ITAR-TASS News Agency
TASS
March 3, 2005 Thursday

Armenia’s Central Bank chief re-elected for second term

By Tigran Liloyan

YEREVAN

Tigran Sarkisyan, Chairman of the Central Bank of Armenia, has been
re-elected for the second seven-year term.

A decision to this effect was made on Wednesday night by the
republican parliament that upheld the respective proposal made by the
country’s president.

Sarkisyan graduated from Lenigrad Financial-and-Economic Institute
with distinction in 1983 and completed a post-graduate course at the
Institute in 1987.

In 1990-95, Sarkisyan was a member, chairman of the standing
commission on finances, credits and budget of Armenia’s Supreme
Council. In 1995-98 he headed the Armenian Banks Association, and has
been the Chairman of the Central Bank of Armenia since March 3, 1998.

PanArmenian News
March 3 2005

HEAD OF EUROCOMMISSION DELEGATION FOR GEORGIA AND ARMENIA PRESENTED
EC REPORT ON ARMENIA IN YEREVAN

03.03.2005 16:54

/PanARMENIAN.Net/ Head of Delegation of the European Commission for
Georgia and Armenia Jacques Vantomme presented the EC report on
Armenia made public in Yerevan March 2. In his words, the European
Commission has called the EU to start talks with Armenia on beginning
the working out of individual plan of actions within the EU Wider
Europe: New Neighbors program. Jacques Vantomme has confirmed EU
readiness to allocate 100 million euros to Armenia for securing
electrification of the republic by means of alternative electric
power sources after the closing of the Armenian Nuclear Power Plant.
As of conflict settlement, Jacques Vantomme said the EU will further
provide the necessary assistance to the OSCE Minsk Group for
settlement of the Nagorno Karabakh conflict.

Czech News Agency
March 2, 2005

SVOBODA ASKS MAMMADYAROV FOR HELP IN NAZAROV CASE

PRAGUE, March 2 (CTK) – Foreign Minister Cyril Svoboda today asked
his Azerbaijani counterpart Elmar Mammadyarov to help settle the case
of Professor Sadai Nazarov, Richard Krpac from the Foreign Ministry
press department told CTK today.

Nazarov, originally from Azerbeijan, has asylum in the Czech Republic
and is now under Czech protection, but still he cannot return from
Azerbaijan.

Nazarov was arrested on January 20 when he visited his homeland where
he has been accused of treason.

“Azerbaijani authorities have accused him of six serious crimes,
which the Azerbaijani penal code punishes with life imprisonment,”
Nazarov’s son Elshan Nazarov told CTK on February 15.

Czech diplomacy is seeking Nazarov’s return to the Czech Republic,
the Czech Foreign Ministry said earlier.

Nazarov, 58, travelled to Azerbaijan though Czech authorities did not
recommend it to him. He wanted to see his ill father, and besides he
allegedly supposed that the situation in the country had improved.

He was an adviser to the former Azerbaijani premier Suret Huseynov.
In 1994, he left his homeland as the regime of president Ilham Aliyev
persecuted him. Three years later he was granted asylum in the Czech
Republic.

“Svoboda asked for help, taking into account his political asylum and
serious health problems,” Krpac said.

Svoboda and Mammadyarov met at the request of the Czech Republic.
They discussed bilateral questions and deepening of the two
countries’ relations.

Mammadyarov is on an unofficial visit to the Czech Republic.

His trip is mainly devised to attend the summit of the “Minsk Group,”
which is now being held in Prague. It consists of the USA, Russia and
France. With the mandate of the Organisation for Security and
Cooperation in Europe (OBSE), it is trying to resolve the problem of
Nagorny Karabakh, an Armenian enclave within Azerbaijan.

Nagorny Karabakh, predominantly inhabited by Armenians, is still
internationally recognised as a part of Azerbaijan and Armenia, too,
does not see it as its part. While Azerbaijan seeks its return,
Armenia demands its independence.

ArmenPress
March 3 2005

MODERNIZATION OF ARMENIAN FOIL PLANT AHEAD OF SCHEDULE

YEREVAN, MARCH 3, ARMENPRESS: Georgy Avetikian, the chief manager
of RusAl-ArmenAl foil mill facility, told Armenpress the
modernization of the biggest manufacturer of a wide range of aluminum
foil in the region, started in October 2004 is continuing ahead of
schedule. He said the modernization is aimed both at improving the
quality of its foil products and boosting the plant’s profitability
-in helping the mill to become one of the world leading foil
producers.
German engineering firm Achenbach was selected to execute the
program, scheduled for completion in 18 months at an investment cost
of US $70 million, of which $20 million are the share of RusAl, which
owns 100 percent shares of the mill.
The modernization program, which will also provide for a major
upgrade in foil rolling equipment and also the establishment of a
full production cycle, will lift the plant capacity by 25,000 tons of
foil per year, including 18,000 tons of highly profitable thin foil
in 6-9 micron gauge-increasing ArmenAl’s profitability by 150%. On
completion of the project, RusAl-ArmenAl’s market share of thin foil
production will reach 2.5% by 2008.
Avetikian said some 30-35 percent of $70 million (around $20) will
be paid as wages to Armenian workers and specialists and part of that
money will be used to buy some equipment in Armenia.
The modernization program, apart from a full-scale upgrade in
rolling equipment, includes the installation of new casting machines
and direct rolling mill, as well as an upgrade of hot rolling mills,
to create a full cycle of production. As part of the modernization
program the main foil rolling equipment will be refitted with control
and automatic management systems. High- and low-pressure ancillary
system hydraulics will also be upgraded.
Elaboration of the program will raise the quality and
profitability of RusAl-ArmenAl products and enable the manufacturing
of new product ranges, as well as securing a continuous supply of raw
materials by switching from coil to foil ingot, and set up a
recycling loop for foil scrap.

ArmenPress
March 3 2005

HAYRUSGAZARD WINS TENDER FOR CONSTRUCTION OF IRAN-ARMENIA GAS
PIPELINE

YEREVAN, MARCH 3, ARMENPRESS: Armenian energy minister Armen
Movsisian announced today that a joint Russian-Armenian Hayrusgazard
company was recognized the winner of a tender announced late last
year for construction of the Armenian section of Iran-Armenian gas
pipeline. The project’s subcontractor is Iranian company Sanir, which
will supply pipes and other equipment.
Movsisian said he was lately in Iran and saw that all preparatory
work was completed. He said field work and digging pipeline trenches
will kick off in late March. Pipes are expected to arrive in Armenia
in June to be followed by assembling work.
In response to a question whether Armenia has enough political
resource to push ahead the idea of transiting Iranian natural gas to
Georgia and Ukraine in defiance of Russia’s Gazprom that may increase
drastically the price of Russian gas supplied to Armenia, Movsisian
said the technical parameters of the would-be pipeline do not allow
it, but added if such a question arises a parallel pipeline may be
built.
“Today, thanks to the policy of Armenian president we are able to
maintain privileged prices of Russian gas, which ships it to Armenia
at a price that does not differ from Russian domestic price,” he
said, adding that Armenia is a sovereign country and “if it finds
that transit of Iranian gas to Georgia, Ukraine and further to Europe
would be economically more profitable, it will find political
resource to push it ahead.”
Movsisian denied allegations that Armenia is facing external
pressure in connection with the Iran-Armenian pipeline. He refused to
comment on its possible fate in case of escalation of Iran-USA
standoff.
The agreement was signed in Yerevan last May. Under it the
pipeline should be operative by 2007, January 1. Over next 20 years
Iran will deliver to Armenia 36 billion cubic meters of natural gas,
the bulk of which will be used for electricity production, which will
be shipped to Iran as payment. In the first stage of the project 100
km-long pipeline will be built in Iran and then the 41 km-long
section in Armenia.
The total cost of the project is between $200-$250 million.
Hayrusgazard is the sole supplier of Russian gas to Armenia. Armenian
government and Russian Gazprom hold each 45 percent of its shares,
and ten percent is owned by Russian Itera.

From: Emil Lazarian | Ararat NewsPress

ArmenPress
March 3 2005

BAKU RESIDENT DECLARES HIS APARTMENT NEW STATE

BAKU, MARCH 3, ARMENPRESS: A resident of Baku, the capital city of
Azerbaijan, said he was renouncing his citizenship and declaring the
space of his two-room apartment an independent state, which he said
was a constitutional monarchy.
A local daily newspaper Ekho quoted Sabir Mamedov as saying that
his move was prompted by “total injustice” reigning in Azerbaijan. He
refuses to pay utility fees and taxes.
He said he was working to draft the constitution of his state, new
legislation and fasces. He was supposed to declare about the
emergence of a new state on March 2. The new “state” has now a
permanent population of four persons.

PanArmenian News
March 3 2005

FRENCH PARLIAMENTARIAN CALLED TURKEY TO RECOGNIZE ARMENIAN GENOCIDE

03.03.2005 17:39

/PanARMENIAN.Net/ French deputy Jacques Toubon raised the
“unquestionable reality” of the Armenian Genocide during the 53rd
reunion of the EU-Turkey inter-parliamentary delegation, of which he
is the vice-president. During his talk, Mr Toubon indicated to his
Turkish counterparts that the recognition of this genocide
constituted an “important element for Europe” and of its “common
values”. In particular he highlighted that the European Parliament,
since 1987, had on numerous occasions recognised the reality of the
Genocide and since then, continually asked Turkey to do the same. He
explained that “by refusing to ratify the Treaty of Sevres of 1920,
Turkey did not want to recognize this genocide” which could be
explained in the political context of that time, but “90 years later,
Turkey must change” and adopt European values while recognizing this
historic reality, Jacques Toubon noted. His statements provoked the
rage of the Turkish officials participating in the meeting.

Deutsche Presse-Agentur
March 2, 2005, Wednesday

E.U. vows closer links with eastern, southern neighbours

Brussels

The European Commission on Wednesday announced new moves to reinforce
relations with five states on its eastern and southern borders. The
Commission, executive arm of the 25-nation European Union, said the
bloc’s so-called “neighbourhood policy” should be extended to Egypt,
Lebanon, Armenia, Azerbaijan and Georgia. A final decision on whether
or not the five countries will be included in the neighbourhood plan
will be taken by E.U. governments. The Commission will then draw up
detailed “action plans” for the neighbouring states with a view to
encouraging reform and change in the five countries. Countries which
are already part of the initiative include Israel, Jordan, Moldova,
Morocco, the Palestinian Authority, Tunisia and Ukraine.
Participation in the neighbourhood plan allows countries to forge
closer political and economic relations with the E.U. However, it
does not provide for membership of the bloc. The neighbourhood policy
is designed to “prevent the emergence of new dividing lines in
Europe,” the Commission said. The blueprint is, however, inspired by
the E.U.’s successful efforts to encourage reform in the eight former
communist nations of central and eastern Europe which are now members
of the E.U. Officials said the focus in coming months would be
encourage political reform in the five neighbouring states through
efforts to strengthen democracy, good governance and a dialogue on
human rights Economic reform efforts would include actions to promote
a good business and investment climate. Other measures include trade,
market and regulatory reforms with the aim of allowing neighbours to
participate in the E.U.’s frontier- free single market and
cooperation in the field of justice, including legal reform and
immigration issues. Countries participating in the initiative are
also eligible for increased aid for the development of infrastructure
networks (energy, transport and telecommunications, information
society) and cooperation on environmental issues. Contacts between
people are also encouraged. The Commission said the timing of the
action plan drawn up for Lebanon would depend on the evolution of the
political situation in the country following the murder last month of
former premier Rafik Hariri. dpa si sc

RosBusinessConsulting Database
March 3, 2005

Russia’s January GDP growth posted

Russia occupies seventh place in the CIS in terms of GDP growth in
January 2005, the CIS statistics committee has reported. Russia’s GDP
grew 3 percent in the reported period, compared to January 2004.
Russia was ninth along with Kyrgyzstan in terms of GDP growth in
2004.

According to the committee, in January 2005 GDP growth was highest in
Belarus, namely 10.4 percent. GDP increased 9.1 percent in
Tajikistan, 7 percent in Azerbaijan, 6.5 percent in Ukraine, 5.5
percent in Kyrgyzstan, and 3.6 percent in Armenia. No data on GDP
growth in Moldova, Georgia and Kazakhstan were presented in the
report.

KOMMERSANT

KOMMERSANT News, MARCH 03, 2005

Axis of Evil Shaping Against Moscow

Rose-orange Georgia, Ukraine and Moldova are establishing an anti-Russian
tie-up to force Moscow from Caucasus and Pridnestrovie, analysts say quoted
by the RBC news agency.

Georgian President Mikhail Saakashvili arrived in Moldova last night. In
Kishinev, Saakashvili held talks with Moldova’s President Vladimir Voronin.
The parties canvassed establishing cooperation under the GUUAM bloc, which
unites Georgia, Ukraine, Moldova, Uzbekistan and Azerbaijan (membership of
the last two countries is formal), to oppose `Russia’s imperialism’ in the
region. Only three parties appear aggressively involved in consultations.
The day before yesterday, Voronin went to Kiev to negotiate with Ukrainian
President Viktor Yushchenko. By mere chance, the visit of Moldova’s leader
coincided with the tour of the new Georgian PM Zurab Nogaideli. Top
officials have never bothered to conceal the target of GUUAM revival. The
main highlights are forcing Russia from the Caucasus and Pridnestrovie;
establishment of transport corridors, going the round of Russia. Therefore,
the parties actually endeavor to create a sanitary corridor to isolate
Russia from Europe and Transcaucasia. In view of the traditionally weak
foreign policy of Russia, Moscow is unable to rebuff, analysts told RBC. The
only way out is stop dancing to someone else’s pipe and apply `nonstandard
methods.’

It was exactly creation of a trilateral anti-Russian union
(Georgia-Moldova-Ukraine) based on GUUAM bloc that was in the limelight of
Kishinev negotiations. Before the Georgia-Moldova’s summit, that matter had
been thoroughly discussed in Kiev, in the course of the meeting between
Yushchenko and Voronin.

`GUUAM block had been created long ago and shaped by 1999, but it was idle
de-factor. Now, after a series of `color’ revolutions the hopes have sprung
for its revival,’ said Sergey Borovikov, expert at St. Petersburg
Constructing Future analytical group.

`GUUAM reanimation is underway. A triple axis that yet comprises Georgia,
Ukraine and Moldova is being created. The aim of this union is to force
Russia from Caucasus and the southeastern Europe. Armenia and Pridnestrovie
have turned out completely isolated from the RF. Ukraine and Moldova
enforced severe economic blockage of Tiraspol, having cut the developed
industry of Pridnestrovie of the market outlet,’ said Alexander Skakov,
expert at the Russian Strategic Research Institute. In Tbilisi and Kishinev,
they are looking to the West for help. A few days ago, Salome Zurabishvili
called on the United States and the EU to render real support to the
republic, when it is striving to get rid of the rudimental influence of
Russian military bases and to oppose Moscow’s encouragement of two
separatists’ republics.

Meanwhile, the battle might turn out not so losing for Russia. `The key
thing is not to repeat mistakes made in Ukraine and Abkhazia, i.e. not to
get involved in the `color’ revolutions,’ Borovikov said. Russia must
deliver unusual response. For instance, it may denounce Molotov-Ribbentrop
Pact and offer the neighbors to revise borders, in a move to trigger
concerns in Lithuania, Poland, Ukraine and Moldova. Or Russian military
bases could be assigned to the Emergency Ministry, which may be fighting
`disastrous humanitarian situation’ and terrorism in Georgia and
Pridnestrovie, Borovikov offered. Such point of view is shared by Alexander
Sobyanin, head of the strategic planning service at the Association of
Frontier Cooperation. `Russia is weak. We must act in full conformity with
the Western rhetoric, but under our own, not other’s rules,’ Sobyanin
specified.