MARKARIAN WARNS OF RUSSIAN-GEORGIAN ESCALATION
By Ruzanna Khachatrian

Radio Liberty, Czech Rep.
Oct 4 2006

Armenia has so far been unaffected by Russia’s blockade of neighboring
Georgia but risks being effectively cut off from the outside world
if the Russian-Georgian crisis continues to escalate, Prime Minister
Andranik Markarian said on Wednesday.

"The blockade is not affecting us yet," he told parliament. "Hopefully
the situation in Georgia will not become more complicated."

Markarian insisted that Armenian companies are still able to ship goods
to and from Russia despite Moscow’s decision to sever all transport
links with Georgia. The Georgian Black Sea ports of Batumi and Poti
continue to handle Armenian cargos bound for the Russian market,
he said.

Some Armenian companies have claimed the opposite, saying that they
have trouble ferrying their goods to Russia. But government officials
argue that they could do so via the Ukrainian port of Ilyichevsk that
handles the bulk of Armenian ferry traffic.

Still, Markarian admitted that Yerevan is seriously worried that
the Russian-Georgia row, sparked by the arrest in Tbilisi of four
Russian officers on spying charges, could escalate into a military
confrontation. He said he discussed the situation earlier on Wednesday
with the visiting U.S. Deputy Assistant Secretary of State Matthew
Bryza and urged the United States to "take steps" to ease the tensions.

"I told him that if the problem escalates and if certain processes
unfold, Armenia will look like an island and our security will
be in danger," Markarian said, speaking during his cabinet’s
question-and-answer session at the National Assembly.

The U.S. and the European Union have urged Moscow and Tbilisi to show
restraint and embark on a dialogue. They have also criticized the
Russian sanctions on Georgia. Russian Foreign Minister Sergey Lavrov
has made it clear, however, that the blockade will not be lifted
"for the time being."

Asked by a lawmaker whether Yerevan is ready to mediate in the dispute,
the Armenian premier said: "If the Russian or Georgian sides make
such an offer to the government of Armenia, we will consider it. But
we have received no such offers."