COMSTAR-UTS HAS ACQUIRED 75% AND ONE SHARE OF CALLNET, AN ARMENIAN TELECOMMUNICATION COMPANY
Analytical Information Agency, Russia
Oct 30 2006
Comstar-UTS OJSC has acquired 75% and one share of Callnet, an Armenian
telecommunication company, with a possible exercise of an option to
buy out the remaining share, Comstar says.
“This is the first deal of the planned and declared in October 2006
acquisitions that will enable us to use the funds raised during the
IPO to realize our investment program in regions,” Comstar’s General
Director Erik Franke said.
Callnet is one of the four Armenian operators holding a traffic
transit license. Its 100% subsidiary – Cornet – is the only Wi-Max
supplier in Armenia.
In 2005, Callnet’s proceeds doubled y-o-y to $4.3 mln.
Comstar-UTS holds fixed-line telephony assets of Sistema JSFC. They
are 53.04% shares of MGTS, 100% shares of MTU-Inform CJSC , 100%
shares of Telmos CJSC, 100% shares of MTU-Intel CJSC (including its
100% subsidiary Golden Line).
In 2005, Comstar’s net income under US GAAP grew by 39.% to $106 mln.
Proceeds rose by 30.6% to $907.6 mln.
s1803649.htm

RAILWAY IN ARMENIA: RUSSIA READY TO CONTROL RAILWAY INFRASTRUCTURE OF ARMENIA
Railway Market Magazine, Poland
Oct 30 2006
The talks of Russia’s President Vladimir Putin and his Armenia’s
counterpart Robert Kocharian begin in Moscow onOctober 30th, 2006.
The key issue of agenda is the last lucrative asset of Armenian
infrastructure – its railway facilities.
Moscow that just half a year ago, persuaded Armenia to buy Russia’s
gas at $110/ths cu meters instead of $54/ths cu meters and insisted
on transferring to Gazprom a portion of Iran-Armenia’s gas pipeline
and Razdan Thermal Station is eyeing Armenian railway system now.
Three weeks ago, Armenia announced the intention to grant on concession
its railways and is currently preparing a tender, which successful
bidder will control the railways in the following 40 years. But Moscow
has been long craving for reviving the through railway service via
Sukhumi to Erevan, the capital of Armenia. In future, it may turn
into a key component of North-South transport corridor, where Iran
will participate.
The interest is so high that Moscow will probably urge Kocharian
to suggest the name of the winner to arrangers or to transfer the
facilities to Russian Railways (RZD) with no tender at all.
Georgia could become another delicate issue to be raised at the
talks. In the Kremlin, they are continuously looking for the methods
to pressurize Mikhail Saakashvili. Georgia fears one of the options
could be halting electric energy deliveries from Russia and Armenia
in winter.
Another concern of Georgia is its Samtshe-Dzhavakhetia region,
which is the whereabouts for around 200,000 ethnic Armenians. There,
the atmosphere is rather heated as many locals used to work at the
Akhalkalaki base, of which Russia’s military are pulling out today.
So, Moscow may prompt Armenia to stage some turmoil there.
;id=659
From: Emil Lazarian | Ararat NewsPress

FINANCIAL INTELLIGENCE ORGANIZATION TO BE ESTABLISHED IN AZERBAIJAN
Azeri Press Agency, Azerbaijan
Oct 30 2006
A seminar “Legal framework of fighting the laundry of dirty money,
contribution to terrorism and other financial crimes” organized by the
US embassy in Azerbaijan and Council of Europe began in Baku today,
APA reports.
Claudio Sroligo, the experts of CE gave 30 recommendations about
main and additional functions of the organization. He said that
the organization is set up in three forms all over the world:
administrative, police and hybrid. The expert talked about the
experiences of Slovenia, the country he represents, and said that
Azerbaijan has opportunity to use the experience of different
countries.
Anne E. Derse, US ambassador to Azerbaijan said that international
terrorism is a problem of world importance and dirty money cause
serious dangers in all countries. The ambassador also said that
there are strong organizations fighting the laundry of dirty money
and contribution to terrorism in the US and CE member states.
Fuad Aleskerov, the chief of the President’s Office Department
on work with law enforcement bodies said that Nagorno Garabagh is
under Armenians occupation, and Azerbaijan fights both local and
international terrorism. He also noted that the government makes some
legislative and institutional reforms for this.
The seminar will continue tomorrow.

ARMENIA BROKE THE CEASE-FIRE REGIME AGAIN
Author: E.Javadova
TREND, Azerbaijan
Oct 30 2006
On October 29, the divisions of the Armenian armed forces broke the
cease-fire regime on the front line, Trend reports with reference to
the Press-Service of the Azerbaijani Defense Ministry.
>From the north-west positions located in 20 km from Garalar village of
Tovuz district, the divisions of the Armenian armed forces fired with
automats and machine-gun at the opposite positions of the Azerbaijani
armed forces.
The enemies were made silent with response fire.

NKR PRESIDENT: ‘NK PARTY’S STAND HAS NOT BEEN CHANGED, AND IT IS NOT GOING TO”
DeFacto Agency, Armenia
Oct 30 2006
“I believe our servicemen fulfill their duties very well, and the
trainings testify to the fact once again”, the Nagorno-Karabakh
Republic President, NKR Armed Forces’ Supreme Commander in Chief
Arkady Ghoukasyan stated on the completion of the planned common to
all arms trainings held in the Nagorno-Karabakh, REGNUM Information
Agency reports.
While commenting on the Baku’s response to the trainings, in part,
the allegations on “the Armenian forces’ concentration in the Aghdam
sector”, Arkady Ghoukasyan stated, “One shouldn’t take the Azeri
mass media’s information seriously, as they are constantly engaged in
propaganda. Our army must always be strong, ready for any development
of the situation. That is the trainings’ goal”.
Answering a question on the RA and AR FMs’ meeting in Paris and the
perspectives of the Nagorno-Karabakh conflict’s settlement, Arkady
Ghoukasyan noted, “We must be optimistic, as if we lose faith in the
negotiation process, a war will become an alternative to the talks,
which is unfavorable either for us or Azerbaijan. Naturally, we are
all interested in the talks’ continuation. As for the outcomes, it is
no use speaking about them today, as an agreement may be adopted only
when all the items are coordinated. Now the situation is different.
The more often Armenian and Azeri Foreign Ministers meet, the better,
as every meeting is a new chance to coordinate the items, on which
there is no consensus”. The NKR President expressed hope that the
Nagorno Karabakh’s participation in the talks would become a reality
in the near future. “We have repeatedly stated that the issue cannot
be settled without the NKR’s participation, as there are a lot of
issues referring to Nagorno-Karabakh directly”. Arkady Ghoukasyan
underscored the Karabakh party’s stand “has not been changed, and
it is not going to”. “We precisely know what we want. We will not
deny our independence, and any obstacle is unacceptable for us”,
the NKR President said.

ARF MEETS WITH FRANCOIS HOLLAND
Yerkir, Armenia
Oct 30 2006
Editorial
An Armenian Revolutionary Federation Central Committee of Western
Europe delegation headed by Ara Grigorian met on October 17 with
French Socialist Party First Secretary Francois Holland.
The ARF representatives reaffirmed that the French socialists’ role
was pivotal in the French Parliament, which on October 12 passed
a bill criminalizing the denial of the Armenian Genocide. Holland,
in turn, reiterated his party’s position to continue the support for
the bill in the Senate. He also said that the bill is in line with
the January 21, 2001 law recognizing the Armenian Genocide.
The ARF is happy that for decades, the Socialist Party has been
supporting the rightful demands of the Armenian people. We believe
that the Socialist Party’s presidential candidate will keep the
party’s vows. This is why the ARF has committed to publicly endorse
the Socialist candidate. With this prospect in mind, Francois Holland
accepted our proposal to organize a rally in the Paris region during
which the Socialist candidate will speak on the Armenian case.
Finally, according to an agreement, the first secretary of the
Socialist Party is set to visit Armenia on March 2007 on the invitation
of the ARF Bureau.
At the end of the meeting, Ara Grigorian, on behalf of the ARF,
thanked Francois Holland for his firm stand and suggested regular
meetings be held; Holland, naturally, agreed.

A PERCENTAGE GAME IN NATIONAL ASSEMBLY
Yerkir, Armenia
Oct 30 2006
Editorial
During the last session of the parliament, it became clear that the
election campaigns have been launched not only as “charities” but
also there are attempts to secure seats in the National Assembly by
altering the Election Code.
And now people — who once were rivals — seeing common interests start
to cooperate. National Assembly’s Armenian Revolutionary Federation
faction has turned down NA member Victor Dallakian’s proposal to amend
the Election Code so that all the members of the Assembly would be
elected under the proportional system.
Speaking at the National Assembly, Armen Rustamian said that a
sharp change in the election system is impossible as there is no
political concurrence in the parliament currently. Hrair Karapetian,
the faction’s leader, in turn, said that while the ARF has always
been for the 100 percent proportional system, even when in opposition,
“today, we favor the present system because when the Election Code was
discussed a year ago, the coalition parties had no common approach.”
“That’s why we accepted a compromise and backed a system under which
90 deputies are to be elected under proportional system and 41 from
single-mandate constituencies.”

ARF’S HAY DAT COMMITTEE OF GREECE PROTEST REACHES ITS GOAL
Yerkir, Armenia
Oct 27 2006
Following a proposal by Member of European Parliament Panayotis
Peghlidis, who suggested at the September session of the
European Parliament that the Armenian Genocide should not become
a precondition for Turkey’s admission in the European Union, the
Armenian Revolutionary Federation’s Youth Organization of Greece
launched a protest campaign. E-mails and fax messages signed by
individuals pointed to a united position and activism.
After receiving the protest messages, Mr. Peghlidis requested a
meeting with the ARF’s Hay Dat committee. The meeting was held early
this week at the MEP’s office and was also attended by the ARF Youth
Organization representatives.
At the meeting, Mr. Peghlidis clearly affirmed that he and the PASOK
party have always defended the stance that Turkey should admit to
the Armenian Genocide, then pointed out that at this stage, due to
political reasons they do not consider it right to raise the issue.
He also said the PASOK members have voted in favor of the call for
Turkey to recognize the Armenian Genocide.
The members of the Hay Dat committee and the Youth Organization
detailed our position why recognizing the Genocide should become a
precondition for Turkey’s admission in the Union.
At the end of the meeting, Mr. Peghlidis promised he would pass the Hay
Dat committee’s concerns to the party chairman, Mr. Yorgho Papandreu.
The issue is being closely watched by the ARF Hay Dat committee.

BEFORE ELECTION IT IS NOT CLEAR WHO IS GOVERNMENT AND WHO IS OPPOSITION
Lragir, Armenia
Oct 30 2006
Samvel Nikoyan, member of the Council of the Republican Party and
Alexan Karapetyan, deputy leader of the National Solidarity Party,
started their October 30 debate at the Hayeli Club like real gentlemen
and with a sense of humor: one let the other start first.
“We’ll let everything go except power,” Samvel Nikoyan said. “And
money,” added Alexan Karapetyan. In fact, it became clear over what
issues the government and the opposition will never come to a peaceful
compromise, and what it takes the opposition to be happy.
And the debate was over the Electoral Code.
Alexan Karapetyan repeated that a 100 percent proportional eelction
code is preferable, after the election the political forces assume
political responsibility and it has been 15 years they are ready
for it. Like all the other Republicans, Samvel Nikoyan thinks that
we are not ready for a 100 percent proportional system, and besides,
there is political agreement on 90 seats for the proportional system
and 41 for the majority system. The next painful issue is the order
of setting up electoral commissions. Alexan Karapetyan stated that it
is wrong to include the parliamentary groups in the commissions. “The
majority of the People’s Deputy Group became Republicans. It appears
that the Republican Party has two representatives to the commissions.
You use these seats into trade. The People’s Deputy is a button
for you to push.” Samvel Nikoyan proposed looking forward. This is
already past.
Alexan Karapetyan has a negative opinion on the charity stepped up by
the political parties. First because they break the electoral code and
the law on the political parties, and besides “there is no guarantee
that the same will not occur during the elections.” And if Alexan
Karapetyan also adds that such steps are taken under the auspices of
the president, “nobody can break the law and get away with it if he
is not protected by the president.” Samvel Nikoyan disikes this kind
of charity because “I fear that the political and ideological battle
will move onto the sphere of distributing seeds to farmers.”
Samvel Nikoyan made a peculiar statement. According to him, it is
difficult to tell before the election who is opposition, who is
pro-government, and therefore it is wrong to accept an equal number
of representatives of these forces to the electoral commissions. For
instance, Samvel Nikoyan thinks that the Republican Party and the
ARF Dashnaktsutyun will become rivals before the election. But the
Republican Party and the ARF Dashnaktsutyun will remain government,
won’t they? Samvel Nikoyan declined to answer this question.

WHAT HAPPENED TO ADVISERS TO PRESIDENT
Hakob Badalyan
Lragir, Armenia
Oct 30 2006
Robert Kocharyan has a number of advisers (in 2003 many political
parties got less than 5 percent, and besides, most people cannot
imagine themselves in the role of opposition), at least there are
a number of people who advise the president. Although in this case
we deal with the classic theory on the correlation of quality and
quantity, nevertheless, we will state without evoking this theory
that out of this quantity two advisers are distinguished for their
public statements. One is Garnik Isagulyan, the other is Vahram
Nersisyants. And by an amazing coincidence the two advisers “featured”
the TV channels on Saturday. It was also interesting that both had come
onto the stage to edit or deny their previous statements. For instance,
Garnik Isagulyan stated that he had not stated that “after quitting
office President Robert Kocharyan will influence the political thought
in Armenia with a higher status.” But it is possible even to understand
Isagulyan’s behavior. He is adviser to president on national security,
and a straightforward thinking and predictable behavior may lead to
a rather vulnerable situation.
Therefore, his vocation makes Garnik Isagulyan maneuver.
Vahram Nersisyan, who is economic adviser to president, is a
different issue. He is a man, who has successful experience of work
in international financial organizations. And he should have realized
that from an economic aspect, given the importance of flexibility,
predictability and consistency is encouraged. Vahram Nersisyan was
hosted at the National Press Club, where he stated with pity and
pain in his voice that they “had thought the revaluation of the dram
would reduce the price of certain imported products, but it did not
happen, and the reason was the lack of competition.” In other words,
the adviser to the president confirmed that there is monopoly or
collusion in the sphere of imports of certain goods, because otherwise
it is difficult to explain the lack of competition. It goes without
saying that in this case the government should battle monopoly and
collusion. And since Vahram Nersisyan is the economic adviser to the
head of state, this statement was a surprise, although a pleasant one
in the sense that if the existence of monopolies is admitted on a top
level, they have surely decided to wage a real anti-monopoly battle.
Meanwhile, the public expected that some time later they would see
the result of this battle and would see that the revaluation of the
dram, besides cropping their income, would cause the prices of some
products to go down. But how could Bibilical Susanna know that only
old men were waiting for her? How could the society know that instead
of waiting for the anti-monopoly battle they should have waited for
a refutal of statements about it, or excuses. And since the society
did not expect it, it was definitely a surprise when the same Vahram
Nersisyants, who had been so sincere several weeks ago, explained to
the public on the Public Television on October 28 why the price of
sugar did not go down but on the contrary, it went up. The adviser to
the president not only pointed to the curve of the growth of the price
of sugar on the international market and simultaneously pointed to the
curve of the growth of the price of the same product on our market,
using one to explain the other.
It is clear that Vahram Nersisyants explained the growth on our
market by the growth of the price on the world market. Although it is
possible that our officials will become confused in their efforts to
excuse themselves that very soon they will lose the logical tie not
only between their previous and present statements but also between
the words uttered at the moment. But for the time being let’s return
to the non-logic that Vahram Nersisyants offered to the public as
an explanation of the growth of the price of sugar. Meanwhile, it
is very easy to prove that this explanation is illogical, to put
it mildly. Even if we assume that the wholesale price of sugar has
grown, with at least 20 percent revaluation of the dram the price
of this product could at least remain the same. In other words, if
the importer could not cut the price because now he buys at a higher
price, he could keep the price low because the revaluation of the dram
enables him to do. Perhaps in this case it is unnecessary to continue
the debate over the words of the adviser to president, and perhaps it
is only worthwhile to mention that even if the price of this product
goes up on the international market, in Armenia they could cut the
price because the growth of the price on the international market
was less than the revaluation of the dram in Armenia.
But we should try to understand Vahram Nersisyan. He advises the
president because it is his job but this does not mean that the
president cannot advise him. And perhaps Robert Kocharyan used
his right and advised the adviser to give advice rather than news
conferences. If the news conference were a good thing, the president
would give news conferences.