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1) Karabagh Tops Talks between Oskanian, Powell
2) EU Includes South Caucasus Countries in Neighborhood Policy
3) Congressmen Schiff, Radanovich Seek Committee Hearing on Armenian Victims
Insurance Fairness Act
4) World Bank Extends $24 Million to Support Armenia Reforms
5) Gul Presents Turkey’s Vision for Karabagh at Islamic Conference

1) Karabagh Tops Talks between Oskanian, Powell

YEREVAN (RFE/RL)–Armenia’s Foreign Minister Vartan Oskanian met with US
Secretary of State Colin Powell and other top officials on Monday to discuss
the Mountainous Karabagh conflict, during Oskanian’s visit to Washington.
Commenting on the meeting, State Department spokesman Richard Boucher noted
that Oskanian and Powell “discussed progress towards settlement of the
Mountainous Karabagh conflict.” “They also discussed the possibilities for
improving relations between Turkey and Armenia and Armenia’s prospects for
receiving funds under the Millennium Challenge Account,” Boucher added. “We
also understand that Foreign Minister Oskanian is meeting today with Assistant
Secretary for European and Eurasian Affairs Beth Jones, to go into some of
these issues in more detail.”
Oskanian was also due to meet with national security adviser Condoleeza Rice,
and senior Pentagon officials. Armenian government officials have rarely held
such high-level talks in the US capital in recent year.
The meeting comes in advance of the June 21 Prague meeting between Oskanian
and Azerbaijan’s Foreign Minister Elmar Mamedyarov.
The two men have met twice in recent weeks under the auspices of the OSCE’s
Minsk Group, co-chaired by the United States, Russia, and France. They have
both issued cautiously optimistic statements, with Mamedyarov saying late last
month that the peace talks are “intensifying” after a period of stagnation.
Oskanian’s trip to Washington follows an unexpected visit to Yerevan on
June 3
by Steven Mann, America’s chief Karabagh negotiator.

2) EU Includes South Caucasus Countries in Neighborhood Policy

BRUSSELS (Armenpress/EurActiv.com)–The European Union (EU) this week formally
included Georgia, Armenia and Azerbaijan in its European Neighborhood Policy
(ENP). The move does not open the door to EU membershipofficials studiously
avoid speculation, saying simply membership is “not on the agenda.” However,
the new neighborhood initiative could, over the next decades, lead to free
trade, substantial aid grants, and extensive political dialogue with the EU.
EU foreign ministers hailed the decision–passed by EU’s External Relations
Council in Luxembourg on June 14–as a “significant step forward in the
Union’s
engagement with this region.”
The ENP’s goal is to create circumstances that will allow Europe and its
neighboring countries to “share the benefits of an enlarged EU.”
Armenia, Azerbaijan and Georgia will be given equal opportunity to develop
links with the EU, and be allowed to submit Action Plans aimed at bolstering
reforms. The plans, which must last a minimum of three years and promote
regional cooperation, will be assessed based on individual merits, and in
conformity to general ENP policy.
The EU also identified Russia as a key partner in the bloc’s new strategy of
upgrading political and economic relations with its neighbors.

3) Congressmen Schiff, Radanovich Seek Committee Hearing on Armenian Victims
Insurance Fairness Act

WASHINGTON, DCCalifornia Congressmen Adam Schiff and George Radanovich have
formally requested a committee hearing on the Armenian Victims Insurance
Fairness Act (HR 3323).
The bill would allow states to require insurance companies to disclose the
identity of Genocide-era insurance policy holders.
Unable to access necessary documents, many victims and their families are
still unable to collect benefits owed to them.
The Armenian Bar Association endorsed the legislation in April.
“It is important for Congress to speak clearly on this issue so that states
are permitted to act if they so choose,” Congressmen Schiff and Radanovich
wrote in their letter to House Financial Services Committee Chairman
Michael G.
Oxley, requesting the hearing. “Private settlement negotiations between
insurance companies and families have been slow with no final resolutions
reached to date. Families should not have to wait any longer for
disclosure of
policyholder lists.”
Customarily, a committee hearing on a bill is the first step followed by the
committee’s votes on the legislation at a later date.

4) World Bank Extends $24 Million to Support Armenia Reforms

WASHINGTON, DC– More than 22 million dollars will be extended to the Armenian
Water and Sewage Company to implement its Municipal Water and Wastewater
Project. The allocation will come from a Development Credit Agreement between
the Government of Armenia and the World Bank’s International Development
Association, signed on June 14 by Armenia’s Ambassador to the US Dr. Arman
Kirakossian, and World Bank’s Resident Representative in Armenia Roger
Robinson.
Armenia’s water utility has undergone fundamental reforms for more than four
years, and the World Bank credit is expected to advance greater reforms.
Also signed was a Development Credit Agreement, which will allocate a
supplemental $1.75 million to Armenia’s ongoing Agricultural Reforms Support
Program.
During the signing ceremony, Robinson praised the Armenian government for its
cooperation in implementing the World Bank programs.
Ambassador Kirakossian said that by way of its expertise and financing since
the reestablishment of independence in Armenia, the World Bank has helped the
Government in its effort to alleviate poverty and promote economic growth.

5) Gul Presents Turkey’s Vision for Karabagh at Islamic Conference

ISTANBUL (Anadolu Agency)–Speaking at the 31st session of Islamic Conference
of Foreign Ministers in Istanbul on Monday, Turkish Foreign Minister Abdullah
Gul stressed that the Azeri-Armenian conflict still stands as one of the
principle obstacles to regional stability, prosperity, and cooperation in the
South Caucasus. “The time has come to find a peaceful solution to this
conflict
[while] maintaining the territorial integrity of Azerbaijan. The Armenian
occupation of Azerbaijani territories has to be brought to an end. This is in
the interest of the regional countries as well as the international community.
Turkey is ready to play its role in settling this issue.”
Commenting on the Cyprus issue, Gul noted that it is time for the
international community to give full backing to the Turkish Cypriots by
engaging in direct economic, commercial, social and cultural contact. “The EU
and the United States have already taken some steps with a view to putting an
end to the isolation of Turkish Cypriots,” Gul said, urging the Islamic World
to also extend full support to Turkish Cypriot “Muslim Brothers.”

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Moscow Times
June 16 2004

Gazprom Getting Tough With Ex-Soviet Republics

Combined Reports

Dmitry Beliakov / bloomberg

Ryazanov said Gazprom will gradually raise gas prices for all three
Baltic states.

Gazprom, the world’s largest natural gas producer, said Tuesday it
plans to cut deliveries of the fuel to former Soviet republics by
almost 5 percent this year and gradually raise prices for new
European Union members Lithuania, Latvia and Estonia.

“We shall start pushing prices up for [the Baltic states] to the
level close to the European Union,” Gazprom deputy CEO Alexander
Ryazanov told a news conference.

He said that Gazprom, which rarely discloses export prices, supplies
the Baltic states at $84 per 1,000 cubic meters. Neighboring Poland
gets gas at about $120 per 1,000 cubic meters.

Gazprom will deliver 49.9 billion cubic meters of gas to the CIS,
Georgia and the Baltics, down from 52.3 bcm last year, he said.
Deliveries to Belarus will rise by 2 percent to 18.5 bcm, and to
Lithuania by 4 percent, to 3.07 bcm.

“There are serious problems in developing cooperation between Gazprom
and the CIS countries because of debts they owe for gas,” Ryazanov
said.

Gazprom says Ukraine, Belarus and Moldova owe $3.25 billion. At the
start of June, the company stopped deliveries to Poland and Germany
through Belarus after a price dispute.

Ryazanov warned that Gazprom might limit deliveries to Georgia, which
has accumulated a $50 million to $60 million debt.

“Georgia is our main headache,” he said.

Production will rise 3.3 percent to 542 bcm, with 291 bcm going to
Russia, he said. It expects to break even on domestic sales and earn
as much as $400 million from them in 2005.

“This is a transitional period, and we’ll look at prices when we get
over this period,” Ryazanov said.

Gazprom will increase transit shipments of gas from Azerbaijan,
Armenia, Georgia and Moldova as much as sixfold to 9.35 bcm this
year, he said. A total of 44.1 bcm from Central Asia will cross
Russian territory, along with 119.2 bcm from Ukraine, 33.1 bcm from
Belarus and 22.1 bcm from Moldova.

“The main problem in delivering Central Asian gas is the lack of a
decent transport infrastructure,” Ryazanov said.

He said Moldova owes Gazprom $1.26 billion, and the company is in
talks with the government on restructuring the debt, including
schemes under which Gazprom will get shares in Moldovan firms.

(Bloomberg, Reuters)

‘We Are Waging a Racial Holy War’
By Maria Danilova

Moscow Times
June 16 2004

The Associated Press — Semyon Tokmakov stretches out his hand and
points to a thick scar he got from assaulting a black U.S. Marine six
years ago. The attack cost him 1 1/2 years in jail, but Tokmakov says
he has no regrets.

“We are waging a racial holy war,” said Tokmakov, 28, an informal
leader among Moscow’s skinheads, whose violence appears to be rising.

Over the last several years, Russia has become a strikingly hostile
place for all those with African, Asian or so-called Caucasian
features — the dark skin and dark hair typical for the peoples of
the mountainous Caucasus region.

The U.S. Marine was badly beaten in 1998 in a Moscow market, one of
several foreigners targeted in recent years. The last few months
have seen an especially shocking series of brutal racial attacks,
such as the stabbing to death of a Guinea-Bissau student in Voronezh,
the killing of an Afghan asylum seeker in Moscow, and the slaying of
a 9-year-old Tajik girl in St. Petersburg.

Ethnic minorities in Moscow complain that beatings and insults are
almost a daily occurrence.

“Racially motivated crimes are growing in number and brutality by the
year,” said Alexander Brod, head of the Moscow Bureau for Human Rights.

According to a two-year study conducted by Brod’s bureau and a few
other groups, there are about 50,000 skinheads in Russia, with Moscow
and St. Petersburg home to about 1,500 each. It said 20 to 30 people
have died in such attacks annually in the past few years, and the
number of such crimes is growing by 30 percent per year.

“When you kill cockroaches, you don’t feel sorry for them, do you?”
Tokmakov said, when asked whether he felt sorry for the slain Tajik
girl.

The growing extremist sentiments are rooted in Russia’s economic
problems, including high unemployment in many regions, and the
collapse of the Soviet Union, which sent hundreds of thousands of
migrants from poorer former Soviet republics to Russia seeking jobs.

“Why have they all come here?” Tokmakov said. “They bring nothing
but drugs and AIDS. Every day they harass and steal our women.”

Political parties and politicians openly played the nationalist card
in the December parliamentary vote, calling for the ouster of migrant
workers and promoting Russia for Russians. Two such political groups,
the Liberal Democratic Party and the Rodina bloc, enjoyed victory in
the election.

Tokmakov said he and his associates had been on the ballot of Rodina
but their names were later crossed out. Party officials have denied
that.

“When there are such economic and other hardships, there are usually
two ways of dealing with it — the first is that of contemplating,
the second is looking for an enemy and blaming him for your problems.
Unfortunately Russia has chosen the second path,” Brod said.

Rafael Arkelov, a 47-year-old Armenian singer who has spent all his
life living in Moscow and for whom Russian is his first language,
has experienced it all.

He was in a grocery store buying a chocolate bar and a bottle of
champagne to visit his friends for a New Year’s celebration when a
man asked him for some change. After Arkelov refused to give him
money, he saw the man approach two youths with shaved heads whom
he identified as skinheads standing nearby and whispered something.
Several minutes later, after Arkelov walked out of the store, he was
jumped from behind.

“They punched me in my eyes, my face, and all of a sudden I couldn’t
see anymore. Then I collapsed to the ground and they started beating
me with their feet,” Arkelov recalled. “If it weren’t for a woman
across the street who screamed ‘What are you doing?’, if it weren’t
for this scream of hers, I think they would have beaten me to death.”

Brod’s study predicted that the number of skinheads could grow to
80,000 to 100,000 within the next two years if authorities don’t
take measures to combat xenophobia. Interior Ministry officials have
said they were closely watching 10,000 suspected members of extremist
groups, but all too often racially motivated attacks are dismissed as
hooliganism. “Racism isn’t unique to Russia, I know it exists in Europe
and America,” Arkelov said. “But unlike Russia, in those countries
it is prosecuted and the state pursues specific policies to combat it.”

Victory for Anand’s team

Leko’s fifth-round win over Anand was not enough

Calcutta Telegraph, India
June 16 2004

Moscow: Former world champion Viswanathan Anand drew his final round
game with world No. 1 Garri Kasparov to ensure victory for the Rest
of the World team against Armenia on Tuesday.

Despite a defeat in the sixth and final round, Rest of the World held
on to their lead, winning the match 18.5-17.5.

Rest of the World began the last round with the cushion of a
two-point lead at 16-14, while Armenia looked for two extra wins,
without defeats.

Playing Kasparov with white pieces, Anand snatched the precious half
point with a comfortable draw. The Sicilian Pelican game between
Anand and Kasparov saw neither player willing to take the risk.

Anand completed the event with two wins, a lone defeat to Peter Leko
and three draws.

Leko’s fine win over the Indian in the fifth and penultimate round
on Monday, however, was not enough for his team.

Anand’s game plan did not succeed in the later stages even as pieces
got exchanged at regular intervals and the players arrived at rook
and pawns end game with equal strength.

The only decisive game of the day came from the Vaganian-Adams game,
wherein the veteran Armenian brought in all his experience in the
Queens Indian game to down the English Grandmaster.

Giving it all, Vaganian went all out on a king-side attack, marshalling
his pieces in quick time. Adams’ decision to hold on to the bishop
against knight backfired as the white knight occupied vital squares.

Holding a vice like grip, Vaganian forced Adams to resign after
38 moves.

Short draws occurred in the Valleo Pons-Leko and Akopian-Svidler games,
where peace was signed in 18 and 16 moves, respectively.

PRESS RELEASE
Ministry of Foreign Affairs of the Republic of Armenia
Contact: Information Desk
Tel: (374-1) 52-35-31
Email: [email protected]
Web:

Armenia’s Foreign Minister Meets with Powell, Rice in Washington

Foreign Minister Oskanian is on a two-day working visit to the United
States.

On Monday, June 14, he held two separate meetings with Secretary of
State Colin Powell and National Security Adviser Condoleeza Rice. At
each meeting, the Minister discussed key matters of bilateral interest,
such as expanded trade and deeper economic cooperation, including the
Millennium Challenge Account. They also explored developments in the
Nagorno Karabakh negotiation process, regional matters, including
regional security issues, Armenia’s relations with Turkey, and the
upcoming NATO Summit.

The Minister also met with Mira Rickardel, Assistant to the Secretary
of Defense for Europe and Eurasia, and Assistant Secretary of State
Elizabeth Jones. With each, Minister Oskanian discussed regional
stability and cooperation, as well as the Nagorno Karabakh peace
process and prospects for a resolution.

During his first day, the Minister delivered a talk at the Center
for Strategic and International Studies (CSIS). The audience, a
mix of representatives of official Washington, as well as think
tanks, research centers, press and academia, heard the Minister
assess Armenia’s foreign policy challenges, its security agenda,
the importance of maintaining regional stability and security, and
the significnce of democratic processes and sustained economic growth
to each of these concerns.

On Tuesday, the Minister will meet with members of the US Senate
and Congress, as well as representatives of the media, as well
as Armenian-American organizations. He will leave for Yerevan on
Wednesday.

ARMENIA THIS WEEK
June 14, 2004

ARMENIAN FOREIGN MINISTER VISITS U.S.
A delegation led by Foreign Minister Vartan Oskanian is in Washington this
week for two days of high-level meetings with U.S. Administration officials
and members of Congress. On Monday, Oskanian met with the President’s
National Security Advisor Condoleezza Rice, her deputy Stephen Hadley,
Secretary of State Colin Powell, Assistant Secretary of State Elizabeth
Jones and Assistant Secretary of Defense Mira Ricardel. The talks focused on
bilateral security cooperation and U.S. economic assistance, as well as the
ongoing Karabakh peace process and Armenia’s relations with Turkey. Meetings
with key members of the Senate and House of Representatives, including
leaders of the Congressional Caucus on Armenian Issues, are set for Tuesday.

Speaking at the Center for Strategic and International Studies, a leading
Washington-based think tank, Oskanian outlined Armenia’s priorities in three
interconnected areas: internal political stability and democratic
development, sustained economic growth and settlement of regional conflicts.
He noted that Armenia’s selection as one of only sixteen countries worldwide
eligible for additional U.S. aid in the framework of the Millennium
Challenge Account reflects approval of Armenia’s economic and political
reforms. But Oskanian stressed that Armenia’s leaders recognized that more
progress is needed in these two areas.

Last week, the Armenian National Assembly gave preliminary approval to
sending a peacekeeping unit to Iraq. The Parliament voted to ratify
Armenia’s Status of Forces agreement with Kuwait, paving the way for a
deployment of a 30-truck transportation company, military engineers and
medics, via that country to support U.S.-led stabilization operations in
Iraq. Chief of the Armenian Armed Forces’ General Staff General Mikael
Harutiunian said two weeks ago that Armenia’s commitment to contribute to
the U.S.-led effort was unaffected by continued violence in Iraq. According
to U.S. and Armenian officials, the deployment is expected by September.

Also this Wednesday, the Senate will hold hearings on the nomination of John
Evans as the next U.S. Ambassador to Armenia. Evans, a decorated veteran of
the foreign service with experience in Eastern Europe and Iran, is expected
to replace Ambassador John Ordway, who is completing his mission in Armenia
later this summer to become Ambassador to Kazakhstan. (Sources: Armenia This
Week 4-30; AAA Press Release 5-7; Federal News Service 6-7; RFE/RL Armenia
Report 6-8; R&I Report 6-14)

POSSIBLE PROGRESS ON KARABAKH SEEN DESPITE CONTINUED AZERI HOSTILITY
The Foreign Ministers of Armenia and Azerbaijan are discussing a new
approach to resolving the Karabakh conflict, both officials have confirmed.
Following high-level discussions in April and May, Vartan Oskanian and Elmar
Mamediarov are set to resume negotiations in the Czech Republic this
weekend. In an interview last Friday, Mamediarov said that talks are
focusing on developing a new plan that would include elements of the 1997
“step-by-step” proposal and “package” options discussed since then. Speaking
in Washington this Monday, Oskanian confirmed such discussions were
underway.

The 1997 plan called for Armenian withdrawal from areas adjacent to NKR in
exchange for lifting of the Azeri blockades and limited security guarantees,
with the status of Karabakh left to be determined in future talks.
Incorporation of elements of the “package” approach may imply an early Azeri
commitment to the mechanism that would determine Karabakh’s status.

Meanwhile, an almost daily barrage of militant rhetoric by Azeri officials
and media continues unabated. Last week President Ilham Aliyev again made,
by now, customary threats of a new war. The Azeri government said it
launched “criminal investigations” against the Presidents of Armenia and NKR
for their roles in defeating Azerbaijan’s military in the early 1990s. Azeri
peace activists who did not heed Aliyev’s call for an end to all
non-government contacts with ethnic Armenians were again harassed by
government-linked radicals.

More ominously, Azeri military units resumed provocations along the Line of
Contact last week leading to at least one person killed on each side – the
worst instance of a cease-fire violation since last winter. Both then and
now escalations precede preparatory events for NATO’s Cooperative Best
Effort exercises due in Baku this September. Azeri officials now claim that
they would not hinder Armenian participation in the preparatory event set
for June 21. But after similar claims in January, three Armenian officials
were denied visas and barred from boarding a Baku-bound plane.

Lack of good faith and Azerbaijan’s refusals to implement any
confidence-building measures are likely to undermine any progress in talks.
Recently, NKR President Arkady Ghoukasian urged international organizations
to focus on ending what has become known as the information “war” waged by
Azerbaijan before turning to settlement plans. (Sources: Armenia This Week
1-16, 5-21; Azad Azerbaycan 6-2; Noyan Tapan 6-5; Turan 6-10, 12; RFE/RL
6-11, 14; ANS 6-14; R&I Report 6-14)

Visit the Armenia This Week archive dating back to 1997 at

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Armenian Assembly of America
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ISSUE BRIEF: ARMENIA AND NATO SUMMIT IN TURKEY
June 14, 2004

BACKGROUND: President Robert Kocharian is not attending the June 28-29 NATO
Summit in Istanbul, Turkey. Instead, Foreign Minister Vartan Oskanian is
leading the Armenian delegation. This decision was prompted by continued
aggressive Turkish policies towards Armenia, and does not reflect any
Armenian concerns with NATO.

In the absence of any appreciable progress in relations between Armenia and
Turkey after years of talks, Armenia’s President decided not to attend the
NATO Summit in Turkey in order to call international attention to Turkey’s
continued hostility against Armenia.

– ARMENIA-NATO RELATIONS: In February 2004 Armenia deployed a peacekeeping
platoon to Kosovo, as part of the Greek contingent of the US-led
multinational brigade in KFOR. In Iraq, Armenia is set to deploy a
transportation company, as well as de-mining engineers and medical units. In
June 2003, Armenia hosted the NATO PfP Military Exercise “Co-operative Best
Effort 2003,” with participation of 19 states, including Turkey. Last March,
Armenia ratified the Partnership for Peace Status of Forces Agreement
(SOFA). At the same time, Armenia’s Minister of Defense announced that
Armenia would submit an official application to participate in NATO’s
Individual Partnership Action Plan, the most advanced type of engagement
short of actual membership. Armenia appointed a Military Representative to
NATO on May 1 and an Ambassador, whose sole portfolio will be NATO, will
assume office this summer. The annual meeting of the PfP Political-Military
Committee with Armenia took place at NATO HQ, in April 2004. The meeting,
which was held with all partners, covered Armenia’s participation in the
Planning and Review Process, and approved Armenia’s Partnership Goals for
2004, outlining Armenia’s tasks for the next two-year cycle. Although
neither invited, nor self-invited to join NATO, Armenia will continue to
strengthen its partnership with NATO. Senior U.S. and NATO officials have
repeatedly praised Armenia for strides it has made in the development of
closer relations with the alliance.

– TURKEY’S ARMENIA POLICY: Since Armenia regained its independence in 1991,
Turkey has steadfastly refused to establish diplomatic relations. For over
a decade Turkey has also maintained a land blockade against Armenia, defying
international treaties and U.S. law, as well as ignoring calls by the United
States and European Union to open its border. Turkey links normalization to
Armenian concessions on the Karabakh conflict. Turkey has also provided
military and diplomatic assistance uncritically championing Azerbaijan’s
views on the Karabakh conflict. By introducing the blockade against its
neighbor when it did, Turkey aimed to harm Armenia and assist Azerbaijan in
its war against Karabakh Armenians.

– INTERNATIONAL REACTION TO THE TURKISH BLOCKADE: Turkey’s blockade against
Armenia is not sanctioned by any international entity. In fact, both the
United States and the European Union (EU) have repeatedly called for its
lifting. President George W. Bush said that he looks forward to “Turkey
restoring economic, political, and cultural links with Armenia.” The
European Parliament has called for making normalization of Armenian-Turkish
relations a pre-condition for Turkey’s accession to the EU. Turkey is in
violation of the 1921 Treaty of Moscow and the Treaty of Kars, which
established the current Armenian-Turkish border. According to these
treaties, Turkey is bound to “uninterrupted communication between the two
countries” and “secure the free movement of persons and goods.”

– ARMENIA’S TURKEY POLICY: Despite Turkey’s confrontational policies and
actions, Armenia’s response has been consistent since independence – normal
relations with Turkey without preconditions. Armenia appreciates that its
most direct links to the west are via Turkey, that Turkey’s most direct
access to the southern rim of the former Soviet Union is via Armenia as well
and that an open border will dramatically enhance the economic development
of eastern Turkey and Armenia. Despite Turks’ claims to the contrary,
President Kocharian has stated that Armenia has no territorial claims
against Turkey.

– ARMENIAN-TURKISH TALKS: Direct Armenian-Turkish contacts resumed after
Armenia lifted its objections to holding the 1999 summit of the Organization
for Security and Cooperation in Europe (OSCE) in Istanbul and as several
Western governments pledged to seek moderation and engagement from Turkey in
its future relations with Armenia. Officials from the Ecevit government and
the new Turkish government elected in late 2002 and now led by Prime
Minister Tayyib Erdogan promised to re-think Turkish policies, strongly
hinting at a positive change. But more recently, they have again ruled the
lifting of preconditions as “out of the question.”

PRESS RELEASE
Ministry of Foreign Affairs of the Republic of Armenia
Contact: Information Desk
Tel: (374-1) 52-35-31
Email: [email protected]
Web:

The European Union Commission Reaffirms Armenia’s Inclusion in the New
Neighborhood Initiative

On June 14, the European Union General Affairs and External Relations
Council reaffirmed the Commission’s proposal to include Armenia, Georgia and
Azerbaijan in its New Neighborhood Initiative. This decision means that the
three countries will each develop individual plans for deeper cooperation
with and possible integration into Europe. At the same time, each country’s
advancement will be judged individually, based on its own merits and
accomplishments.

The Council noted that the region is stable and that Europe is interested in
bolstering democracy and prosperity in the region. It also took into
consideration the suggestions of the European Parliament and the EU’s
Special Representative on the South Caucasus to include the three countries
in the New Neighborhood Initiative. The Council noted that this marks an
important step in the EU’s involvement in the region.

The Council also invited the Commision and the representative of the General
Secretary/High Representative to present individual country reports on
matters relating to political cooperation, as well as foreign and security
policy, and taking into consideration individual political and economic
reforms.

The decision must be finalized at the EU Council meeting on June 17-18.
Armenia’s Minister of Foreign Affairs, Vartan Oskanian, welcomed the
Council’s determination and said Armenia awaits the final decision later
this week, and looks forward to an even deeper relationship with the EU,
that brings with it the prospect, if not the promise, of full European
integration.

RUSSIA THREATENS GEORGIA WITH GAS CUTOFF OVER DEBTS

ITAR-TASS news agency
15 Jun 04

Moscow, 15 June: “Gazprom” may limit gas supplies to Georgia over
its outstanding debts, Aleksandr Ryazanov, deputy chairman of the
company’s board, said today.

He said that Georgia’s current debt for Russian gas amounted to about
12m dollars. Despite promises to settle the payment in the near future
and submit a schedule for paying off earlier debts, Georgia has failed
to provide appropriate documents.

Ryazanov said that talks with Georgia on the debt are planned for
this week.

“Gazprom” is committed to setting up a joint enterprise in
Georgia. Georgia, however, has not yet accepted this proposal, Ryazanov
said. A joint venture can either be engaged in joint sales of gas in
Georgia or deal with upgrading Georgia’s gas transportation system.

“Gazprom” is interested in upgrading Georgia’s gas transportation
system since gas to Armenia passes through it, PRIME-TASS said.

Russia’s Gazprom may limit natural gas exports to Georgia

Prime-Tass English-language Business Newswire
June 15, 2004

MOSCOW, June 15 (Prime-Tass) — Russia’s natural gas monopoly Gazprom
may limit natural gas exports to Georgia, Deputy Chairman of the
company’s board of directors Alexander Ryazanov told a briefing
Tuesday.

According to Ryazanov, Georgia’s current debt for Russian gas exports
amounts to U.S. USD 12 million.

Although the Georgian government promised Gazprom to work out a
payment system for the current gas supplies, no relevant documents
have been signed so far, Ryazanov said

Ryazanov said that Gazprom plans to hold talks with the Georgian
government this week on the issue.

He also said that Gazprom is interested in setting up a joint venture
in Georgia but Georgia did not accept this offer.

According to Ryazanov the joint venture could help to modernize the
country’s transportation system.

Gazprom is interested in the upgrade of Georgia’s gas transportation
system because it is essential for Russian gas transit to Armenia.

On May 25 Georgia’s Prime Minister Zurab Zhvania said that Georgia
intended to pay 50% of its debt to Russia for natural gas exports
by mid-autumn.

In 2004 Gazexport, Gazprom’s exports sales arm, accounted for 100%
of gas supplies to Georgia.

Tbilgaz’ total debt to Gazprom stood at USD 7.4 million as of March 10.

Georgia imports about 1.1 billion cubic meters of gas annually. End

The Armenian connection
By Malcolm Pein

THE DAILY TELEGRAPH(LONDON)
June 15, 2004, Tuesday

THE England number one Michael Adams put the shutters up and kept
Garry Kasparov at bay with the black pieces in round four of the
match between “Armenia” and the Rest of the World taking place in
Moscow.

Facing the English Opening, Adams chose the Hedgehog set-up and
defended patiently in a cramped position. Gradually the Cornishman
found some counterplay, which enabled him to engineer some exchanges
into a drawn position on move 45. With two games to play, the score
is 14-10 to the Rest of the World.

Loek Van Wely’s nightmare tournament continued and he was forced into
a passive position by Vladimir Akopian, who took his time before
infiltrating with his rooks to win a pawn. Boris Gelfand more than
equalised against Vishy Anand but the Indian steered the game into a
drawn rook and pawn endgame.

The contest commemorates the 75th anniversary of the late Armenian
world champion Tigran Petrosian. All the players in the Armenian team
have Armenian connections: three are Armenian nationals – Vladimir
Akopian, Smbat Lputian and Rafael Vaganian; Kasparov’s mother Klara
is Armenian, as is Peter Leko’s wife, Sophie Petrosian; Boris Gelfand
studied under Petrosian in the 1980s.

Rest of the World 3-3 Armenia. Kasparov (Armenia) draw Adams English
Opening Hedgehog, 45 moves; Lputian (Armenia) 0-1 Bacrot, Slav
4…a6, 54; Leko (Armenia) draw Svidler, Sicilian Scheveningen, 20;
Anand draw Gelfand (Armenia), Petroff, 30; Vallejo Pons draw
Vaganian, French Defence Winawer 5…Ba5, 48; Van Wely 0-1 Akopian
(Armenia), Queen’s Indian 4.g3, 65

Leko’s direct 6…Nc6 threatens Nxd4 and Van Wely finds that 7.d5 Na5
loses a pawn and 7.e3 Nxd4 works. Perhaps the odd looking 7.e4 was
playable because after 7 e4 Bb4 8.d5 is reasonable and 7.e4 d5 loses
a pawn. As played Leko seizes the initiative and wins with ease.

L Van Wely – P Leko

Armenia – ROW (3) Moscow

Queen’s Indian

1 d4 Nf6 2 c4 e6 3 Nf3 b6 4 g3 Ba6 5 Qb3 Bb7 6 Nc3 Nc6! 7 Qd1 Bb4 8
Qd3 d5 9 cxd5 Qxd5 10 Bd2 Qh5 11 Bg2 0-0-0 12 0-0 e5 13 Rac1 Nxd4 14
Nb5 Nxb5 15 Qxb5 Bxd2 16 Nxd2 Bxg2 17 Kxg2 Rxd2 18 Qa6+ Kb8 19 Rxc7
Kxc7 20 Qxa7+ Kd6 21 Qxb6+ Ke7 22 Rc1 Rhd8 0-1

Leko
p 7 p p p p e c o c
f p m p p p o p Y
p p p p p p p n b n 7 b n X n p 6 p p

Wely

Final position after 22…Rhd8

The Internet chess newspaper Chess Today reports that Alexander
Morozevich will not play the Fide Knockout in Libya later this month.
The tournament now includes only two of the world’s top 10 players.