Artsakh Newsletter, April 2006

OFFICE OF THE NAGORNO KARABAKH REPUBLIC IN THE USA
1140 19th Street, NW, Suite 600, Washington, DC 20036
Tel: (202) 223-4330
Fax: (202) 315-3339
E-mail: [email protected]
Web site:

ARTSAKH NEWSLETTER
Vol. 8, no. 1
April 2006

The ARTSAKH NEWSLETTER is a publication of the NKR Office in
Washington, D.C., the official representation of the Nagorno
Karabakh Republic in the United States. To change your subscription
to the Artsakh Newsletter, please reply to this email.

In this issue:
1. NAGORNO KARABAKH PEACE PROCESS UPDATE
2. STRONG CONGRESSIONAL SUPPORT OF KARABAKH CONTINUES
3. ARMENIANS AROUND THE WORD RALLY IN SUPPORT OF ARTSAKH DEVELOPMENT
4. KARABAKH DEPUTY FM CALLS FOR NKR RECOGNITION DURING US VISIT
5. PRESIDENT GHOUKASIAN APPOINTS NEW CABINET MEMBERS
6. NKR TAKES ANOTHER STEP TOWARD STRONGER DEMOCRACY
7. KARABAKH’S STRONG ECONOMIC GROWTH CONTINUED IN 2005
8. SECOND ANNUAL CHESS TOURNAMENT IN ARTSAKH A SUCCESS
9. AZERBAIJAN’S ETHNIC CLEANSING CAMPAIGN OF 1991 REMEMBERED

1. NAGORNO KARABAKH PEACE PROCESS UPDATE

International mediation efforts continued over the past year to
overcome the impasse in the Karabakh peace process. While there has
been a notable increase in mediator activity, no major breakthroughs
took place. More than in the past, mediators have also focused on
efforts to prevent a possible armed escalation in and near Karabakh.

Full-fledged negotiations with participation of the Nagorno Karabakh
Republic have yet to take place. NKR President Arkady Ghoukasian met
with the OSCE Minsk Group Co-Chairs in July and again in December
2005. Ghoukasian and other Nagorno Karabakh officials reiterated
their readiness to take their share of responsibility on the road to
peace. Azerbaijan, however, continued to refuse direct talks with
NKR.

High-Level Consultations with NKR Leadership Aim to Advance the
Peace Process

President Ghoukasian met with the OSCE Chairman-in-Office and
Foreign Minister of Slovenia Dimitrij Rupel in March and September
2005, and his successor at the OSCE, Belgian Foreign Minister Karel
de Gukht in January 2006 to discuss the peace process. Last March,
the NKR President also met with the European Union (EU) envoy for
the Caucasus, Ambassador Peter Semneby of Sweden. Semneby repeated
the EU position that “efforts to establish the regional cooperation
should be developed in parallel with the efforts to resolve the
conflicts.” While NKR and Armenia support this position, Azerbaijan
continued to oppose any steps towards confidence building.

In April 2005, mediators from France, Russia and the United States,
working under the OSCE umbrella, consolidated a series of
discussions held by Foreign Ministers of Armenia and Azerbaijan
(dubbed the “Prague Process”) into what mediators described as “new
proposals.” Presidents Robert Kocharian and Ilham Aliyev met in
Poland (May 2005), Russia (August 2005) and France (February 2006)
to discuss these proposals. Although the first two meetings fueled
some optimism that progress could be made, the latest summit ended
in what U.S. and other officials described as a “disappointment.”
Despite this setback, the mediators are trying to salvage the
process by injecting what they describe as “new ideas” to complement
the proposals currently on the table.

Azerbaijan Refuses to Build Trust; Threatens to Launch a New War

In the meantime, Aliyev and other government officials in Baku
continued to threaten war unless Azerbaijan’s demands are satisfied.
Aliyev diverted much of the country’s growing oil revenue to
military needs, doubling defense spending in 2006 to $600 million.
Both Karabakh and Armenian officials, as well as international
mediators, dismissed this rhetoric and reminded Azerbaijan of
potentially catastrophic consequences if fighting were to resume.
Twice since April of last year, mediators issued statements
demanding an end to war rhetoric and calling on all sides to help
prepare the public for a “balanced negotiated settlement.” While
both Karabakh and Armenian leaders repeatedly argued for a need to
compromise, Aliyev and others in the Azerbaijani government
continued their hard line approach. Since last year, the NKR
Foreign Ministry has suggested a set of measures that would
strengthen the nearly 12-year-old cease-fire, but Azeri officials
have shown no interest in precluding occasional flare-ups along the
Line of Contact.

Azerbaijan’s official rhetoric and actions appear to aim at securing
unilateral Armenian concessions and perpetuating the conflict rather
than reaching a viable peace agreement. Azeri officials have
encouraged a campaign of support for an Azeri who brutally murdered
an Armenian in his sleep, whilst both were attending an
English-language course in Hungary. Last December, Azeri soldiers
were videotaped destroying the remnants of ancient Armenian
stone-crosses (khachkars) in Nakhichevan, one of the few Armenian
monuments still standing in Azeri-controlled territory at the time.
That act of vandalism coincided with Aliyev’s call on Azeri
scientists to rig the historical record to erase references to
Armenians. The Azeri government has sought to shut down nascent
public diplomacy contacts with Armenians through harassment and
violence, branding Azeri peace activists as traitors. At the same
time, domestic critics of the Aliyev regime are labeled as Armenian
agents.

Aliyev has repeatedly stated that he is in no hurry to settle the
conflict and would prefer the current status quo to steps that would
formalize Karabakh’s existing separation from Azerbaijan, a
necessary element of any viable peace deal. The international
community has increasingly realized the inevitability of this
approach. In August 2005, the OSCE Parliamentary Assembly heard a
report from its Rapporteur on Karabakh, Goran Lennmarker of Sweden,
who observed that Karabakh’s unification with Armenia would be the
best guarantee of its population’s security. None of the twenty-four
U.S. and Western European experts queried in the summer 2005 could
see a possibility of Azeri jurisdiction over Karabakh. The
Brussels-based International Crisis Group recommended in October
2005 that Karabakh’s status should be based on a “self-determination
referendum.” And in March 2006, U.S. Assistant Secretary of State
Daniel Fried stressed that “the will of the people of Karabakh has
to be respected” as part of any settlement.

Karabakh Has the Right to Remain Free

Karabakh officials have welcomed this approach of the international
community, while sharing its interest in regional stability,
cooperation and peace. Nagorno Karabakh remains committed to work
constructively to achieve these goals through maintaining and
strengthening the 12-year-old cease-fire, building mutual confidence
and reaching a peaceful settlement in the Karabakh conflict. Any
viable settlement must respect the right of the Nagorno Karabakh
people to determine their own future and the way of life.

2. STRONG CONGRESSIONAL SUPPORT OF KARABAKH CONTINUES

The Nagorno Karabakh Republic marked the fourteenth anniversary of
its independence last year. Fifty-nine members of the U.S. House of
Representatives addressed a letter to President George W. Bush,
calling attention to “the important progress being made by the
people of the Nagorno Karabakh Republic, Artsakh, towards freedom,
peace and prosperity.”

The congressional letter noted that: “A de-facto independent state,
the Nagorno Karabakh Republic is a country of proud citizens
committed to the values of freedom, democracy and respect for human
rights. We, as Americans cherish and defend these same values at
home and internationally… Above all, the Unites States should
unequivocally support the right of the people of Nagorno Karabakh to
decide their own future.”

On September 28, 2005 the Office of the Nagorno Karabakh Republic
together with the Embassy of the Republic of Armenia, the Armenian
Assembly of America, the Armenian National Committee and the
Co-Chairs of the Congressional Caucus on Armenian Issues hosted a
Capitol Hill event celebrating NKR’s independence.

Member of the British House of Lords Baroness Caroline Cox, who was
the keynote speaker at the Capitol Hill event and had just completed
her 60th humanitarian trip to Artsakh, urged the international
community to respect the rights to freedom, justice, and democracy
of the people of Nagorno Karabakh. Cox said that “if any people in
the world today deserve the right to self-determination and the
recognition of independence, it is the people of Nagorno Karabakh.”

Representatives Joe Knollenberg (R-MI), Frank Pallone (D-NJ), George
Radanovich (R-CA), Barney Frank (D-MA), Maurice Hinchey (D-NY) and
Adam Schiff (D-CA) spoke at the event, expressing their support for
the Nagorno Karabakh Republic.

Armenian Ambassador to the U.S. Dr. Tatoul Markarian noted that “any
solution to the [Karabakh] conflict will be based on the fact and
the right to self-determination of the people of Nagorno Karabakh.”

NKR Representative Vardan Barseghian thanked the U.S. government and
the American people for their humanitarian support for Artsakh and
urged them “to continue to support the aspirations of the Karabakh
people to live in freedom, security and prosperity.”

3. ARMENIANS AROUND THE WORD RALLY IN SUPPORT OF ARTSAKH DEVELOPMENT

Last November, NKR President Arkady Ghoukasian, Parliament Speaker
Ashot Ghoulian and Artsakh Diocese’s Primate Archbishop Pargev
Martirosian were in the United States to participate in the Hayastan
All-Armenian Fund’s drive to secure support for the development of
Karabakh’s Mardakert region. NKR delegation, joined by Armenia’s
Foreign Minister Vartan Oskanian, helped the Fund raise $7.75
million throughout the Diaspora communities and in Armenia proper.

Hayastan Fund’s development project, named “Revival of Artsakh,”
comes as its previous major undertaking, a 105-mile highway, is
nearing completion. The Fund chose to focus on Mardakert, as the
region had suffered the most during the 1992-94 fighting. On behalf
of the people of Artsakh, President Ghoukasian thanked Armenian
communities in the United States and around the world for their
continued steadfast support for the Nagorno Karabakh Republic. He
stressed that much has been done in Artsakh, noting, however, that
many more humanitarian and development projects require the
Diaspora’s support.

The Hayastan Fund has raised over $100 million since the mid-1990s
for development of Armenia and Nagorno Karabakh.

4. KARABAKH DEPUTY FM CALLS FOR NKR RECOGNITION DURING US VISIT

On March 22-29, NKR Deputy Foreign Minister Masis Mayilian paid a
working visit to the U.S. Mayilian met with the U.S. government
officials, members of Congress, state officials, and leaders of the
Armenian-American community. He thanked both U.S. officials and
members of the Diaspora for their continued support of NKR, both
through U.S. humanitarian assistance and privately-funded projects.

Mayilian also spoke on Karabakh’s priorities at the National
Conference held by the Armenian Assembly of America and public
lectures at the University of Connecticut and the Center for
Strategic and International Studies (CSIS) in Washington, DC. At
CSIS, Mayilian focused on the need to: a) strengthen the existing
relative peace; b) increase the international role in solidifying
NKR’s achievements in democratic development; and c) take steps
towards NKR’s international recognition.

“The lack of [international] recognition is one of the main reasons
why we hear militaristic rhetoric from Azerbaijan. The United States
should take the lead in helping Azerbaijan to reject Stalin’s legacy
and come to terms with the democratically expressed will of the
Nagorno Karabakh to remain free,” said Mayilian.

(Read more on Deputy Foreign Minister’s visit at
)

5. PRESIDENT GHOUKASIAN APPOINTS NEW CABINET MEMBERS

President Arkady Ghoukasian announced four new cabinet appointments
(* appears before the position that saw change):

Prime Minister – Mr. Anoushavan Daniyelian
Vice-Prime Minister – Mr. Ararat Daniyelian**
Minister of Agriculture – Mr. Vahram Baghdassarian
Minister of Defense – Lt. Gen. Seyran Ohanian
* Minister of Education, Culture and Sports – Mr. Kamo Atayan
Minister of Finances and Economy – Mr. Spartak Tevossian
* Minister of Foreign Affairs – Georgi Petrosian
Minister of Health – Mrs. Zoya Lazarian
Minister of Justice – Mr. Robert Hayrapetian
* Minister of Social Security – Mr. Vasili Atajanian
Minister of Territorial Administration & Infrastructure Development
– Mr. Armo Tsatourian
* Minister of Urban Development – Mr. Marat Hacopjianian
Chief of Staff, Minister – Mr. Suren Grigorian
Head of National Security Service – Mr. Bako Sahakyan
Head of Police – Mr. Armen Isagulov
Head of State Tax Service – Mr. Hakob Kaghramanian

President Ghoukasian also appointed a new NKR Prosecutor General,
naming Mr. Armen Zalinian, his former Chief of Staff, to the post.

** not related to the Prime Minister

6. NKR TAKES ANOTHER STEP TOWARD STRONGER DEMOCRACY

On June 19, 2005 NKR held a tightly contested parliamentary poll,
its fourth since the independence. Seven political parties and blocs
competed for eleven seats awarded through proportional
representation and 127 individual candidates ran in 22 electoral
districts. Over 100 foreign observers, most of them from the United
States and the European Union monitored the vote. The observers
found the vote, in which 75 percent of the eligible electorate took
part, to be “free and transparent” and concluded that “Nagorno
Karabakh has made demonstrable progress in building democracy.”

The Democratic Party of Artsakh (AZhK), which is the main political
support base for the incumbent President Arkady Ghoukasian, won
twelve seats in the new National Assembly (AZhK controlled 20 out of
33 seats in the former parliament). The right-of-center Free
Motherland Party (AHK) led by businessmen Araik Harutiunian and
Rudolf Hiusnunts, and professors Arpat Avanesian and Artur Tovmasian
came in second, winning ten seats. The opposition alliance of the
Armenian Revolutionary Federation (HHD) and Movement-88 party led by
retired General Vitali Balasanian and journalist Gegham Baghdasarian
came in third, winning just three seats. The remaining eight seats
were won by candidates unaffiliated with political parties. By a
majority vote, the AZhK Chairman Ashot Ghulian was elected
Parliament Speaker. Ghulian previously served as Education (2004-5)
and Foreign Minister (2002-4).

(Read the Report of the Independent American Election Monitoring
Delegation at tml)

7. KARABAKH’S STRONG ECONOMIC GROWTH CONTINUED IN 2005

Karabakh’s economy continued to expand in 2005, with the Gross
Domestic Product (GDP) up 14 percent for the year to 51.4 bn. AMD
($114 million) and more than double the 2001 volume of 23.8 billion
AMD ($53 million). Strong growth in capital construction (37.8%) and
continued increase in the output of the Drmbon copper-gold mines
helped fuel the growth.

Drmbon mines, developed with $15 million in investments since 2002,
are the largest enterprise in Karabakh, employing over 900 people.
As of late 2005, 36,500 people were employed in civilian jobs in the
republic with a population of about 134,000. Most of the civilian
workforce is engaged in agriculture (22 percent), trade (20),
construction (12), industry (11) and communications (11). Overall in
2005, there was an eight percent increase in employment over 2004,
with population’s incomes increasing by 20 percent and monthly
salaries by 24 percent.

According to the Nagorno Karabakh Foreign Ministry consular data,
over 4,000 foreign citizens, most of them tourists, visited Karabakh
in 2005, an increase of 30 percent over 2004. The bulk of the
visitors came from U.S., Canada, Russia and France. Karabakh’s
foreign trade grew by 15 percent, reaching $133.1 million in 2005.

On December 12, 2005 NKR National Assembly by a vote of 26 to 3
adopted the FY2006 budget bill and on December 20, President Arkady
Ghukasyan signed it into law. The budget set the 2006 revenue target
at 26.1 bn. AMD ($62.47 million) and expenditures at 30.3 billion
AMD ($67.36 million).

The NKR state budget has been steadily increasing for the past four
years at an average annual rate of 30 percent.

8. SECOND INTERNATIONAL CHESS TOURNAMENT IN ARTSAKH A SUCCESS

In October 2005, Nagorno Karabakh hosted a ten-day international
chess tournament which brought together some of the world’s leading
chess players. The event sponsored by the Karabakh government and
the Chess Academy of Armenia involved two dozen players from 11
countries. Aram Hajian of the Chess Academy noted that “there has
never been a tournament of this strength held anywhere in the
Caucasus… It’s one of the top chess events happening this year
anywhere in the world.”

The event included such players as Vassily Ivanchuk (Ukraine),
Alexey Dreyev (Russia), Hikaru Nakamura (USA) and Bu Xiangzhi
(China). Also present was a former chess heavyweight, Lajos Portisch
of Hungary. In the end, Armenia’s rising chess star Levon Aronian
won the top prize, with the second and third places shared by
Nakamura and an Armenian grandmaster, Ashot Anastasian.

This was the second international chess event hosted by Karabakh.
The fist took place in March 2004 and was dedicated to the 75th
birth anniversary of the late world champion Tigran Petrosian, and
featured another former world champion Boris Spassky.

For more information about chess in Karabakh visit

9. AZERBAIJAN’S ETHNIC CLEANSING CAMPAIGN OF 1991 REMEMBERED

This month marks the fifteen anniversary of a barbaric ethnic
cleansing campaign that was undertaken by the Azerbaijani government
and resulted in over 100 people killed and thousands displaced.
Known as Operation Ring, it was carried out with direct
participation of the Soviet army units, while both Azerbaijan and
Nagorno Karabakh were still part of the Soviet Union. The Operation
came after Azerbaijan’s Communist leadership endorsed the
preservation of the Soviet Union, while Armenia and Karabakh refused
to do so.

The operation marked a significant escalation for the conflict that
emerged as a violent response on the part of Azerbaijani to a
peaceful civic movement by Karabakh Armenians. Following the
massacres and forced expulsion of hundreds of thousands of ethnic
Armenians from Azerbaijan, the Azeri internal troops attacked and
depopulated twenty-four Armenian villages in Karabakh in the period
between April and August 1991. The inhabitants were expelled, their
property looted and homes expropriated or destroyed.

The United States Congress, as well as human rights groups condemned
this campaign. Azerbaijan’s efforts to use Soviet troops to remove
Armenians from Karabakh came to a halt when official Baku lost the
support of the Soviet security establishment, whose leaders were
arrested in a failed coup attempt against the Soviet President
Mikhail Gorbachev in August 1991.

Having lost Moscow’s support, Azerbaijan declared independence from
the Soviet Union paving the way for the declaration of the Nagorno
Karabakh Republic’s independence on September 2, 1991. While the
1991 Operation Ring failed, it set the stage for renewed Azerbaijani
aggression against Karabakh the following year. It also left
Karabakh Armenians with a stark choice: to fight for their survival
or be wiped out.

(To learn more about Operation Ring, please contact our office in
Washington, DC or the NKR Foreign Ministry at [email protected])

* * *

The Office of the Nagorno Karabakh Republic in the United States is
based in Washington, DC and works with the U.S. government, academia
and the public representing the official policies and interests of
the Nagorno Karabakh Republic.

This material is distributed by the Office of the Nagorno Karabakh
Republic in the United States (NKR Office) on behalf of the
government of the Nagorno Karabakh Republic. The NKR Office is
registered with the U.S. government under the Foreign Agent
Registration Act. Additional information is available at the
Department of Justice, Washington, D.C.

http://nkrusa.org/news/daily_news.php
http://nkrusa.org/hot_topic/election_monitoring.sh
http://www.karabakh2005.com.
www.nkrusa.org