Armenian National Committee of America
1711 N St., NW
Washington, DC 20036
Tel: (202) 775-1918
Fax: (202) 775-5648
Email: anca@anca.org

PRESS RELEASE

FOR IMMEDIATE RELEASE
March 29, 2006
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

SENATORS SANTORUM, MENENDEZ INTRODUCE BILL TO BLOCK U.S. FUNDING
FOR PROPOSED CAUCASUS RAILWAY PROJECT EXCLUDING ARMENIA

— Similar Measure in House Has Garnered 77 Cosponsors

WASHINGTON, DC – Pennsylvania Senator Rick Santorum (R-PA) and
newly appointed New Jersey Senator Bob Menendez (D-NJ) introduced
legislation this week that would prohibit U.S. assistance for the
building of railroads traversing the Caucasus that circumvent Armenia,
reported the Armenian National Committee of America (ANCA).

The legislation mirrors a similar House measure (H.R. 3361) titled
the “South Caucasus Integration and Open Railroads Act of 2005”,
introduced by Congressional Armenian Caucus Co-Chairs Joe Knollenberg
(R-MI) and Frank Pallone (D-NJ) in June, 2005. The House version of
the legislation currently has 77 cosponsors.

“We welcome this effort to protect U.S. taxpayers from subsidizing
an ill-advised and over-priced railroad project that – at the
insistence of Turkey and Azerbaijan – has been specifically designed
to exclude Armenia,” said Aram Hamparian, Executive Director of the
ANCA. “Constructing this railroad around Armenia runs directly counter
to U.S. foreign policy, is commercially untenable, and will only serve
to institutionalize Turkey and Azerbaijan’s blockades of Armenia.”

In his speech on the Senate floor, S. 2461 original cosponsor Sen.
Menendez noted the Turkish government’s ongoing campaign to “isolate
Armenia economically, politically and socially,” citing Turkey’s
13-year blockade of Armenia and, more recently, the construction
of the Baku-Tbilisi-Ceyhan pipeline, which also circumvents Armenia.
“U.S. policy in the South Caucasus seeks to foster regional cooperation
and economic integration and supports open borders and transport
and communication corridors. U.S. support for this project would
run counter to that policy which is why Senator SANTORUM and I are
introducing this legislation today.”

In May, 2005, the president of Azerbaijan, Ilham Aliyev, Georgian
President Mikheil Saakashvili, and Turkey’s President Akhmed Nedget
Sezer announced their intention to construct the railway corridor
linking Turkey, Tbilisi, and Baku. The project would effectively
replace the Kars-Gyumri railroad route, which has been blockaded
by Turkey for more than a decade. The governmental and commercial
interests involved in the project, estimated at between $600 million
and $1 billion, will almost certainly turn to the U.S. government for
financial support, subsidies, favorable lending terms, and low-cost
risk insurance, as they did for the Baku- Tblisi-Ceyhan pipeline route.

In October 2005, the European Commission added its voice to the growing
international opposition to a Caucasus railroad. The Commission’s
position was articulated by the Directorate General for Transport and
Energy. In explaining why the European Union would not support the
creation of this rail line, the Directorate noted that its construction
was both unnecessary and inefficient in light of the existing railroad
connecting Kars, Gyumri, and Tbilisi.

Sen. Menendez’ complete statement follows.

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Statement By Sen. Robert Menendez Upon Introduction of S.2461

Mr. MENENDEZ. Mr. President, I rise today to introduce legislation
to block U.S. support for yet another anti-Armenian initiative.

In numerous cases over the last few years, the Turkish government has
methodically sought to isolate Armenia economically, politically and
socially. One of the most egregious examples was the imposition of a
1993 blockade against Armenia in support of Azerbaijan’s war against
Karabakh Armenians.

The Turkish government has routinely sought to exclude Armenia from
projects that would benefit the economies of the countries of the
South Caucasus. The latest example of this policy is the proposal
to build a new rail line that would connect Turkey, Georgia and
Azerbaijan. Similar to the Baku-Ceyhan pipeline, this rail link would
specifically go around Armenia.

Now, geographically, we all know that a pipeline or rail line that
seeks to connect Turkey, Georgia and Azerbaijan would have to pass
through Armenia. One would have to make a special effort to bypass
Armenia.

The U.S. should not endorse Turkey and Azerbaijan’s politically
motivated attempt to isolate Armenia.

I therefore rise today in opposition to this plan, and to introduce
legislation, along with my colleague, Senator SANTORUM, that would bar
U.S. support and funding for a rail link connecting Georgia and Turkey,
and which specifically excludes Armenia. This project is estimated to
cost up to $800 million and would take three years to complete. The aim
of this costly approach, as publicly stated by Azeri President Aliyev,
is to isolate Armenia by enhancing the ongoing Turkish and Azerbaijani
blockades and to keep the existing Turkey-Armenia-Georgia rail link
shut down. This ill-conceived project runs counter to U.S. policy,
ignores the standing Kars- Gyumri rail route, is politically and
economically flawed and serves to destabilize the region.

U.S. policy in the South Caucasus seeks to foster regional cooperation
and economic integration and supports open borders and transport
and communication corridors. U.S. support for this project would
run counter to that policy which is why Senator Santorum and I are
introducing this legislation today.

We cannot continue to stoke the embers of regional conflict by
supporting projects that deliberately exclude one of the region’s
most important members. I urge my colleagues to support this bill.

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