SERGE SARGSYAN’S ECONOMIC DISCOVERIES
A1+
[06:00 pm] 11 April, 2006
Today the Defence Minister Serge Sargsyan presented the journalists
the full story of the 5th block of the Hrazdan power station which
turns out to have a 5 – year history and is the initiative of the
Russian side. “Then “RAO EES and GazProm” wanted to buy the 5th block
on condition that Armenia must fully take the produced electricity
but the deal was not profitable for us as we had cheaper electricity
sources then. We gave them a negative answer, and now when the
conditions have become more profitable we give a positive answer.”
In one word, Serge Sargsyan considers the bargain a “favourable”
one. “The strangest is the thing that everybody seems to be concerned
with the deal without having the slightest notion of the 5th block. It
resembles a -three – storey building which only has a cellar and
nothing else.”
The Defence Minister tried to explain the favourable outcome of the
deal to the journalists from economic point of view. According to
him the construction of the block requires at least 180million USD
expenditure and the constructed block will return the sum invested only
in 10 years’ time. “It means that we would have a profitable energy
station only in 2017. And only Nastradamus could answer the question
whether we could have any profit or not,” says Serge Sargsyan. What
do we need now as a country and as a nation? To sell the thing we
don’t possess with 250 million USD or to wait till we have some money
in 2017?”

TOTAL ROBBERY AND “ESTRANGEMNT”
A1+
[07:55 pm] 11 April, 2006
The bill on the “account establishment on the program implementation of
the 2001 – 2003 state property privatizations” was put on the agenda
of the NA session yesterday. Today the NA Speaker Arthur Baghdasaryan
and other important figures criticized the “estrangement” policy
of the Government “as a result of which the RA budget had a loss of
milliards AMD.” Arthur Baghdasaryan inquired why the same territory
is sold for 1000 AMD in one case and for 100 000 AMD in another. The
Chief of the State Property Department Karine Kirakosyan answered that
the price is determined by a number of factors; the activity index,
actives and liabilities of the enterprise are taken into account.
Before answering Arthur Baghdasaryan’s questions Karine Kirakosyan
claimed that neither educational nor primary educational institutions
were alienated or privatized. The NA Speaker informed her that 535
nursery schools and 250 libraries were already privatized.
Today the Opposition was also very active. The vice-deputy of
the “Justice” party Victor Dallakyan divulged all the cases of
privatization which were realized directly and the buyer was known
beforehand; for instance, the company “Orbita” was estimated 150
million AMD whereas it was privatized with 150 million AMD. Let’s
bring another example, “Light” LTD was estimated 106 million AMD
whereas it was privatized with 10 million 825 thousand AMD.
The member of the party “Orinats Yerkir” (“Country of Law”) Hovhannes
Margaryan brought other examples of privatization and 6 examples of
companies alienated with lower price. The member of the party “National
Unity” Aghasy Arshakyan announced that the country is subjected to
total robbery, “the economy was destroyed and sold for nothing.”

IN THE SCOPES OF ARMENIAN – ITALIAN CULTURAL COOPERATION
Panorama.am
15:53 11/04/06
“In 2006 the historical-architectural monuments Kobayri, Kharberd
and Yereruyk will be restored in Armenia,” announced deputy of the
RA Minister of Culture and Youth Affairs Gagik Gyurjian. As he said,
the Italian government in the face of Italian Embassy in Armenia as
well as Milan research centre of Armenian culture and documentation
will render assistance to the Ministry of Culture in carrying
out the above mentioned works. The financial assistance of Milan
Research Centre will be 35 thousand euros this year. As the Deputy
of the Minister mentioned the restoration works will be organized in
accordance with modern international restoration standards. Besides,
the Italian government has announced about the beginning of training
for restoration of historical-architectural monuments. As the first
secretary of Italian Embassy in the RA Roberto Noccelli mentioned the
Italian Foreign Ministry annually lets scholarships for 26 months’
term to study Italian language and culture. This year part of the
scholarship will be given to young Armenian architects under 35 who
will be able to be educated in any of higher educational institutions
in Italy paying 50% of the tuition fee only. A scholar will receive
619 euros monthly excluding the food and trip expenses. Those who
would like to pass the training must know Italian. the applications
are admitted from March 22 to April 22.

WHO IS GOING TO THROW WAR-CALLS TO MILLENNIUM?
Panorama.am
15:43 11/04/06
The question of the election of the head of “War-calls of Millennium”
program has been much spoken about recently. And the most frequently
state name in that context is the name of Incubator of Enterprises
fund president Bagrat Yengibaryan.
The latter mentioned that he has received such an invitation and
is going to receive the responsibilities of the head of the above
mentioned program. “I have a very serious thing to lose; that is the
achievements of the fund. On the other hand I see serious demand for
human resources in that very program which coincides with my abilities
and career.
That is to say, there are adequate conditions, and it would be wrong
of me not to try it,” he said.

OUR FOREIGN POLICY AND PROPAGANDA ARE QUITE GOOD
Lragir.am
12 April 06
Vahram Atanesyan, Chair of the Standing Committee for External
Relations and Information of the NKR National Assembly, gave a news
conference April 10. The news conference was devoted to the massacres
in the village of Maragha, Martakert region, 14 years ago.
Early in the morning in 1992 after an air raid the Azerbaijani
combatants, assisted by a special division of the Soviet army
stationed in Azerbaijan, massacred the peaceful population of the
village. Maragha was not an emplacement, and this operation must be
characterized as a crime against peaceful population.
According to Vahram Atanesyan, about 100 peaceful people were
slaughtered in Maragha, mainly women, children and elderly people.
Presently, the village is controlled by Azerbaijan. Before April 10,
1992 Maragha had over 3000 inhabitants. After the war the natives of
Maragha remaining in Karabakh founded the village of Nor Maragha,
where 300 people live now. “In the context of settlement of the
Karabakh conflict the NKR leadership insist that the resolution of
the problem should include the restoration of territorial integrity
of NKR, particularly I mean the north of Martakert. In the past years
no relevant organizations in our country attended to the assessment
of the economic losses inflicted by Azerbaijan on NKR. No serious
investigation of facts of violence and illegal actions taken by the
Azerbaijani government and troops against the peaceful population of
NKR was carried out. As you know, a Provisional Committee on Facts
of Violence was set up by the NKR National Assembly, and I hope by
December 1, 2006 the committee will manage to sum up the findings on
the tragedy of Maragha and other illegal actions against the peaceful
population in NKR. We must be ready to extend forceful arguments to
the international community that Azerbaijan used the war to carry
out ethnic cleansing,” said Vahram Atanesyan.

300 TO BE PRIVATIZED
Lragir.am
12 April 06
On April 10 the National Assembly at last heard the Report on State
Property Privatization 2001-2003. The report was presented by Karineh
Kirakosyan, the head of the Department for Management of State
Property under the government of Armenia, who also presented facts
for 2004. During the discussion of such an important issue there were
hardly 20-25 members of parliament present, and from time to time two
or three oppositionists who have been announcing about illegalities
reported in the course of privatization.
By January 1, 2005 1925 medium-sized and big companies, 7266 small
objects and 80 unfinished constructions have been privatized. In 2004
companies were mostly privatized through direct sale and tender. 48
out of 69 were privatized by direct sale, 15 were put out to tender
and 6 were sold by auction. In 2004 privatization proceeds totaled
2.752 million drams and 45 million U.S. dollars. By January 1, 2005
privatization proceeds totaled 142.32 billion drams, 63.788 billion on
privatization certificates. Although in 2003 several times more state
property was privatized, privatization proceeds almost did not grow –
2.905 billion drams. The average price of privatization of a company is
35 million drams. 214 privatized companies were dissolved, 108 filed
for bankruptcy. In this period 6 nursery schools were privatized,
unused land of other educational institutions was alienated. 471
refugees and 71 residents privatized land.
Karineh Kirakosyan said about 300 companies failed to cover their
liabilities, some companies failed the labor liability or did not
report to the Department for State Property Management. A total of
6969 jobs, 3318 new jobs had been foreseen. The government filed
actions against companies which had failed their liabilities. Karineh
Kirakosyan cannot remember cases when the companies were returned to
the state, however, she clearly stated that filing of actions made
buyers to hurry up.
300 entities remain on the list of companies to be privatized,
concluded Karineh Kirakosyan.

ARMENIA 2017
Lragir.am
12 April 06
Armenia will benefit from the sale of the fifth generating unit of the
Thermal Power Plant of Hrazdan to Russia. Thus Defense Minister Serge
Sargsyan, who is one of the core players in signing the Contract on
Generating Unit for Compensating for Gas, assessed it on April 11. “It
is quite beneficial, simply it is strange that everyone speaks up
without knowing what the fifth generating unit is.
Figuratively, the fifth generating unit is like a three-storey
building, only the basement of which has been built, and nothing
else,” says the defense minister, advising to check that his
words are true. And those who speak about other options of
reconstructing the generating unit and keeping it to Armenia do not
have reason. Particularly, the minister of defense believes that 150
million is not sufficient to repair the generating unit; moreover,
these funds need to be raised first.
“At least 180 thousand million dollars is required to make a fight
generating unit. And it would repay costs in 10 years at best.
That is, at best in 2017 we would have a company generating income.
And only Nostradamus could predict how much that income would be,
how high the price of gas would be by then, whether there would be
any income at all in 11 or 12 years,” says Serge Sargsyan.
If presently only Nostradamus would be able to tell the future,
the defense minister assures that in the future it will be much
easier to speak about the past. “I think we’ll have time to do this,
because presently there is no point in discussing it, we will offer
more figurative, more forceful arguments on the value of the fifth
generating unit and this step,” states Serge Sargsyan.
“What do we presently need as a people, as a nation: sell something
that does not exist for 250 million dollars or wait until we get some
cents in 2017? After all, can these people who speak so imagine the
consequences of selling gas to people and industry at the foreseen
price?” says the minister of defense.
What we need as a people and a nation is, in fact, an interesting
question to ask. On the other hand, it is interesting to know why the
question of needs of people and the nation is negotiated secretly
from people and the nation until the last moment. Why did nobody
ask people and the nation what they need? And why do they generally
tend to speak in the name of people and nation in Armenia and decide
instead of people and the nation? And do people and the nation want
to sell their own energy sector to another country?
“First of all, not the entire sector. Besides, if we think harder,
we will see that there is almost no difference. And finally, when
politics is mixed with economy, the outcome is neither politics nor
economy. We must see what offers favorable for our economy are made,
and let us not say we decline this offer for it is made by Russia, and
we accept that one, for it is made by Belgium,” says Serge Sargsyan.

DEFENSE MINISTER WILL SAY WHEN HE WANTS
Lragir.am
12 April 06
Defense minister declines to say anything concerning the parliamentary
election and the political force that he will support.
Whereas, in late January Serge Sargsyan stated that he needed two
more weeks to make a decision. Several months have passed since late
January but the defense minister still declines to speak about his
decision. “I think this is not a burning topic. Political processes
are going on normally and correspond to my plans,” said Serge Sargsyan
April 11. The defense minister did not tell news reporters, however,
when he would announce about his decision.
“When I think it is time,” says Serge Sargsyan. With regard to his
presidential aspirations he again resorts to convenience.
“We will see what the situation will be. It is early to speak about
this. We will see what will happen after the parliamentary election,”
announced the minister of defense of Armenia.

SITUATION AT THE BORDER IS CALMER
Lragir.am
12 April 06
Tensions on the Armenian-Azerbaijani front line are exaggerated,
stated Serge Sargsyan, Minister of Defense of Armenia, on April 11.
“There are always gunshots, you know there are gunshots today, but
there is no difference between today and three months or five months
ago. Even if there is difference, it is more of an easing of tensions,”
announced Serge Sargsyan. For the frequent visits of the OSCE Minsk
Group co-chairs to the region and the possibility of settlement of
the conflict over Karabakh by 2007, the defense minister of Armenia
says it is both possible and impossible.
“There are two answers to this question: yes and no. I cannot see
that the state of things today essentially differs from the state of
things two years ago,” says Serge Sargsyan, adding that as a minister
of defense he is prepared in case war starts.
“I have announced a number of times and now I state that the defense
minister of any country, and especially the minister of defense of
Armenia, should assume that the military actions may start tomorrow
or in two days,” says Defense Minister Serge Sargsyan.

INTERESTING DEVELOPMENTS CONCERNING IRAN-ARMENIA GAS PIPELINE
Lragir.am
12 April 06
Recently the Iran-Armenia gas pipeline has appeared on the way
of Russian-Armenian inventory, although the Armenian government
officials consistently refute the information that Armenia agreed
to sell the shares of the gas pipeline to Russia. In the meantime,
it is notable that Gasprom published information for a while and hid
it without refuting. On April 11 new, even confidential information
was given by Serge Sargsyan, Minister of Defense of Armenia, Co-Chair
of the Russian-Armenian Intergovernmental Commission. In answer to
the question on the Iran-Armenia gas pipeline Serge Sargsyan said a
few words which, however, mean much.
“Let us leave it for the next time, because there are other interesting
things about it,” stated Serge Sargsyan. If Serge Sargsyan says this,
no doubt there will be interesting things.
However, it is not clear how interesting it will be and whom it will
interest, because if we are going to face sale of property, it is not
going to surprise anyone in Armenia. But a new method would really
arouse interest.