Georgia wants to gain political advantage from arms scandal in US

RIA Novosti, Russia
March 17 2005

GEORGIA WOULD LIKE TO GAIN POLITICAL ADVANTAGE FROM ARMS SCANDAL IN
THE UNITED STATES

TBILISI, March 17 (RIA Novosti) – The governments of Georgia, Armenia
and the other countries whose nationals have been detained by the
United States’ law-enforcement agencies closely cooperate with the
FBI in investigating the arms traffic case, American ambassador to
Georgia Richard Miles has told journalists on Thursday.

In the group of 18 foreigners detained in the United States on
accusation for arms traffic are four Georgian nationals.

“Together with citizens of Armenian and other countries of East
Europe, Nikoloz Nadirashvili, Vato Machitadze, Iosif Khabaradze and
Levon Shvelidze have been detained on accusation for taking Russian
arms to the United States”, Georgian ambassador to the United States
Levan Mikeladze reported by telephone from Washington.

“The accusation has already been brought”, he added. Lawyers have
been appointed for two detained Georgians. Representatives of the
Georgian consulate have already met with the lawyers, Mr. Mikeladze
said.

Georgian Foreign Minister Salome Zurabishvili reported at a cabinet
sitting on March 16 that the Georgian secret services participated in
investigating the attempt at arms contraband to the United States.

“We do not know where the arms intended for bringing to the United
States were from. It is known that they are of Russian make”, Ms.
Zurabishvili said.

“I have no information on whether the arms were brought from Georgia
or through its territory. Many arms are said to be brought from
Armenia”, she said.

“Georgia has many times said that control by the central Georgian
authorities should be established in the Roksky tunnel and on other
parts of the border. This case is another confirmation of such need.
Control is needed for the security of not only Georgia but also many
countries from which the arms may have arrived”, stressed the
Georgian foreign minister.

The Roksky tunnel, linking Georgia and Russia, has during the last 15
years been in control of the authorities of the self-proclaimed
republic South Ossetia.

American authorities have raised the accusation to 18 persons for the
attempt at the contraband of portable antiaircraft missile systems,
grenade-throwers, mortars and other arms to the United States.

Man held over Russia plane threat

BBC News
March 17 2005

Man held over Russia plane threat

The man tried to force his way into the cockpit

Russian police have detained a man who tried to force his way into
the cockpit of a plane on its approach to Moscow.
The man threatened to blow up the plane, but is reported not to have
had explosives with him. Reports say he will now be seen by a
psychiatrist.

He was prevented from entering the cockpit by the flight crew.

The plane, a Boeing 777, was en route from Tokyo to Moscow carrying
214 passengers, Russian media reported.

The suspect is reported to be an Australian resident born in 1976. He
was en route from Sydney to Yerevan in Armenia, with stopovers in
Tokyo and Moscow.

“Right now we are trying to establish his identity and the motives
for his action,” a spokesman for Moscow’s Sheremetyevo airport was
quoted as saying.

Two Russian airplanes were brought down by explosions last August,
killing 89 people.

Russian security services blamed the crashes on Chechen militants.

MCC procedure for demilitarization of Georgia-S.Osset conflict zone

RIA Novosti, Russia
March 17 2005

IN MOSCOW MCC FIXES PROCEDURE FOR DEMILITARIZATION OF GEORGIA-SOUTH
OSSETIA CONFLICT ZONE

MOSCOW, March 17 (RIA Novosti) – The co-chairmen of the Mixed Control
Commission for settling the Georgian-South Ossetian conflict have
agreed upon a procedure for demilitarizing the conflict zone,
Georgian State Minister for Conflict Settling Georgi Khaindrava said
at the RIA Novosti news conference on Thursday.

The first stage intends the elimination of trenches and
fortifications, he said. “When there are no trenches, there will be
no place to sit in and look at each other through the cross-hairs.
This will provide an opportunity for start of the second stage,
economic cooperation”, Mr. Khaindrava believes.

Later on, the sides will withdraw their armed formations illegally
found in the conflict zone and concentrate them in one place, he
said. Both the places of concentration should be accessible for
monitoring by peacekeepers and the Organization for Security and
Cooperation in Europe, Mr. Khaindrava said.

To him, Russia and Georgia can in May go for the conclusion of a big
treaty of friendship and cooperation, he said.

“In spring, in May we may go for concluding a comprehensive treaty of
friendship and cooperation. It will help in resolving the issues of
problem zones”, he noted.

Mr. Khaindrava said that Georgia hopes for resuming active dialog
with Russia. To quote: “We hope that a breakthrough in our relations
will be made”.

Mr. Khaindrava believes that a withdrawal of the Russian military
base from Akhalkalaki (on the Georgian-Armenian border) will not
affect the economic situation of the town’s residents. That was his
comment on the March 13 meeting in Akhalkalaki. Its participants
(mostly Armenians) insisted on being in no hurry with the withdrawal
of the Russian bases from Georgia (another Russian base is in Batumi
in Adzharia).

“Life of about 300 residents of Akhalkalaki is connected with
Russia’s 62nd military base. People were alarmed by the prospect of
losing their jobs. From the economic point of view, there can be no
talk of a serious importance of the base withdrawal”, Mr. Khaindrava
said.

He recalled that problems of the region were recently discussed in
Tbilisi. Just before the discussion, Georgian President Mikhail
Saakashvili promised jobs to local employees of the Akhalkalaki and
Batumi bases at installations of the Georgian Defense Ministry. They
will all have jobs and “no cardinal changes in their lifestyle will
happen”, Mr. Khaindrava promised.

The meeting of the MCC co-chairmen with the involvement of the
Russian and Georgian sides, as well as representatives of South and
North Ossetias, took place in Moscow on March 16 to 17.

Eastern Prelacy-Crossroads E-Newsletter – 03/17/2005

PRESS RELEASE
Eastern Prelacy of the Armenian Apostolic Church of America
138 East 39th Street
New York, NY 10016
Tel: 212-689-7810
Fax: 212-689-7168
e-mail: [email protected]
Website:
Contact: Iris Papazian

CROSSROADS E-NEWSLETTER – March 17, 2005

PRELATE ISSUES EASTER MESSAGE
Archbishop Oshagan Choloyan issued his Easter message this week. His
message entitled, Resurrected Bones, focuses on the words of the prophet
Ezekiel, He said, Can these bones live? I said, O Lord, you know. (Ezekiel
37:3).
The Prelate said, in part:
As a nation we have witnessed Christ’s Resurrection. As a nation we have
miraculously been restored to life through our unshakable faith in Christ.
And when as a nation this year we commemorate the 90th anniversary of the
1915 Genocide, we turn to the Holy Bible, where God’s plan with regard to
the massacred nation is reflected in the resurrection and renewal of life in
God’s mighty intervention.
To read the entire message go to:

PRELACY, DIOCESE AND ORGANIZATIONS UNITE TO COMMEMORATE
90th ANNIVERSARY OF GENOCIDE ON APRIL 24
Led by the Prelacy and Diocese, the major organizations have joined to
form a united commemorative committee to mark the milestone 90th anniversary
of the Armenian Genocide.
Armenian Americans all along the east coast and the midwest are planning
to gather in New York for a mass gathering at Times Square at noon, followed
by ecumenical and requiem services at St. Patricks Cathedral. Buses will be
available from various communities. For up to the minute information please
check the following web site on a regular basis:
For inquiries write to [email protected]
For bus information check with your local parish.

PRELATE ATTENDS CEREMONY AT FORDHAM UNIVERSITY
Archbishop Oshagan attended ceremonies at Fordham University yesterday
evening conferring the degree of Doctor of Humane Letters to Walter Cardinal
Kasper, President, Pontifical Council for the Promotion of Christian Unity.
The ceremony took place at the Fordham University of Law, at the Lincoln
Center campus.

BEAST ON THE MOON PREPARES FOR NEW YORK PREMIERE
Beast on the Moon, the internationally acclaimed play about two Armenian
genocide survivors is now in rehearsal and preparing for previews and its
official opening. The producer of this off-Broadway presentation is asking
the assistance of the Armenian community to pack the theatre for the first
five weeks which he says will give a jumpstart period to this story of
Armenian survival and the potential to run for many months, being seen by
thousands of people.
Beast on the Moon, which won best play in Paris and Buenos Aires, will
be performed in the Century Center for the Performing Arts, 111 East 15th
Street, New York City. Many parishes and local organizations have purchased
block tickets. Check with your local parish or call telecharge for tickets,
212-239-6200 (mention code BMNAA39).

CAPITOL HILL EVENT WILL COMMEMORATE
90TH ANNIVERSARY OF ARMENIAN GENOCIDE
U.S. representatives Frank Pallone, Jr. (D-NJ), and Joe Knollenberg
(R-MI), co-chairmen of the Congressional Caucus on Armenian Issues,
announced a Capitol Hill event in Washington to commemorate the 90th
anniversary of the Armenian Genocide.
The event is being organized under the auspices of the Armenia Caucus
and the Armenian Embassy, with the full cooperation and participation of all
the Armenian American organizations. The event will take place in the Cannon
Caucus Room (Room 345) of the Cannon House Office Building, on Wednesday,
April 20, from 5:30 pm to 8:30 pm.

UCLA INTERNATIONAL CONFERENCE ON THE GENOCIDE
An international conference, After Nine Decades-the Enduring Legacy of
the Armenian Genocide, will take place in Pasadena and on the UCLA campus
beginning Friday, April 1 to Sunday, April 3. The conference is sponsored by
the Armenian Educational Foundation Chair in Modern Armenian History in
cooperation with the UCLA International Institute, Center for Near Eastern
Studies, and Center for European and Eurasian Studies. The conference
organizer is A.E.F. Chair Holder Richard G. Hovannisian. Participants
include scholars from Argentina, Armenia, France, Lebanon, Syria, and from
throughout the United States. The conference program can be seen at

APPLY NOW FOR DATEV SUMMER INSTITUTE
Yes, it is that time of the year again. All of the new information,
including application forms, for the 2005 St. Gregory of Datev Summer
Institute is now on the Prelacy web page. The dates of the summer studies
program are July 3 to 10. Early bird registration deadline is May 15. For
full details go to:

ANEC PARTICIPATES IN COMPETITION
With the invitation of the Ministry of Education and Science of Armenia,
the Armenian National Education Committee (ANEC) has invited schools within
its jurisdiction to participate in a contest dedicated to the 90th
anniversary of the genocide.
The competition is open to students 13 to 26 years of age. For details
contact the ANEC office, 212-689-7810.

PRELATE WILL ATTEND FAREWELL RECEPTION
FOR AMBASSADOR ARMAND KIRAKOSSIAN
Archbishop Oshagan will travel to Washington, DC, tomorrow, Friday,
March 18, where he will attend a farewell reception for Ambassador Arman
Kirakossian, who has served as the ambassador from Armenia to the United
States for the past five years. Ambassador Kirakossian will return to
Yerevan to continue to work at the Foreign Ministry.

VICAR WILL ATTEND RECEPTION IN NEW YORK FOR CARDINAL SFEIR;
PRELATE WILL ATTEND LUNCHEON
Very Rev. Fr. Anoushavan Tanielian, Vicar of the Prelacy, will attend a
reception in honor of His Beatitude Mar Nasrallah Boutros Cardinal Sfeir,
Friday evening, at the Permanent Mission of Lebanon to the United Nations,
hosted by the consul general Mr. Ibrahim Assaf.
On Monday, March 21, Archbishop Oshagan will attend a luncheon in honor
of Cardinal Sfeir given by Cardinal Egan at the Catholic Center.

NALG CONFERENCE ON APRIL 16
The National Association of Ladies Guilds (NALG) and the Ladies Guild of
Soorp Khatch Armenian Apostolic Church will host the 2005 regional religious
conference on Saturday, April 16, 10 am to 3 pm at the church in Bethesda,
Maryland.
The keynote speaker will be Yeretzgin Joanna Baghsarian, from
Providence, Rhode Island. Her presentation, in English and Armenian, will be
about women of integrity taken from the Bible. Mary Derderian, adjunct
instructor at George Washington University and Stratford University, will
conduct a short workshop for special event coordination, implementation and
evaluation.
For information contact Mary Derderian, 703-759-3908, or email
[email protected].

CATHOLICOS ARAM EMPHASIZES IMPORTANCE OF COOPERATION
His Holiness Aram I, Catholicos of the Great House of Cilicia,
emphasized the need to create harmony and coherence inside the Armenian
communities, in a speech given in St. Asdvadzadzin Church in Nicosia,
Cyprus. His Holiness said:
Diversity is a natural phenomenon in our lives. On many occasions we
have stressed the importance of preserving diversity as enriching factors in
various aspects of our lives. But when diversity is not expressed
harmoniously, it can lead us to polarization. When distinction is not
transformed to cooperation, it can become a source of internal tension.
In the second part of his speech, His Holiness spoke about the true
understanding of life, calling on believers to adopt the true values of life
given to humanity through Jesus Christ.

SEE OF CILICIA PARTICIPATES IN WORLD MISSION CONFERENCE
The Holy See of Cilicia participated in the inter-orthodox preparatory
consultation for the World Mission Conference, organized by the World
Council of Churches (WCC). The preparatory consultation took place in
Athens, March 3 to 9, with 35 representatives from Orthodox and Oriental
Orthodox Churches to prepare for the World Mission Conference which will
take place in May in Athens, where 700 spiritual and secular representatives
from the WCC member churches, as well as the Roman Catholic, Protestant and
Benedictine churches will participate.
V. Rev. Fr. Khoren Doghramdjian, Primate of the Diocese of Greece, and
V. Rev. Fr. Krikor Chiftjian, Communications Officer of the Catholicate of
Cilicia, participated in the preparatory consultation.

ARMENIAN CHURCHES SPORTS ASSOCIATION
CHAMPIONSHIP GAMES
The Armenian Churches Sports Association (ACSA) completed another
successful year. The championship games took place last Sunday, March 13,
with the following results:
Jr. Boys: Holy Martyrs (beat St. Sarkis)
Girls: St. Leon (beat Holy Martyrs)
Sr. Boys: Sts. Vartanantz beat St. Leon
Men: St. Vartan Cathedral (beat St. Sarkis)
The ACSA originally started with senior boys and later added leagues for
junior boys, girls, and men. Churches participating include: Sts. Vartanantz
(Ridgefield, NJ); St. Sarkis (Douglaston, NY); St. Illuminator Cathedral
(New York City); St. Vartan Cathedral (New York City); Holy Martyrs
(Bayside, NY); St. Thomas (Tenafly, NJ); St. Leon (Fairlawn, NJ); St. Mary
(Livingston, NJ); Armenian Presbyterian Church (Paramus, NJ).

PRELATE WILL CELEBRATE PALM SUNDAY IN BOSTON
Archbishop Oshagan will travel to Massachusetts this weekend to St.
Stephen Church in Watertown, where he will officiate Palm Sunday services
and deliver the Sermon this Sunday.

NEXT WEEK IS HOLY WEEK
The last Sunday of Lent is Palm Sunday (Tzaghkazard). The week preceding
the Resurrection (Easter) is marked in the life of Jesus with a series of
events that were ordained or prophesied. These events include the
resurrection of Lazarus and the triumphal entry of Jesus into Jerusalem,
which we commemorate on Palm Sunday. Jesus entered Jerusalem on a donkey, as
described centuries earlier by the prophet Zechariah. A large enthusiastic
crowd greeted him with olive and palm branches and with the words, Hosanna!
Blessed is He that comes in the name of the Lord. (John 12: 13)
On Palm Sunday the curtain, closed since the beginning of Lent (Boun
Barekendan), is opened, traditionally following Drnbatsek (opening the door)
ceremony in the morning.
During the Andastan service (Blessing of the Four Corners of the World),
the palms are blessed and passed out to the faithful.
A procession of young boys and girls carrying decorated candles is an
old custom on Palm Sunday, which continues to be an impressive sight to see
all of the young children of the parish dressed in their best clothes parade
around the church.
Each day of Holy Week (Avag Shabat) is a holy day. It is gratifying to
see that these commemorations, many of which had been discontinued, are
being revived by many of our parishes.
Monday commemorates the barren fig tree. (Matthew 21:18-20)
Tuesday commemorates the Ten Virgins. (Matthew 25:13)
Wednesday commemorates the Anointment and Betrayal of Christ.
Thursday is Maundy Thursday. Maundy comes from the command of Christ
(mandatum in Latin) that His disciples should love one another (John 13:34).
In the morning the Divine Liturgy is celebrated and Communion given. In the
early evening the Washing of the Feet (Votunlva) ceremony takes place in
remembrance of the events of the Last Supper. In late evening the betrayal
and torment of Christ, Tenebrae (Khavaroom) is commemorated, in a ceremony
that many consider to be the most impressive and emotional service in the
Armenian Church. Twelve small candles and one large candle are placed on the
altar. During the service seven chapters are read from the Gospel, depicting
Christ in the Garden of Gethsemane, the betrayal by Judas, and denial by
Peter. Interspersed with the readings, hymns composed by Nerses Shnorhali
are sung. After each reading a candle from each side is extinguished in the
darkened sanctuary.
Good Friday commemorates the death and burial of Jesus and is the most
solemn and sacred day in the Christian calendar. In the Armenian Church
tradition, during evening Vespers a tomb is prepared and decorated with
flowers and candles. It is also a tradition in the Armenian Church for the
congregation to bring flowers and decorate the tomb throughout the service.

SPRING IS HERE
Sunday, March 20 is the first day of spring. It is a welcome sign of the
coming rebirth of nature after a dormant, but necessary, winter.
And, it is time to begin the planting for the growing season ahead. Our
late father, an extraordinary gardener, used to tell us that we must get the
sugar snap peas planted by St. Patricks Day, which is today, March 17. We
here at Crossroads have been planning our gardens in our minds since
Christmas. Thinking and planning for spring provides warmth for the soul and
hope for the future.
We leave you this week with these words from Inheriting Paradise:
Meditations on Gardening, by Vigen Guroian:
Every experienced Christian gardener knows that there is a spiritual
spring which comes just as surely as nature’s spring. The Lenten spring is
God’s invitation to prayer, fasting, and penance. Like the deep-rooted
thistle weed, some of our worst habits withstand all but the most
persistent, persevering, and strenuous exercise. A quick pull on the root,
however, will not do the trick, not with an aggressive chop of the hoe.
Patience is needed, and the humble willingness to drop down on one’s knees
and work carefully with the hand fork and trowel. The Christian gardener
patiently picks sin from the soul’s soil and cultivates it with care and
attention to the tender new growth of faith.

Visit our website at

From: Emil Lazarian | Ararat NewsPress

http://www.armenianprelacy.org
http://www.armenianprelacy.org/031505a.htm
http://www.armenianprelacy.org/datev.htm
www.remembergenocide.com
www.uclaarmenian.org.
www.armenianprelacy.org

Austrian Bank To Finance Armenian Metals Company

AUSTRIAN BANK TO FINANCE ARMENIAN METALS COMPANY

Mining News from Eurasia

BISNIS Mining and Metallurgy Update
16 March 2005

From BISNIS Commercial News Update – Armenia
Prepared by George Isayan, BISNIS Representative in Armenia

Austrian bank Raiffeisen will provide USD 1.5 million in credit to the
Armenian copper program (acp) closed joint-stock company, a copper mine
and processing plant. This will be part of a USD 4.5 million credit
program managed by the European Bank for Reconstruction and Development
(ebrd).

********** Forwarded by: ******************************
Ellen S. House, BISNIS Trade Specialist for Mining and Metallurgy
U.S. Department of Commerce
Tel: 202/482-2284, Fax: 202/482-2293

Additional information on this sector in Russia and Eurasia is available
via BISNIS Online at

From: Emil Lazarian | Ararat NewsPress

www.bisnis.doc.gov
www.bisnis.doc.gov/bisnis/isa/isa-natres.cfm.

Tbilisi: In Moscow, JCC renews demilitarization talks

The Messenger, Georgia
March 17 2005

In Moscow, JCC renews demilitarization talks
Tskhinvali launches new attacks against OSCE presence
By Christina Tashkevich

State Minister on Conflict Negotiation Goga Khaindrava
Demilitarization of the Georgian-Ossetian border is one of the issued
set to be discussed at the meeting of the co-heads of the Joint
Control Commission (JCC) on March 16-17.

The meeting that opens in Wednesday in Moscow is the first meeting in
two months and comes after what officials say has been a “pause” in
the demilitarization process.

According to the South Ossetian representative to the JCC, Boris
Chochiev, in Moscow the sides will discuss “issues in the frame of
JCC negotiations and the meeting of the president of the
self-proclaimed South Ossetia Eduard Kokoiti and the late Georgian
Prime Minister Zurab Zhvania in Sochi last November.”

The Russian media quoted the State Minister on Conflict Negotiation
Goga Khaindrava who commented on the latest statements of the
President of Abkhazia Sergey Bagapsh. Khaindrava did not exclude that
he will meet with Bagapsh in Moscow.

Commenting on Bagapsh’s statement that the summit of four
unrecognized republics – Abkhazia, South Ossetia, Nagorno-Karabakh
(Azerbaijan) and Transdnestre (Moldova) – will be conveyed in the
near future, Khaindrava rejected it as “a creation of the separatist
movement.”

“I’m very offended that such politics continue and I think it would
not bring anything good for Russia as well,” said Khaindrava. He
added this issue would not be discussed during the JCC meeting.

In the meantime, the Committee on Information of South Ossetia blames
Georgian side in ignoring all decisions taken by the JCC. The South
Ossetian office has also increased its attacks on OSCE in the region
saying it does not contribute to the conflict settlement.

“The Tskhinvali office of the OSCE is a spy network in Georgia,
working against South Ossetia,” reads the Committee’s statement.

Last week Chochiev, who is also South Ossetia’s minister for
emergency situations, called for the head of the OSCE office in
Tskhinvali, Gancho Ganchev, to be withdrawn but noted at the time it
was not a move against the OSCE in general.

The head of the Russian side of the Commission Valery Kenyaikin told
Interfax on March 15 that the meeting of Kokoiti and the Georgian
Prime Minister Zurab Noghaideli may continue the process of
fulfillment of agreements.

“But this will only make sense if the promises to follow a peaceful
way of conflict negotiation will be kept and if force is not used,”
he added.

Visiting Moscow on March 15, Abkhaz de facto president Sergei
Baghapsh announced that the leaders of the breakaway regions
Abkhazia, South Ossetia, Transdnestre (Moldova) and Nagorno-Karabakh
(Azerbaijan) plan to hold a summit to coordinate their policies in
the near future.

Speaking at a press conference in the office of the Russian news
agency Interfax, Bagapsh told journalists that a date and place for
the joint meeting would be agreed on in the near future.

“Tomorrow, or the day after tomorrow, we will decide when to hold
this meeting. It may be held in Moscow, or somewhere in the North
Caucasus,” Baghapsh said, adding that a meeting was necessary at the
present time particularly because of the current situation in South
Ossetia and Transdnestre.

BAKU: Separatist Leaders Met in Moscow

Baku Today
March 17 2005

Separatist Leaders Met in Moscow

17/03/2005 12:36

Leaders from three secessionist regions – Abkhazia, South Ossetia and
Nagorno-Karabakh – Sergey Bagapsh, Eduard Kokoev and Arkadi Gukasyan
held talks in Moscow on March 16, news agency Interfax reports on
March 17.

Interfax also reports, that the leaders of three breakaway regions
agreed to hold a meeting of the de facto Presidents of Abkhazia,
South Ossetia, Nagorno-Karabakh and Transdnestria in April in Abkhaz
capital, Sokhumi.

Earlier Sergey Bagapsh, the President of Georgia’s breakaway
Abkhazia, said at a news conference in Moscow that the leaders from
the four breakaway regions plan to hold a summit in an attempt to
coordinate their policies.

This is a partner post from Civil Georgia

From: Emil Lazarian | Ararat NewsPress

Breakaway republics’ leaders meet in Moscow – sources

Interfax
March 17 2005

Breakaway republics’ leaders meet in Moscow – sources

MOSCOW. March 17 (Interfax) – The leaders of the self-proclaimed
republics of Abkhazia, South Ossetia and Nagorno-Karabakh held a
meeting in Moscow late on Wednesday, Moscow sources told Interfax on
Thursday. Sergei Bagapsh, Eduard Kokoity and Arkady Gukasian agreed
to hold their next meeting in Sukhumi, the capital of Abkhazia, in
April, the sources said. The president of the self-proclaimed
republic of Transdniestria will attend the meeting as well.

Abkhazia, South Ossetia, Transdniestria and Nagorno-Karabakh
proclaimed their independence from Georgia (Abkhazia and South
Ossetia), Moldova (Transdniestria) and Azerbaijan (Nagorno-Karabakh)
following the disintegration of the Soviet Union. The self-proclaimed
republics’ goal is to gain recognition of their independence, while
Tbilisi, Chisinau and Baku want to restore control over these
breakaway provinces.

Russia: Oganesyan Warns of Slowdown

The Moscow Times
Thursday, March 17, 2005. Issue 3126. Page 5.

Oganesyan Warns of Slowdown

Combined Reports

Itar-Tass

Federal Energy Agency head Sergei Oganesyan

Russia, the world’s second-largest crude exporter, must revive investment in
its oil and gas fields or risk a further slowdown in a five-year oil boom,
the head of the nation’s energy agency said.

The lack of investment in oil fields, part of the “barbarous treatment” of
the country’s resources, must be reversed, Federal Energy Agency head Sergei
Oganesyan said Wednesday.

Output growth will drop by almost half to 5 percent this year and probably
slow further in 2006 and beyond, he said. Drilling fell last year as Russia
demanded $28 billion in back taxes from Yukos.

Russia’s oil boom may be ending as President Vladimir Putin increases
government control over the industry, hurting investment in new wells, rigs
and pipelines. A slowdown in Russian oil production gives greater power to
OPEC as world demand rises. The group pumps about 40 percent of the world’s
oil.

The Paris-based International Energy Agency estimates Russian oil output
will rise 3.8 percent this year, less than half the average during the past
five years and the lowest since $10 oil hurt investment in 1999. Oil output
rose 9 percent in 2004 to 9.2 million barrels per day.

“It’s possible, though it’s too early to tell [whether growth will slow to
3.8 percent this year],” Oganesyan said.

His comments came as the Industry and Energy Ministry said it expected oil
output to rise by 250,000 barrels per day in the second quarter of 2005 to a
new post-Soviet high of 9.58 million bpd.

The forecast was contained in a decree on the nation’s quarterly energy
balance signed by Industry and Energy Minister Viktor Khristenko. The
ministry’s estimate represents only a guideline and has repeatedly been
overly optimistic in the past few quarters.

The ministry said crude exports via the Transneft pipeline network,
including deliveries to ex-Soviet states, would amount to around 5 million
bpd, or in line with the current levels.

Oil output rose to 9.33 million bpd in February after a four-month decline
which many analysts attributed to the state-driven breakup of oil major
Yukos.

Seasonal factors also played a role in the recent dip, but production growth
is also expected to slow this year. Transport bottlenecks are making it
harder to bring oil to export markets.

Clogged pipelines, which are boosting transport costs, have also discouraged
companies from investing in production.

LUKoil forecasts shipping costs of $3 billion this year, up 20 percent from
2004, and TNK-BP’s transportation costs rose 77 percent to $1.5 billion in
2003, according to the most recent figures available.

A tax increase last year means the government takes most of the gains as
crude trades above $50 per barrel.

“With the new tax laws put in place last year, effectively 90 percent of the
cash flow above $25 goes to the government, so we are not actually enjoying
the benefits of these high oil prices,” TNK-BP Chief Executive Robert Dudley
said in January.

(Bloomberg, Reuters)

From: Emil Lazarian | Ararat NewsPress

BAKU: Most young people support military action to liberate lands

Assa-Irada, Azerbaijan
March 17 2005

Most young people support military action to liberate occupied land

Baku, March 16, AssA-Irada

54.4% of young Azerbaijanis support settling the Upper Garabagh
conflict through military action, 30.2% peacefully, and 1.8% using
the pressure of international organizations, says a report on the
`News from young people’ public opinion poll conducted by the
National Youth Organizations Council.
4.8% of respondents said they do not believe in the conflict
resolution, while 2.6% had difficulty answering the question, and
6.2% made other proposals.
The poll was conducted among 1,500 people aged between 16 and 35. 500
respondents participated in the first stage of the poll covering
Baku. The poll showed that young people are mainly concerned with the
problems relating to education, unemployment, and financial
constraints.
The next stage of the poll will be held in Azerbaijani regions in
April.*