COMPETITION ON MINERAL WATERS MARKET IS LARGE IN ARMENIA,
JERMUK GROUP CJSC CHAIRMAN’S ADVISER SAYS
YEREVAN, JULY 26, NOYAN TAPAN. The competition on the mineral
waters market of Armenia is large, as there are Bjni, Arzni, Jermuk
and a number of other companies producing mineral waters. As Edgar
Ghazarian, Adviser of the Jermuk CJSC Chairman, said in his interview
to NT correspondent, the main competition is among local companies,
as the amount of imported mineral water is small and it does not have
any impact on the competition on the local market.
In E.Ghazarian’s words, though the company founded in 1999 increases
the volume of production year by year, the production volume in the
first six months of this year has remained unchanged as compared with
the same period of the previous year, and its sale has decreased by
four percent.
At the same time, it was mentioned that company’s exports have
increased by 23 percent this year compared with the first half
year of 2005. Jermuk Group exports it production to 14 countries,
including Canada, U.S., Lebanon, United Arab Emirates, Russia,
Ukraine. E.Ghazarian also said that this year the production of Jermuk
CJSC has received a certificate of correspondence to EU requirements,
which enables to export the plant’s production to EU member-countries.
It was mentioned that the plant is periodically replenished with
modern European equipments and production lines. As E.Ghazarian said,
the new annex of Jermuk Group CJSC will be ready by the end of the
year and a new production line of European production will be brought
from Austria, which will give a possibility to increase exports of
mineral water.

PEPSI PLANT TO BE BUILT IN COMING TWO YEARS IN ARMENIA
YEREVAN, JULY 26, NOYAN TAPAN. The official representative of
American Pepsi company in Armenia, Jermuk Group CJSC, will built a
plant producing Pepsi drink in the coming two years in Armenia. As NT
correspondent was informed by Adviser to Jermuk Group CJSC Chairman,
Edgar Ghazarian, this right was given to Jermuk Group by the PepsiCo
company. In his words, the place to built the plant is clarified
at present.
As he said, starting 2002, Jermuk Group imports Pepsi’s production
to Armenia from plants producing Pepsi in Russia and Georgia. After
building its plant Jermuk Group will stop to import Pepsi from the
above mentioned countries.
By the way, Jermuk Group CSJC is also the official representative
in Armenia of Russian Baltika and German Bavaria companies producing
beer. In E.Ghazarian’s words, though beer of local production is of
much demand on the Armenian market, there are consumers who prefer
foreign beer. E.Ghazarian also said that as compared with the first
six months of the previous year, in 2006 exports of Pepsi, Baltika
and Bavaria have increased three times.

ACCORDING TO WB DATA, FREQUENCY OF BRIBING BY ARMENIAN COMPANIES REMAINS UNCHANGED
YEREVAN, JULY 26, NOYAN TAPAN. According to the latest evaluations of
the World Bank, the frequency of bribing by Armenian companies in 2005
as compared with 2002 has remained unchanged. At the same time, the
WB report titled “Fighting Corruption in Countries with Transitional
Economy” read that in Armenia, Tajikistan and Uzbekistan the data of
2002 and 2005 are almost the same, which shows that corruption is not
considered such a serious problem there as in another CIS countries.
In spite of the fact that in Croatia, Lithuania, Armenia and Hungary
the proportion of bribes’ “tax load” in the revenues of companies
has not essentially changed in the above mentioned three years,
the quick growth of these countries’ economies gives an occasion
to suppose that the total amount of resources spent on bribes have
considerably increased in this period.
According to WB’s survey on business environment and entrepreneurial
activity, in the period from 2002 to 2005 corruption as a problem
impeding business has been considerably mitigated in Bulgaria, Latvia,
Slovakia, Ukraine, Georgia and Slovenia, whereas the situation in
Albania, Russia and Azerbaijan has considerably worsened and in
Armenia and Macedonia it has become a more serious problem.

RETURN GAMES OF UEFA CUP TOURNAMENT TO BE HELD ON JULY 27
YEREVAN, JULY 26, NOYAN TAPAN. In July 26 morning, “Mika” team
of Armenia left for Switzerland by the Yerevan-Amsterdam-Zurich
flight. There, on July 27, the Armenian football players will compete
with “Young Boys” team of the city of Bern in the return game of the
qualification first tour of the UEFA Cup Tournament. The game will
start at 22:30 by Yerevan time.
On the same day, at 19:00 the Yerevan “Banants” will receive the
Tbilisi “Ameri” in the return game of the qualification tour in the
Republican stadium of Yerevan.

LILIT MKRTCHIAN STILL HAS ONE POINT
KRASNOTURINSK, JULY 26, NOYAN TAPAN. On July 25, the meetings of the
third tour of the ladies chess North Ural Cup international supper
tournament were held in Krasnoturinsk. Lilit Mkrtchian, representative
of Armenia, ended the game with the Lithuanian Victoria Chmilite
in a draw. L.Mkrtchian is in the 8th place with one point in the
competition among 10 participants.
From: Emil Lazarian | Ararat NewsPress

HOUSE AFFIRMS POLICY OF REGIONAL COOPERATION AND REJECTS ATTEMPTS TO ISOLATE ARMENIA
WASHINGTON, JULY 26, NOYAN TAPAN – ARMENIANS TODAY. U.S. House of
Representatives voted on July 25 to help ensure that U.S. regional
cooperation and economic integration is maintained by making certain
that no Export-Import funding is used for a railroad project sponsored
by the Turkish and Azeri governments that seeks to exclude Armenia
from economic and regional transportation opportunities, the Armenian
Assembly of America reported.
Lawmakers approved H.R. 5068, the Export-Import Bank Reauthorization
Act of 2006, which included an amendment by Congressman Joseph Crowley
(D-NY), along with Congressmen Edward Royce (R-CA) and Brad Sherman
(D-CA), ensuring that taxpayer dollars will not be spent on efforts
that would isolate Armenia – which is already facing dual blockades
by Turkey and Azerbaijan.
The amendment, which was unanimously approved by the House Financial
Services Committee last month, states that “The Bank shall not
guarantee, insure, extend credit, or participate in an extension of
credit in connection with the development or promotion of any rail
connections or railway-related connections that do not traverse or
connect with Armenia, and do traverse or connect Baku, Azerbaijan,
Tbilisi, Georgia, and Kars, Turkey.”
In a statement submitted for the House record, Crowley said “This
language will assist in promoting stability in the Caucasus region,
help in ending long standing conflicts, and save U.S. taxpayers the
responsibility of funding a project that goes against U.S. interests.”
Representative Carolyn Maloney (D-NY), who spoke in favor of
H.R. 5068 on the House floor, said “I support the provisions which
would prohibit the Export-Import Bank from funding railroad projects
in the South Caucasus region that deliberately exclude Armenia.”
The Crowley-Royce-Sherman provision was modeled after H.R. 3361,
the South Caucasus Integration and Open Railroads Act, both of which
the Assembly strongly supports. The legislation, which also has a
Senate counterpart, would prohibit U.S. assistance for the promotion
or development of a railroad that would connect the three countries
and exclude Armenia. The House bill, introduced by Armenian Caucus
Co-Chair Joe Knollenberg (R-MI), along with Co-Chair Frank Pallone,
Jr. (D-NJ) and Caucus Member George Radanovich (R-CA), currently
has 87 cosponsors.
The proposed bypass railway is estimated to cost upwards of 0 million
and is expected to take years to construct. The existing line, which
crosses Armenia, is in working condition and could be operational in
a matter of weeks at very little cost. Armenian government officials
have repeatedly said that a new costly railway is unnecessary given
that a railroad linking Armenia, Georgia and Turkey already exists.
“Passage of H.R. 5068 with the Crowley-Royce-Sherman provision,
which was modeled after H.R. 3361 helps ensure that the U.S. will
not be party to the flawed policies of Armenia’s neighbors,” said
Executive Director Bryan Ardouny.
Ardouny also drew a parallel to the Baku-Tbilisi-Ceyhan pipeline
and noted that when the pipeline was first announced, it was in
the context of supporting multiple pipelines but instead all routes
bypassed Armenia.
“This time we must ensure that Armenia is not bypassed,” Ardouny said.
Recently, U.S. Assistant Secretary of State Daniel Fried reiterated
U.S. policy in the South Caucasus which seeks to promote regional
cooperation and economic integration.
“The U.S. Government strongly encourages regional integration in the
Caucasus, including in our discussions with Armenia, Azerbaijan,
Turkey, and other countries in the region,” Fried said. “Removing
trade barriers would improve regional integration and enhance economic
cooperation and development. The proposed railway would bypass Armenia
and thus not be beneficial to regional integration.”
Similarly, Ambassador to Azerbaijan Anne Derse explained that
“Because the proposed railway would bypass Armenia, and thus not be
beneficial to regional integration, we have no plans to support such
a railway financially.”
Azerbaijani President Ilham Aliyev told an Azeri news agency last
summer that, “We are currently working on a new project – a new rail
road Kars-Akhalkalaki-Tbilisi-Baku..If we succeed with this project,
the Armenians will end in complete isolation, which would create an
additional problem for their future, their already bleak future…”
Meanwhile, a meeting of transport ministers from Azerbaijan, Turkey
and Georgia, slated for mid-June, was postponed following action by
the U.S. Congress to prohibit American companies from participating
in the railway construction. The meeting is scheduled to take place
on July 27 in Astana, Kazakhstan.
The Export-Import Bank is a federal government agency which provides
loans, loan guarantees and insurance to support exports of U.S. goods
and services to international markets.

ACCORDING TO IAC CONCLUSION, CREW IS GUILTY IN A-320 ARMENIAN LINER CRASH
Yerevan, July 26. ArmInfo. As a result of study of reasons of A-320
“Armavia” liner May 3 crash, it became clear that the airplane,
which was carrying out an automatic process of landing, was on the
exact landing line when, by the air controller instruction, caused
by meteorological conditions, the screw stopped landing and started
the right turn with climb at the height of about 340 m, it is said in
the official conclusion of the Intergovernmental Aviation Committee.
According to the conclusion, the pilot-in-command switched off the
autopilot system during the right turn and, after a short period of
climb under conditions of horizontal position loss by the airplane,
he put the liner in a landing position again. Under conditions of such
inadequate actions of the pilot-in-command, there was no proper control
by the second pilot with respect to landing parameters: steering
incline, height, speed. Further actions of the screw, it is said in
the conclusion, were dictated by signals of the warning system about
the threat of approaching the land, they were not coordinated and not
aimed at the airplane withdrawal from the landing regime. According
to IAC, no faults were fixed in the airplane engines and systems, it
was responding to both the autopilot commands and screw actions and
the quantity of aviation fuel was enough for successful completion
of the flight.
According to IAC, the crash happened May 3 at 2:13 AM by Moscow time.
The investigation was carried out in compliance with the rules of
the International Civil Aviation Organization (ICAO), the Interstate
Agreement, signed between the 12 states, including Armenia and
Russia. During investigation, all the documents concerning the
airplane, the screw and the airplane-maintaining services, underwent
study. The Commission has also prepared recommendations for prevention
of such air-crashes in future, it is noted in the conclusion.

IAC: UNFORTUNATELY, WHOLE BLAME FOR LINER -320 CRASH LIES ON SCREW AND PILOT-IN- COMMAND
Moscow, July 26. ArmInfo. “Unfortunately, the whole blame for the liner
A-320 crash near Sochi lies on the screw and the pilot-in-command,
the deputy chairman of the Intergovernmental Aviation Committee Oleg
Yarmolov said, commenting on the official conclusion of the Committee
about the air crash reasons.
Evaluating the degree of the screw guilt and deprivation of
the “Armavia” Company of license for flights as a possible
consequence, Yarmolov noted that any technical investigation serves
only for clarification of the crash reasons and development of
recommendations. He added that the issue of determination of guilty
persons and use of sanctions as a ban for the Company flights is not
a subject of the Committee investigations, this is a priority of law
machinery and administrative authorities.
As for the character of recommendations in the IAC conclusion, Yarmolov
noted that they are particularly aviation and touch upon the issues
of professional preparation of pilots, as well as the check-up of
development of adequate actions of pilots in complicated situations. In
its turn, the Armenia’s State Department of Civil Aviation fully
agreed with the assessment, given in the IAC conclusion. The “Armavia”
itself withholds comments as yet.

RA GOVERNMENT TO RENDER HUMANITARIAN ASSISTANCE TO LEBANON
Yerevan, July 26. ArmInfo. RA Government has made a decision at today’s
special session on rendering a humanitarian assistance to Lebanon,
suffered from military actions.
As ArmInfo was told in the Government’s press-office, it was
resolved to send medicaments, tents and preparations to Lebanon as a
humanitarian assistance. It was also decided to send a humanitarian
cargo on July 27 evening by Yerevan- Allelo charter route.
As Gagik Yeganyan, the Head of the Migration Agency, informed, 550
people from Lebanon and 54 people from Israel have arrived to Armenia
during these days. He also said that 120 people more will arrive to
Armenia from Allelo July 27 by a charter route. The majority of the
evacuated people, as to Yeganyan, are citizens of Armenia. However,
he noted, there are citizens of other countries among them: 49 Lebanese
and 2 Israeli. It was noted at the session that the number of evacuated
people is growing day by day. Meanwhile, many of them have no relatives
in Armenia. In view of this, the Government has discussed the issue
of rendering a necessary assistance to these persons.

HOUSE OF REPRESENTATIVES OF USA AFFIRMED POLICY OF REGIONAL
COOPERATION AND REJECTED ATTEMPTS TO ISOLATE ARMENIA
Yerevan, July 26. ArmInfo. The House of Representatives today voted
to help ensure that U.S. regional cooperation and economic integration
is maintained by making certain that no Export-Import funding is used
for a railroad project sponsored by the Turkish and Azeri governments
that seeks to exclude Armenia from economic and regional transportation
opportunities.
As ArmInfo was told today in the Armenian Assembly of America, the
lawmakers approved H.R. 5068, the Export-Import Bank Reauthorization
Act of 2006, which included an amendment by Congressman Joseph Crowley
(D-NY), along with Congressmen Edward Royce (R-CA) and Brad Sherman
(D-CA), ensuring that taxpayer dollars will not be spent on efforts
that would isolate Armenia – which is already facing dual blockades
by Turkey and Azerbaijan.
The source reminds that the amendment, which was unanimously approved
by the House Financial Services Committee last month, states that “The
Bank shall not guarantee, insure, extend credit, or participate in an
extension of credit in connection with the development or promotion
of any rail connections or railway-related connections that do not
traverse or connect with Armenia, and do traverse or connect Baku,
Azerbaijan, Tbilisi, Georgia, and Kars, Turkey.”
In a statement submitted for the House record, Crowley said: “This
language will assist in promoting stability in the Caucasus region,
help in ending long standing conflicts, and save U.S. taxpayers
the responsibility of funding a project that goes against U.S.
interests.” Representative Carolyn Maloney (D-NY), who spoke in favor
of H.R. 5068 on the House floor, said: “I support the provisions which
would prohibit the Export-Import Bank from funding railroad projects
in the South Caucasus region that deliberately exclude Armenia.”