Author: Virabian Jhanna

PanARMENIAN.Net

Armenian armed forces performed their task with dignity in 2008
24.01.2009 15:12 GMT+04:00

/PanARMENIAN.Net/ The year 2008 was rich in events. The Armenian armed
forces performed their task with dignity and ensured security of the
RA citizens, the Armenian Defense Minister said.

"We have carried out a huge deal of work last year, focusing on
executive development. Besides, Armenia hosted Rubezh 2008 and
Cooperative Longbow- Lancer-2008 exercises, where Armenian servicemen
proved out," Seyran Ohanyan told a news conference today.

"We fixed progress in military education and training and introduced
contract service system. Armory, intelligence, communications, medical
centers and dwelling construction were also in focus," he said.

The Minister also informed that in 2009 cooperation with the Foreign
Ministry to develop patriotism of the young generation will be
continued.

FACT SHEET: FOREIGN OPERATIONS APPROPRIATED ASSISTANCE – ARMENIA

US Fed News
January 20, 2009 Tuesday 11:18 PM EST

The U.S. Department of State’s Bureau of European and Eurasian Affairs
issued the following fact sheet:

Foreign Operations Appropriated Assistance*

Fiscal Year (FY) 2007: $63.79 Million (M) ($58M FSA, $5.79M Other)

Estimate FY 2008: $62.39M ($58.03M FSA, $4.36M Other)**

Assistance Goals: United States Government (USG) assistance supports
democratic and social reform to enhance regional stability and the
development of the infrastructure and institutions necessary to become
a free-market, democratic nation. USG assistance also supports the
peaceful resolution of the Nagorno-Karabakh conflict with Azerbaijan
and improved relations with Turkey needed to enhance movement of
goods and people throughout the region, and to create a better trade
and investment environment.

Areas of Focus (Foreign Operations Appropriated Assistance):

Peace and Security (PS): FY 2007: $12.21M; Est. FY 2008: $8.72M

* Increase Armenia’s ability to control its borders to prevent
smuggling;

* Improve the law-enforcement capacity and legal-regulatory structure
for Armenian border security and export control;

* Support development of U.S./NATO-interoperable defense institutions
and of medical, de-mining, and peacekeeping capabilities.

Governing Justly and Democratically (GJD): FY 2007: $17.92M; Est. FY
2008: $21.1M

* Promote democratic principles and institutions in all levels
of society;

* Increase public policy cooperation / dialogue between civil society
and government;

* Promote free, fair, and participatory elections.

Investing in People (IIP): FY 2007: $13.98M; Est. FY 08: $10.9M

* Increase the use of sustainable, high quality health and reproductive
care services;

* Increase access to education and health care in rural areas;

* Strengthen Armenia’s social protection departments and agencies.

Economic Growth (EG): FY 2007: $17.49M; Est. FY 2008: $20.08M

* Address economic imbalances and unemployment in Armenia;

* Encourage and support economic growth in sustainable sectors;

* Develop legal and regulatory reforms to open up the business
environment and make the private sector more competitive.

Humanitarian Assistance (HA): FY 2007: $1.4M; Est. FY 2008: $1.6M

Relieve suffering of vulnerable populations by providing donated food,
clothing, and medicine;

Collaborate with in-country NGOs and local officials to build
partnerships between the people of Armenia and the people of the
United States.

Recent Successes:

* USG grants to community organizations supported programs that
directly benefited over 3,000 citizens and indirectly benefited
82,000 others.

* Completion of 12 small reconstruction projects which improved the
quality of life for the institutionalized through structural repair
of beneficiary institutions.

* Through a business and association development program, strengthened
key industries to help increase tourism by 49% and added 2,146
sustainable IT jobs.

* Supported alternative dispute resolution practices in Armenia,
resulting in an increase in the number of businessmen applying to
the Arbitration Court.

* Provided upgrades to Armenian law enforcement’s computer network
thereby improving real-time communication among precincts in Yerevan
and the regions.

* Translated and published a book of the decisions issued by the
European Court of Human Rights to promote compliance with international
standards.

* Trained approximately 50 Armenian prosecutors as part of trial
advocacy seminars.

PROCEDURE FOR MONITORING OF FLORA AND FAUNA SET IN ARMENIA

ARKA
Jan 22, 2009

YEREVAN, January 22. /ARKA/. Armenian Government approved the procedure
for monitoring of flora and fauna in Armenia at its Thursday sitting.

Under the procedure, objectives and facilities to be monitored are set
in the procedure, Armenian Minister for Environment Aram Harutiunyan
reported.

The state monitoring of flora is to establish the status of natural
habitats of plants and the ecosystem, says the government decree.

The monitoring of fauna is carried out to ensure diversity of fauna
and to establish fauna management norms.

ARMECONOMBANK DOES NOT PLAN TO RAISE INTEREST RATES OF ITS CREDITS IN 2009

Noyan Tapan

Jan 22, 2009

YEREVAN, JANUARY 22, NOYAN TAPAN. "Armeconombank does not plan to
raise the interest rates of its credits in 2009: the current interest
rates will remain until the end of this year," the bank’s CEO David
Sukiasian stated at the January 22 press conference. According to
him, negotiations are under way and the interest rates of deposits
in Armenian drams are likely to rise slightly.

As regards the rumors about the reduction of crediting and nonprovision
of mortgage loans in some cases, D. Sukiasian noted that most of the
funds attracted by Armeconombank have been financial resources received
from international structures. These funds are used to provide credits
for small and medium business, mortgage loans, etc. In his words, there
will be no deviations from these programs. "There was no suspension,
just the terms for mortgage loans have become a bit stricter in
Armenia. Perhaps some Armenian banks have had liquidity problems
and provided less amounts of credits in order to deal with their
problems. However, it would be wrong to call such banks problematic,"
D. Sukiasian underlined.

It was mentioned that in 2008 the average market value of
Armeconombank’s shares grew by 24%. As of January 1, 2009, the overall
capital of the bank exceeded 8.6 billion drams. Its assets made more
than 52 billion drams, while the 2008 profit amounted to 460 million
drams (about 1 million 484 thousand USD).

ARMENIA ACTIVELY INVOLVED IN CSTO LAST YEAR

ARKA
Jan 22, 2009

YEREVAN, January 22. /ARKA/. Armenia was actively involved in the
Collective Security Treaty Organization last year, says a report
prepared by the RA Foreign Office.

Last September Armenia took over CSTO chairmanship.

According to the report, last April the CSTO Intergovernmental
Commission for Military and Technical Cooperation held its 5th meeting
in Yerevan and discussed further expansion of this cooperation between
the CSTO member-states.

Last June-August, the joint command-post exercises Rubezh 2008 were
held in Armenia, which tested the CSTO member-states’ readiness for
collective defense and allowed them to elaborate measures to prevent
aggression against Armenia, says the document.

On September 5, 2008, in Moscow, the CSTO held its regular session and
discussed the cooperation in battling terrorism and drug trafficking
and in military construction, as well as information security problems
in the CSTO member-states.

The session adopted a declaration wherein the CSTO member-states
re-affirmed their common approach to the fundamental international
problems.

As CSTO chairing country, Armenia was consistent in improving the
coordination of foreign policy within the organization. Last year
President Serge Sargsyan participated in two sittings of the CSTO
Council.

As chairing country Armenia also coordinated a number of arrangements.

Specifically, under Armenia’s chairmanship,20two meetings of the
CSTO Foreign Ministers, in New York and in Helsinki, were held. The
Secretaries of the CSTO Security Councils and the CSTO Defense
Ministers’ Council held their meetings as well.

On Armenia’s initiative the diplomatic missions of the CSTO
member-states held a number of meetings and consultations, the
report says.

CBA: ECONOMIC GROWTH TO BE 7-8%, INFLATION BUDGETED AT 4% IN ARMENIA IN 2009

ARKA
Jan 20, 2009

YEREVAN, January 20. /ARKA/. Economic growth will be 7-8%, and
the inflation rate is budgeted at 4% in 2009, said Chairman of the
Central Bank of Armenia Artur Javadyan at a press-confrence at Novosti
International press-center.

"According to forecast of Armenian Central Bank analysts, economic
growth will vary from 7% to 8% in the country in 2009 and the inflation
is budgeted at 4%, if there are no other occurrences in international
markets," said Javadyan.

He noted that other indicators of the country are difficult to predict
because of the world financial crisis, however "the biggest wave of
tsunami has not yet rolled over the world". He reminded economy grew 7%
and inflation rate was 5.2% in Armenia in 2008.

"In 2009 we will stay within the bounds of our aims, but it is obvious
that deflationary pressures are strong enough which will possibly
affect our economic growth", said Javadyan.

At the same time Javadyan stressed the Government and the authorities
undertake large-scale measures which will contribute to ensuring
forecasts for main economic indicators.

DOES THE ADMINISTRATION HAVE ENOUGH ARGUMENTS?

A1+
[06:12 pm] 20 January, 2009

The Armenian issue will be discussed at Parliamentary Assembly of
the Council of Europe to be held on January 27 for two hours. During
the discussion, members of the Armenian delegation, including head
of the delegation Davit Harutyunyan, members Armen Rustamyan, Naira
Zohrabyan and Avet Adonts, will try to present how Armenia has met
the requirements stated in resolutions 1609 and 1620 through the
combined efforts of the Armenian authorities.

As to who will manage to give a better report in the limited amount
of time will be decided on the spot. However, member of the Prosperous
Armenia party Naira Zohrabyan believes that the administration doesn’t
have enough arguments to present.

"The co-rapporteurs are concerned about prisoners of the "Case of
Seven". I fully hope that the administration is taking certain steps
towards solving that issue," told "A1+" Naira Zohrabyan.

She recalled that the issue concerning the reforms and clearer
formulation of article 300 of the RA Criminal Code are under discussion
and that it was one of the main requirements of the co-rapporteurs,
according to press releases.

"We are working on it and have some arguments to present in the
Council of Europe. I can’t predict how the vote of the delegates will
be. Nevertheless, the Armenian delegation will try to present what
the administration has completed. I can’t say whether or not they
will meet the requirements of the CE delegates," said Zohrabyan.

As for the possible sanctions, Naira Zohrabyan doesn’t believe that
applying sanctions will solve the issue of democratization in Armenia.

"I don’t share the opinions that it doesn’t matter whether Armenia
loses its voting rights or not. If we have integrated into the Council
of Europe, we must be guided by their system of values and play by
the rules of the game," said Naira Zohrabyan.

We recalled the reforms in the law on broadcasting by which television
stations are deprived of the opportunity to receive licensing. Thus,
once again, they refuse to restore the violated right of "A1+"
to digitization.

Will the issue concerning "A1+" impede the decision? Naira Zohrabyan
reminded that she hasn’t participated in the vote for that bill because
she saw political risks. As for the "Case of Seven", Zohrabyan noted:

"We are in a labyrinth. The political prisoners refuse to stand up,
the judge postpones the trial and the environment in the courtroom is
unhealthy. If the prisoners claim that the conclusions are false, it
has to be in their interest to have the trial in a healthy environment
and if the accusers claim that the charges are substantiated, it is
also in their interest to continue the trial. I just see trials turning
into scandals and I don’t think that it is in the interest of anybody."

TODAY THE NATIONAL COUNCIL ON RA-EU COOPERATION MET AT THE OFFICE OF GOVERNMENT, PRESIDED AT BY COUNCIL CHAIRMAN, RA PRIME MINISTER TIGRAN SARGSYAN

Fri day, 16 January 2009

The Council heard and approved the report on the status of RA-EU
action plan under the European Neighborhood Policy. The Prime Minister
indicated that this meeting was anticipated by several consultations
which passed under review the details of per-agency breakdown of
activities. Tigran Sargsyan proposed to discuss the overall ideology
of cooperation, as well as to look at specific actions under the
cooperation program. He stressed that all concerned agencies were
told to prepare individual action plans for cabinet discussion after
finalization and endorsement on the part of the National Council.

The Council approved the status of Twinning, Tie-X, Sigma and
Cross-Border cooperation programs under the European Neighborhood and
Partnership Facility (ENPPF), as well as the Budget Support Program.

In an effort to meet today’s imperatives, the Council amended the
title of the September 7, 2006 government decree N1282, which now
reads as follows: "On setting up a national council and a steering
committee for coordination of EU-Armenia cooperation in line with
the EU-Armenia Action Plan under the European Neighborhood Policy
with a view implementing the 2009-2011 primary tasks and priority
actions and approving their by -laws and compositions."

Corresponding changes were made to the statutes of the National
Council. It has been decided that the council secretariat shall be
staffed by appropriate divisions from the Staff of Government and
the Staff of the Ministry of Economy.

Those present suggested changing the composition of the National
Council to include representatives from a number of non-governmental
organizations which were in attendance of the meeting. All specified
NGOs will be engaged in council activities following discussion and
approval of the proposal.

WPS Agency, Russia
DEFENSE and SECURITY (Russia)
January 16, 2009 Friday

WAITING FOR WAR?

by Rusim Mamedov

ANOTHER WAR OVER NAGORNO-KARABAKH IS FEARED IN THE CAUCASUS; The
outbreak of hostilities in the Caucasus this year is possible over
Nagorno-Karabakh.

Dramatic events last August when Russia helped South Ossetia repel
Georgian aggression and recognized it and Abkhazia as sovereign states
fomented expectations of another war in the Caucasus. This time the
outbreak of hostilities over Nagorno-Karabakh is feared.

Leaders of Armenia and Azerbaijan signed the so called Meindorf
Declaration. Brokered by Moscow in Russia, the document compels them
to settle the Nagorno-Karabakh issue on the basis of internationally
acceptable principles. Several days later, however, President of
Azerbaijan Ilham Aliyev announced that the Moscow Declaration allowed
for the military solution to the problem. Also importantly, Azerbaijan
boosted its military budget to $2.2 billion i.e. more than tripled it
since 2006. It means that Aliyev’s words are to be taken seriously, at
least as an indication of intentions.

A larger part of the Armenian political establishment and practically
all Nagorno-Karabakh population (solely Armenian, these days) are of
the opinion that the Meindorf Declaration does not recognize the
Nagorno-Karabakh Republic as a side of the conflict. In other words,
that representatives of this republic denied recognition cannot
realize their interests in full. The Nagorno-Karabakh settlement
formula accepted in Moscow stands for territorial integrity of
Azerbaijan and few Armenians find it acceptable. No wonder skirmishes
and clashes along the line of contact became undeniably more frequent.

It is clear as well that application of the Georgian scenario is
essentially impossible because Armenia all but recognizes
Nagorno-Karabakh de facto while Russia, Armenia’s ally, knows better
than to spoil relations with Azerbaijan, a country more than loyal to
Russia and (also important) predictable. It does not, unfortunately,
rule out the possibility of Azerbaijani-Armenian hostilities.
Political deterioration in Azerbaijan, Armenia, and Nagorno-Karabakh
itself will make their outbreak a distinct possibility. In this case,
official Yerevan may succumb to the demands of the opposition and
grant Nagorno-Karabakh formal recognition as a sovereign state and a
side in the conflict (emulating what Russia did with regard to
Abkhazia and South Ossetia last year).

Stepan Safarjan, Secretary of the Legacy faction of the Armenian
parliament, is convinced that "… Armenia should put forth the demand
to make Nagorno-Karabakh the principal side in the talks." "Should
Azerbaijan attack Karabakh, it will leave only one course of action
open to Armenia and that spells official recognition," he added.

What side of the fence will Moscow support in another
Azerbaijani-Armenian conflict? What kind of policy will it need in the
Caucasus to promote its own interests? What will NATO and the United
States think of another round of the hostilities? What effect will it
have on Moscow’s relations with Armenia and Azerbaijan?

Granted that the questions are mostly academic and somewhat
provocative at this point, answers to them are needed right now to
spare Moscow being caught unprepared by a sudden outbreak of
Azerbaijani-Armenian hostilities. Moreover, answers are needed without
delay for the Russian military and military-diplomatic circles and
analogous structures in Russia’s allies to try and prevent this turn
of events.

Seeing another round of hostilities, Moscow will have the right to
demand an instant cease-fire and immediate negotiations. Military aid
to Armenia (no matter how covert) from the Russian military base in
Gyumri will hardly be the best course of action. If Russia does not
want to antagonize Baku, Russian troops in Armenia must remain
strictly neutral. The Russian Foreign Ministry in the meantime will
have to concentrate on preventing NATO countries including the United
States from joining the battle. Moscow will do fine demanding to be
allowed to deploy Russian peacekeepers or peacekeepers from
pro-Russian CIS countries on the line of contact.

Source: Voyenno-Promyshlenny Kurier, No 1, January 14 – 20, 2009, p. 3

Translated from Russian

A1+

DIED OF GAS ESCAPE
[05:24 pm] 16 January, 2009

Two employees of `Ashtarak Kat’ CJSC have died of gas poisoning in a
milk-receiving center in Gorayk village of Syunik. After finishing
their work the Company’s Transport Manager Gegham Margaryan, 1953, and
Inspector Aksel Bakunts, 1985, spent the night in the center which was
heated by a gas oven. They were to return to the capital today
morning.

The bodies of Margaryan and Bakunts were found by the employee Tigran
Arustamyan. The smell of gas was felt all over the room. Experts of
ArmRusGasArd Company and а task force saw around the place and
made enquiries into the fatal accident.

The head of a Sisian-based gas supply and gasification company
Harutyun Khachatryan says the gas oven was in order and all security
norms were preserved. Nevertheless, the building design didn’t foresee
placement of gas ovens in the guest rooms on the second floor.

Harutyun Khachatryan doesn’t think the reason for the death was gas
poisoning. `The oven has been tested and it is in a normal state.

According to the preliminary forensic enquiry Margaryan and Bakunts
died of gas poisoning.

Investigation is underway.

Syuni TV, Sisian