PACE TO DISCUSS QUESTIONS OF REFUGEES IN SOUTH CAUCASIAN COUNTRIES

Regnum, Russia
March 28 2006

On April 10-13, spring session of PACE is to start in Strasbourg.

Unlike other sessions, it will last three days, because on April
14 Europe celebrates Easter, stated head of Armenian delegation to
PACE, Deputy Speaker of Armenian Parliament Tigran Torosyan at a news
conference on March 27.

He said that agenda of session has two questions regarding Armenia
– conditions of refugees and deported persons in Armenia, Georgia
and Azerbaijan, and human rights in Armed Forces. Latvian MP Boris
Tsilevich will report on the first topic. The report will be made on
April 13.

Bulgarian MP Alexander Arabadjiev is the rapporteur on the second
issue. Project of the resolution after second report does not directly
concerns Armenia, but the situation in the country is described
in the report as it is described of each country of the Council of
Europe. 35th article is dedicated to Armenia, where the situation in
Armenian Armed Forced in 2001-2003 is described.

Torosyan notes that the Armenian Defense Ministry currently examines
the report project to address with possible corrections to rapporteur.

According to the head of the Armenian delegation, the agenda includes
other questions of interest, for instance, regarding fight against
corruption and poverty in the Council of Europe countries. Several
questions may be added to the agenda later. Torosyan also spoke on
visits of PACE officials in Armenia that would take place in the near
future, informs “Noyan Tapan”.

ARARAT COGNAC NOT DELIVERED TO RUSSIA

Kommersant, Russia
March 28 2006

Yerevan Cognac Distillery has terminated Russia’s deliveries of its
product on failure of Central Excise Customs to provide new excise
stamps to alcohol importers. According to the analysts, the alcohol
import will be paralyzed for two months from April 1 even if the
stamps are given already tomorrow.

Yerevan Cognac Distillery (owned by French Pernod Ricard) was forced
to terminate shipment of product to Russia, as all new stamps had
ended and no new stamps were provided, said Zara Nazaryan, who heads
the foreign ties department at the distillery. Armenia exported to
Russia 9.78 million liters of cognac worth $250 million in 2005;
Yerevan Cognac Distillery covered over a half of the exports.

The problem faced by Yerevan producers is common to all importers
of alcohol. The Central Excise Customs set to accepting excise
applications and payments only past week and no one knows for sure
when the first stamps will be given. Pursuant to the revised act on
government’s control over the alcohol production and sales, which took
effect January 1, 2006, all import of alcohol with old excise stamps
is banned from April 1 and no alcohol product with such stamps could
be sold from July 1.

The imported product covers 10 percent of Russia’s market of alcohol,
which overall turnover was roughly 200 million decalitres, or $19.7
billion, in 2005.
From: Baghdasarian

MICHUKI: ARMENIANS NOT IN RAID
Story By Bernard Namunane

The Nation, Kenya
March 28 2006

Two foreigners at the centre of mercenary claims were not among the
hooded men who raided a media house in Nairobi early this month,
a parliamentary committee has heard.

Internal Security minister John Michuki told the committee on Legal
Affairs and Administration of Justice that the police team that raided
the Standard and KTN offices was made up of Kenyans only.

Kabete MP Paul Muite addresses journalists on the police raid on the
Standard Group yesterday Committee chairman Paul Muite yesterday said
his team would confirm the truth of Mr Michuki’s statement when they
question police commissioner Hussein Ali, CID director Joseph Kamau
and the President’s special adviser, Mr Stanley Murage.

“We put the question about the participation of the two foreigners
in the raid on the Standard and KTN offices to Michuki. He told us
they were all Kenyans,” Mr Muite said at Parliament Buildings.

The Kabete MP said Mr Michuki gave the committee crucial information
which it was pursuing and which could lead to more people being
summoned to provide information on the raid.

“For instance, we would like to know who gave the order for the raid
when the police commissioner was out of the country,” he said.

Mr Michuki was last week questioned by the committee over the raid
on the Standard Group by a gang of hooded policemen.

Orange Democratic Movement leaders Raila Odinga and Kalonzo Musyoka
have claimed that Mr Artur Sargsyan and Mr Artur Margaryan were
among the raiders. They also claimed Mr Margaryan was the commander
of the gang.

Mystery surrounds the kind of business the two foreigners who claim
to be Armenians are engaged in. Mr Margaryan has personally denied
the mercenary claims and Mr Sargsyan is in Dubai.

Yesterday, Mr Muite made the revelations after chairing the committee’s
meeting ahead of questioning Maj-Gen Ali, Mr Kamau and Mr Murage at
the MPs’ Continental House offices.

The three failed to appear as planned because the clerk to the National
Assembly had not sent out summons as requested by the committee.

They will, instead, appear before the committee on April 10.

Present were committee members, MPs Kenneth Marende (Emuhaya), Moses
Cheboi (Kuresoi), Jimmy Choge (Aldai) and Amina Abdallah (nominated).

The committee, said Mr Muite, was more interested in questioning
Mr Murage, who reports indicate attended the meeting at which the
decision to raid the media house was reached.

Mr Muite criticised Justice and Constitutional Affairs minister Martha
Karua for trying to belittle the raid.

“The… minister has been trying to downgrade our job by describing
the raid as normal police undertaking,” Mr Muite said.

ALIYEV: CHANCES FOR PEACE REMAIN DESPITE ARMENIA’S STANCE

Assa-Irada, Azerbaijan
March 28 2006

Baku, March 27, AssA-Irada
President Ilham Aliyev has said the potential for peace has not
been exhausted despite Armenia’s non-constructive position on the
long-standing Upper (Nagorno) Garabagh conflict.

“At the same time, Armenia has not be aware that Azerbaijan can
re-gain its territories through military action any time,” Aliyev
told the opening ceremony of the Heydar Aliyev history museum at the
National Security Ministry’s academy.

“I believe the potential for peace has not run out yet. But we have
to be prepared for any alternative. The Garabagh conflict resolution
will be stipulated both by diplomatic and political-economic, as well
as military factors. They have to know that Azerbaijan is ready to
restore its territorial integrity any time.”

The latest discussions held by the Azeri and Armenian leaders in
France in February turned out fruitless, as the parties failed to
iron out issues of principle.

AZERI, ARMENIAN LEADERS MAY MEET THIS YEAR

Assa-Irada, Azerbaijan
March 28 2006

Baku, March 27, AssA-Irada
Presidents of Azerbaijan Ilham Aliyev and Armenia Robert Kocharian
may meet by the end of 2006 for another round of talks on settling
the Upper (Nagorno) Garabagh conflict, officials have said.

“The meeting may take place on the level of international forums and
summits,” the head of the President’s Office international relations
department, Novruz Mammadov, told journalists on Sunday. He added that
a meeting of the two countries’ foreign ministers is not ruled out.
From: Baghdasarian

ARMENIAN “ARMECONOMBANK”, EBRD IMPLEMENT JOINT PROGRAMS

ARKA News Agency, Armenia
March 28 2006

Yerevan, March 28. /ARKA/. The Armenian “Armeconombank” and the EBRD
are implementing five joint programs in Armenia, Ashot Hosipyan,
Executive Director of the “Armeconombank”, stated at the 1st
international banking conference on financing foreign trade opened
in Yerevan.

Hosipyan said that one of the programs is that of trade financing,
which was launched in December 2002 and has been successfully
implemented until now.

“We regard this as the most important stage of the strategic program
of our bank’s development. After receiving assistance from the
EBRD we started working with international commercial banks, using
international financial instruments without the EBRD’s assistance,”
Hosipyan said.

The conference has been organized by the EBRD and the Armeconombank .

Among the media sponsors are the “ARKA” News Agency, “Armnews” TV
channel, and “Republic of Armenia” newspaper.

Among the participants in the conference are representatives of the
Deutsche Bank, ABN-Armo bank, Citibank, Interstate Bank, as well as of
the Central Bank of Armenia, Union of Manufacturers and Businessmen,
large local and international companies and banks.

“POVERTY REDUCTION IN RURAL AREAS” PROGRAM TO START IN ARMENIA IN SEPTEMBER 2006

ARKA News Agency, Armenia
March 28 2006

YEREVAN, March 28. /ARKA/. “Poverty Reduction In Rural Areas” program
will start in Armenia in September, Armenian Foreign Minister Vardan
Oskanyan stated during his talk before representation of the Armenian
Diaspora in Washington.

According to him, presentation of the program is to be made on the
following forum Armenia-Diaspora.

“Not all Armenian citizens could take use of advanced economic growth
indicators that we are proud of. The actual statistical account is
seen outside Yerevan: every second Armenian still lives in poverty,
especially in rural areas. And the income of more than half of the
population standing on the brink of poverty is less than $1 per day,”
Oskanyan said.

“We do not want that Armenian rural areas keep staying in a stagnated
situation of poverty. Even given the similar rapid economic growth,
achievement of the standard of average European’s welfare will take
decades. To bring Armenian rural areas to the average living standard
practical steps need to be taken,” the Foreign Minister said.

He pointed out that the country’s two large infrastructures will be
restored: community roads and irrigation systems. However, problems
with gas supply, power, education, healthcare and establishment of
telecommunications are still urgent.

According to the minister, if the Armenian Government, the country’s
business community, the international community and the Diaspora
unites, the entire complex of existing problems can be solved.

“Investments and economic growth are observed only in Yerevan. This
program will attempt to coordinate the information on projects
implemented in rural areas. The program provides for elimination of
artificial obstacles impeding the increase of efficiency and will
help to specify ways of entering markets and sources of funding for
restoration of economic stability in rural areas,” Oskanyan said.

He pointed out that the program inspires a new hope for every village
community of Armenia, beginning from borderline villages.

“To put it simply, by eradicating poverty, we eradicate hopelessness.

You will open a perspective and opportunities for most vulnerable
sections of our society; hope, trust and confidence transform
economically unsecured citizens and them politically strong,”
Oskanyan said.

The third forum Armenia-Diaspora is scheduled for September 17-24,
2006 as part of the 15th anniversary of Armenia’s Independence.

“Armenian Minister of Finance and Economy Vardan Khachatryan and
Executive Director of ‘Millennium Challenge Account’ corporation John
Danilovich signed the agreement in Washington on March 27th, 2006”.

According to the agreement the corporation will give Armenia $235.65mln
during a 5-year period for implementation of projects on restoration
of irrigation systems and community roads.

SYNCHRONIZATION OF ARMENIAN, RUSSIAN ENERGY SYSTEMS TO TAKE ABOUT 3 YEARS

ARKA News Agency, Armenia
March 28 2006

Yerevan, March 28. /ARKA/. The synchronization of the Armenian and
Russian energy systems will take about three years, Yevgeny Dod,
Director General of the “INTER RAO UES” CJSC, told reporters in
Moscow. He pointed out that synchronization of the Armenian and
Russian energy systems first of all requires the establishment of
communication between Russia and Georgia.

Dod stressed that this is “system and global” issue. He added that
the Armenian and Russian energy systems will be synchronized through
Georgia.

“The construction of a transmission line between Georgia and Armenia
is rather expensive. Georgia will carry out construction on its side,
while Armenia on its side,” Dod said. He expressed conviction that
synchronization will successfully be completed in case of stale work.

In the USSR, the Armenian energy system’s synchronous operation with
the other Soviet republics was ensured through Azerbaijan.

Fourteen of 15 CISA countries (except for Armenia) had synchronously
operating energy systems until 2003. That year Turkmenistan withdrew
from the CIS integrated energy system.

GERMAN COMMERCE BANK READY TO EARMARK UP TO EUR 100MLN TO ARMENIA

ARKA News Agency, Armenia
March 28 2006

YEREVAN, March 28. /ARKA/. The German Commerce Bank (Commerzbank) is
ready to earmark up to EUR 100mln to Armenia, the bank’s representative
Karslen George stated during the first international banking conference
for foreign trade financing opened held today in Yerevan According
to him, the bank’s experts studied the situation and opportunities
in Armenia and come to a conclusion on extending their activities in
the country.

In general, according to the bank’s representative, “the bank’s
activity in the CIS countries was quite a success”.

He pointed out that Commerzbank works mainly with enterprises of
small and medium-sized business, principally playing the role of a
confirming bank during foreign trade operations.

Commerzbank currently cooperates with Armeconombank, Agricultural
Cooperative Bank of Armenia, “Anelik Bank”, Armimpexbank, Inecobank
and Converse Bank in Armenia.

The conference was organized by the EBRD and Armeconombank.

From: Emil Lazarian | Ararat NewsPress

PRE-TERM TERMINATION OF FINANCIAL MANAGEMENT OF ARMENIAN NPP ON AGENDA

ARKA News Agency, Armenia
March 28 2006

Yerevan, March 28. /ARKA/. The Russian side’s pre-term termination of
financial management of the Armenian nuclear-power plant (NPP) is not
currently on the agenda, the “Novosti-Armenia” News Agency reports
referring to Yevgeny Dod, Director General of the “INTER RAO UES” CJSC.

At his meeting with journalists in Moscow reported that the agreement
on financial management of the Armenian NPP was signed two years and
a half ago for the purpose of settling financial problems with the
supply of nuclear fuel.

Dod added that the agreement was signed for five years, and the issue
of its cancellation is not on the agenda.

“Unfortunately, Armenia had no financial sources then. I think
that the situation has got stabilized: 100% payments are ensured,
the rates necessary for investment activities and maintaining safe
operation of stations are in effect,” Dod said.

He pointed out that the crisis management of the NPP has come to an
end, and the NPP has entered a new level of operation.

In this context, Dod added that last year the NPP could pay for
nuclear fuel.

According to Dod, some circles in Armenia claimed that the RAO
“UES of Russia” monopolized Armenia’s energy market and controls
the Sevan-Hrazdan coordinated hydro-electric system, the NPP and
electricity networks. He stated that this issue no longer on the
agenda, because the two countries’ Governments reached an agreement.

The Armenian NPP was put into operation in January 1980. The second
power unit (407.5 megawatts) is currently operating.

In September 2005, the NPP’s financial management was trusted to the
“INTER RAO UES” CJSC, a daughter company of the RAO “UES of Russia”
(60% of shares) and the “Rosenergoatom” concern (40%).