PIPELINE ACCIDENT HALVES RUSSIAN GAS SUPPLIES TO ARMENIA

ITAR-TASS, Russia
Dec 19 2006

TBILISI, December 19 (Itar-Tass) — Russian gas supplies to Armenia
have halved because of a landslide that damaged a 1,200-millimeter
trunk pipeline in Georgia.

"The reduced deliveries have not affected people, industrial
enterprises and heating plants, as the deficit is being compensated
from a Yerevan underground storage facility," said Shushan Sardarian
from the Russian-Armenian joint venture ArmRosGazprom.

The landslide occurred in the highland Dusheti district of northeastern
Georgia. The pipeline will be repaired in several days, a source at the
Georgian International Petroleum Corporation told Itar-Tass on Tuesday.

The accident happened on December 18, and the deliveries are being
made through the spare 700-millimeter pipeline.

"The spare pipeline has a smaller capacity than the damaged
1,200-millimeter pipe, so the deliveries to a number of Georgian
areas and Armenia have reduced," the source said.

EXTREMIST ARMENIANS: EU COULD USE ARMENIAN ‘GENOCIDE’ AGAINST TURKEY

Journal of Turkish Weekly
Dec 19 2006

In addition to the Greek Cypriots, now the Armenians are making
pressure on the European Union to use Turkey’s EU bid to persuade
Turkey for pro-Armenian policies. The extremist nationalist the
Armenian Revolutionary Federation (Tashnaks) says Turkey should be
made to recognize the so-called genocide before it can become an EU
member. The Tahnaks were the responsible for many terrorist attacks
against the Ottoman and Turkish diplomats and politicians during the
1920s, 70s and 80s.

Kiro Manoyan, the director of the organization, said the EU had used
Greece and Cyprus against Turkey and the time for Armenia would come
as well. Turkish media sees the co-opearion between the EU, Greeks and
Armenians as religious solidarity against the Muslim Turkish people.

According to the PanArmenian agency, Manoyan said the Armenian issue
would eventually become an instrument for the European Union and
urged all Armenians to be ready for such a development.

The genocide issue and the Armenian lobby have a significant impact
on some EU countries. France and Netherlands, two countries seemingly
against Turkey in the EU, have made the matter an internal one.

A bill making it a crime to reject the Armenian claims passed in the
French parliament on Oct. 12. The bill awaits approval from the Senate
and President Jacques Chirac, through probably will not pass.

On Oct. 22, three Turkish-Dutch electoral candidates in Holland were
removed from their party lists for not accepting the Armenian claims.

The Armenian constitution name some of Turkey’s eastern provinces
‘Western Armenia’. The constitution does not recognise Turkey’s
national borders. Armenia also does not recognise Azerbaijan’s national
borders. 20 per cent of the Azeri territories have been under the
Armenian occupation. Turkey closed its territorial borders when
Armenia attacked Azeri territories.

CASTEL SAKARTVELO TO BOTTLE MORE BEER
By Christina Tashkevich

The Messenger, Georgia
Dec 19 2006

The European Bank for Reconstruction and Development (EBRD) has
approved a USD 15 million loan to B.I.H. Eastern Ltd, the holding
company of Groupe Castel’s beer, wine and mineral water operations
in Armenia, Azerbaijan, Georgia and Russia. The bank says the loan
would be used to strengthen the two breweries Castel Sakartvelo in
Georgia and Kotayk Brewery in Armenia.

Castel Sakartvelo currently holds a 14 percent share in the beer
market in Georgia. It is one of two breweries in the region that
produces premium brand beers.

"EBRD’s loan will help the company strengthen the company’s operations
by upgrading and enlarging its logistics as well as increase its
marketing activities," the bank’s press release stated on Monday.

CEO of B.I.H. Eastern Ltd Jean Paul Lanfranchi told The Messenger
earlier in December that the company plans to invest more in canning
and bottling beer at Castel Sakartvelo.

"We have been refurbishing the equipment, so we would be able to
increase our capacity of bottling," he said.

Armenian Kotyak Brewery who has been facing increased competition in
the last few years with the help of a loan will invest in improving
its products.

EBRD Director for the Caucasus Mike Davey said the investment is a
good example of the support the bank can offer agribusiness companies
in the region with its capacity for longer-term lending.

In early December, the EBRD together with the European Investment
Bank (EIB) announced plans to finance EU-supported projects in the
Southern Caucasus.

The EIB has been authorised by the EU Council to extend loans that
could exceed EUR 3.7 billion through 2013 (or about EUR 500 million
per year) for co-financing investment projects in the region of
Eastern Europe and Central Asia.

EIB President Philippe Maystadt said in December the region covered by
the agreement is critical because it includes the countries that are
close neighbours of the EU, all of which need modern infrastructure
that will boost economic development.

He added the most efficient way to undertake these large infrastructure
projects is in partnership with the EBRD, which already has a good
knowledge of the region.

IRANIAN BUT NOT ARMENIAN GAS PIPELINE TO OPEN IN THE NEW YEAR

Lragir, Armenia
Dec 19 2006

The Iran-Armenia gas pipeline is ready but there are problems which
will delay the official opening appointed on December 20. At least
this is what the Armenian government had stated, meanwhile a member
of this government Vardan Oskanyan is stating that the Iranian party
did not test the gas pipeline, and the opening will be when the test
of complete. Vardan Oskanyan stated this in a news conference on
December 19 at the Friday Club.

The Armenian foreign minister, who returned from Iran yesterday, says
the opening of the gas pipeline will be delayed until the Iranian New
Year. It means that the gas pipeline will not be opened till March
because the new year is celebrated in March in Iran. He says there
are no talks over the engagement of a third party in the management
of the pipeline, and the Iranian party has announced for a number of
times that its approval is necessary, showing that they disagree to
the involvement of a third party. In this case, the third is Russia,
which has already stated for a number of times about taking up the
management of the pipeline.

"The involvement of ARG is concerned, not the involvement of Russia.

As far as I know, there is no decision yet, and I informed the Iranian
party, however, it is possible that the most logical decision will be
made," says Vardan Oskanyan about the fate of the gas pipeline. And
the most logical decision, according to Vardan Oskanyan, is that ARG
takes up the management of the gas pipeline.

"In Armenia ARG deals with everything that concerns gas, it would
be pointless to set up another consortium or organization to manage
this section. This would be a natural solution, but I repeat that
there is no solution. The Iranian side is interested in any issue
regarding their supply. So, it is possible to reach an optimal, an
effective solution in the talks with the Iranian party," says the
foreign minister of Armenia.

VARDAN OSKANYAN WILL DECIDE AFTER THE HOLIDAY

Lragir, Armenia
Dec 19 2006

The Armenian foreign minister’s statement made earlier that a minister
should not remain in office for more than a decade does not mean
that the foreign minister is likely to quit politics. Vardan Oskanyan
personally stated this December 19 at the Friday Club. He explained
what he had meant in speaking about his intention to quit office.

"It was a natural reaction, when a new president is elected, a new
president would like to have his foreign minister. I think this is
natural. I meant this when I made this statement. There were different
interpretations that Oskanyan is reluctant, he is tired of politics,
he wants to quit," Vardan Oskanyan says.

He thinks that he has much to do in Armenia, therefore he will try
to remain in politics. "I will try to remain in politics, because
sometimes the wish and the reality are different. My wish is to remain
in politics, to make my contribution, and time will show if I will
stay in politics," Vardan Oskanyan says.

Considering that President Robert Kocharyan mentioned the possible
political parties on December 15 who will be forming government,
namely the Republican Party, the ARF Dashnaktsutyun, the United Labor
Party and Bargavach Hayastan, the news reporters asked if the foreign
minister will affiliate with one of these four political parties in
the new year to remain in politics. "I find it difficult to say. I
haven’t got any offers from these political parties, and I have not
made any requests either. I am not considering this question yet. I
need time to think. After the holidays, when the political sphere
becomes more clear, it will be possible to decide how to continue
activities in the political sphere," Vardan Oskanyan says.

EVERYONE WILL SOON FORGET ABOUT KARABAKH CONSTITUTION

Lragir, Armenia
Dec 19 2006

Necessity for a constitution arose in Karabakh because over these
years the people of Karabakh have established a legal and institutional
sphere which needed to be concluded by a constitution.

Armenian Foreign Minister Vardan Oskanyan expressed this opinion in
a news conference on December 19 at the Friday Club. He stated that
the reaction of the international organizations to the referendum is
unacceptable. According to the minister, it was not so surprising
that they reject the referendum, but it was surprising that these
statements were so hard. However, comments by the same officials of
European organizations came right away to correct the statements.

Vardan Oskanyan says he believes that the Constitution will not have
a negative impact on the settlement of the conflict over Karabakh.

"It is a period when the referendum has just been held, and there
were statements, comments, opinions are expressed, but soon, I think,
the question will be accepted as a fact, and we will move on. In the
long run, the stronger the legal, institutional and economic basis of
Nagorno Karabakh is, the more useful it will be for the settlement,"
Vardan Oskanyan says.

He also says that unlike the presidential and parliamentary elections
in Karabakh, the reaction of the international organizations has
changed essentially after the referendum on constitution. They used
to stress separate principles, now they are being more cautious,
because now the principle of self-determination is underlying the
talks, says the foreign minister of Armenia.

He considers strengthening legal, economic and institutional basis
of the republic of Karabakh as a factor facilitating the settlement,
which will establish facts that Azerbaijan will have to accept. The
more confident the NKR people and government feel, "the easier it will
be to reach a settlement through compromise," thinks the Armenians
foreign minister.

NATIONAL PECULIARITIES OF SECURITY
Hakob Badalyan

Lragir, Armenia
Dec 19 2006

Although Robert Kocharyan’s interview on TV cannot be considered as
a masterpiece of this genre, ideas were expressed which can make the
process move. In addition, this process can be rather dangerous for
the society. Robert Kocharyan stated openly that the seminars held
in Armenia on Western grants threaten the national security. This
approach could be expected, it was even belated, considering that
several months ago Vladimir Vladimirovich Brezhnev, like most Russian
media already refer to Putin, who has become the model of an "ideal"
leader for Robert Kocharyan, declared the NGOs financed with Western
money "persona non grata". Hence, Robert Kocharyan was even late.

This delay has a reason, however. First, Armenia is a small country
and cannot afford to declare that the Western grants are a threat,
especially when these grants sustain the government as well. Besides,
if they immediately did in Armenia what they did in Russia, it would be
evident that Robert Kocharyan is imitating Putin. Now it is the best
time for such a statement. Even Putin has forgotten that he rejected
the NGOs, and now these NGOs are operating in Russia, though sometimes
they face problems. And the most important thing that makes the moment
convenient is the National Security Strategy that is being worked
out and will soon appear on the desk of the president. The taskforce
on the strategy led by the pillar of the security of Armenia Serge
Sargsyan, adopted the final draft unanimously in the morning of the
same day when Robert Kocharyan answered the so-called questions of
news reporters. The threat followed the strategy.

What threat is it? Where does it come from? It is amazing but
the threat comes from the place where Robert Kocharyan, Vardan
Oskanyan and Serge Sargsyan were and will be often and with smiles
on their faces. These "threatening" grants are the money of the EU,
the governments of the United States, the U.K., Germany and other
countries of Europe, which comes to Armenia via the NGOs. This money
or the announced purpose does not differ from the Japanese, Chinese,
Indian, American grants the government gets to develop agriculture,
or the Norwegian grants for building houses for refugees. In both
cases the grants are intended to sustain development in Armenia.

Simply in one case the focus is on the spheres of economy, in the
other case the development of the non-governmental sector. In addition,
it is highly disputable which one is more important for the country,
a developed economy or a developed non-governmental sector, which is
an alternative to the system of governance and, in fact, it acts as
a restraint on the arbitrariness of the government. In this respect,
the threat is evident. And when the president of Armenia, the foreign
minister or the pillar of the national security go abroad and meet
the governments and organizations threatening our security with happy
and satisfied faces, ostensibly they carry out an intelligence mission.

However, we must be grateful that the president of Armenia did not
ban the NGOs. He even said they cannot ban them but it is necessary
to explain to the public to help them detect the lure. They will ban
when the public will not understand the explanation, and the strategy
will have been adopted. Besides, if they start banning everything now,
what are they going to ban in the pre-election period?

ARMENIAN SERVICEMAN KILLED

Lragir, Armenia
Dec 19 2006

The press secretary of the minister of defense of Armenia Seyran
Shahsuvaryan told ARKA News Agency that on December 18 at 18.00 Sgt.

Ruben Tamrasyan, 39, was killed by a gunshot from the Azerbaijani
side at the Armenian-Azerbaijani border near Idjevan, Armenia. The
Armenian serviceman was injured in the chest and died soon. The case
is being investigated, Seyran Shahsuvaryan said.

ARMENIA SEEKS INTERNATIONAL CONDEMNATION OF ALLEGED AZERBAIJANI DESTRUCTION OF MONUMENTS

International Herald Tribune, France
The Associated Press
Dec 19 2006

YEREVAN, Armenia: The Armenian government has launched a traveling
photo exhibition of what it claims is destruction of monuments at an
ethnic Armenian cemetery in the Azerbaijani region of Nakhichevan.

"The Armenian side intends to get international condemnation of the
destruction," Foreign Minister Vardan Oskanian said Tuesday.

The monuments in question are intricate stone-carved crosses in the
cemetery at Jugha – alternately known as Djulfe – in Nakhichevan,
an exclave wedged between Armenia and Iran and Turkey.

Armenia claims Azerbaijani soldiers have systematically destroyed the
crosses. Photos aimed at supporting the claim are currently being
shown in Strasbourg, France, and will be moved to a new city every
two months.

Azeribajani officials earlier this year denied a report that the
cemetery had vanished.

Armenia and Azerbaijan remain strongly at odds over the final status
of Nagorno-Karabakh, a region in Azerbaijan that has been under the
control of Armenian and ethnic Armenian Karabakh forces since the
1994 end of a separatist war.

From: Emil Lazarian | Ararat NewsPress

GAZPROM WARNS OF WINTER GAS SHORTAGE IN ARMENIA IF PIPELINE NOT REPAIRED QUICKLY

AFX News Limited
December 19, 2006 Tuesday 6:41 PM GMT

MOSCOW (AFX) – Russian gas giant Gazprom warned that Armenia could
face a gas shortage this winter if a burst pipeline in neighbouring
Georgia is not repaired quickly.

‘Armenia has not received Russian gas in the necessary volumes for
the past two days due to a burst gas pipeline on Georgian territory,’
Gazprom spokesman Sergei Kupriyanov said in a statement.

The break in the pipeline occurred on Dec 17 for reasons still not
known to Gazprom.

‘It is obvious that if repair work drags out for an extended period
Armenia could be without gas in its underground storage tanks this
winter,’ the statement said.

‘We and our Armenian colleagues are counting on everything possible
being done quickly to restore Russian gas shipments to Armenia through
Georgian territory.’

Armenia is currently receiving one-third of its gas through an
alternative pipeline while drawing on its underground reserves to
meet the remainder of its needs, Gazprom added.