PRESS RELEASE
September 14, 2004
Embassy of the Republic of Armenia
2225 R Street, NW, Washington, DC, 20008
Tel: 202-319-1976, x. 348; Fax: 202-319-2982
Email: [email protected]; Web:

Armenian Children’s Paintings Recall 9/11, Present “Message of Freedom and Hope”

On September 13, 2004, an exhibition of paintings by Armenian children
was held in the Rayburn Congressional Building in Washington,
DC, in remembrance of the third anniversary of the tragic events
of 9/11. The exhibition, entitled “Message of Freedom and Hope,”
presented some 44 paintings by young Armenian artists, between ages
6 and 14, who created their works in the aftermath of 9/11. Most of
the young Armenian artists are affiliated with the Children’s Center
of Fine Arts in Yerevan; the exhibition was made possible by the Kamk
Benevolent Fund of Armenia.

The exhibition was hosted by the Congressional Caucus on Armenian
Affairs and the Embassy of Armenia. In his remarks during the opening
ceremony, Armenian Ambassador to the U.S., Dr. Arman Kirakossian
noted that the impact of the tragedy of 9/11 was felt in Armenia
as well because Armenia and the United States share common values,
such as respect for freedom, democracy, human life and dignity. He
explained that the Armenian children, including the young artists whose
work was presented on the Hill, had been deeply moved and touched
by the terrible scenes of 9/11 broadcast by TV networks around the
world. Ambassador Kirakossian noted that the exhibition was entitled
“Message of Freedom and Hope” to show that the terrorist attacks
only motivated the people of the United States, Armenia, and other
countries of the world to rally to the cause of freedom. Freedom
and hope were themes vividly and artfully expressed by the Armenian
children’s paintings presented during the exhibition.

The Armenian Ambassador thanked Co-Chairs of the Congressional
Armenian Caucus, Representative Joe Knollenberg and Frank Pallone for
helping organize the event and for their leadership on the Armenian
issues. In turn, Congressman Knollenberg remarked that he was touched
by the artwork of the Armenian children, who, he said, had been able
to present a very important message, that the terrorist acts of 9/11
were attacks not only on the United States, but the rest of the world
as well. Congressman Pallone complemented the creative talents of the
Armenian children who expressed a very complex subject like 9/11 in
a straightforward and simple way.

The opening ceremony was attended by Members of Congress, congressional
staff members, U.S. government officials, representatives of the
foreign diplomatic community and the Armenian-American community of
Greater Washington area.

Police Breaks Up Radical Group’s Picket Outside Foreign Ministry

Baku today
14/09/2004 14:27

On Monday, the Karabagh Liberation Organization (KLO) picketed the
Foreign Ministry in protest against the planned visit by Armenian
officers to Baku.

The protesters showed placards â^À^ÜEither Karabagh or
death!â^À^Ý and â^À^ÜDown with Armenians!â^À^Ý.

The police break up the protest action and took some of the radical
group members, who attempted to march towards the Interior Ministry
along Husu Hajiyev Street, to the police precinct. The detainees were
released later. The KLO will hold another protest action outside
the Defense Ministry on Tuesday.

Russian energy chief laments Georgian “aggression”
By Keti Sikharulidze

Tuesday, September 14, 2004, #174 (0698)

The head of RAO-UES in Georgia Andrei Rappaport says that he is
no longer comfortable in Georgia owing to the “aggression” of the
Georgian government.

RAO-UES owns Telasi, the energy company which distributes electricity
in Tbilisi, but Rappaport, who is a deputy head of the Russian company
and head of its activities in Georgia, says that he is opposed to
further investment in the Georgian energy sector owing to the current
situation.

“In Armenia, they are very kind to us. If there is any problem it
is solved at once,” Rappaport said in a wide-ranging interview with
the Russian paper Gazeta concerning the company’s activities. The
interview was also published on RAO-UES’s website.

“I cannot say that we are broadening exports [in Georgia], we are
just stabilizing the situation,” Rappaport said

He added that income from RAO-UES’s Armenian utility is about USD 80
million but only USD 15 million in Georgia. “They have problem paying
money in Georgia and Georgia has about 53 million lari in debts. We
also have problems with local authorities, there is some aggression
toward us, but it is unclear what the cause of it is since Georgia
is eager to welcome new investors in the country,” Rappaport said.

“As I have declared at my last negotiations with Georgian authorities,
I am not feeling very comfortable, so I am not planning any serious
investment in Georgia. Our position is based on business logic –
if you want energy pay for it, and if there is not any money to pay,
then good-bye,” he told Gazeta.

Last summer, RAO-UES took over the Telasi electric company from the
American firm AES.

As for specific examples of aggression, Rappaport said, “for instance
the tax police tries to block our account numbers of the company. The
situation is as follows. The budget owes us about GEL 5 million for
the import of energy but we also have to pay to the budget the amount
of 3 million lari for tax payments.”

“We will not pay taxes until Georgia will pay us what they
own. Moreover, some authorities of the Georgian government try to
revise the negotiations that was signed before. We have already paid
all debts in the amount of 40 million dollars and we are going to
appeal to the court of London,” Rappaport said.

Analysts forecast that Rappaport’s statements could reflect major
problems within the Georgian energy sector, as he is chairman of the
supervisory boards of both the biggest electricity company Telasi
and the joint Georgian-Russian company Sakrusenergo.

Furthermore, he is the only person entrusted by Russian electricity
companies to resolve difficulties in Georgia; and intended this
week to hold negotiations with the Georgian government regarding
Georgia’s debts to Russia, although later he postponed his meeting
and now intends to meet the representatives of Georgia during the
CIS Summit in Astana, Kazakhstan.

Part of this debt is due to rehabilitation work carried out on
high-voltage lines in Abkhazia in 2000. The Ministry of Energy
agreed that the work would be partly financed by Sakrusenergo, which
contributed USD 180,000, and partly by the Abkhaz Energy Company
ChernomorEnergo, which received USD 600,000 from the Russian Energy
Ministry towards the project of rehabilitating the lines that connected
Enguri and Sochi.

The head of Sakrusenergo Gia Maisuradze told Georgian television that
“the Georgian side agreed during negotiations with the Abkhaz side to
help to restore the electricity lines that were destroyed during the
war. The then-Minister of Energy David Mirtskhulava issued a decree
and I was obliged to follow it, though these lines did not belong to
the company .”

This restored line is now a subject of controversy, as it is believed
by Georgia that it is being used to illegally move electricity from
Georgia to Abkhazia.

“The energy that is used by Abkhazia is equal to the energy that is
used by nearly the whole of Georgia. Then the Abkhaz sell this energy
in Russia and afterwards we buy the same energy back at much higher
prices,” the president Mikheil Saakashvili told members of the Abkhaz
Supreme Council on Friday.

As reports Rustavi-2, a General Prosecutor’s Office investigation
found that much of the energy produced by Enguri Hydroelectric station
was being moved to Russia through Abkhazia, after which Georgia was
buying it back at higher prices.

The investigation found that several intermediary firms, headed by
Georgian and Russian officials, were exploiting this difference in
price to make very high profits. Among these companies, the most
famous is Winfield, which was founded in 2000 (the year the Georgian
government contributed to rehabilitating the electricity lines in
Abkhazia) and is headed by Ilia Kutidze, who now lives in Moscow
where he works for RAO-UES.

Meanwhile, there are unconfirmed reports on Rustavi-2 that the
director of Sakrusenergo Maisuardze may be dismissed from his post
when Rappaport next visits Tbilisi, and replaced by former Premier
of Tbilisi Gia Sheradze.

From: Emil Lazarian | Ararat NewsPress

MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF ARMENIA
—————————————— —-
PRESS AND INFORMATION DEPARTMENT
375010 Telephone: +3741. 544041 ext 202
Fax: +3741. .562543
Email: [email protected]:

PRESS RELEASE

14 September 2004

Sixth Armenia – European Union Cooperation Council Held in Brussels

On September 14, the sixth meeting of the European Union – Armenia
Cooperation Council took place in Brussels. Armenia’s Foreign Minister
Vartan Oskanian lead the Armenian delegation. Foreign Minister
Bernard Bot of the Netherlands, whose country currently holds the EU
presidency, headed the EU delegation.

This annual meeting was the first official one to take place following
Armenia’s inclusion in the European Neighborhood Policy last June. The
agenda included a discussion of that new approach to the Caucasus,
economic and political reforms, energy and regional issues, and
prospects for deeper cooperation.

Armenia’s foreign minister welcomed Armenia’s inclusion (together with
the other two republics of the South Caucasus) in the Neighborhood
Policy, and affirmed Armenia’s readiness to work with the EU to
correctly identify Armenia’s needs and priorities and work together to
benefit from the EU’s experience and resources. The Minister explained
that even as Armenia has embarked on a plan to approximate Armenia’s
legislation to EU standards, Armenia is prepared to go ahead with
additional legislative reforms.

The EU delegation noted Armenia’s successful political and economic
reforms, noting that there must be continuity in order for Armenia
to fulfill its international commitments. The Armenian delegation
commented on Armenia’s high economic growth of the last several years,
and affirmed Armenia’s efforts to sustain such growth in order to
continue to decrease the poverty level. Armenia also reiterated its
intention to obtain Market Economy Status from the EU, in order to
more confidently pursue exports and trade with Europe.

The issue of Armenia’s nuclear power plant and its eventual closure
was also on the EU agenda. Armenia reiterated its commitment to
ensuring the plant’s safety, even as efforts are undertaken to secure
alternative energy sources.

The two sides agreed to explore the possibility of establishing
a subcommittee to deal with issues relating to scientific and
technological research, as well as furthering the established exchange
and collaboration that exists between the two scientific communities.

Regional cooperation, conflict resolution and stability were at the
focus of the discussions. The Armenia-European Union Cooperation
Council also addressed the Nagorno Karabakh resolution process,
as well as the need to positively engage Turkey in regional processes.

The Armenian delegation included deputy ministers of Trade and Economic
Development, Finance and Energy. The European delegation included
the European Union’s Special Representative to the South Caucasus,
Ambassador Heikki Talvitie, and Nicolas Schmit, Minister Delegate
for Foreign Affairs and Immigration of Luxembourg, which next holds
the EU Presidency.

From: Emil Lazarian | Ararat NewsPress

La balkanisation du Caucase – Une prise d’otages inscrite dans un profond bouleversement politique

La balkanisation du Caucase – Une prise d’otages inscrite dans un profond
bouleversement politique
Kathia Légaré
Maîtrise en science politique, Université du Québec à Montréal

Édition du samedi 11 et du dimanche 12 septembre 2004

La prise d’otages de Beslan, la semaine dernière, se situe dans un contexte
géographique et politique beaucoup plus large que les républiques d’Ossétie et
de Tchétchénie, un contexte dépassant la politique de Poutine elle-même. Ce
drame s’est joué sur la trame d’un bouleversement politique profond de la région
du Caucase, région qui défraie les manchettes régulièrement depuis la fin du
communisme, au début des années 90.

Le Caucase est un large pont entre l’Europe et l’Orient, il semble chevaucher
une mer immense, qui est en fait divisée en deux parties, la mer Noire et la mer
Caspienne. Sa situation géographique et sa topographie lui ont donné une
fonction de montagne-

refuge, grâce à laquelle ont survécu des peuples historiques. Cet organisme aux
multiples mécanismes de protection montagneuse leur a permis de conserver leurs
singularités.

Le Caucase est si étroitement associé à ses populations qu’il serait possible de
croire que ses cultures ont émergé en même temps que les formations
montagneuses, car plusieurs de ces peuples n’existent nulle part ailleurs dans
le monde. Encore aujourd’hui, au moins une quarantaine de peuples vivent sur ces
440 000 km2. Ils se répartissent en quatre groupes de langues, dont plusieurs ne
sont pas intercompréhensibles, et en de multiples religions, qui se sont
elles-mêmes développées de façon originale. L’islam, par exemple, a
particulièrement été teinté de traditions locales.

Les fractures sous l’empire russe

La région est passée sous le contrôle de l’empire russe au terme d’une longue
guerre, avec laquelle les bolcheviques ont renoué, après la révolution de 1917.
Le Caucase du Nord a été intégré à la république soviétique de la Fédération
socialiste de Russie et les trois États du Caucase du Sud (Géorgie, Azerbaïdjan,
Arménie) sont devenus des membres de l’URSS.

Sous ce régime, la région a été fracturée en de multiples pièces, un aménagement
à l’origine de plusieurs conflits actuels. Staline n’avait en fait rien à envier
à Machiavel — si ce n’était de leur éloignement dans le temps, on aurait pu
croire que le premier a inspiré le second.

Staline s’est ingénié à créer une complexe cartographie qui se caractérise par
de multiples subdivisions, en une application ultime du principe «diviser pour
régner». Le régime soviétique avait en effet créé différents statuts
administratifs, dont le type le plus développé a été celui de «région ou
république autonome», un statut aussi attribué à des minorités dans les États
soviétiques unitaires.

À ce territoire autonome a été jumelé une minorité nationale, qui a
officiellement obtenu le contrôle des institutions politiques territoriales. Sur
le territoire de la Géorgie, les régions autonomes de l’Abkhazie et de l’Ossétie
du Sud ont été créées; en Azerbaïdjan, celle du Nagorny-Karabakh.

C’est dans le Caucase du Nord, où il n’y a jamais eu d’État indépendant au sens
moderne du terme, que la politique des nationalités de Staline s’est révélée
particulièrement machiavélique : sept républiques autonomes y ont été créées,
dont trois jumellent deux peuples que rien n’aurait amené à cohabiter : les
républiques tchétchéno-ingouche, kabardino-balkare et karatchevo-tcherkesse.

Il s’agit de véritables enclaves ethniques représentant parfaitement
l’instrumentalisation de l’appartenance nationale par le système soviétique. Ce
sont en fait de nouvelles lignes de division qui se superposent à la mosaïque
culturelle et lui donnent une autre signification. Ces structures «d’autonomie»
serviront en effet de leviers au pouvoir pour mater les révoltes et mettre sous
contrôle ces sociétés indépendantes.

En 1944, l’entreprise de Staline culmine dans la déportation, pour
«collaboration avec l’ennemi nazi», de deux millions d’habitants de cette région
vers des zones de peuplement d’Asie centrale. Kalmouks, Balkars, Karatchaïs,
Tchétchènes, Ingouches sont entre autres visés. Ils seront autorisés à retourner
dans leurs montagnes en 1956, mais ce rapatriement causera des tensions avec les
nouveaux habitants des lieux.

La transition post-communiste

Lorsque la structure soviétique s’effondre en 1991, l’espace soviétique entre
dans une transition très chaotique et incertaine. L’URSS se décompose en 15
parties et la Russie menace d’éclater en un casse-tête de 89 morceaux de taille
et de couleur différentes.

C’est pendant cette période de désorganisation, de flottement d’un système
autoritaire et centralisé vers «quelque chose» d’autre, que les frontières
administratives créées par Staline prennent une nouvelle signification, une
nouvelle fonction. Elles deviennent les contreforts de petits peuples qui, même
s’ils sont parfois minoritaires sur le territoire qui leur a été alloué,
contrôlent souvent les institutions politiques.

Partout en ex-URSS, on assiste à des replis régionaux et nationaux, seuls
repères dans cette période de bouleversement. Cependant, ce mouvement a une
signification particulière pour le Caucase, dont les nombreuses lignes de
division deviennent des fractures conflictuelles.

D’innombrables conflits ethnoterritoriaux ont lieu au cours des années 90, par
exemple entre les Ingouches et les Ossètes en 1992, à propos d’un territoire
cédé aux seconds après la déportation des premiers. Les trois républiques
binationales menacent aussi d’éclater, mais ce n’est finalement que la
république associant les Tchétchènes aux Ingouches qui se rompt en deux
républiques.

Dans le Caucase du Sud, les régions autonomes sont aussi des zones de conflit,
entre l’Arménie et l’Azerbaïdjan pour le Nagorny-Karabakh — une enclave dont la
population est largement arménienne en territoire azéri — et sur le territoire
de la Géorgie (Abkhazie, Ossétie du Sud), qui éclate littéralement en plusieurs
pièces. Aujourd’hui, de nombreux conflits sont en dormance, mais d’autres sont
très actifs.

C’est aussi à cette époque que les Balkans éclatent en un conflit sanglant. Les
affrontements prennent là-bas une teinte génocidaire. Le terme «balkanisation»
n’est pas associé nécessairement à l’épuration ethnique, mais évoque surtout un
espace géopolitique largement fragmenté où émergent des micronationalismes sur
les lignes de faille.

Ce territoire aurait présumément été homogénéisé par les politiques du
communisme de type soviétique, mais ses divergences réémergent dans un certain
contexte politique, lorsque les forces centrifuges s’affaiblissent — ce qui est
survenu lors de l’effondrement du système autoritaire communiste.

Le conflit en Tchétchénie

La nouvelle République de Tchétchénie, issue de la scission de la République
autonome conjointe avec les Ingouches, n’est pas la seule à réclamer son
indépendance dans la Fédération de Russie, car plusieurs républiques la
déclarent aussi. Elle est pourtant la seule à être envahie par l’armée russe, à
la fin de 1994, car le Kremlin n’y a pas suffisamment d’influence pour forcer
les chefs locaux à se conformer au contrat fédéral.

C’est à partir de 1999 que les groupes radicaux prennent le dessus sur les
forces nationalistes. Le discours des combattants tchétchènes se teinte
progressivement de propos islamistes, une idéologie qui fortifie la résistance
parce qu’elle offre une vision simplificatrice du monde. En répudiant les chefs
modérés, le Kremlin leur a donné une arme supplémentaire : celle de
l’impossibilité d’un règlement pacifique.

Les extrémistes ont comme projet d’unir les musulmans du Caucase dans une
communauté politique, et c’est pourquoi ils tentent d’étendre à toute la région
le conflit en Tchétchénie en procédant à des raids et à des prises d’otages. Les
événements de Beslan en sont l’exemple le plus dramatique. Les Ossètes ne sont
pas largement musulmans, mais la propagation de la terreur servirait la cause de
ces radicaux en renforçant l’antagonisme des parties. Quelques semaines
auparavant, les groupes radicaux avaient déclenché des affrontements sur le
territoire de l’Ingouchie.

Jusqu’à maintenant, les Caucasiens ne se sont pas largement liés à leur cause,
mais la propagation de la violence fait lentement son chemin. L’acharnement du
Kremlin à placer ses hommes politiques fantoches en Tchétchénie ne contribue pas
à stabiliser la situation dans la république et à endiguer le flot des jeunes
combattants désillusionnés par la situation socio-économique désastreuse de la
région et par l’impossibilité d’échapper aux violences de l’armée fédérale.

La nouvelle conquête politique de la Géorgie

La Révolution des roses a réactivé les conflits ethnoterritoriaux en Géorgie. En
effet, le nouveau président, Mikhaïl Saakachvili, ayant dirigé le renversement
du président Chévardnadzé en novembre 2003, a remis en cause l’indépendance de
facto des régions autonomes sécessionnistes de l’Abkhazie (au nord-ouest, près
de la Mer Noire) et de l’Ossétie du Sud.

En rompant le statu quo, le président Saakachvili s’est engagé dans une lutte de
légitimité avec les chefs locaux, qui a donné lieu à des affrontements armés
dans les dernières semaines. Les chefs de l’Abkhazie ont chassé du territoire
des centaines de milliers de Géorgiens et ont établi leur indépendance — non
reconnue au niveau international — entre 1993 et 1994. Depuis lors, la région
vit séparément de la Géorgie. L’échec de Saakachvili à faire entrer son armée
sur le territoire de l’Ossétie du Sud laisse présumer que le règlement du
conflit sera pénible et douloureux. Les plaies ouvertes par la transition sont
loin d’être guéries en Géorgie.

PRESS RELEASE
Catholicosate of Cilicia
Communication and Information Department
Tel: (04) 410001, 410003
Fax: (04) 419724
E- mail: [email protected]
Web:

PO Box 70 317
Antelias-Lebanon

His Holiness Aram I expresses his condolences on the occasion of the death
of Pope Petros VII, Greek Orthodox patriarch of Alexandria and All Africa

Pope Petros VII, Greek Orthodox patriarch of Alexandria and All Africa and
other members of the Patriarchate, including bishops, priests and lay staff,
lost their lives last Saturday, 11 September 2004, in a helicopter crash
over the Aegean Sea while they were traveling to the Mount Athos monastery
in northern Greece. On this occasion His Holiness Aram I sent the following
condolences to the Holy Synod of the Greek Orthodox Patriarchate of
Alexandria, Egypt.-

13 September, 2004

To The Holy Synod

of the Greek Orthodox Patriarchate of Alexandria

Egypt.

Dear Brothers in Christ

It is with deep sorrow and sadness that I came to learn the tragic accident
of His Holiness Petros VII Patriarch of Alexandria. I have known His
Holiness since 1970. As young priests we have been together in different
committees and meetings of the Middle East Council of Churches. Since then
we have developed a close friendship and ecumenical collaboration.

His Holiness Petros was a dynamic person committed to the service of his
church. He firmly believed in Ecumenical vision and brought an active
participation in Ecumenical witness on regional and international levels. We
will never forget his services particularly to MECC, to the cause of
Christian unity in the Middle East and to the Christian-Moslem dialogue.

On behalf of the Central Committee of the World Council of Churches, the
Armenian Catholicosate of Cilicia and personally I want to convey my deepest
condolences to the Holy Synod and to the family of His Holiness.

May God accept his soul in His Eternal Kingdom

ARAM I

CATHOLICOS OF CILICIA

##

The Armenian Catholicosate of Cilicia is one of the two Catholicosates of
the Armenian Orthodox Church. For detailed information about the Ecumenical
activities of the Cilician Catholicosate, you may refer to the web page of
the Catholicosate, The Cilician Catholicosate, the
administrative center of the church is located in Antelias, Lebanon.

GROWTH OF LOAN INVESTMENTS

Azat Artsakh – Nagorno Karabakh Republic (NKR)
13 Sept 04

Recently trade banks have been reporting growth of activity in the
financial sector. According to the data provided by the NKR National
Statistics Service, by July 1 of this year the amount of loans provided
by trade banks (in AM drams or foreign currency) totaled 8178.4 million
drams and from January 1, 2004 grew by 2144.9 million drams or 35.5 per
cent. About 76 per cent of the amount of loans which totals 6225.9 per
cent was provided in foreign currency. The amount of loans provided
in foreign currency increased from January 1 of the current year by
22.1 per cent or 1126.8 million drams. In the mentioned period the
amount of delinquent loans and extended loans totaled respectively
50.8 and 50.1 million drams. Against January 1 the amount of loans
with extended terms increased by 62.3 per cent, and delinquent loans
by 16.5 per cent. Foreign money transfers received during the first
half of 2004 totaled 5061.5 drams and grew by 89.5 per cent against
the first half of 2003. The share of the foreign money transfers by
natural persons was 19 per cent.

AA.
13-09-2004

New York Armenian Students’ Association / ASA of USA
333 Atlantic Avenue
Warwick, RI 02888
(401) 461-6114
Contact person: Alec Gevorkyan
[email protected]

Happy Hour and Back-to-School Drive hosted by NY ASA and St. Vartan’s
Cathedral
Date: Thursday September 16th 2004
Time: 7:00 PM

The New York ASA and St. Vartan’s Cathedral will be hosting a
happy hour and Back-to-School drive on the plaza of St. Vartan’s
Cathedral. The ASA will be collecting items to be sent to Armenia to
help support schools. There will be live jazz presented by the Clint
Dadian Jazz trio and Mezza

The New York ASA and St. Vartan’s Cathedral will be hosting a happy
hour and “Back-to-School” drive at 7:00 PM on September 16, 2004 on
the plaza of St. Vartan’s Cathedral (at the corner of 2nd Avenue
and 34th Street).

The ASA will be collecting things to be sent to Armenia to help support
schools that are in need of additional supplies and materials. Items
that may be donated include school supplies (papers, pencils,
markers, construction paper) as well as books, study aids, and other
miscellaneous items. There will be live jazz presented by the Clint
Dadian Jazz trio. Mezza that will be provided by St. Vartan’s Cathedral
and wine and beer will be served at the bar.

We encourage everyone to come and enjoy the end of the summer
and donate needed supplies to Armenian schools as well. For more
information, please contact [email protected] or visit the website

GIBRAHAYER
e-newsletter
[email protected]
http: //gibrahayer.cyprusnewsletter.com

ARMENIAN MEDIEVAL BOAT ARRIVES TO CYPRUS

Thursday September 9, 2004. Gibrahayer: – Following the ancient sea routes of

Armenian trade vessels the Armenian medieval sailing boat “Kilikia” anchored
at
Larnaca port. The 16-man crew – accompanied by Karabagh liberation activist
Zori Balayian – were greeted by the Armenian community of Cyprus who held a
special ceremony/reception last Tuesday September 6, 2004.

In his welcoming speech, Armenian representative in the Cyprus House of
Representatives Bedros Kalaydjian – after giving a brief history of the ship
and its mission, to the Greek Cypriot guests and degnitaries – noted the
importance o f the voyage and highlighted the common paths and common
tragedies
experienced between the people of Cyprus and Armenia during their turbulent
history.

Our representative Bedros Kalaydjian, presented the captain of the ship Garen

Balayian -  a certified captain – with a memento. According to Cypriot custom

given to visiting ships, the crew of “Kilikia” sailing boat was also
presented
by Cypriot red wine and dry fruit.

The captain of the ship in turn presented Kalaydjian with a replica of the
ship
engraved on black marble, sailing on Lake Sevan while activist Zori Balayian
thanked and addressed the gathered.

“Kilikia” arrived in Larnaca from the Aegean sea and will be heading to
Beirut,
Tartus (Syria) with its eventual destination being Venice.

Members of the crew, the captain and Zori Balayian were guests of the
Armenian
community at a dinner that was held on Wednesday at a restaurant in Larnaca.

They a lso visited The Armenian Church, the Melkonian and had meetings with
representatives of Armenian organisations in Nicosia.

“Kilikia” left our island yesterday.

Images of this memorable visit can be viewed at the following
link:

You can view the following two websites about “Kilikia” at:
,

CAMPAIGN TO SAVE MELKONIAN ENTERS NEW PHASE

Nicosia, September 6, 2004: Representatives of the worldwide Melkonian Alumni

met in London on Friday, September 3, 2004, and agreed to take joint action
to
challenge and prevent the implementation of the AGBU Central Boardâ^À^Ùs
decision

to close the Melkonian Educational Institute in June 2005.
     Taking part in the meeting were Alumni representatives from Cyprus, the
U.K., the U.S., Canada and Lebanon.
     Joining the meeting was Jack. R. Melkonian, representing the family of
schoolâ^À^Ùs founders, Krikor and Garabed Melkonian, who ag reed on the joint
strategic and legal action to be taken, on the advice of the legal counsel
hired by the umbrella organisation, the Melkonian Alumni and Friends, who was

also present at the meeting.
     In addition, expert legal advice was presented from law experts in
Cyprus
on further action to be pursued in Cyprus and other jurisdictions.
     The meeting concluded by expressing its sincere gratitude to the
Government of the Republic of Cyprus for its warm hospitality and assistance
it
has provided and continues to provide to the Melkonian Educational Institute
and the greater family of past and present Melkonian students.

WHO KILLED TURKISH DIPLOMAT?
22-YEAR HUNT FOR ASSASSIN
By Laura Czekaj, Ottawa Sun Thursday Final Edition

     Someone knows who committed the cold-blooded murder of a Turkish
military
attache in Ottawa 22 years ago tomorrow.
     The question is whether the passage of time will give that person the
courage to come forward.
     “Hopefully some day we will get something solid to follow up on,” said
RCMP Sgt. Andre Bigras.
     Until then, the RCMP will continue to search for the killer of Col.
Atilla
Altikat, who was shot to death on Aug. 27, 1982, as he sat in his car st
opped
at a red light on the Ottawa River Pkwy. at Island Park Dr. The gunman
conducted the brazen killing in plain view of other motorists and disappeared

without a trace.

HISTORICAL FEUD
     “It was something you don’t expect to see in Canada,” Bigras said about
the assassination.
     The Justice Commandos of the Armenian Genocide claimed responsibility
for
the killing – another violent act in the longstanding feud between Turks and
Armenians.
     “These attacks caused by Armenians were a result of passing hate from
generation to generation,” said Dr. Kevser Taymaz, a representative of the
Federation of Canadian Turkish Associations.
     “Both sides lost lives and what we want is to commemorate those lives
together.”
     Armenians say the Turkish government of the Ottoman Empire carried out
genocide on the Armenian minority in Turkey from 1915-1916 and 1922-23.
     They say the massacre of more than a million Armenians was systematic
and
repeated to eliminate the Armenian minority and create space for Turkish
development.

COMMEMORATION
     Each year, Turkish mourners commemorate the anniversary of Altikat’s
assassination in Ottawa by gathering at the intersection where he was gunned
down. “We want to remind people that … we should raise our children with
tolerance and understanding” said Taymaz.

SARGIS SARGSIAN LOSES TO ANDRE AGASSI AT THE FOURTH ROUND OF THE U.S. OPEN

Monday September 5, 2004 Gibrahayer: – Sargis Sargsian’s dramatic marathon
run
in the US Open came to an end against his practice partner Andre Agassi. He
lost to him 6-3, 6-2, 6-2 in ninety minutes.
     Sargsian had already run out of steam even before the match against
Agassi
began, having played more than 13 sets and ten hours to get to the fourth
round.
     In round one he beat Alex Corretja of Spain 2-6, 6-4, 6-0, 6-1 after
which
he defeated the 2004 Olympic Champion Chilean seed 10 Nicolas Massu 6-7, 6-4,
3-
6, 7-6, 6-4. His third round match against Paul-Henri M athieu of France –
the
second longest in US Open history at five hours and eight minutes – was a
thriller which produced five break points for Saragisian in the fifth set and

two match points for Mathieu before Sargsian could cheer in front of a strong

Armenian crowd waving the Armenian tricolour.

CD OF THE WEEK -  NEAR EASTERN RIDE

Ara Topouzian, Dick Barsamian and other superb Armenian musicians have, in
their latest recording, Near Eastern Ride, surpassed the expectations of even

the most discriminating listener. They have integrated their unique talents
to
create a collection of traditional Armenian songs / dances that make you jump

up and dance.
Each piece is a musical gem that, in its own distinct way, reflects the
brilliance of the ensemble, so savor this album; kick-back, turn up the
volume
and take the ride…
Track Listing: Soorch Bar, Agh Anoush, Tak Bar, Husenig Medley, Shekhani Bar,

Near Eastern Ride, Aghchig Mariam Tamzara, Assomeyir, Hayde Kaleh, 2/4
Fantasy

Special Offer: If you mention this newsletter, ARP will give a 15% discount
on
your first total order! Near Eastern Ride can be purchased for $15.00 USD and

add $2.00 for US shipping. Add an additional $1.00 for all foreign orders.

For more details, visit or email  [email protected]

Donation: To the AYMA Music Library.

NEWS IN BRIEF
– A legal team from Equatorial Guinea is in Armenia to probe links between a
local air transport company and an alleged plot to oust that country’s
president.

– ‘I assure you I will continue struggling against the denial of Armenian
genocide as president. My administration will label April 24, 2005, as the
90th
anniversary of this violent act,’  U.S. Presidential candidate Kerry

– When recalled the statements of U.S. President candidate John Kerry about
the
Armenian Genocide Turkish FM Gul said, ”this issue is important for Turkey.
Thus, we follow it closely”

– Armenia will send a team of military officials to Iraq in September that
will
prepare for the deployment of a small Arme nian army contingent in the
war-torn
country by the end of the year.

– Armenian President Robert Kocharian arrived on September 5 in Gdansk,
Poland,
on an official visit.

– Armenia’s foreign debt fell 2.5% from the beginning of the year to $1.07
billion in the first half of 2004.

– The Director General of the UN Food and Agricultural Organization (FAO),
Jacques Diouf, met with Agriculture Minister David Lokian in Yerevan to
discuss
ways of stepping up cooperation between the organization and the government
of
Armenia.

– Cyprus Ex-Davis Cup star Haig Ashdjian won the over 35 event at The Sunrise

Hotel Open Tennis Tournament at Protaras, convincingly beating the number 1
over 35 seed, Marios Petrou 6-4, 6-0.

g i b r a h a y    c a l e n d a r

â^À¢ Armenian Ambassador to Cyprus Vahram Gozoyan invites the Armenian Cypriots
to
the 13th Independence anniversary celebrations of the Third Armenian Republic

that will be held at the Melkonian Educational Institute on September 29,
2004
from 7:30 p.m.-9:30 p.m.

â^À¢ The Annual General Meeting of The Hamazkayin Cultural and Educational
Association “Oshakan” Cyprus Chapter will take place on Tuesday September 14,

2004 at 8:00 p.m. at A.Y.M.A.

â^À¢ BACK TO SCHOOL PARTY AT AYMA – Saturday September 11, 2004 at 9:00 p.m.
Entrance 5:00 including two drinks. Music dancing and a lot of fun, just in
time before the schools begin!
â^À¢ Armenian Radio Hour on The Cyprus Broadcasting Corporation can be heard
via

real audio on . Broadcast times 17:00-18:00 local Cyprus time

(14:00-15:00 GMT) News bulletins at 17:15 local time on Sundays, Tuesdays,
Fridays. Armenian Cypriots can also tune in on the following radio
frequencies
91.1 FM (Mount Olympus – for Nicosia listeners) 94.2 FM
(Paralimni/Protaras/Agia Napa) 92.4 FM (Larnaca) 96.5 FM (Paphos).

â^À¢ Every Wednesday from 7-8 p.m. (Cyprus time +2 GMT) on CyBC’s Trito, Puzant
Nadjarian presents the “History of the Blues” together with Robert Camassa.
The
programme which is now in its second year can also be heard on Real Audio
from
the Internet edition of CyBC on . A repeat programme can also

be heard seven hours later at 2:00 a.m. local time.

â^À¢ AYMA announces that the weekly practices of the football team begin in the
second week of September. Contact the AYMA Sports Committee for more details.

â^À¢ The Armenian Prelature announces that the next permit for the Armenian
Cemetery visitation at Ayios Dhometios on the Green line, is scheduled for
Sunday 19 September, 2004.

From: Emil Lazarian | Ararat NewsPress

CENN – SEPTEMBER 13, 2004 DAILY DIGEST – ARMENIA

Table of Contents:
1. Presentation of Armenian Culture Portal Took Place in Yerevan
2. Robert Kocharian: Sure That Realization of Armenian-Iranian Energy
Projects to Obtain Regions Importance
3. Armenia, Iran sign $30-mln Credit Agreement for Pipeline Construction
4. A critical Moment for Lake Sevan
5. Who is Destroying the Forests in Tsaghkadzor?
6. Armenian Government Seeks to Tighten Food Safety Regulations
7. Construction of Armenian Sector of Gas Pipeline with Iran to Begin by
Late October
8. RJSC UES of Russia Earns Some $80 mln Yearly in Armenia, $15 mln in
Georgia: Andrey Rappoport
9. Construction of Meghri HPP on River Araks to Start in 2005

1. PRESENTATION OF ARMENIAN CULTURE PORTAL TOOK PLACE IN
YEREVAN

Source: /ARKA/, September 8, 2004

Presentation of Armenian culture portal took place in
Yerevan. According to the Chairman of Association of Film Journalists
and Critics Susanna Harutyunian, the site is created on the base of
Internet page of Arvest magazine. “During two years of life of this
page, we understood that Internet has a lot of opportunities”, she said.
According to Harutyunian today the site contains news of culture,
articles, schedules of seminars and exhibitions, data base of culture
organizations of Armenia, legal articles and Government’s decisions in
given field and forum. “We hope that soon the number of visitors of our
site will grow”, she said. The site was created on the
initiative of the Association in assistance with Open Society Institute
Armenian branch.

2. ROBERT KOCHARIAN: SURE THAT REALIZATION OF ARMENIAN-IRANIAN ENERGY
PROJECTS TO OBTAIN REGIONS IMPORTANCE

Source: /ARKA/, September 8, 2004

RA President Robert Kocharian is confident that realization of
Armenian-Iranian energy projects will obtain regions importance, he
stated this at the briefing in Yerevan. According to him, energy is one
of the most important spheres of bilateral cooperation of Armenia with
Iran. “In given sphere we already accumulated certain experience on the
base of which we can develop steps on cooperation of infrastructures in
the sphere”, Kocharian said. Today the Presidents of Iran and Armenia
Mohammad Hatami and Robert Kocharian signed the agreement on basis and
principles of cooperation. Iranian delegation headed with the President
arrived today in Yerevan. It is the first visit of Iranian President in
Armenia.

3. ARMENIA, IRAN SIGN $30-MLN CREDIT AGREEMENT FOR PIPELINE CONSTRUCTION

Source: Interfax, September 9, 2004

Armenia and Iran signed a $30-million credit agreement on Wednesday to
finance the construction of the Armenian section of the Iran-Armenia gas
pipeline.

Energy is an important sector in cooperation between the two countries,
which have already gained a wealth of experience in cooperation in this
sphere, Armenian President Robert Kocharian said at a press conference
following the signing of the agreement.

“More serious steps will be taken based on this experience on the path
to unite the infrastructure of both states and raise mutual relations to
a qualitatively new level,” Kocharian said, adding that the construction
of the pipeline has an important regional significance.

Iranian President Mohammad Khatami, who was at the press conference,
also said bilateral cooperation was important in the energy sphere.

According to the agreement, Iran is to provide Armenia with a credit of
$30 million to build the Armenian section of the Iran-Armenia gas
pipeline. The credit will be provided for 7.5 years at 5% per year. The
funds will be used to finance the construction of a pipeline from the
border town of Megri to Kajaran.

Construction of the Armenian section of the pipeline should begin at the
end of 2004. Armenia will finance work to reconstruct and change parts
on the Kajaran-Yerevan gas pipeline.

Armenia and Iran signed an agreement on May 13 for the construction of a
pipeline between the two countries. The pipeline is 141 km long,
inducing 41 km in Armenia and 100 km in Iran. The total cost of the
project is estimated at $210-$220 million. The pipeline is expected to
be launched before January 1, 2007.

Gas should start to arrive in Armenia from January 2007 and will be used
at Armenian thermal power plants to produce electricity for export to
Iran. Iran will supply 36 billion cubic meters of natural gas to Armenia
over 20 years according to the document.

4. A CRITICAL MOMENT FOR LAKE SEVAN

Source: , September 8, 2004

The six-meter increase in the water level is not based on science

Lake Sevan was once a reservoir of water fit for drinking, according to
physical, chemical, and biological indices. But today, as a result of
the intensive exploitation of the lake over the years, its ecological
system has been disturbed, with falling water level and resultant
swamping bringing about qualitative changes, and the state of its native
fish life, the most sensitive index of the health of the lake, has
changed. There used to be three kinds of fish native to Sevan – ishkhan
(trout), koghak (carp) and beghlu (barbus).

Beghlu is a species peculiar to Lake Sevan. It has never had any
economic significance, much less so today. The quantity of Koghak has
decreased catastrophically as well, to the point where scientists plan
to declare it an endangered species. Of the four types of Ishkhan, two
used to spawn in the lake, and two in the rivers. Two of these have
disappeared, since their spawning grounds have vanished as the water
level has fallen, and the other two are on the verge of extinction.

Today only two kinds of fish of industrial significance remain in Sevan
– Sig (whitefish) and lake sazan.

Four years ago a project to restore Lake Gilli , in the southeast of the
Sevan basin, was launched, and it was expected to play a vital role in
saving the Sevan eco-system. Lake Gilli had dried up as a result of the
drop in Sevan’s water level. Since then, 110 kinds of birds have
disappeared from the basin, and the republic as a whole has been
deprived of 35 kinds of birds.

The Gilli project failed, and it is not clear yet what the fate of a
second project, recently started with an impressive initial investment
of $1 million, will be.

The most striking evidence of the government’s mishandling of the Sevan
problem is the complete absence of purifying stations on the lake. But
even if they were in operation, they would have trouble preventing the
damage to Sevan caused by agriculture. Irrigation is not the only
problem. The inability of villagers to utilize fertilizers correctly
contributes to the free flow of nitrates and phosphates into the lake,
the majority of which come from industrial and household wastewater.
Twice in the past, a decision was made to build in a purification
station in Gavar. Both times, the decisions were reversed and new
enterprises were built.

Delays in putting the Vorotan River-Arpa River hydro-system into
operation have played a role as well. It has come to light through the
2002 annual report of the Ministry of Ecology that although 1.4 billion
drams (about $2.7 million) was allocated for the construction of a
tunnel, no work was carried out.

There is another factor threatening the stability of the level of Sevan
which is beyond human control, the negative impact of evaporation on the
water level over the past few years. The volume of water lost through
evaporation has been greater than the volume of water flowing into the
lake.
And although there has been heavy rainfall in the last two years,
scientists predict that in connection with global warming, evaporation
will increase in the future. Some even hold the pessimistic view that no
matter what is done, the lake will eventually evaporate completely.

But at least this year, unprecedentedly abundant rains have helped
revive the beautiful mountainous lake. Today, Sevan seems to be waking
up, its dead green color gradually turning healthy and vivid. It is
expected that when the Vorotan – Arpa hydro-system goes into operation,
165 million cubic meters of water will flow into Sevan each year. This
will be a miracle cure for the lake, now at death’s door. The Law on
Sevan stipulates that the level of the lake must rise by six meters.
Compared to 2000-2001, the water level has already gone up one meter and
seventeen centimeters.

But a real battle has begun between ecologists and the government over
goals for the lake. Scientists say that emphasizing the six-meter mark
not only is unfounded scientifically, but also might have very dangerous
consequences for the lake. The chairman of the NGO For Sustainable Human
Development, Karine Danielyan, explains, “The ecological system of the
lake will become healthier if the lake water returns to its level in the
nineteen-sixties, i.e. 1,908.5 meters, when the processes of decline had
not yet begun and the lake was in its natural, balanced state. That’s
the only way that the water quality will improve, the flora and fauna
will revive, and it will become possible to talk about saving Sevan.”

“This six meters won’t do anything for the lake,” says the
deputy-director of the Institute of Hydro-ecology and Pisciculture of
the Academy of Science, Bartugh Gabrielyan. “Maybe it will hold up the
swamping process, but it will not improve the water quality, and Sevan’s
most important problem is water quality. People were talking about six
meters at a time when the lake’s water level had fallen by eighteen
meters. Since then the water level has kept falling, up to twenty to
twenty-two meters, but now the same figure is being mentioned again. ”

Minister of Ecology Vardan Aivazyan says that the figure of six meters
appeared as a result of a study by experts from the World Bank. The real
story is somewhat different. At one time, the Institute of Hydrology of
the Academy of Science of Armenia, together with institutes in Moscow
and Rostov ( Russia ), developed a mathematical model to find out what
would happen in the lake after the water level increased, and what level
would be necessary to return the water quality to its previous grade.
The mark of six meters was found as a result of applying this model.
Accepting these dated findings, without taking the trouble to do new
research or ask the opinion of local scientists regarding the current
situation, international experts merely reiterated the six-meter mark.
The fact that the ecological system of the lake has changed for the
worse, with new problems raising their heads, has been completely
ignored.

The reason that the government doesn’t want to consider raising the
level of the lake by more than six meters may simply be that a rising
water level will become a real threat to dozens of lakeside vacation
houses owned by the nouveaux riches with positions and connections.
Waves are lapping at the walls of Gagik Tsarukyan’s lakeside “cottage”,
and dozens of other buildings are already under water. So today,
stubborn attempts are being made to reduce even the six-meter mark. The
marzpet (governor) of Gegharkiunik, Stepan Barsegyan, says he receives
unofficial instructions that the water level should not go up by more
than four meters. The director of Sevan National Park , Gagik
Martirosyan, employs doubtful arguments to suggest that an increase of
even by one meter would be enough for Sevan. This could mean that the
quantity of water entering the lake will be controlled, in order to
protect the owners of lakeside buildings.

There are 350-400 structures along the coast today, owned by individuals
and organizations, the majority of them illegal. The government will not
compensate the owners of illegal constructions if they go under water.
But the government will have problems with the landlords whose houses
were built with permits from town-planning authorities. These landlords
are understandably furious, since none of the local officials or
ministers dropped a hint about the water level increase as they handed
out these permits. But the strange thing is that construction work is
still going on all around the lake, even though local officials now warn
builders that their projects might one day be under water.

The fifteen to twenty hectares of lakeside forests that have been
planted over the last fourteen years will be absorbed into the lake as
well, a sad but unavoidable loss.

Today for the first time in years, there is a real possibility that the
lake will be saved. The Vorotan – Arpa hydro-system, the twenty-eight
rivers that flow into the lake, and the reconstruction of the Yeghvard
Reservoir all hold real promise for Sevan. The unprecedentedly heavy
precipitation of the last few years was an unexpected gift. Some
ecologists believe that even without the hydro-systems Sevan may come
back from the brink of death. If, of course, its salvation is not
sacrificed to the interests of the oligarchs.

It’s a critical time for Lake Sevan once again. The general public has
been deprived of information about what has been going on around Sevan.
It has been deprived of the right to participate in deliberations over
the fate of the lake that plays such an important role in the life of
generations to come. Perhaps this is because both our government and our
society are lacking in environmental awareness. People sit by silently,
uninformed, as their rights and interests are threatened.

5. WHO IS DESTROYING THE FORESTS IN TSAGHKADZOR?

Source: , September 8, 2004

As we reported on August 28th, a number of media outlets organized a
joint protest in which ninety journalists went to Tsakhkadzor in
nineteen cars. They drove around the town taking pictures of the forests
that have been cut down and the houses of various government officials
and businessmen that have gone up.

Pictured here is the wall surrounding the house of Levon Sargisyan, a
member of parliament. We remind you that it was Sargisyan’s bodyguard,
Gagik Stepanyan, who beat photojournalist Mkhitar Khachatryan of the
news agency PhotoLur and reporter Anna Israelyan from the newspaper
Aravot. Stepyanyan is currently under arrest. It makes sense that an MP
who walks around with dozens of bodyguards has to build a wall like
this, though only he knows who or what he is so afraid of.

This mansion belongs to the head of the State Customs Committee of
Armenia, Armen Avetisyan.

The path through the forest has been widened to enable Robert Kocharyan
to drive a snow mobile here. “Maybe some twenty trees were cut down
there,” says the mayor of Tsaghkadzor, Garun Mirzoyan.

When reporters had presented him with evidence that trees had been cut
down Tsaghkadzor the mayor made the following statement twice, “In this
area only ten or fifteen trees were cut down”.

Now that the forest has been occupied by the owners of these mansions –
government officials, MPs, oligarchs – ordinary people can’t even pick
berries there. On August 7, 2004, Samvel Baghdasaryan, a resident of
Hrazdan, was shot and wounded while picking gooseberries. Haykakan
Zhamanak reported that according to one theory, it was a bodyguard of
Olympic Committee Chairman Ishkhan Zakaryan who pulled the trigger. An
investigation into the case by the Hrazdan prosecutor’s office is
underway, although there are no suspects so far.

6. ARMENIAN GOVERNMENT SEEKS TO TIGHTEN FOOD-SAFETY REGULATIONS

Source; RFE/RL NEWSLINE Vol. 8, No. 173, Part I, 10 September 2004

The Armenian government approved a set of measures on 9 September to
significantly tighten food-safety standards, RFE/RL’s Yerevan bureau
reported. The proposed measures, covering both domestic and imported
food products, would impose stricter quality and packaging requirements,
including new health warnings and detailed labeling.

According to Mikael Grigorian, the head of the Agriculture Ministry’s
food-safety department, the proposals are necessitated by the inadequacy
and poor enforcement of current food-safety regulations.

The availability of low-cost but inferior foodstuffs that fail to meet
minimum health standards in Armenia was confirmed by a recent inspection
by the Health Ministry that revealed widespread noncompliance with basic
safety requirements by many domestic agribusiness producers.

7. CONSTRUCTION OF ARMENIAN SECTOR OF GAS PIPELINE WITH IRAN TO BEGIN BY
LATE OCTOBER

Source: Interfax, September 10, 2004

The construction of the Armenian section of its gas pipeline with Iran
is expected to begin by the end of October, Armenian Ambassador to Iran
Geram Garibdzhanian told Interfax.

A contract envisioning an Iranian credit for building the gas pipeline’s
Armenian sector and a treaty on construction works at this sector by
Iran’s Sanir company are only the first steps in Iran’s assistance to
Armenia in this project, the ambassador said, declining to provide
further details.

Three Armenian-Iranian intergovernmental documents were signed during
Iranian President Mohammad Khatami’s official visit to Yerevan on
Wednesday. They include a memorandum on mutual understanding and
cooperation between the Energy Ministries of Armenia and Iran, an
agreement on a $30 million credit to be issued by Export Development
Bank of Iran to the Armenian Energy Ministry and a treaty making the
Iranian Sanir company subcontractor of the project aimed at building the
Armenian section of the gas pipeline.

8. RJSC UES OF RUSSIA EARNS SOME $80 MLN YEARLY IN ARMENIA, $15 MLN IN
GEORGIA: ANDREY RAPPOPORT

Source: ARMINFO, September 10, 2004

RJSC UES of Russia earns some $80 mln yearly in Armenia, in Georgia
aggregate assets will bring $15 mln profits, the member of the Board of
the Russian energy holding Andrey Rappoport told “Gazeta” Russian
newspaper. The interview is published by the Department for Mass Media
of RJSC UES of Russia.

A.Rappoport said that the energy holding spent a total of $50-60 mln for
purchase of assets in Georgia and Armenia in conformity with preliminary
data, as not all calculations have been carried out yet. He added that
there are no problems with payments for energy resources in Armenia,
while in Georgia the debt of the “Wholesale Energy Market” to the
Tbilisi city electricity distribution network (assets of RJSC UES of
Russia) totals some $27.6 mln. He said: “I see no special problems in
Armenia. Their attitude to us is very good, and if any difficulties
arouse, they overcome them along the way. While in Georgia, there are
real problems in relations with local authorities. We have felt some
aggressiveness to us recently. We do not understand it, as the Georgian
leadership comes out for attraction of investors to the country,
promising comfortable conditions for them. During the recent
negotiations with Georgian leaders, I directly stated that as an
investor I feel uncomfortable in Georgia. In such a situation, there can
be no special interest in making serious investments in Goergia.”

9. CONSTRUCTION OF MEGHRI HPP ON RIVER ARAKS TO START IN 2005

Source: ARMINFO, September 10, 2004

Construction of a joint Armenian-Iranian hydropower plant in Meghri on
the Riven Araks will start in 2005, Armenian Energy Minister told
journalists on September 9, 2004.

He said that a relevant agreement was reached on the last day of Iranian
President Seyed Mohammad Khatami’s visit to Armenia in the course of his
meeting with Armenian President Robert Kocharyan, Measures on
feasibility study of the given project are planned to be completed
before 2005. The minister said that HPP would become the most powerful
in the territory of the Transcaucasus. It should be noted that the
established capacity of the HPP will total 140 megawatt, with the
electricity generation to make up 150 mln kW yearly. The project is
estimated at 160 mln USD.