ECONOMIST EDUARD AGHAJANOV: SERGE SARGSIAN DESERVES CRITICISM FOR BAD
PREPARATION OF DEBT FOR EQUITY PROGRAM

YEREVAN, DECEMBER 15, NOYAN TAPAN. The fact that the Russian side has
not yet invested in the Armenian enterprises transferred to Russia by
the Debt for Equity Program is the consequence of the program’s bad
preparation. Economist Eduard Aghajanov, former head of the Armenian
Statistical Department, expressed this opinion during the December 12
meeting at the National Press Club. In his words, "we should
criticize for mistakes" Serge Sargsian, RA defence minister, Armenian
co-chairman of the Armenian-Russian intergovernmental commission on
economic cooperation, which prepared the program badly. On the whole.
E. Aghajanov assessed positively Russia’s investment activities in
Armenia but he expressed a wish that particularly participants with
capital of other countries – Iran, even Azerbaijan would operate in
the country’s energy market, which would allow to avoid monopolies.

OVER 450 ARMENIAN CITIZENS RECEIVE BILLS FOR NOT REAL CALLS OF TOTAL
AMOUNT OF 4.5 THOUSAND DOLLARS

YEREVAN, DECEMBER 15, NOYAN TAPAN. Over 450 Armenian phone
communication subscribers using the Internrt have received bills for
phone calls to various countries, which did not take place in
reality. According to the President of the Association of Consumers of
Armenia Armen Poghosian, they received bills of the total amount of
4.5 thousand USD for allegedly made international calls. However, in
A. Poghosian’s words, the mistake was revealed and these citizems did
not have to pay for missed phone calls, but the issue remains open,
because there are no modern telecommunication rules in Armenia: the
rules of 1998 are in force.

WORKING GROUP FORMED BY INSTRUCTION OF ARMENIAN OMBUDSMAN VISITS
ARRESTED ZHIRAYR SEFILYAN AND HIS ASSISTANT

Yerevan, December 16. ArmInfo. A working group that was formed by the
instruction of Armenian Ombudsman Armen Haroutunyan visited Zhirayr
Sefilyan and his assistant Vardan Malkhasyan at the penitentiary
Yerevan-Kentron, Friday. To recap, Sefilyan and Malkhasyan have been
arrested for public calls for force change of power in
Armenia. Zhirayr Sefilyan (a citizen of Lebanon) occupies the post of
the Coordinator of "Union of Armenian Volunteers" public and patriotic
initiative, Head of the public and patriotic organization "For
protection of liberated territories."

Armenian Ombudsman press-service reports the working group took first
hand view of the conditions the arrested are kept in. Zhirayr Sefilyan
and his assistant were not dissatisfied with the treatment of the
penitentiary officers.

However, they were dissatisfied that the court chose the arrest as a
measure of restraint. They think they will not affect the
investigation process if left at large. They called the arrest
groundless. Zhirayr Sefilyan said all the speeches made at the meeting
of the organization "For protection of liberated territories" were
recorded and are kept by the National Security Council.

CONFLICT OF SHAREHOLDERS AT RUSSIAN VIMPELCOM, NEW OWNER OF ARMENTEL,
FLARES UP

Yerevan, December 16. ArmInfo. The Board of Director of the Russian
operator VimpelCom has not approved the company’s budget for 2007 for
disagreements of the shareholders: Norwegian Telenor (26.6% of voting
shares) and Russian Altimo (32.9% of voting shares). Telenor
representatives voted against the budget. They explain that they are
concerned over the business development in the Ukraine. In response,
Altimo Vice President Kirill Babayev urged Telenor to refuse from
destructive methods of work at VimpelCom. Nevertheless, VimpelCom
management will have to act on the basis of the draft budget.

ComNews reports that on December 14, VimpelCom Board of Directors did
not approve the consolidated budget for 2007. The Board of Directors
comprises three representatives of Alfa-Group, three representatives
of Telenor and three independent directors. One of the independent
directors was proposed by Alfa, one by Telenor and one by minority
shareholders. Eight of nine votes of the directors are required for
adoption of a decision.

The conflict between the key shareholders of VimpelCom especially
flared up after the Russian operator entered the Ukrainian market
wherein Alfa and Telenor had already been present as shareholders of
Kyevstar operator. Telenor holds 56.5% shares of Kyevstar, Altimo
branch Storm – 43.5%. It is for the third time that Board fails to
approve the budget. Earlier the company failed to approve the budget
for 2006 twice. Then the company’s management was allowed to act in
accordance with the draft budget. The management saw no big problem in
the lack of an approved budget, but it was concerned over the lack of
a long-term strategic development plan.

Analysts see no threat to the activity of VimpelCom because of the
unapproved budget for 2007, on the whole. "Judging from the previous
experience, this situation will have no impact on the operating
activity of VimpelCom and its structures, including in the Ukraine,"
supposes an analyst of Aton investment group, Nadezhda
Golubeva. "Ukrainian Radio Systems (URS) does not need as many
investments as before. So Vimpelcom can redistribute the budget of
2005 directing more funds to the CIS countries than to Russia," an
Uralsib analyst, Konstantin Chernyshev says.

In the meantime, they in Telenor are concerned over the business in
the Ukraine. "Figures show that the business of Ukrainian Radio
Systems develops worse than VimpelCom management planned from the very
beginning. This proves that Telenor’s concerns are justified," Telenor
Russia Director for External Ties Anna Ivanova-Golitsina told ComNews.

Telenor press-service reports that the latest data on the number of
URS’s subscribers and the share of the market in the Ukraine do not
meet the promises of VimpelCom. While, they in VimpelCom insist that
the company develops in accordance with its plans. Thus, now URS has
almost 1.6 million subscribers.

According to URS data, in November, Beeline connected 323,730 new
subscribers, which is by 25% more than in October 2006. The financial
report of VimpelCom OJSC, incomes of Beeline in the Ukraine in the 3rd
quarter of 2006 grew by 98%, to $11.5 million.

Unlike their Russian colleagues, Ukrainian analysts are less
optimistic about the disapproval of the budget for 2007. They think it
was the revenge of Telenor to Russia Altimo for regular breaches of
the meetings of Kyevstar Board of Directors. "The situation at URS is
not good enough. Thus, the subscribers base indicators are not so
good. There is lack of a strategic development plan and incomes from
investments. VimpelCom covers the expenses of the Ukrainian branch.
Moreover, there are rumors in the telecommunications market of the
Ukraine that Altimo is also dissatisfied with the development of URS,"
says Dmitry Sholomko, an analyst of the Ukrainian company UBL. "If
Telenor manages to block the budget, it will be a severe blow upon
Altimo as the break-even of URS is still far enough," says Roman
Khimich, an expert of the Ukrainian Consulting company Netton CG.

In their turn, Armenian analysts refrain themselves from comments so
far. Nevertheless, they believe that the conflict between the key
shareholders will have a definite impact on the development plans of
ArmenTel from the point of view of expenses for modernization of the
telecommunications net in Armenia. To recap, Greek OTE announced the
closing of the transaction for acquisition of the 90pct stake in
ArmenTel by VimpelCom yet last month. The transaction cost $420
million according to OTE’s data.

ARMENIAN FOREIGN MINISTER TO PAY ONE-DAY WORKING VISIT TO IRAN ON DECEMBER 17

Yerevan, December 16. ArmInfo. Armenian Foreign Minister Vardan
Oskanyan is to pay a one- day working visit to the Islamic Republic of
Iran on December 17.

The RA Foreign Ministry press-service told ArmInfo, the minister is
expected to meet with Iranian President Mahmoud Ahmadinejad, Foreign
Minister Manouchehr Mottaki, Secretary of the Supreme National
Security Council Ali Larijani.

The parties will discuss the bilateral relations in the political and
trade-and-economic spheres, as well as the cooperation in the energy
sphere.

PanARMENIAN.Net

Armenian-Turkish Problems Must be Solved in Civilized Way
16.12.2006 13:02 GMT+04:00

/PanARMENIAN.Net/ There are two approaches in the
European Union’s stance towards Turkey: one group of
states and first of all Austria insist on privileged
partnership. And the second, group at the head of
Great Britain insist, that Turkey must be given some
time to fulfill the commitments on EU membership, said
in Yerevan specialist in Turkic philology Ruben
Safrastian, the director of the Institute of Oriental
Studies. `EU’s decision to halt the negotiations was
expected and it was a kind of compromise and Turkey
was given a chance to fulfill its commitments on
Cyprus issue,’ he stressed. Safrastian also underlined
that the Europeans do not want to shut the door in
front of Turkey at the same time insisting on their
stance. `It is very important for Armenia that Turkey
began the fulfillment of its reforms directed by the
EU, since for our state is crucial to have a
predictable neighbor, which will acknowledge its past.
Armenia is interested in the civilized settlement of
Armenian-Turkish problems,’ said Safrastian. At the
same time he underlined that the European community is
well aware of modern Turkey and does not want to have
a state in the Union which does not share European values.

PanARMENIAN.Net

Armenia Can Become Instrument in EU’s Hands Against Turkey
16.12.2006 13:23 GMT+04:00

/PanARMENIAN.Net/ Turkey should implement reforms
before the negotiations on the European Union
membership, said in Yerevan Kiro Manoyan, the head of
`Hay Dat’ office. In his words, Turkey also must
acknowledge the Armenian Genocide of 1915. `The demand
to acknowledge the Armenian Genocide comes from the
Armenian Diaspora not from official Yerevan. These are
two different things. At the same time we must
understand, that we can become an instrument in EU’s
hands against Turkey. As an obstacle for Turkey’s
membership first Europe used Greece and Cyprus, then
Armenia’s turn will come and we must be ready for it,’
underlined Manoyan.

PanARMENIAN.Net

Speculation on Karabakh Issue During Election Campaign is Immoral
16.12.2006 13:35 GMT+04:00

/PanARMENIAN.Net/ There will be no activation in the
negotiation process of the Nagorno Karabakh conflict
settlement before the parliamentary elections, said
President Robert Kocharian in the interview to the
central Armenian TV companies. In his words, there are
some people who wait impatiently for the moment when
it will be possible to speculate on the Karabakh
issue. `Even there are some people, who publicly
declare that on the Karabakh issue the President of
Armenia Kocharian will have to compromise and that the
election campaign will be used,’ the President
stressed, adding that he has to upset those people
since there will be no activation in the negotiation
process before the parliamentary elections in Armenia.
The President of Armenia thinks that it is immoral to
speculate on the Karabakh issue during the election
campaign. In his words, some people will want to
compromise even the best offer on Karabakh, if it is
made public during the election campaign. And he added
that it would be better to activate the negotiation
process after the elections.

UNION OF ARMENIAN VOLUNTEERS WILL CONTINUE ITS ACTIVITY DESPITE
EVERYTHING: ACTING COORDINATOR OF UNION

Yerevan, December 16. ArmInfo. "The Union of Armenian Volunteers will
continue its activity despite the arrest of its coordinator and
resistance of the authorities," said Armen Aghayan, Acting Coordinator
of the Union of Armenian Volunteers public and patriotic movement,
Political Secretary of the organization "For protection of liberated
territories," at the Club "Azdak," Saturday.

He believes that the arrest of the Karabakh war hero Zhirayr Sefilyan
is connected with the desire of a group of persons, who have seized
the power, in Armenia to settle definite problems. "The regime is
afraid of any process of consolidation of the Armenian public," he
said.

A. Aghayan said the Union has definite political tasks to fulfill. The
key one is an overall control over the upcoming parliamentary and
presidential elections. However, he refused to specify any political
force which the Union will develop cooperation with.

As regards his previous statements on the efficiency of the attempts
by the Armenian opposition to prevent mass election rigging,
A. Aghayan said he had no intention to state anything insulting about
the opposition, he just presented the real state of affairs.

LEADER OF "PROSPEROUS ARMENIA> PARTY ENJOYS RESPONDENTS’ SYMPATHY AS
PRESIDENTIAL NOMINEE: "FORBES-ARMENIA> MAGAZINE

Yerevan, December 15. ArmInfo. According to the public opinion poll
held by the "Forbes-Armenia> magazine, Armenian Defence Minister Serzh
Sargsyan has the best chances for a presidential nominee. 24.30% of
the respondents voted for him.

Gagik Tsarukyan, the leader of the "Prosperous Armenia> Party, ranks
next (11% of the votes), and Arthur Baghdasaryan, the leader of the
"Orinats Yerkir> Party, holds the 3rd place (3.70%). Head of the
People’s Party Tigran Karapetyan is in the 4th place (2.70%), the 5th
place (1.70%) is held by Artashes Geghamyan, the head of the "National
Unity> opposition party, and the 6th one (1.30%) – by Foreign Minister
Vardan Oskanyan. Armenian present President Robert Kocharyan and
former Foreign Minister and leader of the opposition party, and the
6th one (1.30%) – by Foreign Minister Vardan Oskanyan. Armenian
present President Robert Kocharyan and former Foreign Minister and
leader of the <HERITAGE>Party Raffi Hovannisian share the 7th place
with 1% of votes.

Andranik Margaryan, the Armenian Prime Minister and the leader of the
Republican Party (0.70%) and The experts of the magazine got quite
different data, paraphrasing the question – "Who will be the best
president of Armenia?>. The respondents awarded the first place to
Gagik Tsarukyan (11.30%), Robert Kocharyan ranks next (10.30%), the
3rd place is held by Artashes Geghamyan (8.30%), and the 4th place –
by Arthur Baghdasaryan (7%), the 5th place – by Vardan Oskanyan
(6%). Tigran Karapetyan received 2.70%, Vazgen Manukyan – 2.60%, Raffi
Hovannisian – 2.30%. Unlike the first public opinion poll, here Serzh
Sargsyan received 2%. Stepan Demirchyan, the leader of the People’s
Party of Armenia, received 1.70%. Andranik Margaryan (0.70%) and
Levon Ter-Petrosyan, the first president of Armenia (0.30%), enclose
the list.

To the question "Whom would you elect if the presidential elections
took place on coming Sunday>, the respondents gave the following
answers – Gagik Tsarukyan (15.3%); Artashes Geghamyan (8.6%); Arthur
Baghdasaryan (7%); Vardan Oskanyan (5.6%); Tigran Karapetyan (4%);
Serzh Sargsyan (3.3%); Raffi Hovannisian (2.7%), Vazgen Manukyan
(2.3%); Stepan Demirchyan (1.3%). Robert Kocharyan, Andranik Margaryan
and Paruyr Hayrikyan, the leader of the "Unity Self- determination>
Party, enclose the list (1%). 46.9% of the respondents didn’t answer
the question.

During the presentation of the magazine, Editor-in-Chief P.Kazaryan
noted that by their preciseness the results of the poll may range from
5% to 10%.