SKINHEADS CHARGED WITH ATTACKING FOREIGNERS IN URALS CITY
RIA Novosti, Russia
March 28 2006
UFA, March 28 (RIA Novosti) – Prosecutors in a southern Urals region
have pressed charges against members of a group of skinheads suspected
of attacking foreign students, a spokesman said Tuesday.
Prosecutors in Bashkortostan, a republic on the Volga, said the case
had been sent to a court in Ufa, the regional capital, and qualified
the attacks on the students from a local oil university as race-hate
crimes.
According to the prosecutors, the group was led by a 24-year-old
young man, who had increased the numbers of the gang to more than 30
people, mostly minors at the time of the alleged assaults dating back
to last year.
According to investigators, three members of the gang publicly
assaulted the foreign students on the instructions of the gang
leader in February 2005. The skinheads are alleged to have beaten up
students from Vietnam, China and Angola, with one of the attackers
purportedly hitting the Chinese student with a wooden bat in “an
admission ceremony.”
Two other members of the group are not facing any charges as they
were 13 when the attacks are said to have taken place.
A wave of racially motivated crimes has recently swept Russia.
Reports of attacks on foreigners with non-Slavic features have prompted
Russian and foreign human rights groups to raise concerns over the
alarming spread of racist and xenophobic sentiments in the country.
In one of the latest incidents, four teenagers suspected of the murder
of an Armenian man on a commuter train two weeks ago were arrested
in the Moscow Region Monday.
From: Emil Lazarian | Ararat NewsPress

ALIYEV: ARMENIA’S POSITION URGES AZERBAIJAN TO CHANGE POLITICS REGARDING NK
Prime News Agency, Georgia
March 28 2006
Tbilisi, March 28 (Prime-News) – Ilham Aliyev, Azerbaijani president,
sated that Armenia’s non-constructive position urges Azerbaijan to
change politics regarding resolution of the Nagorno-Karabakh conflict.
“We maintain adherence to peaceful negotiations, thus they have no
results yet. It is evident that we should change our policy,” Ilham
Aliyev stated delivering speech on the ceremony regarding the 87th
anniversary of Special Forces of Azerbaijan.
From: Emil Lazarian | Ararat NewsPress

CONDOLEEZZA RICE: SIGNING CEREMONY FOR MILLENNIUM CHALLENGE CORPORATION’S COMPACT WITH THE REPUBLIC OF ARMENIA
U.S. Department of State

March 28 2006
AMBASSADOR DANILOVICH: Madame Secretary, Minister Oskanian, Minister
Khachatryan, Mr. Nercissiantz, Ambassadors and representatives of the
Diplomatic Corps, distinguished guests: We are delighted to welcome
all of you here today to witness the signing of the compact between
Armenia and the Millennium Challenge Corporation and to celebrate
the enormous achievement of the people of Armenia.
I would like to extend a warm welcome to the delegation from Armenia
and to recognize many of the people who have worked so tirelessly to
bring us to this day, especially our Ambassador John Evans and his
colleagues at our Embassy in Yerevan and, of course, the superb group
of professionals that make up our MC Armenia team who work closely
with Stephen Groff and Alex Russin and other members of our MCC team
here in Washington.
Finally, I would like to extend our appreciation to our board member
Ken Hackett for taking part in today’s ceremony and I would also like
to thank Fred Schieck of USAID for being here with us today.
The MCC Armenia compact will provide $235 million that will trigger
economic growth and create new opportunities for the reduction of
poverty by assisting Armenia’s farmers and their communities. A large
percentage of Armenians live in rural villages and are dependent on
agriculture for their well-being. Poor road conditions and unreliable
irrigation have kept these communities from enjoying the benefits
of the tremendous growth that other parts of the Armenian economy
have experienced.
Therefore, Armenia has designed a program that will have a direct
impact on 75 percent of the rural population. Armenia’s program,
with MCC help, will: one, upgrade nearly 600 miles of rural roads
and provide access to jobs, markets and social services and create
linkages between agriculture producers and market places, and; two,
through improved irrigation, technical assistance and credit support,
raise the incomes of a quarter of a million of Armenian households.
With improved irrigation canals and better roads, rural residents
will be able to grow better crops, get them to market and earn a more
dependable income. MCC funding will also help rural residents take
advantage of other programs funded by the United States: healthcare
clinics, school internet centers and centers for public information,
all of which will be accessible even during the difficult winter
months.
I will be traveling to Armenia in early April and look forward to
showing the MC Armenia program to Chairman Jim Kolbe and to meet with
the broad spectrum of Armenian civil society that has been involved in
the creation of this program and to discuss their future involvement to
the program’s implementation. Their engagement is essential to ensure
that the Millennium Challenge Account funding is directed efficiently
and effectively to the projects that Armenia has designed and its
benefits go directly to the people that they are designed to help.
One of the critical components of an MCC compact is that partner
countries must continue to maintain a high level of performance in
ruling justly, investing in people and promoting economic freedom.
The signing of this compact today is therefore an affirmation of our
confidence that Armenia will continue to enact the institutional
reforms that will support the effective use of our aid, including
measures to support and protect democratic and electoral processes.
As we embark upon this dynamic partnership between our two nations
to reduce poverty through economic growth, I want to extend to you,
Ministers Oskanian and Minister Khachatryan, our sincere and heartfelt
congratulations. And now it’s a pleasure to ask our Chair, Dr. Rice,
to say a few remarks. (Applause.)
SECRETARY RICE: Good afternoon, ladies and gentlemen. I am honored
to welcome the distinguished members of the Armenian delegation.
Minister Khachatryan, Minister Oskanian, thank you very much, and I
think Ambassador Markarian is here as well. Are you? There you are.
Yes. And I’d like to welcome the American Ambassador, Ambassador Evans,
as well. There are many members of the Diplomatic Corps here.
Thank you for being here.
Today’s step is a promising one for the partnership between Armenia and
the United States. The Millennium Challenge Corporation compact that
our two nations are signing today, worth more than $235 million over
the next five years, is a testament to the hard work and dedication
of the Armenian people and their elected government. The compact is
also the embodiment of America’s transformational diplomacy because
it will empower Armenian men and women to better their own lives,
to strengthen their own communities and to transform their own future.
One of the greatest moral challenges of the 21st century is to
alleviate the suffering posed by dire poverty. That is the goal of
President Bush’s Millennium Challenge Account initiative, to draw
whole nations into an expanding circle of opportunity and enterprise.
This is the eighth compact that the Millennium Challenge Corporation
has signed thus far, making a total of $1.5 billion committed since
last April. This represents a tremendous effort both by partner
countries and by the men and women of the Millennium Challenge
Corporation. Ambassador Danilovich, I want to congratulate you and
your staff on this very good work. I want to thank our board member
Ken Hackett for being here. It’s really been a team effort and we’re
very grateful for the work that is being done.
The Millennium Challenge Corporation is committed to making a
real difference in the lives of people who suffer in poverty. It
is focused on results, not merely good intentions. So the MCC uses
16 independent objective indicators to measure a country’s progress
toward governing justly, advancing economic freedom and investing in
its people. The MCC also recognizes that you will only get results
if developing countries have ownership over their own development,
so this program allows our partner countries themselves to determine
how much assistance to request, what they want to use it for and what
criteria will measure success.
The compact we are signing today will directly improve the lives of
750,000 Armenians, three-quarters of the country’s rural population.
Over the next five years, Armenians will build almost 1,000 kilometers
of rural roads. They will upgrade their irrigation and drainage
systems. They will plant new crops. And through all of this, the
United States will provide Armenia with the technical assistance and
credit support that it urgently needs.
Our partnership will help Armenia to fight poverty through
sustainable economic growth. To ensure that progress toward this end
remains constant, Armenia must continue to advance its democratic
reforms. International and domestic monitors did express concerns
about the conduct of the recent constitutional referendum and the
Armenian Government has acknowledged these difficulties and pledged
to improve the conduct of the elections to be held in 2007 and 2008.
These are important commitments and the United States stands ready to
help Armenia to ensure that its upcoming elections are free and fair.
America is eager to strengthen our partnership with a democratic
Armenia and the MCC compact that we are signing today will advance
this goal. We view your success as our success and we will always
help you to ensure the future of freedom and prosperity that all
Armenians deserve and desire. Thank you very much. (Applause.)
MINISTER OSKANIAN: Secretary Rice, Ambassador Danilovich, I am here
today on behalf of the President of the Republic of Armenia and
my colleagues here from the Armenian Government to thank President
Bush, Secretary Rice, Ambassador Danilovich, the U.S. Government and
the American people for including the Republic of Armenian in the
Millennium Challenge compact.
President Bush’s visionary approach to development which complements
the invaluable assistance that has already been provided to Armenia
through USAID and other U.S. programs continues the best tradition of
American missionaries from whom Armenians have benefited greatly. The
Millennium Challenge compact is a natural extension of the practice,
doing good borne of one’s own convictions, but with the intent to
nourish the recipient’s sense of self-worth and ability.
In the 21st century, when philanthropy is not about charity but about
finding solutions to deep-seated problems, we welcome the United
States Government decision to assist and support directly those
countries who have determined to rule justly, to invest in people
and to promote economic freedom in order for their citizens to live
in dignity and security.
I see our colleagues from other recipient countries, and I am certain
that they join me in saying that what this grant — the U.S. is
recognizing with this grant — the United States is recognizing the
reality and duality of our lives: persistent poverty in the face of
progress. On one hand, one-third of Armenia’s population continues to
live in poverty. Two-thirds of our rural communities are not directly
connected to a central road of distribution system and most of our
secondary and tertiary roads do not provide the necessary access. On
the other hand, Armenia has managed, against great odds with an
unresolved conflict and with closed borders, to be ranked first in
the world in past utilization of foreign assistance, to privatize and
to legislate such that our economy is ranked among the world’s most
liberal and to register the highest economic growth in the region
without the benefit of extracting resources.
That is why a long consultative process concluded that with significant
poverty reduction would request Millennium Challenge Corporation funds
to be spent in two critical areas of infrastructure. Our program has
been consciously designed to complement the work of other donors.
With this signing of the Millennium Challenge Compact, Armenia is aware
that we have the obligation to build on the confidence that has been
placed in our government and people. Just as economic development is a
facilitator of democratization, so is democracy a tool for further and
deeper economic development. We understand that the U.S. Government
has chosen to use these funds for economic development only when a
society and its leadership comprehend their political responsibility
to nurture and sustain democratic practices.
Armenia is among the world’s youngest democracies and our democratic
and economic reforms are irreversible. Our significant progress,
notwithstanding, we recognize that much remains to be done to make
these reforms comprehensive. We know that corruption must not be
tolerated and that law must rule, that the principles of democracy
must be transformed to traditions of democracy in our country.
Madame Secretary, the elections of 2007 and 2008 that you referred to
will test our democratic practices. Our task until then is to partner
with the United States and European governments to implement the
necessary corrective steps to improve the conditions necessary for
an honest and fair expression of people’s voices. In this regard,
we welcome the American proposals for certain structural reforms
and education and public outreach efforts. We are already begun the
process of verifying voter lists. We’re making progress in reforming
the electoral law with the active participation and agreement of all
political forces in our parliament. As in years past, OSCE monitors
will be present and will monitor our elections.
In other words, Madame Secretary, Armenia and Armenians are determined
to benefit from the intent and content of the Millennium Challenge
compact because our people deserve no less.
Thank you. (Applause.)
(The Compact was signed.)
(Applause.)

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.