EUROTERM STARTS PRODUCTION OF GAS WATER HEATER

ArmenPress
Oct 13 2004

YEREVAN, OCTOBER 13, ARMENPRESS: Armenian prime minister Andranik
Margarian paid a visit on Tuesday to Euroterm company that has launched
production of gas water heaters together with a South Korean Lote
company. A company representative said water heaters will be first sold
at domestic markets and later to CIS and Middle East countries. The
South Korean company has invested $500,000 in the manufacturing of
heaters and a little more was invested by the Armenian company.

The deal followed a 12 month sale of South Korean company’s products
in Armenia by Euroterm. The company assembles daily 50 heaters from
parts brought from Korea, later they will be manufactured here.

MCA DELEGATION TO COME TO ARMENIA TO SPECIFY AID PROPOSALS

ArmenPress
Oct 13 2004

YEREVAN, OCTOBER 13, ARMENPRESS: Armenian finance and economy
minister Vartan Khachatrian revealed Tuesday that his government did
not submit its proposals to the Millennium Challenges Account (MCA),
a U.S. government agency, established to handle a scheme designed to
promote economic and political reform in low-income countries. The
minister said the proposals would be submitted before the end of
the year.

Khachatrian headed a government delegation that was in the USA from
October 2 to October 5 to meet with senior officials of the MCA.
Armenia is among other 15 countries which have qualified for the
assistance. Khachatrian said the MCA funds to these 16 countries for
the first year will be around $1 billion and $1.5 billion for the
second year. He said some other countries included in the list have
also postponed submission of their proposals to the MCA.

According to Khachatrian, MCA executives would not reveal any
information about the volume of the aid Armenia may anticipate and
did not set any specific dates, saying the aid will be released as
soon as the country submit well-developed proposals.

Khachatrian said an MCA delegation is due in Armenia very soon to
most likely help the government to develop well-grounded proposals
that would meet MCA requirements.

Earlier Armenian officials said the Armenian government will ask
for as much as $900 million in MCA funds for the next three years
to spend the money on reconstructing the country’s irrigation and
drinking water infrastructure, but Khachatrian said that Armenia may
hope for $100-$120 million worth funds for the first year.

Armenia not to take part in military operations in Iraq – minister
By Tigran Liloyan

ITAR-TASS News Agency
October 12, 2004 Tuesday

YEREVAN, October 12 — Armenia will not send servicemen to Iraq. “It
did not and will not take part in military operations” in that country,
Foreign Minister Vartan Oskanyan told the public television.

“It is a matter of a humanitarian action, not a military one,” he
said, referring to the Armenian intention to send medics, sappers
and drivers to Iraq.

In contrast to other regional countries, Armenia did not welcome
the operation in Iraq from the very beginning, the minister said.
“Humanitarian participation is quite a different thing, and it can
be discussed in light of the interests of the Armenian community and
the people of Iraq,” he said.

Armenia is fighting against international terrorism through affiliation
to international conventions, strengthening of borders and prevention
of terrorists’ transit via its territory, Oskanyan said.

Armenia 0 Czech Republic 4 – Euro under-21 result

Xinhua General News Service
October 13, 2004 Wednesday 10:30 AM EST

MOSCOW — Armenia lost to Czech Republic 4-0 in a European under-21
championship Group One qualifier at Yerevan on Wednesday.

Scorers: Tomas Sivoc 2, 53, Filip Troyan 70, 74

Halftime: 0-1; Attendance: 1,000

Russia ready to participate in Armenia’s econ project – premier
By Tigran Liloyan

ITAR-TASS News Agency
October 13, 2004 Wednesday

YEREVAN, October 13 — Russian Prime Minister Mikhail Fradkov said
Russia is ready to take an active part in investment programs and in
the implementation of economic projects in Armenia.

Fradkov confirmed it in his address to the delegates of the
international Armenian forum, which opened in Yerevan on Wednesday.

The prime minister’s message was read by Russian Transport Minister
Igor Levitin.

Fradkov said he was hoping that this forum would become a catalyst
for the development of trade and economic ties between Armenia and
Russia and other countries.

He noted that the Armenian community in the Russian Federation plays
a significant role in launching mutually advantageous ties in various
spheres between the two countries.

Russia-Armenia interregional ties “important reserve” – minister
By Tigran Liloyan

ITAR-TASS News Agency
October 13, 2004 Wednesday

YEREVAN, October 13 — Russian Transport Minister Igor Levitin,
who co-chairs the Russian-Armenian economic cooperation commission,
said the development of inter-regional ties between the two countries
is an important reserve of bilateral relations.

Levitin was speaking at an international economic forum, organized
by the World Armenian Congress and the Union of Armenians of Russia.

Regional cooperation agreements have been signed by Moscow,
St.Petersburg, and the Volgograd, Samara, and Sverdlovsk regions,
he said.

Commenting on Armenia’s state debt to Russia, the minister said the
two countries found a solution of this problem last year.

The handover of companies as payment of the state debt creates
preconditions for boosting trade and economic interaction between
the two states.

He also emphasized that the Russian-Armenian trade and economic
cooperation is developed in accordance with the principle of equality,
while meeting each party’s national interests and to their mutual
advantage.

Levitin noted positive examples of cooperation, including such joint
ventures as Armenal, in which the Russian Aluminum company invested
more than 40 million dollars, the Armavia airline, in which Russia’s
Sibir holds a 70-percent sake and the Orbita plant which is wholly
owned by Rosaviaspetskomplex.

“We have cooperation plans in the fields of power generation,
including nuclear power generation, and information technologies
where resources and experience of Russian communications operators
on Armenia’s market will be used, as well as in the sphere of space
exploration and science,” the minister said.

He said Russia’s commercial banks begin to display interest in
servicing Russian companies which operate in Armenia, and setting up
new joint ventures.

From: Emil Lazarian | Ararat NewsPress

Data on Russian investments in Armenia posted

RosBusinessConsulting Database
October 13, 2004 Wednesday

Russian direct investments in Armenia amounted to $230m in 1998 to
2003, co-chairman of the Russian-Armenian intergovernmental
commission for economic cooperation Igor Levitin, who is also Russian
Transportation Minister, announced at an economic forum held in the
Armenian capital of Yerevan. Russia invested $68m in the Armenian
economy in 2003, he said. Russian investments in Armenia accounted
for 44 percent of Russia’s overall investments abroad in 2003.
Russian invested the most in the Armenian industry and its banking
sector, he emphasized. The two countries have a number of joint
ventures such as Armenal, in which RusAl invested over $40m, Sibir
subsidiary Armavia and the Orbita company, the ARKA news agency
reported.

RUSSIANS TO NEED PASSPORTS FOR CIS TRAVEL

RIA Novosti
October 13, 2004

MOSCOW, October 13 (RIA Novosti) – Next year, reciprocal trips of
Russian and CIS citizens, considering the visa-free system, will
require a reduced list of documents: diplomatic or business
passports, seamen’s or foreign passports, Vremya Novostei reports.

The agreement to change the passport regime was achieved this
September at the 15th session of the consultative council of heads of
the CIS Foreign Ministry consular services.

Russia has signed the agreement on the visa-free border system with
the majority of CIS countries, including Ukraine, Belarus,
Azerbaijan, Kyrgyzstan, Moldova, Kazakhstan, Tajikistan and Armenia.
Russian citizens only need a visa when traveling to Georgia and
Turkmenistan.

According to the Interior Ministry’s 2003 information, over eight
million Russian citizens have foreign passports (as opposed to
internal passports) in Russia. According to the State Statistics
Committee, the number of Russian travelers to CIS countries has
increased by an average of 50% in the past five years. They mainly go
to Ukraine and Belarus. However, only 30% of Russian tourists who
holiday at the Ukrainian seaside have foreign passports.

The Russian Foreign Ministry promises, “to do its best to soften the
consequences of this decision.” Series of interstate agreements are
being drafted to facilitate border crossing for residents of border
areas. Moreover, the visa-free system may remain between Ukraine and
Russia.

Levitin says Armenia 3rd in CIS in terms of Russian investment

Prime-Tass English-language Business Newswire
October 13, 2004

YEREVAN, Oct 13 (Prime-Tass) — Armenia occupies third place among CIS
countries in terms of Russian investments into the country’s economy,
Russia’s Transportation and Communication Minister Igor Levitin told
an international economic forum Wednesday.

Levitin said, “Russia’s investments into Armenia’s economy have been
in different sectors of the economy, but mostly in the industrial
and banking sectors.”

In 2003, Russia’s direct investment in Armenia’s economy amounted to
U.S. USD 68 million, accounting for 44% of total foreign investments
in the Armenian economy. End

World Armenian Congress to set up strategic studies center
By Tigran Liloyan

ITAR-TASS News Agency
October 13, 2004 Wednesday

YEREVAN, October 13 — World Armenian Congress and the Union of
Armenians of Russia will set up a center for strategic studies and
an Armenian investment fund, president of these two organizations
Ara Abramyan said on Wednesday.

Abramyan leads the work of an international Armenian economic forum
that convened in Yerevan.

He said the objective of the strategic studies center is to set
the main guidelines for the development of Armenia and the Armenian
community in the economic, social and cultural spheres, and work out
ways of realizing them.

The emerging Armenian investment fund will handle programs developed
by the center, as well as other projects.

Abramyan proposed to conclude an agreement on cooperation between
the Armenian government and World Armenian Congress, in order to set
the main parameters of economic cooperation and terms of implementing
investment programs.

Priorities are the development of entirely new mechanisms of
integrating Armenia’s economy into the global economy and international
business organizations.

He believes the country’s economic development should proceed along
the lines of pooling the efforts of business circles of the Armenian
diaspora and Armenian authorities, as well as the assistance to
specific business programs aimed at facilitating the socio-economic
development of the country.

A more effective use of the political and economic potential of the
Armenian diaspora in foreign states, and the opportunities provided by
international financial and economic organizations assumes increasing
significance, Abramyan said.

He proposed to discuss at the forum the projects to build a business
and trade center in Yerevan, and a housing complex in central Yerevan,
renovate the highland resort of Tsakhkadzor and build a tinned food
factory in the regional center of Yekhegnadzor.