Thursday, but first the schools in the regions
will get them. The other four guides of Mathematics, Armenian Language
and Literature, English and French subjects were published last week.

The graduates of this educational year will pass their final united
exams from six subjects. Last year they passed only one united exam
from Armenian Language and Literature subject.

Note that 6mln drams were disposed to the organization and
guidebooks of the final exams from the state budget; and 50mln –
to the publication of the guides.

Turkey trying to go local in defense procurement

Eurasia Daily Monitor, DC
Dec 6 2007

TURKEY TRYING TO GO LOCAL IN DEFENSE PROCUREMENT

By Gareth Jenkins

Thursday, December 6, 2007

Turkey has stepped up its efforts to secure as much as possible of
its defense procurement requirements from local manufacturers.

Turkey has long regarded the development of an indigenous defense
industry as a strategic priority. Few in the Turkish military have
forgotten the U.S. arms embargo that followed the 1974 Turkish
invasion of Cyprus or, more recently, the restrictions that several
European countries tried to place on the use of weapons and equipment
sold to Turkey during the 1990s at the height of the first insurgency
of the separatist Kurdistan Workers’ Party (PKK). The perceived need
to strengthen local defense companies was also the main reason for
signing a defense industry cooperation agreement with Israel in 1996,
although the hopes of many in the military that the agreement would
lead to the `back door’ transfer of U.S. technology to Turkey
ultimately came to nothing. In recent years, defense industry ties
between Israel and Turkey have been further overshadowed by
allegations of graft and substandard work by Israeli defense firms.

However, attempts to strengthen the Turkish defense industry have
traditionally been frustrated by a combination of limited technology
and high costs. Even when it has been technically possible for
Turkish companies to produce something with their own resources, the
high cost has frequently meant that it has been considerably cheaper
to buy off the shelf solutions from abroad.

Yesterday (December 5), Turkish Defense Minister Vecdi Gonul
announced that, for the first time, Turkey would develop its own
infantry rifles and automatic rifles. Speaking after a meeting of the
Defense Industry Executive Committee, which oversees all defense
procurement in Turkey, Gonul said that he expected the
5.56-millimeter rifles to be ready within two years.

Gonul also announced that Turkey would build four frigates at a
projected cost of $1.6 billion. He added that the frigates would be
entirely produced in Turkish shipyards by Turkish firms.

In addition, Gonul said that the committee had decided to make
Aselsan, Turkey’s largest defense company, the main contractor for a
50 million project to install an underwater/above water surveillance
and detection system at the Aksaz and Foca naval bases, with
Kongsberg of Norway named as the subcontractor. Gonul said that
Turkey would also buy a total of 16 Penguin missiles for its Seahawk
helicopters from Kongsberg at a cost of approximately $40 million.

In the weeks leading up to the meeting, press attention had focused
primarily on Turkey’s plans to launch an electro-optical
reconnaissance and surveillance satellite system, code-named Gokturk.
Gokturk will be produced in country under license and will be
Turkey’s first military reconnaissance and surveillance satellite.
Currently, Turkey’s only access to such information is through its
commercial satellites, U.S. and Israeli resources and NATO assets.
Following an agreement reached in the White House on November 5 (see
EDM, November 6), the United States is believed to have increased the
amount of intelligence it now provides to Turkey on the PKK. However,
Turkey remains keen to have its own satellite reconnaissance and
surveillance capability. In 1998 Turkey reached a preliminary
agreement with Alcatel of France to launch a military satellite,
although the project was scrapped in the wake of the French
parliament’s decision to characterize the killings of Armenians in
the final years of the Ottoman Empire as genocide.

The Gokturk project comprises three parts: an electro-optical
surveillance satellite, a permanent land station, and a mobile land
station. The successful bidder will be expected both to manufacture
the satellite and guarantee placing it in orbit. The terms of the
contract tender specify that the satellite must be able to be used to
gather military intelligence from any place in the world without
geographical restriction. Turkey originally hoped that the satellite
would be in orbit by 2008. However, the launch is now expected to
take place in 2011.

Four companies originally submitted bids. Yesterday Gonul announced
that Turkey was breaking off negotiations with one of the bidders,
Israeli Aerospace Industries. No reason for the decision was given,
although the Turkish media has speculated that it was the result of
Israeli restrictions on the use of military satellites over its own
airspace (Zaman, December 6). Gonul said that negotiations would
continue with the other three bidders: EADS Astrium (UK), OHB-System
(Germany), and Telespazio (Italy).

Gonul added that Turkey would cancel an existing tender for a
multipurpose helicopter but would conduct talks with Sikorsky of the
United States and AgustaWestland (Italy/UK) for the procurement of
over 80 helicopters for the Turkish Armed Forces (CNNTurk, NTV,
December 5, Zaman, December 6).

Tents For The Revolutionary Party

TENTS FOR THE REVOLUTIONARY PARTY

Lragir, Armenia
Nov 27 2007

The ARF Dashnaktsutyun Party is apparently in trouble with its
decision. The ancient party finally seemed to have decided to conduct
an independent policy and nominated a candidate for the presidential
election 2008. In addition, it nominated two candidates instead of one,
and to elect one of them the ARF Dashnaktsutyun has put up tents in
the streets where the citizens are invited to prefer one of them.

The leadership of the ARF Dashnaktsutyun explains this tactics by
various political and public circumstances. However, it is felt that
deep inside the ARF Dashnaktsutyun leadership is confused. Either
they have got used to dependence or they do not know what to do next.

"Next" is vanishing in the haze. On the one hand, the government acts
"life and death", on the other hand, Ter-Petrosyan’s pole threatens,
at least in appearance, to become a major home political factor. The
expected stance of the ARF Dashnaktsutyun, which could be put as "they
will eat each other, we will advance" seems ineffective; moreover,
it threatens to set both against them, turning this tactics moot and
imperceptible. This is dangerous for the party’s leadership who are
apparently up for a major political deal with the government through
putting up a candidate.

The government, however, did not hurry to bargain with the ARF
leadership. Firstly, this is not a parliamentary election, and
the government does not fancy flirting. Especially when the ARF
leadership has refused to support the government and act against Levon
Ter-Petrosyan. Secondly, the ARF leadership has made such abject deals
with the government of Armenia and Karabakh in the past few years
that the society disbelieves Dashnaktsutyun’s likelihood to conduct
an independent policy. Is this the reason why the ARF Dashnaktsutyun
is rejecting responsibility placing it on the passers-by? Because
for its part the existence of two candidates shows that there is no
agreement inside the party not only on the issue of the candidate
but also many underlying issues.

In facts, hard times have come. In this situation the ARF
Dashnaktsutyun could have played a major role by conducting a new
quality politics, establishing Constitutional order and building
a civil society in Armenia, strange though it may seem. The party
possesses everything necessary for an independent policy except will
and determination of its leaders.

V. Hakobyan Followed Aronyan

V. HAKOBYAN FOLLOWED ARONYAN

Panorama.am
21:52 27/11/2007

Vladimir Hakobyan, Armenian chess Grand Master won Anton Filipov,
Uzbekistan representative in 2.5-1.5 score, in the first stage of
World Chess Cup Competition.

So, the Armenian chess player got the right to play in the second
stage, where his competitor is Michael Roiz, Israel. The other
Armenian chess players Zaven Andriasyan and Varujan Hakobyan failed
in the tiebreak, and have to wait for the next one.

Note that the World Cup Competition takes place by "Knockout"
system. It means that all the 128 participants will take part, and
after each stage only half of the participants will continue the
competition, and the others will play during the final stage. The
format is confirmed by FIDE. The competition will take place by seven
stages. December 12 is announced as a day-off, and December 17 is
the final competition closing day. The competition takes place in
Khanti-Mansijsk city, Russia.

Armenia Ranks 83 In UNDP Annual Report

ARMENIA RANKS 83 IN UNDP ANNUAL REPORT

PanARMENIAN.Net
28.11.2007 18:48 GMT+04:00

/PanARMENIAN.Net/ Iceland topped the United Nations 2007 Human
Development Index report released Tuesday.

The other top placers in the survey are Norway, which slipped to
second place, Australia, Canada and Ireland. The U.S. went down to
12th rank from its 8th place in 2006.

UK ranks 16; Lithuania, Estonia and Latvia rank 43, 44 and 45
respectively.

Belarus and Russia (64 and 67) were included in the group of 70 states
with the highest human development indices.

The other CIS member states were ranked as states with middle human
development index: Kazakhstan (73), Ukraine (76), Armenia (83), Georgia
(96), Azerbaijan (98), Turkmenistan (109), Moldova (111), Uzbekistan
(113), Kyrgyzstan (116) and Tajikistan (122).

The UNDP ranked 175 UN member nations, including Hong Kong and
Palestinian territories, but excluded 17 countries including Iraq,
Afghanistan and Somalia due to lack of data. It has been publishing
the annual Human Development Index report since 1990.

The index measures life expectancy, literacy, education and standard
of living. With its benchmarks, nations are classified as developed,
developing or underdeveloped, the UN press center said.