THE LOGICS OF THE NEW DEVELOPMENTS
By Mher Ohanian
Yerkir.am
June 09, 2006
New rapid developments are under way in the world market, and
they significantly affect the economies of transitional countries,
including Armenia.
And this is especially true for basic sectors of economy, such as
mine industry, electronics and high technologies. The competition
between the euro and dollar as well as roaring prices for oil and
gold also have their indirect impact on the Armenian financial market.
External factors
It is a fact that the Armenian economy can develop only as an open
system that is integrated in the world economy. A self-isolation
could prove devastating.
It is evident that the situation in the world market for Armenia to
develop its basic sectors is currently very favorable. First of all,
it applies to the unprecedented hike of the prices for color metals:
copper, molybdenum, nickel and aluminum. For example, the price for
copper in the world market has grown three times in the past 3-4
years, reaching $8,000/ ton. If used efficiently, this factor could
ensure serious income for the sector and could help modernize the
color metal industry of the country.
Armenia is among the number of transitional countries that managed to
ensure a double-digit growth in the past six years, while, according
to experts, countries in transition usually are hit by two waves
of economic decline: the first one begins in the beginning of the
transitional period and though lasts for a short period but leaves
devastating consequences.
Armenia’s ‘transformational decline’ was one of the worst among the
CIS countries, when between 1990-1993, Armenia lost sixty percent
of its economy and more than 1 million jobs. After a cease-fire in
the Karabakh war was reached in 1995, the Armenian economy showed
progress in terms of its macroeconomic figures.

AGREEMENT ON EXEMPTION FROM DUAL TAXATION SIGNED BETWEEN ARMENIA AND SWITZERLAND
ArmRadio.am
12.06.2006 16:07
In 2004 an active dialogue was launched between Armenia and
Switzerland, and in this regard the Foreign Ministers of the two
countries highly assessed the relations between the states.
“I introduced the Minister to the latest developments in the
negotiations over Nagorno-Karabakh after the meetings in Ramboulliet
and Bucharest. We discussed Armenia-Turkey relation. As you may
know, Switzerland is interested in seeing the relations between the
two countries improved and is ready to promote the normalization of
these relations. We discussed also our relations within international
organizations, particularly the UN. We are confident that this visit
will be another impetus for further development and deepening of
bilateral relations,” said RA Foreign Minister Vardan Oskanyan during
his joint press conference with the Foreign Minister of Switzerland
Micheline Calmy-Rey.
Unlike the normal political relations, the cooperation in the sphere
of economy is not perfect, the two Foreign Ministers noted. It is
not accidental that they signed today an agreement on exemption from
dual taxation.
During the current visit an emphasis was put on development of economic
cooperation. Moreover, the delegation headed by RA Ministry of Trade
and Economic Development is currently in Zurich to participate in
a business forum. The Swiss Foreign Minister characterized economic
cooperation between the two countries as modest.

YURI SARGSYAN AWARDED GOLD MEDAL OF RA MINISTRY OF EDUCATION AND SCIENCE
ArmRadio.am
12.06.2006 13:32
Today RA Minister of Education and Science Levon Lazarian visited the
State Engineering University of Armenia to Participate in the sitting
of the University Administration. The Minister awarded a memorial medal
to the former Rector of the Engineering University Yuri Sargsyan and
thanked him for his industrious activity for about two decades.
Later Levon Lazarian introduced the new Rector of the State
Engineering University of Armenia Vostanik Marukhyan to members of
the University Administration.

REPORT ON THE MISSING IN SOUTH CAUCASUS TO BE PRESENTED AT PACE WINTER SESSION
PanARMENIAN.Net
10.06.2006 15:21 GMT+04:00
/PanARMENIAN.Net/ The PACE Report on the Missing in the South Caucasus
Countries is expected to be discussed at the Assembly’s Winter
Session, reporter PACE Rapporteur, Dutch MP Leo Platvoet stated in
Baku, when summing up his visit to Armenia, Georgia and Azerbaijan
June 4-9. Speaking of the situation with those missing owing to the
Nagorno Karabakh conflict, Platvoet spoke in favor of forming a special
structure with participation of representatives of respective state
bodies of Azerbaijan and Armenia. “Similar structures for search of
the mission were available in the Balkans. Their activities should
be based on the principles of the International Committee of the Red
Cross. The human dimension report will reflect the issue of those
missing in the countries of the region, as politicization of the
issue is extremely dangerous,” Leo Platvoet noted, reports Turan.
From: Emil Lazarian | Ararat NewsPress

ARMENIAN AND AZERI FMS TO MEET JUNE 13
PanARMENIAN.Net
12.06.2006 13:03 GMT+04:00
/PanARMENIAN.Net/ The recurrent meeting of the Armenian and Azerbaijani
Foreign Ministers will take place June 13, RA FM Vartan Oskanian
stated at a news conference in Yerevan. In his words, the format of
the meeting has not been determined yet but the talks on the Nagorno
Karabakh conflict settlement will include the items the parties failed
to come to an agreement on. The RA Foreign Minister underscored that
to date agreement was achieved on some issues that were unsettled
earlier. “However, some items still remain unsettled. We will try
to reach agreement on them. The recurrent meeting of the Armenian
and Azerbaijani Presidents will be also discussed in Paris,” Vartan
Oskanian said.

SWITZERLAND INTERESTED IN DEVELOPMENT OF DEMOCRATIC PROCESSES IN ARMENIA
PanARMENIAN.Net
12.06.2006 13:19 GMT+04:00
/PanARMENIAN.Net/ Switzerland is interested in the development of
democratic processes in Armenia, Head of the Swiss Federal Department
of Foreign Affairs Micheline Calmy-Rey stated at a press conference in
Yerevan. In her words, Armenia is in center of Switzerland’s interests
in the South Caucasus. “We intend to simplify the visa regime between
the two states. Moreover the Convention for the Avoidance of Double
Taxation will promote the development of economic ties. Our state
cannot force investors to put up money in the Armenian economy. They
should see themselves that an atmosphere favorable for business reigns
he republic,” she remarked. The Swiss Foreign Minister also reminded
that humanitarian assistance for Armenia has been rendered since 1988,
the year of the Spitak earthquake.

SWITZERLAND STANDS FOR PEACEFUL SETTLEMENT OF KARABAKH CONFLICT
PanARMENIAN.Net
12.06.2006 13:28 GMT+04:00
/PanARMENIAN.Net/ The Swiss Federal Department for Foreign Affairs
stands for a peaceful settlement of the Nagorno Karabakh conflict,
Swiss FM Micheline Calmy-Rey stated at a press conference in
Yerevan. In her words, achievement of peace between Armenia and
Azerbaijan will not only lead to stability in the region but also to
normalization of the Armenian-Turkish relations.
As for the Armenian Issue, Ms. Calmy-Rey underscored that the Armenian
Genocide in the Ottoman Empire in 1915 was recognized in Switzerland
at the state level as well as by Cantons and municipal bodies.
“Switzerland recognizes and condemns the Armenian Genocide. We are
ready to contribute to any kind of dialogue between Armenia and Turkey
for normalization of relations. But attempts have been fruitless so
far,” she said.
The Head of the Swiss Federal Department of Foreign Affairs also
reminded that the Swiss legislation maintains an article providing
for criminal punishment for those who deny the Armenian Genocide and
propagates racial and national intolerance.

ARMENIAN CITIZEN SHOT DEAD IN MOSCOW
PanARMENIAN.Net
12.06.2006 13:44 GMT+04:00
/PanARMENIAN.Net/ Two Armenian citizens were assaulted Saturday evening
in park near the North Boulevard, Moscow. A 44-years-old citizen of
Armenia was wounded in the chest and immediately died. A 24-year-old
man was taken to hospital. The investigators found a pistol at the
locus delicti. A criminal case was initiated. “A 52-year-old driver
and guardian of the Nogin meatpacking plant was detained as suspect of
murder,” Sergey Marchenko, a representative of the Moscow Prosecutor’s
Office informed, reported Interfax.

U.S. TO ALLOT $790 THOUSAND FOR TRAINING OF ARMENIAN MILITARY
PanARMENIAN.Net
12.06.2006 13:53 GMT+04:00
/PanARMENIAN.Net/ The U.S. House Representatives has approved a draft
bill for provisions for U.S. Government’s foreign operations for
the fiscal year of 2007. The draft bill supported by 373 Congressmen
provides for $790 thousand within International Military Education
and Training (IMET) program for Armenia.
The similar amount is granted to Azerbaijan and Russia. Ukraine will
receive $1.725 million.
“The IMET is the part of U.S. common program for assistance in security
sector, through which U.S. Government grants education to the military
of allied and friendly countries,” the appropriate document says.
According to the document, total amount of budget provisions for
IMET program in 2007 is approved to be $88 million, reported Trend
news agency.

ANKARA THREATENS TO REFUSE FROM PARTICIPATION IN EU-TURKEY TALKS
PanARMENIAN.Net
12.06.2006 16:00 GMT+04:00
/PanARMENIAN.Net/ Turkey will not take part in the EU-Turkey meeting to
be held in Luxembourg on Monday if Cyprus’s initiative on blocking the
opening of talks over some issues is accepted, Turkish Prime Minister
Recep Tayyip Erdogan stated. “We will not depart to Luxembourg if
24 EU Foreign Ministers approve Cyprus’s initiative,” Erdogan told
reporters in Monday.
Last Friday EU member state Cyprus blocked the opening of talks on
Turkey’s accession to the European Union by a demand to fulfill the
additional protocol to the Customs Union, which provides for the
opening of air and sea ports in the Republic of Cyprus during 2006,
reported Gazeta.ru.