REPORT ON ARMENIAN MEDIA TO BE SUBMITTED TO OSCE
/PanARMENIAN.Net
21.06.2006 17:06 GMT+04:00
/PanARMENIAN.Net/ Upon compellation of visit to Armenia a report
on freedom of the media in the republic and recommendations for
improvement of the situation will be submitted to the OSCE, Miklos
Haraszti, the OSCE Representative on Freedom of the Media stated in
Yerevan. In his words, the report will be free for press and NGOs
interested in the issue.
The OSCE Representative remarked that some positive tendencies can
be observed in the printing media.
“They furnish a wider scope of opinions, what cannot be said about
the electronic media, specifically the TV channels. However the
positions of the printing media are weak as compared to the TV,”
he said adding that journalists are not persecuted or assaulted in
Armenia and this is a considerable achievement. At that he remarked
that the National Commission for Television and Radio formed by the
President needs reorganization. “The chapter on the National Commission
for Television and Radio should be changed in accord with the reviewed
Constitution. The Commission should be more open and independent. We
have submitted out proposals on the issue,” the OSCE Representative
said. Mr Haraszti also remarked that there are many TV channels in
Armenia but all of them furnish almost the same information.

OSCE: PEACEFUL SETTLEMENT OF KARABAKH CONFLICT POSSIBLE
PanARMENIAN.Net
21.06.2006 17:26 GMT+04:00
/PanARMENIAN.Net/ There is a possibility to settle the Nagorno
Karabakh conflict peacefully, OSCE Secretary General Marc Perrin
de Brichambaut stated in Baku. In his words, the OSCE Minsk group
Co-chairs will report to the OSCE Permanent Council in Vienna June
22. “No one can say that the process stopped. I think the international
community is interested in the settlement of the Nagorno Karabakh
conflict. Different variants of peaceful resolution are being
considered.
We can only hope that everything will be all right. At that it’s
hard to foretell whether the conflict will be settled this year,”
the OSCE Secretary General said. Besides, he expressed satisfaction
with the activities of the OSCE MG, reported Trend new agency.

AZERBAIJAN TO BLAME FOR ABSENCE OF PROGRESS IN KARABAKH ISSUE
PanARMENIAN.Net
21.06.2006 17:40 GMT+04:00
/PanARMENIAN.Net/ The recognition of the Nagorno Karabakh Republic by
the international community can become a guarantee for human rights
protection and prevention of Azerbaijan’s aggressive intentions,
NKR Prime Minister Anushavan Danielyan said in Stepanakert at the
international conference titled “Nagorno Karabakh Republic: Past,
Present, Future. In the words of the NKR Premier, the war levied by
Azerbaijan on Artsakh demanded strong will, firmness and losses from
the Armenian people. With the assistance of whole Armenianhood the
people of Artsakh managed not only to defend the homeland but also
to recover from the consequences of the war. “During nearly 20 years
of existence the republic passed through all the stages of state
building. It ensured the security of the population and protected
the state interests,” Danielyan remarked.
He underscored that the efforts of the NKR leadership are targeted at
settlement of the conflicts on the basis of principles that reflect
the will of the Karabakh people. “Unfortunately no considerable
progress has been fixed in the negotiation process yet. This is
Azerbaijan’s fault, since being not ready for any compromise this
country denies the right of nation to self-determination and insists
on the principle of “inviolability” of its territorial integrity. This
circumstance doesn’t allow conveying a new impulse to the negotiations
and developing the positive tendencies achieved during recent 10
years with the assistance of international mediators,” the NKR Prime
Minister considers. In his words, the non-constructive position of the
Azeri leadership and irresponsible calls to solve the problem by force
jeopardize the security of the whole region. The leadership of Nagorno
Karabakh have many times state of their firm intention to solve the
problem peacefully and today we are ready to support the activities
of the OSCE Co-chairs’, whose potential has not been exhausted yet,”
Danielyan said.
He also said that despite the unsettlement of the conflict and
non-recognition of the NKR by the international community, the
authority of Nagorno Karabakh as de facto independent state keeps on
growing. “The NKR is interesting in developing cooperation with all
the states of the region including Azerbaijan,” the Prime Minister
of the Nagorno Karabakh Republic said, reported De Facto news agency.

OSCE PERMANENT COUNCIL TO HEAR OSCE MG CO-CHAIRS REPORT
PanARMENIAN.Net
21.06.2006 18:16 GMT+04:00
/PanARMENIAN.Net/ The report of the OSCE Minsk Group Co-chairs will
be heard at the sitting of the OSCE Permanent Council in Vienna June
22. The report offers the information on the work carried out for the
settlement of the Nagorno Karabakh conflict and the outcomes of the
recent meetings of the Armenian and Azerbaijani President. During the
sitting in Vienna the U.S. will officially represent newly appointed
Co-chair Matthew J. Bryza. The first consultations of the OSCE MG in
a new composition will be held in Vienna. The Co-chairs will analyze
the totals of the latest meeting of the Armenian and Azeri Foreign
Ministers in Paris. The mediators are also expected to discuss the
proposal on a new meeting of the Ministers.

ROTATION IN THE MINSK GROUP WILL NOT HINDER NEGOTIATIONS
“PanARMENIAN.Net” analytical department
PanARMENIAN.Net
17.06.2006 GMT+04:00
Coincidence of the change of American co-chairman and the appointment
of new U.S. Ambassadors in Baku and Yerevan was not accidental.
The new American co-chairman of the OSCE Minsk group will take up
duties not earlier than June 27th. On this day he will be introduced
to the OSCE Secretariat in Vienna. It is noteworthy that on Thursday
it was officially confirmed that the U.S. State Department appointed
Mathew Bryza a representative of Minsk group. Previously, Mathew Bryza
occupied the post of the deputy assistant of the State Secretary for
Europe and Eurasia.
/PanARMENIAN.Net/ Change of the co-chairman should not mean that
American diplomacy is shifting accents in “Karabakh” policy. It
is an ordinary rotation which regularly takes place in the Minsk
group. Americans change their representative once in about two years.
(Steven Mann was appointed in April, 2004). France and Russia
do that more seldom. Mathew Bryza will become the 6th American
representative. It is noticeable that the rotation usually takes
place after an unsuccessful round of negotiations. A new person brings
new ideas.
But up to now rotation has not brought to any changes in the strategy
of American mediators. U.S. interests in the region remain unchanged
even after the change of presidents. Thus, little depends on the
co-chairman’s personality. However, in this case one can notice
preconditions for global changes of the American politics in the
region. The thing is that the rotation of the Minsk group co-chairman
coincided with the appointment of new Ambassadors in Baku and
Yerevan. And this is of course not accidental. (Both ambassadors have
been appointed but have not visited capitals). The State Department
is changing all the three diplomats responsible for the execution of
Washington’s policy in the South-Eastern Caucasus.
This can prove serious changes in the tactic of American diplomacy
where current priorities are first of all connected with the
development of situation in Iran.
Thus, the new person coming in to the Minsk group does not have
his predecessor’s deep knowledge of the negotiation process and the
essence of the conflict.
Baku, Yerevan and Stepanakert are all interested in the question –
whether the new co-chairman’s appointment will hinder the negotiation
process.
Worries on this issue are well-grounded. What is significant is
that Mathew Bryza himself asserts that “regulation of the conflict
is possible during this year”. He also says that currently parties
are negotiating a very encouraging draft of a document.
Braveness of the diplomat’s judgments may look vulgar, since for
the beginning he would need to get deeper in the state of affairs
and analyze the information on what had been happening in the Minsk
group before him.
However, it looks like Bryze was doing that during the past three-four
months. His indirect participation in the negotiation process became
noticeable yet late in winter. His appointment was not unexpected
for Yerevan and Baku since his deep interest in the Karabakh conflict
allowed guessing that he was to become Steven Mann’s successor. Since
the beginning of this year Bryza has twice visited the region and had
meetings with Ilham Aliev and Robert Kocharyan with whom he discussed
Karabakh problem. He also accompanied mediators during their last
visit. Thus, there can be no doubts that Bryza is already enough
prepared and there is no need to expect stoppage in the negotiation
process.
By the way, it is worth mentioning that the diplomatic level of Mathew
Bryza is quite high which testifies to the fact that Washington assigns
importance to the settlement of Karabakh conflict. At the same time,
it is obvious that the State Department valued the professionalism of
Bryza’s predecessor who was appointed to quite a high post. Currently,
Steven Mann is the State Secretary’s assistant for Asian affairs.
Certain political forces in Azerbaijan usually try to make use of
changes in the Minsk group for raising the issue of reviewing the
negotiations’ format and the mediatory mission staff. Azeris have
repeatedly tried to discredit countries which are at the head of the
Minsk group, accusing them of injustice. However, the attempts to
bring the negotiation process out of OSCE into the frames of other
international organizations do not have any prospects. The mediatory
mission’s format was agreed on the 26th of March, 1922 by the decision
of OSCE summit and was indirectly approved by four UN resolutions. The
group which is authorized to deal with Karabakh conflict regulation
was formed by the membership of the following countries: Bulgaria,
Germany, Italy, Russia, USA, Turkey, France, Czechoslovakia and
Sweden. Besides, it was decided to involve elected representatives
from Nagorno Karabakh, as an interested party.
At the beginning the Minsk group was headed by one chairman. It was
headed by a certain diplomat and not a country. The first chairman of
the group was Italian Mario Rafaelly. Later on he was substituted by
Yan Elliason from Sweden. The institute of co-chairmen was formed in
1944. Since then, the group has been headed by states and not certain
persons. Azeris often raise the issue of Russia’s withdrawal from
co-chairmanship, arguing it by Russia’s partnership with Armenia.
However, those attempts are senseless since the OSCE summit has
appointed Russia as a permanent co-chairman of the Minsk group and
Minsk conference. Besides, the second co-chairman state was appointed
by the rotation principle. At first co-presided with Stockholm, then
with Helsinki. Triple co-chairmanship of Russia, USA and France was
approved in December 1996. None of the mentioned three countries
is able to reconsider the format. It is worth mentioning that no
international organization has ever put to doubt the efficiency of
the Minsk group’s efforts. UN, PACE and European parliament have
all approved resolutions where they expressed their full trust and
support to the mediators’ activities. Thus, there are no grounds to
expect changes in the staff of co-chairmen within the coming years.

IF AMERICANS DO NOT PARTICIPATE IN KARS-AKHALKALAK PROJECT, OTHER FOREIGN INVESTORS WILL DO
AZG Armenian Daily
22/06/2006
If the American companies do not finance the construction of
Kars-Akhalkalak-Tbilisi-Baku railway, other foreign countries and
organizations may make investments in the project, including the
European Central Bank and European Bank for Reconstruction and
Development, Georgian media quoted, Irakli Chogovadze, Georgian
economic development minister, as saying.
Earlier, daily Azg informed that Committee of Financial Issues at the
US House of Representatives adopted a decision, according to which
it forbids financing the above project from the American sources.
Chogovadze, made his statement after publication of this very decision.
It’s noteworthy that the European structures are also against the
construction of Kars-Akhalkalak-Tbilisi-Baku railway link.

NEW GAS PRICE FROM TURKMENISTAN MAKES RUSSIAN-UKRAINIAN RELATIONS MORE COMPLICATED
By Petros Keshishian
AZG Armenian Daily
22/06/2006
Turkmenistan is going to raise the price for its gas twice from the
second half of 2006. Vedomosti newspaper informed that the price
for the gas will make $110-125 per 1000 cubic meters. As a result,
the gas agreement signed between Russia and Ukraine will be broken.
Aleksey Miller, head of Gazprom Board, and Safarmurad Niyazov,
President of Turkmenistan, discussed the issue of gas prices and
volumes, this week. The sides failed to come to agreement. Vedomosti
cited Niyazov who said that the gas of the same volume will be imported
to Russia for $110-125 per 1000 cubic meters.
If Niyazov makes no concessions, Gazprom-Ukraine agreement will
not come to life. Taking into account the new price, the gas from
Turkmenistan will cost at last $140 while reaching the Ukrainian
border. Yet, the Russian-Ukrainian agreement envisages $95 per 1000
cubic meters.
“Ukraine will not agree to increase of the gas price, as that will
mean collapse of the national economy,” Ivan Diyak, assistant of
president of Ukraine, said.

OBJECTIVE AND SUBJECTIVE CAUSES BEHIND EXCHANGE RATES FLUCTUATION
AZG Armenian Daily
22/06/2006
Devaluation of USD rate in Armenia is more conditioned by paradoxes,
than by economic laws. Tatoul Manaseryan, member of “Justice”
faction, said this at “Hayeli” club today. He said that in the
theory of economics there are 4 basic factors that may have impact
on consolidation of the national currency.
Firstly, this is the growth of economy, but in this case Armenia should
have at least 30% of the economic growth for devaluation. Secondly,
devaluation is caused by the fluctuation of the main world currencies,
which, in the case of Armenia, can’t have such a big impact,
either. The third factor is the state of the payment balance of
the country.
Manaseryan said that we have nothing to boast about, as the export
tempo experiences slowdown. He added that the payment balance
of Armenia is negative, and Armenia mostly exports USD (about
$3 billion). The fourth factor is a subjective one. Manaseryan
supposed that there are forces that get inside information and make
super profits, holding monopoly positions in the markets. Besides,
the super profits they get are connected to the shadow economy that
makes about 80%.
At the same time, MP representing the Republican Party of Armenia,
economist Gagik Melikyan said the euro-dollar fluctuation in the
international market is in conformity with the revaluation level
of the Armenian dram. Nevertheless, he believes that one should not
neglect the season factor used by certain financial organization who
speculate on sharp drop of the exchange rate. The last dollar sag
was connected with the “last phone call,” Melikyan said. However, T.
Manaseryan disagreed with him. He called paradoxical that prices,
including for imported goods, are growing in the country despite
the strengthening of the Armenian dram. If it is connected with the
rate of US dollar, the rise of prices is tangible enough. He said
all this paradox is connected with the high black economy and its
monopolization.
Nevertheless, G. Melikyan said, one should not neglect either the
high economic growth or the US policy on devaluation of the US
dollar or the large-scale private transfers to Armenia. In such
conditions, the Central Bank can maintain the foreign exchange rate
only through dram interventions into the market, which will lead to
inflation. T. Manaseryan does not see any way out of the situation
though intervention into the market either. The only way out is to
peg the Armenian dram to the “basket of world prices” for key products
in order not to depend on the dollar or euro, he said.
This way is successfully applied in a number of states. He underlined
a circumstance that Armenia still lacks an exact program of economic
development, its structures, priorities. However, his political rival
disagreed with him again.

ISSUES RELATED TO THE DEVELOPMENT OF SMALL AND MEDIUM BUSINESSES IN THE FOCUS OF RA PRESIDENT’S ATTENTION
ArmRadio.am
21.06.2006 16:54
Issues related to the development of small and medium businesses were
discussed today during RA President Robert Kocharyan’s recurrent
meeting with a number of representatives of the sphere, featuring
also Ministers of Agriculture and Trade and Economic Development.
Robert Kocharyan noted that small and medium entrepreneurship is
actively developing, which is evidenced by the fact that its portion
comprises 40 percent in the GDP and 16 percent in the export. “It
is hard to find a person in Armenia who would not have a desire to
open his own business. This is a strong internal aspiration to be
the master of own fate, which can serve as a serious impetus for the
development of small and medium business, and we appreciate this,”
the President said.
Head of the country encouraged over twenty businessmen representing
all marzes of Armenia to launch an open and just discussion.
Participants of the meeting noted that the development of the sphere
has entered a new phase. There are, however, problems that should
be addressed.
Particularly, reference was made to the decrease of the frequency of
carrying out inspection in small and medium enterprises, providing
business recommend to entrepreneurs in marzes, the necessity of
preparing cadres with professional education and a number of omissions
in the legislature.
The interlocutors thoroughly discussed issues of receiving long-term
and low-interest loans and expansion of leasing services. Reference
was made also to the fluctuations of the currency rates.
Robert Kocharyan said that the suggested questions will be discussed
once again during the special consultations to be held in the future,
and final solutions will be found.

A LIBERAL PARLIAMENT FOR FUTURE GENERATIONS
AZG Armenian Daily
22/06/2006
The liberal forces will strengthen their positions at RA National
Assembly of fourth convocation. Gurgen Arsenian, leader of the United
Labor Party, said this at “Pastark” club, today. He emphasized
that as a rule, the liberal forces fail to unite and shape the
parliamentary majority. He added that in the future, the positions
of the pro-Socialistic forces will weaken at the Armenian Parliament.
He said that most of the parliament forces are of socialistic
character, particularly, ARFD, National Unity Party, “Justice” faction,
and “Orinats Yerkir” party. “Notwithstanding the fact whether we
will accumulate the required 5% or not, we will always be in the
political arena of the country,” Arsenian said about his party,
adding that they will run in the elections independently. His party
is ready to cooperate with any political force that that share the
ideas of liberalism. As for the parliamentary elections in 2007,
Arsenian assured that “Orinats Yerkir” party will still manage to
take the barrier of 5% in the elections. Earlier, Arsenian said that
in the next parliament “Orinats Yerkir,” “Republican,” ARFD and the
United Labor Party will be represented.
Only “National Unity” party will lose in the parliamentary
elections. As for the presidential elections in 2008, Arsenian said
that his party will support the candidate whose program will keep
in line with the program of the United Labor Party. Besides, he said
that the candidate they support will win in the elections.
As for the withdrawal of “OY” party, he said that there is some
positive point in that, as the party will occupy the position of the
opponent to the authorities. Arsenian also touched upon the issue
of AMD’s consolidation. He said that in Armenia all the financial
operations are carried out by AMD and he expressed bewilderment why
everyone is concerned about the currency of a foreign country.
In response to the question about the conclusion of the experts of
the Venice Committee on reforms to the Electoral Code, Arsenian said
that one should find out why the experts applied such strict formulae,
whether that was caused by the incorrect translation or by the drawback
in the elaborated amendments.