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.

SERGEY PARAJANOV’S FILM AT THE KOREAN INTERNATIONAL FESTIVAL
AZG Armenian Daily
22/06/200
A special program – “Divergency and Resistance: Films Prohibited in
the USSR” – was held at the International Film Festival in Jeonju,
South Korea from April 27 to May 5. Sergey Parajanov’s “The Ukrainian
Rhapsody” (1961) was shown among other films. A leaflet especially
published for this program included article “Maestro Sargis” of film
critic Artsvi Bakhchinian.
British-Armenian filmmaker Von (Vahan) Pilikian’s “Hummer and Flame”
documentary, award-winner of Golden Apricot film festival 2005,
was also shown in Jeonju.
Von Pelikian was in Armenia in May and showed his feature and animated
films as well as documentaries at the Narekatsi Center.

WORK OF NEWPAPER “SYUNYATS YERKIR” HALTED BECAUSE OF THE ELECTRICIANS
A1+
[02:29 pm] 21 June, 2006
The director and two deputy directors of “Tatev” branch of “Armenian
Electricity Network” CJSC visited the editorial office of newspaper
“Syunyats Yerkir” and deprived them of electricity.
The problem emerged after the newspaper published an article titled
“The energy system of Syunik is corrupted” in the June 15 issue of
the current year.
During the discussion of the article the newspaper offered the heads
of “Tatev” branch to answer the criticism within the framework of
the law if they have something against the material printed in the
newspaper. But the authorities of the branch were not content with
it. By order of Arayik Grigoryan, the director of the branch, the
editorial office was immediately deprived of electricity. As a result
of this the newspapers was forced into a standstill.
“What took place testifies to the fact that the energy system of
Syunik is really fully corrupted. It proves that the terror against the
newspaper which started two years ago still continues”, the statement
of the newspaper says.
The editorship of the newspaper applied to Robert Kocharyan as the
guarantee of the Constitution asking to stop the persecution of the
newspaper and give them a chance to resume work.

CRISIS-MONITORING IN THE ZONE NEAR THE BORDER BETWEEN NKR AND AZERBAIJAN
A1+
[03:16 pm] 21 June, 2006
On June 28, the OSCE Mission plans to conduct a monitoring in the zone
near the border between Nagorno Karabakh and Azerbaijan in the Agdam
direction. This information is given by the website of the Foreign
Ministry of the Republic of Karabakh.
Let us remind you that on June 15, 2006, the NKR Ministry of Foreign
Affairs turned to the Office of the OSCE Chairman-in-Office with a
demand to conduct a crisis-monitoring in the zone near Azerbaijan for
evaluating the real situation on the spot and denying the strained
accusations of the Azerbaijani party on false ignition of settlements
on the territories controlled by the NKR.

KOCHARYAN IS PLEASED WITH SMALL AND MEDIUM BUSINESS
A1+
[04:42 pm] 21 June, 2006
Issues about small and medium business were discussed during the
meeting of Robert Kocharyan and a number of representatives of
the field. The Ministers of Agriculture and Commerce and Economic
Development were also present at the meeting.
Robert Kocharyan mentioned that small and medium business is developing
actively. “There are few people in Armenia who do not want to have
their own business.
This means a powerful inner striving for being the master of their
own fate which can be a serious impetus for the development of small
and medium business. We appreciate that”, Kocharyan said.
The participants of the meeting mentioned that there are problems
hindering the development of the field.
They particularly mentioned about the necessity to reduce the
frequency of check-ups, to support the businessmen of the marzes with
consultants, to prepare specialists with professional education and
to eliminate a number of legislative shortcomings.
The issues about leasing service and loans were also discussed. As
for the change of the currency exchange rate, Robert Kocharyan said
that it is the problem of the whole world and not only Armenia.
Robert Kocharyan said that the problems will be discussed during
special consultations.

THE FUTURE OF THE SETTLEMENT OF THE ISSUE IS THE NEGOTIATIONS BETWEEN NKR AND AZERBAIJAN
A1+
[07:13 pm] 21 June, 2006
Today President of the Nagorno Karabakh Republic Arkadi Ghoukasyan sent
a message to the members of the international scientific conference
titled “Nagorno Karabakh Republic: past, present and future” which
opened today in the capital of the country, Stepanakert.
The message says, “Today Azerbaijan spares no effort to turn back the
hands of time and deprive our nation of the freedom and independence
won by heavy losses.
This is an unpromising way. I am sure that the futures lies in the
negotiations between NKR and Azerbaijan in order to look for mutually
convenient ways of settling the conflict and to start cooperation
between the two countries.”
The President of NKR also added that although the NKR is not recognized
by the international community, Azerbaijan lacks behind Karabakh in
holding the country up to democratic standards. Besides, according to
Arkadi Ghoukasyan, the past 15 years proved that the people of Nagorno
Karabakh have the right to have an independent republic of their own.
From: Emil Lazarian | Ararat NewsPress

A VISIT TO ENJOY THEIR WORK
A1+
[05:30 pm] 21 June, 2006
RA Minister of Agriculture David Loqyan, and NA deputies Hranoush
Hakobyan and Hakob Hakobyan visited the marz of Gegharqounik yesterday.
The Minister of Agriculture got acquainted with the course of the
reconstruction of the road Gavar- Gegharqounik. He also visited
Verin Getashen the population of which has disagreements with those
of Nerqin Getashen about the exploitation of the water pipeline.
Regional Governor of Gegharqounik Arsen Grigoryan mentioned that two
major problems of the region have been solved. “The RA Government has
allotted 63 million AMD in order to realize the cleaning of Gavaraget
in Noratus”, he mentioned.
David Loqyan too mentioned that there are still many problems in the
region, but the majority is in the solution phase.
TV Company “Qyavar”, Gavar
From: Emil Lazarian | Ararat NewsPress