AZERBAIJAN COPES WITH THE OIL WINDFALL
By Ahto Lobjakas for RFE/RL (22/11/06)
ISN, Switzerland
Nov 22 2006
>From the minute you arrive in Baku, you can smell the oil.
In a glass jar it looks nothing like the black viscous substance one
would expect, but more like petrol. Experts praise Azerbaijani oil
as among the best in the world.
Overheat concerns But the oil does have a dark side. According to a
recent report by the European Bank of Reconstruction and Development
(EBRD), Azerbaijan is one of the world’s fastest-growing economies
with over 26 percent growth.
However, local officials admit the economy could “overheat.”
Azerbaijan remains an economy in transition whose long-term future can
only be secured by means of a viable non-oil sector. And the question
many are asking is how, in a country where corruption is so rampant,
is that money going to be spent?
Clare Bebbington, a spokeswoman in Baku for multinational oil
company British Petroleum (BP), which is Azerbaijan’s main partner
in tapping the oil wealth, describes managing this wealth as an
“enormous opportunity,” but also an enormous challenge.
“In 2006, the government of Azerbaijan will receive around US$3
billion in oil revenues from our projects. At US$60 a barrel, the
full-cost revenues are actually around US$230 billion. That is an
unprecedented shock for any economy, it’s also many, many times the
current levels of GDP,” Bebbington says. “Now, it’s impossible to
predict the oil price, what the oil price will be in the future and
BP doesn’t make a prediction. But what we have tried to do is to be
as open as possible in terms of making some sort of projection about
the likely level of receipts so that people can begin to understand
what will happen over the next decades.”
Apart from oil, Azerbaijan is also betting on gas. The Shah Deniz gas
field in the Caspian Sea southeast of Baku is estimated to contain
some 50 to 100 billion cubic meters of gas.
Diversification One of Azerbaijan’s potential pitfalls is lack of
economic diversification. Mikayel Jabbarov, Azerbaijan’s deputy
economic development minister, says his government is aware of the
dangers.
“We’re planning well enough against any severe shocks. Our non-oil
economy is growing very fast, in fact last year, data which analyses
non-oil economic development in Azerbaijan for the years 1999-2005
indicates that the non-oil sector in Azerbaijan on the average
has grown faster than in CIS [Commonwealth of Independent States]
countries, in EBRD countries, and also in Black Sea and Caspian Sea
countries,” Jabbarov says.
The government has set up what Jabbarov calls a “hydrocarbon fund”
of US$1.5 billion to stabilize the economy. In March, a state-run
investment company with an initial budget of US$100 million was
created to give loans to small- and medium-sized companies working
outside the oil industry.
However, within Azerbaijan there is much criticism of the government’s
oil fund. Its critics have said there is little to no oversight of
the body. And corruption is still cancerous in Azerbaijan. The country
languishes near the bottom of the annual corruption perceptions index
drawn up by Transparency International.
Energy hub Jabbarov says that Baku also has clear ambitions to become
a transit hub for Central Asian oil and gas.
“What we would like certainly to see is the continued increase of
transit, [the] continued increase in shipping, in transportation of
hydrocarbons, and in other products as well,” Jabbarov says.
Oil tankers already cross the Caspian Sea to feed the
Baku-Tbilisi-Ceyhan pipeline to Turkey. Hopes for a trans-Caspian
gas pipeline to supply Turkey and the EU further down the line are
receding, however, despite Baku’s lobbying.
Energy experts in Baku say Western multinationals do not believe
there are sufficient gas resources available cheaply enough in either
Turkmenistan and Kazakhstan to justify such an investment. This
augurs well for Russia’s drive to dominate the transit market from
Central Asia.
Problems with democracy Azerbaijan’s democracy is still weak, with
restrictions on media and dubious electoral practices. Recently,
an Azerbaijani court gave police the right to detain two journalists
for two months for publishing an article allegedly insulting Islam.
And on 16 November, Azerbaijani police broke up an opposition rally
demanding an end to pressure against independent media.
Critics say the EU has turned a blind eye to Azerbaijan’s nastier
democratic practices largely because it is interested in Azerbaijani
oil.
Frozen conflict Then there is the unresolved issue of Nagorno-Karabakh,
a region inside the internationally recognized borders of Azerbaijan,
but occupied by Armenian troops together with seven neighboring
districts since a 1994 cease-fire ended fighting.
The war with Armenia has bequeathed Azerbaijan more than 800,000
refugees, most living in bleak conditions in and around Baku.
Azerbaijan’s government says it wants the conflict resolved by
peaceful means, but has not ruled out war. According to Deputy Minister
Jabbarov, the defense budget accounts for 15 percent of all government
spending in 2006, and exceeds US$1 billion.
Compared to Azerbaijan’s neighbors, that’s a huge sum that’s likely
to be sustained. But in the military, as in every other sector of
public life, a problem remains: where exactly is that money going?
Sometimes the answer to that question is visibly evident. On the
outskirts of Baku, palatial villas perch on hillsides overlooking
the Caspian Sea. Fancy restaurants are packed with foreign and local
oil executives.
But there is another Azerbaijan of rural poverty and refugee camps,
of post-apocalyptic vistas of oil-polluted wastelands – an omen
perhaps of what could happen when the oil runs out.

TURKEY SHOULD SUBSIDISE POOR SE REGION – REPORT
Reuters, UK
Nov 22 2006
ANKARA, Nov 22 (Reuters) – Turkey should pay a monthly subsidy to
around five million poverty-stricken people in its mainly Kurdish
eastern regions to help kickstart the local economy, said a U.N.-backed
report unveiled on Wednesday.
Incomes in eastern Turkey are about one third of the national average
and as little as 7 percent of the average income in the European Union,
which Turkey hopes to join.
Ankara must at least double the east’s income before it can join the
EU, the report said, echoing concerns about regional income disparity
in Turkey made by the European Commission.
“About 60 percent of the population in the region lives under the
poverty threshold and that poverty has acquired a chronic character
as it is passed on to successive generations,” said the report.
It said public investment in these regions remained at about one
third of the national average.
The report suggests a subsidy of 150 Turkish lira to each family that
qualifies and puts the total cost at 771 million lira ($572 million).
The average family in the east has five children.
The region’s economy has suffered from more than two decades of
conflict between security forces and separatist Kurdish guerrillas
that uprooted thousands of people and created ghettos of unemployed
migrants in the region’s cities.
The proposed “citizenship income” and other measures such as free
lunches for students would help boost employment and develop the
regional market, allowing a gradual revival of local entrepreneurship,
the report suggested.
Turkey is required to close the wide gap between its western and
eastern regions under its obligations to the EU, with which it began
accession talks last year. The gap is wider in Turkey than in any
other candidate or member state.
The report also called for public investment in tourism to attract
more visitors from Iran, Georgia and Armenia and also ethnic Armenians
living abroad.
From: Baghdasarian

DANONE TURKEY INVESTS ~@20 MILLION ANNUALLY
By Abdulhamit Yildiz
Zaman, Turkey
Nov 22 2006
As reactions against France’s alleged Armenian genocide draft
law continue, French companies in Turkey are concerned economic
relationships may be damaged.
Danone Turkey General Director Serpil Timuray said they staunchly
opposed the genocide law: “While boycotting, please do not forget the
nearly 15,000 farmers we buy milk from and our 1,700 workers,” he said.
Investors, including Carrefour and Danone, called on Paris to withdraw
the draft law as they have begun to use the “Made in Turkey” label
more distinctly on their products.
Timuray, whose Danone products were removed from shelves in some
market chains in the first days of the boycott, thinks they are being
unjustly treated.
“We, too, feel that reaction in our heart. We decided to respond
with democratic action and held a signature campaign,” Timuray said,
adding France-based Danone’s plants in Turkey contributed a great
deal to the overall employment in the country.
Danone Turkey employs 1,700 people and collects milk from 15,000
Turkish farmers daily.
Six hundred dealers sell their products under the Danone umbrella.
The group attaches major importance to Turkey, one of the countries
where it is experiencing the most rapid growth.
The French company, which earns ~@14 billion annually, allocates four
percent for investment every year.
The company allocated ~@20 million in 2006 for new investments in
Turkey, and the total amount the company has allocated Turkey so far
exceeds ~@250 million.
Danone employs 15 Turkish administrators in production and sale works
in the countries where it operates.
Danone Turkey’s CEO said it was too early to fully assess the effects
of the boycott.
Stating she did not approve such actions from a country trying
to attract foreign capital, Timuray noted the draft law disturbed
everyone.
Stressing they held a signature campaign, the French company’s CEO
said, “We did not consider this a company initiative, we took action
as citizens. Our general headquarters in France supported this;
we lobbied in a sense.”
Timuray believes Turkey has an image problem coupled with poor
advertising.
Companies investing in Turkey, like Danone, could be used as an example
and their recent progress could be turned into a good image campaign.
The picture of Turkey dating back 20 years in the minds of many in
Europe may be replaced with the new one.
Advertising Fines Misfortune for Companies
Turkey’s TV advertising and regulation council objected to the
advertisements for Danacol and Benecol, produced by Danone and Ulker,
on the grounds that they claim to reduce cholesterol.
Timuray said they received the necessary authorization for these
products: “We are in chaos at the moment; this is a newly forming
category. Such discussions keep consumers away from useful products.
This is an unlucky situation for the companies that commercially
invested in this business.”

OSCE MG CO-CHAIRS HELD CONSULTATIONS WITH AZERI PRESIDENT AND FOREIGN MINISTER
Author: S.Agayeva
TREND, Azerbaijan
Nov 22 2006
On November 22, the President of Azerbaijan Ilham Aliyev received in
Baku the co-chairs of the OSCE Minsk Group. The meeting was attended
by the co-chairs of the Minsk Group from France – Bernar Face and
Russia – Yuri Merzlyakov, as well as personal representative of
the OSCE Chairman-in-Office Andzey Kasprzyk, Trend reports. During
the meeting, the sides exchanged views on the present situation
and the prospects of the settlement of the Armenian-Azerbaijani
Nagorno-Karabakh conflict. In addition, the co-chairs were received
by the Azerbaijani Foreign Minister Elmar Mammadyarov.

THE BAGGAGE OF WRITER ANDREI BITOV
Russia-InfoCenter, Russia
Nov 22 2006
Andrei Bitov who has been recently granted with the Bunin Award 2006
for his selected prose works “Palace Without a Tsar” is deservedly
considered a classic of Russian literature of the second half of the
20th century. His intellectual prose in a spontaneous and yet exquisite
style takes a special niche in contemporary Russian literature. Bitov’s
works have been translated into a number of European languages such
as English, German, Swedish, French and Italian.
Bitov Andrei Georgievich was born on May 27, 1937 in Leningrad (St.
Petersburg). During the siege of Leningrad in 1942 Andrei and his
mother were evacuated to the Urals and then to Tashkent (Uzbekistan).
In 1955 Andrei entered Leningrad Institute of Mines. In 1957 – 1958
the studies were interrupted by serving the army, in the North of the
country. After graduating from the institute in 1962 Bitov worked as
a foreman having boring duties in geological expeditions.
Bitov started writing in 1956. The first publication took place in
1960, when the almanac Young Leningrad issued his short story Grandma’s
Tea Bowl. His first collection of short stories A Big Ball was
published in 1963. In the 60s the main character of Andrei Bitov was
a person clashing with reality by existential rather than ideological
reasons. In this sense Bitov’s protagonist was different from literary
characters created by the majority of “men of the sixties”.
In 1965 Bitov entered the Soviet Writers Union. In 1967 he
graduated from the Higher Courses for scriptwriters at the Union of
Cinematographers in Moscow to start working in the sphere of cinema.
He became the co-author of the script for the Soviet-Japanese film
Malenkiy beglets (aka The Little Runaway) (1966) by Eduard Bocharov
and Teinosuke Kinugasa, and wrote the scenario for V chetverg i
bolshe nikogda (aka On Thursday and Never Again) (1977) by Anatoli
Efros. Bitov even had a small actor experience in the film Chuzhaya
belaya i ryaboy (Wild Pigeon) (1986) by Sergei Solovyov.
Andrei Bitov traveled much around the former Soviet Republic
territories and a number of his books are ingenious travel memoirs,
such as The Lessons of Armenia (1969), and Seven Adventures (1976)
about his experience in Armenia, Georgia, Bashkiria, the Middle Asia,
and the Russian North.
Andrei Bitov provided a deep insight into the history and the present
reality of Russia in his novel Pushkin House published in the USA in
1978. The experimental style of the book made it deservedly considered
one of the first postmodern novels.
After this publication in America and Bitov’s participation in
the compilation of the non-censored almanac Metropol in 1979 the
authorities banned publication of his works in the USSR. He was
also prohibited to leave the country. Nevertheless, his books were
published in Western Europe and the States. And it was only the start
of Perestroika in 1985 that made Bitov’s further publications in
homeland possible. The year 1986 saw the publication of his books
Georgian Album, Man in Landscape, and Articles from the Novel in
Russia. In 1987 Bitov wrote the novel Flying-Away Monakhov, which
made him the laureate of the National Award of the RF in 1992.
In 1992-1993 the Berlin Scientific Board (“Wisshenschafts Kolleg”)
provided Bitov with conditions to work on his favorite theme.
Interestingly, such a privilege had been given only to two Russians
before Bitov: Alfred Shnitke and Otar Ioseliani. This resulted in
completing The Empire in Four Dimensionspublished in Russia in 1996.
The Empire… corresponds to the sequence of English-language
publications: Life in Windy Weather, Pushkin House, Captive of the
Caucasus, and The Monkey Link.
Bitov is also a poet: his two books of poetry are The Tree and On
Thursday after the Rain.
Andrei Bitov initiated the creation of the Russian Pen-Club, which
he has been the president of since 1991.
As for his spare time, the writer says that time often turns his
hobbies into professions. Love of cinema gave him the profession of
scriptwriter, love of books brought him to participation in designing
his own books, and love of music resulted in creation of the Pushkin
Jazz project, in which recital of Pushkin’s drafts is accompanied by
jazz improvisations.
In 1998-1999 the Pushkin Jazz toured in New York, Berlin, St.
Petersburg and Moscow.
Bitov’s dislike of monumental sculpture brought him to the idea of
mini-monumentalism (jointly with Revaz Gabriadze): some of the examples
are represented by such works as the monument to Chizhik-Pyzhik in
St.-Petersburg or to Hare in Mikhailovskoye, etc.
The very idea of uniting profession with hobby resulted in creation
of the informal association BaGaGe (Baggage) (Bitov, Akhmadullina,
Zhvanetsky, and others).
As Bitov has once said, all his life is “an entire journey that can
be no longer called a hobby”.
Andrei Bitov lives in Moscow and St. Petersburg and teaches in
universities of Europe and the USA.

CASTLEBAR GENEROSITY HELPS CHILDREN IN ARMENIA
By: Marian Harrison
Western People, Ireland
Nov 22 2006
A CONTAINER laden with 5,500 shoeboxes of goodies left Castlebar on
Friday evening last destined for children in Armenia.
Shoe boxes filled with toys, hats, gloves, colouring books, jewellery
and sweets will reach the children, many who would otherwise be without
a Christmas present, on January 6 after travelling by sea and land.
Ann Coleman and her elves have spent the past two weeks sorting
through boxes, wrapping presents and packing them away in the Old
Bargain Centre on Castlebar’s Main Street but all the hard work will
be worthwhile when the children open their presents, noted Ann.
This year is the fifth year of existence for the Shoe Box Appeal in
Castlebar and it wouldn’t survive without the help of local schools
and clubs, insisted Ann.
“I was visiting schools in October to tell them about the appeal and
a lot of students, teachers and clubs from the area got involved and
were a tremendous help and our location on the Main Street was great
for publicity with a lot of people calling in to find out what was
going on.” This year’s presents were even better than previous years
with hats, scarves, gloves and good quality toys being donated.
All the boxes collected in Castlebar wouldn’t fit in the container
and instead 2,000 boxes were sent to Westport where they will be
included in another batch to be sent abroad later in the month.
When the truck pulled out of Castlebar last week, Ann Coleman must
have felt a huge sense of pride but she’ll have to do it all over again
next year when she takes the job of Mayo co=ordinator for the appeal.
“I’m going on a distribution to Romania on December 8. It will boost
everyone for next year. I can bring back lots of pictures and hopefully
the appeal will be bigger and better.”
ory.asp?j=34212
From: Emil Lazarian | Ararat NewsPress

NOVRUZ MAMMADOV: CO-CHAIRS WILL ACHIEVE IMPROVEMENT IN TALKS
Azeri Press Agency, Azerbaijan
Nov 22 2006
“OSCE Minsk Group co-chairs’ efforts will help to achieve improvement
in talks. The talks will show if there is a motive for Azerbaijani
and Armenian presidents meeting,” President’s Office International;
Relations Department Ali Hasanov told journalists, APA reports.
He said that American co-chair Matthew Bryza’s absence will not affect
the efficiency of the visit.
“Though American co-chair has not come to the region, we know that
they have opportunities to contact with one another concerning the
talks. The co-chairs may achieve improvement in talks after meeting
with the President,” he said. He also added he believes that the
co-chairs will take definite steps within their visit.

AZERBAIJANI PRESIDENT WILL MEET WITH ARMENIAN LEADER IF THERE IS CONCRETE TOPIC – SENIOR STATE OFFICER
Author: A.Mammadova
TREND, Azerbaijan
Nov 22 2006
Novruz Mammadov, the head of the Foreign Relationships Department of
the President’s Executive Apparat, stated during talks with journalists
on 22 November 2006 that the Azerbaijani President Ilham Aliyev will
give his approval to meet with the Armenian President should there
be a tangible focus for discussions,Trendreports.
Mr. Mammadov expects that a meeting of the co-chairs with the
Azerbaijani President will confirm the steps to be taken to achieve
successful negotiations. “The efforts by the co-chairs will enable
progress to be achieved within the negotiations,” he stated.

NAGORNO-KARABAKH IS ONE OF POINTS OF PROGRESS OF TERRORISM – BSEC DEPUTY CHAIRMAN
Author: A.Ismayilova
TREND, Azerbaijan
Nov 22 2006
MP Asef Hajiyev, the Deputy Chairman of the Parliamentary Assembly of
the Black Sea Economic Cooperation (BSEC), stated that the conflict
existing in the Black Sea region has had a negative impact on the
establishment of co-operation between the countries and the development
of economy, Trend reports.
He noted that the conflict in Nagorno-Karabakh is not only a problem
for Azerbaijan. It is a threat for the whole region and even the
world. This territory is out of control, where terrorism, human
trafficking, and drug trafficking is in progress. Hajiyev added that
the world is fighting against terrorism and that Karabakh is such a
territory we must fight against..
The Azerbaijani MP is also sure that BSEC member states will offer
their opinion in this respect.
From: Emil Lazarian | Ararat NewsPress

MERZLYAKOV: “YEREVAN GIVES CONSENT FOR MEETING OF ARMENIAN AND AZERI PRESIDENTS IN MINSK”
Regnum, Russia
Nov 22 2006
“The Armenian side has given its consent for a meeting of Armenian
and Azerbaijani presidents in Minsk on November 28, within frameworks
of the CIS summit,” OSCE MG Co-Chair (Russia) Yuri Merzlyakov told
reporters at Zvartnots Airport (Yerevan) before leaving for Baku on
November 22. According to him, “we need to receive confirmation from
Azerbaijan’s President Ilham Aliyev as well, although earlier the
Azerbaijani foreign minister made several statements on the topic.”
Speaking on absence of OSCE MG Co-Chair (USA) Matthew Bryza in the
delegation of mediators, Yuri Merzlyakov said that it was caused by
the fact that “the co-chairs agreed to divide duties, and these days
our American colleague is to meet Arkady Gukasyan, who is now in the
United States.”
Speaking on outcomes of his visit to Armenia, he said his meetings
with Armenia’s President Robert Kocharyan and Foreign Minister Vardan
Oskanyan were “effective.” “Generally, the year is being finished
at a quite optimistic point and if we manage to preserve this mood,
we shall enter 2007 with quite good prospects. Despite the fact that
elections generally put restraining influence upon the negation
process, we believe the achievements we managed to have this year
will allow us overcome the pre-election period easier,” the Russian
OSCE MG co-chair said.