TAX REVENUES EXAMINED PUBLICLY
By Mher Ohanian
Yerkir.am
May 19, 2006
The State Tax Service publicized the list of 1000 largest tax payers
of the country. The list shows that there are almost no changes among
the leaders of Armenian business.
The top three largest tax payers are companies with foreign capital.
Nevertheless, the fact that the list included 1000 companies as opposed
to the previous list of 300, can be considered a positive development
which can sober up a little the shadow segment of our economy.
What is the distribution of the tax payers?
The copper-molybdenum factory in Zangezur is the largest tax
payer. The company paid 5 billion drams in taxes in the first quarter
of 2006. The second largest tax payer is ArmenTel which paid 3.8
billion drams. The third largest tax payer is ArmRusGasArd Company
that has paid approximately 3.2 billion drams in taxes.
There are not many companies in the list that have changed their
position compared to the list of 300 largest tax payers publicized
earlier. One of such companies is K-Telecom, the second operator of
mobile telecommunications, which was the 15th in the last year’s list
while this year it moved up to the 7th position.
In the first quarter of 2006 K-Telecom paid 1.5 drams in taxes. The set
of hydro-power stations in Vorotan moved up from the 24th position it
occupied last year to the 12th this year. Fleetwood Company that was
the 5th in the last year’s list moved down to the 32nd position this
year. This company is a monopoly company importing sugar to Armenia.
The companies dealing with fuel, cigarettes and alcohol have stable
positions in the list of largest tax payers. Flesh and Kaghpetrol
Service Companies specializing in import and sale of petrol and diesel
occupy the 4th and 5th positions respectively. In the first quarter
of this year they have paid 3.6 billion drams in taxes. Grand Tobacco
and International Masis Tabak Companies specializing in production
and sale of cigarettes have paid 2 billion drams in taxes together.

DM OF AZERBAIJAN HAD A VISIT FROM COMMANDER OF AIR FORCE OF NATO
Translated by Anastasia Zanina
Source: Information agency “Trend”, 19 May, 2006
Agency WPS
DEFENSE and SECURITY (Russia)
May 22, 2006 Monday
Minister of Defense of Azerbaijan Safar Abiyev received Commander of
the Air forces of NATO in Europe William Tom Chobbins. (…) During
the meeting, Safar Abiyev remarked that Azerbaijan is working
closely with NATO and the USA. Cooperation with NATO is successfully
continued in accordance with the Plan of the activity of individual
partnership. Touching upon the existing military-political situation
in the region of Southern Caucasia, the Minister remarked that
the main reason of non-settlement of peace and stability is the
Armenian-Azerbaijan conflict. (…) In his turn, General W.T.
Chobbins remarked progress in cooperation of Azerbaijan with NATO.
During the meeting, there was an exchange of opinions realized
concerning the perspectives of military cooperation of the USA and
Azerbaijan, the integration into European structures, activity of
Azerbaijan within the framework of antiterrorism coalition and other
questions. (…)

NATO SPECIAL ENVOY, ARMENIAN LEADERS TO HOLD TALKS
by Tigran Liloyan
ITAR-TASS News Agency, Russia
May 21, 2006 Sunday 09:57 PM EST
NATO continues to manifest close interest in Armenia. This is evidenced
by the upcoming two-day working visit here by Robert Simmons, NATO
Secretary-General’s special representative for the South Caucasus
and Central Asia.
Mr. Simmons arrives here on Monday for meetings with Armenian President
Robert Kocharyan and other leaders of the republic.
Kocharyan, in his remarks at the end of April, said, “Armenia
does not intend to join NATO”. “Under the programme for individual
partnership, Armenia actively gives greater scope to cooperation
on security-related matters with the North Atlantic Alliance as the
key European organisation,” the Armenian President pointed out. “We
hope for fruitful cooperation (with NATO), particularly in matters
concerning a reform of the Armed Forces of Armenia and peacekeeping
activities,” he said.
Kocharyan pointed out, “Armenia’s Euro-Atlantic ambitions are
well-considered and realistic. They are regarded positively by European
organisations and do not bring about problems in relationships with
Russia”. “We make public our stand equally in Moscow, Brussels,
and Washington,” Kocharyan said.

CRASHED ARMENIAN AIRBUS BLACK BOX RECORDER RECOVERED
Agence France Presse — English
May 22, 2006 Monday 2:04 PM GMT
The black box voice recorder from an Armenian Airbus passenger plane
that crashed in the Black Sea earlier this month has been raised from
the sea bed, an official at the transport ministry said Monday.
“We found the black box yesterday during the night,” a source at the
ministry, who asked not to be named, told AFP.
All 113 passengers and crew died when the Armavia airlines Airbus A320,
which had taken off from Yerevan, crashed May 3 during its approach
to Russia’s Black Sea resort of Sochi. Eighty-five of the victims
were Armenians, many of them on family visits.
The transport ministry source said the recovered black box was “the
one with voice recordings and was lying 25 to 50 centimetres (10 to
20 inches) under the mud. This evening we should find the flight data
recorder, which should lie about five metres away.”
A submersible vessel has been used to search for the flight recorders,
which were reported to be lying at a depth of some 500 metres (1,600
feet) below the surface.
From: Emil Lazarian | Ararat NewsPress

SPEAKER OF ARMENIA’S PARLIAMENT RESIGNS
Agence France Presse — English
May 22, 2006 Monday
The speaker of Armenia’s parliament resigned Monday, citing differences
within the ruling coalition over whether the nation should align
itself more with the European Union or Russia.
Artur Bagdassarian’s resignation follows the decision of his Rule of
Law Party to quit the government.
“I renounce my position as speaker of the National Assembly,” he
told the parliament, going on to thank the deputies of all parties
for work accomplished during the three years of his speakership.
Bagdassarian discussed the discord that prompted his party to leave
the coalition, formed with the Republican Party of Prime Minister
Andranik Margarian after legislative elections in 2003.
“There are two paths that Armenia can follow,” he said. The country can
“be part of the union with Russia and Belarus and be on good terms
with Europe, or it can be part of the European Union and be on good
terms with Russia. Our party is for the second path,” he said.
Before fragmenting, his parliamentary group counted 21 members,
but 11 among them — mainly businessmen — quit the party.
The heads of two parliamentary committees also resigned Monday.

ARMENIA SEEKS TO MAINTAIN COOPERATION WITH NATO – PREMIER
ITAR-TASS News Agency, Russia
May 22, 2006 Monday 02:00 PM EST
The development of cooperation with NATO should be considered within
Armenia’s policy to European integration, Prime Minister Andranik
Margaryan said.
In his meeting with NATO Special Representative for the Caucasus and
Central Asia Robert Simmons on Monday, the Armenian prime minister
said, “Cooperation with the Alliance is one of the most important
components of Armenia’s multi-level security system.”
He attaches significance to the expansion of the Armenian-NATO
political dialogue and the defence reform. In his words, these reforms
will be carried out consistently to the Nagorno-Karabakh settlement,
security in the region and the normalisation of Armenian-Turkish
relations.
“By maintaining cooperation with NATO Armenia never opposes different
security systems and pursues its policy to meet mutual interests,”
Margaryan said.
“Armenia continues its support for NATO’s efforts aimed at developing
constructive interaction between the states of the South Caucasus
and regional cooperation,” he stressed.
Armenian Deputy Foreign Minister Arman Kirakosyan said cooperation with
NATO and the participation in NATO’s Partnership for Peace Programme
is one of the components of Armenia’s security system. The diplomat
stressed that it is important to expand a political dialogue with
NATO and carry out the defence reform, in particular in working out
a national security concept.
“Armenia does not intend to join NATO,” Armenian President Robert
Kocharyan said at the end of April. At the same time, the president
stressed, “Under, the Individual Partnership Programme Armenia is
actively deepening its interaction with the Alliance as a key European
security organisation. Armenia’s Euro-Atlantic ambitions are weighty,
realistic and are positively interpreted by European structures. They
do not create problems in relations with Russia.”
Kocharyan pointed out that Armenia “states its position identically
in Moscow, Brussels and Washington.”
Simmons said NATO lauds the expansion of Euro-Atlantic cooperation.
The Alliance does not consider such cooperation rivalry with other
security system, he added.
Armenia’s Individual Partnership Programme has become a step forward
and meets Armenia’s interests. It also helps carry out defence reform
and strengthen democracy, Simmons stressed.
He said it is important to broadly inform the Armenian public about
NATO’s activity. The NATO official expressed satisfaction with
Armenia’s efforts aimed at implementing its Individual Partnership
Programme. The Alliance seeks the successful implementation of this
document due NATO’s bigger interest in the situation in the South
Caucasian region.

FLIGHT RECORDER OF CRASHED ARMENIAN JET RETRIEVED
Xinhua General News Service
May 22, 2006 Monday 10:30 AM EST
A flight recorder of the Armenian passenger jet that crashed into
the Black Sea more than two weeks ago was retrieved from the sea on
Monday, the Interfax news agency reported.
“One of the flight recorders has been lifted from the sea bottom,”
a source close to the investigation was quoted as saying.
The Airbus A320 plane of the Armavia airlines crashed near the Russian
resort town of Sochi on May 3, killing all 113 people on board,
among them six children and eight crewmembers. Among the dead were
28 Russian citizens.
The remnants of the airliner sank to a depth of more than 600 meters
below the sea surface. A deep-sea apparatus was involved in the search
for the plane’s flight recorders.

ABSURD NOMINATION OF SPEAKER
Lragir.am
22 May 06
Deputy Speaker Tigran Torosyan says it is absurd that the Republican
faction can nominate two speakers at once. Tigran Torosyan thinks that
it is even unnecessary to consider candidacies unless the position
is vacant. Unless there is a vacant position, it is pointless to
consider nominees, votes, etc. While he is avoiding speaking about his
candidacy or others’ candidacy, a member of the People’s Deputy Group
Hakob Hakobyan is likely to nominate the leader of the Republican
faction Galust Sahakyan. Hakobyan says Sahakyan’s candidacy will be
endorsed by the parliament. “I refuse to comment on backstage rumors
and nonsensical questions,” says Tigran Torosyan.
From: Emil Lazarian | Ararat NewsPress

ARMROSGAZPROM PLANNING IPO IN 2007-2008
Interfax News Agency
Russia & CIS Business and Financial Newswire
May 22, 2006 Monday
ArmRosgazprom is planning to hold an initial public offering (IPO)
in 2007-2008 in order to raise resources to develop the company,
Karen Karapetian, CEO and general director of the Armenian-Russian
company, said at a Monday press conference.
The company is planning to conduct an international financial audit
first, he said. ArmRosgazprom has charter capital of $280 million.
The Armenian government owns 45% of the company, Gazprom (RTS: GAZP)
has another 45% and Itera (RTS: ITER) has 10%. Gazprom is planning
to increase its stake in the company.
ArmRosgazprom shares are growing in price, Karapetian said. In any
case, Itera periodically brings up the issue of selling its shares
in the company and selling them at a price higher than par value,
Karapetian said.
Possible changes in the company’s owners will not have an influence
on ArmRosgazprom management, since it was agreed that there would
not be any changes in management, Karapetian said. “In this respect,
I don’t see any problems if Armenia decides not to increase its stake
in company charter capital,” he said.
Gazprom and the Armenian government signed in April a strategic
agreement for 25 years, establishing the strategic principles for
cooperation in gas-energy projects in the country.
The document deals with the acquisition by ArmRosgazprom from the
Armenian government of a 40-km section of the Iran-Armenia pipeline,
currently under construction, and the fifth power-producing unit
at Razdan thermal power plant. Also, according to the agreement the
Armenian government is obliged to give ArmRosgazprom the function of
client for the 197-km second section of the Iran-Armenia gas pipeline.
Preliminary purchase and sales agreements had to be signed by April
14, 2006 and the final transfer of right of ownership for these assets
should be carried out by January 1, 2007.
After the deal the Gazprom share in the ArmRosgazprom charter capital
will amount to a qualified majority of more than 75%.

TRAIN WITH VEHICLES OF RUSSIAN MILITARY BASE PREPARING FOR DEPARTURE FROM GEORGIA
Interfax News Agency
Russia & CIS Business and Financial Newswire
May 22, 2006 Monday
The preparation procedures for the departure of the second train with
weapons and materiel of the Russian 62nd military base headquartered
in Akhalkalaki are nearing end.
“The second train will take 17 self-propelled artillery systems
and specialized vehicles to Russia,” Colonel Vladimir Kuparadze,
deputy commander of the Group of Russian Forces in Transcaucasia,
told Interfax-Military News Agency by phone from Tbilisi on Monday.
According to him, the vehicles have been loaded on flat cars and
fixed. Customs procedures are being finalized now.
Kuparadze said that the train of 19 cars will depart on Tuesday
morning. “The second train, as well as all the other 20 remaining,
will travel to Russia through Azerbaijan in compliance with the
agreements reached between Russia and the country,” he said.
He added that a convoy of vehicles will depart from Akhalkalaki to the
102nd base in Gyumri, Armenia, on Tuesday. “The convoy will include
ten trucks and an escort armored personnel carrier. It will carry
part of the military equipment of the 62nd base to Gyumri,” he said.
The first train with Russian equipment and materiel was dispatched
from Georgia to Russia on May 15.