Armenian Reporter – 11/18/2006

ARMENIAN REPORTER
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November 18, 2006

1. EU signs "Neighborhood Action Plan" agreements with Armenia,
Azerbaijan , Georgia

2. Heirs of Armenian Genocide victims to receive almost $8 million
from New York Life settlement

3. Armenian soldier wounded in Iraq; Defense Minister Sargsyan in
Baghdad

4. Vimpel set to buy ArmenTel from Greeks; promises to relinquish
ArmenTel’s controversial monopolies

5. "Armenian Reporter" opens D.C. bureau; Emil Sanamyan is Washington
Editor

6. Editorial: Thankfully

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1. EU signs "Neighborhood Action Plan" agreements with Armenia,
Azerbaijan , Georgia

Yerevan–On November 14 in Brussels, the European Union and Armenia
signed a European Neighborhood Policy Action Plan. Under the plan,
the EU will provide Armenia with aid, better trade relations, and
greater political cooperation; Armenia, in turn, will adopt political
and economic reforms. Similar plans were signed with Azerbaijan and
Georgia on the same day.

The EU is expected to spend an average of 25 million Euros ($32
million) on the Armenia program each year for the first five years of
the agreement.

The EU high commissioner for foreign and security policy, Javier
Solana, told RFE/RL that the EU’s contribution increases if the
recipient government "does things properly." Otherwise, "cooperation
with the government will diminish."

Mr. Solana added, "This is the same political technology that was
applied to countries that later became EU members, sector by sector,
chapter by chapter in a very well-organized fashion that we have
tremendous experience in."

Signing the accord on behalf of Armenia was Foreign Minister Vartan
Oskanian. Welcoming the plan’s insistence on political and economic
reforms, Mr. Oskanian noted that Armenia’s "development depends not
on natural resources but human resources; and therefore, we have to
provide the necessary conditions to develop that resource."

The Foreign Ministry announced that in the process of implementation
of the plan, " Armenia’s social, political and economic systems will
begin to resemble European systems." Further, the plan allows for
Armenia–and the two neighboring republics–to penetrate EU’s
internal markets.

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2. Heirs of Armenian Genocide victims to receive almost $8 million
from New York Life settlement

Los Angeles–Settlement checks totaling $7,954,362 will be
distributed this week to more than 2,500 descendents of those killed
during the Armenian Genocide of 1915. These checks resulted from the
multi-million-dollar settlement reached in a class action lawsuit
brought against New York Life Insurance Company.

The lawsuit, originally filed in November 1999, stemmed from New York
Life’s nonpayment of life insurance benefits for those who died in
the Armenian Genocide. These payments, together with the $3 million
dollars already distributed to various Armenian charitable
organizations, puts an end to an historic and groundbreaking case
which was able to right a 90-year-old injustice.

"Ten years ago, compensating these Armenians was a mere dream," said
Vartkes Yeghiayan, one of the lead attorneys who represented the
Armenian heirs and who originally conceived of this case 20 years
ago. "This settlement was a small measure of justice for the
Armenians."

The Settlement Board, the body created by the Federal District Court
to handle the distribution of the settlement, reviewed 5,692 claims
and found that 2,515 of them could be traced to Armenians who had
purchased life insurance policies from New York Life prior to 1915.

Letters will be mailed to all claimants, with checks included for all
claimants that were awarded compensation. Of the nearly $8 million in
checks, Armenians in Armenia will receive the most, roughly $3.7
million, followed by Armenians in the United States who will receive
almost $2.7 million. Armenians in France occupy the third place and
will receive a total of $656,413. In all, Armenians in 26 countries
will receive compensation.

For questions about the settlement, contact the Settlement Board at
(213) 327-0740.

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3. Armenian soldier wounded in Iraq; Defense Minister Sargsyan in
Baghdad

Yerevan-Senior Lieutenant Georgi Nalbandian, 25, a member of the
Armenian regiment in Iraq, was seriously wounded in an attack on
November 11. He was transported to a U.S. military hospital in
Germany for treatment. Two other soldiers, one from Poland, the other
from Slovakia, were killed in the attack. Mr. Nalbandian’s right leg
was amputated.

In a news release, the U.S. embassy in Yerevan expressed "its deepest
concern" for the soldier and thanked him and his Armenian colleagues
"for their vital role in the international coalition fighting the
global war on terror."

The attack occurred while the soldiers were returning from a mission
to defuse mines, the Armenian Defense Ministry announced. The bomb
exploded near the town of Al Kut in Wasit province as a multinational
convoy was returning to base.

Armenian troops, now in their fourth rotation, have been deployed to
Iraq since January 2005. The contingent of 46 soldiers includes truck
drivers, bomb detonation experts, physicians, and officers. They
carry out only humanitarian operations.

Meanwhile, Armenia’s defense minister Serge Sargsyan began a
previously scheduled trip to Iraq to visit the Armenian soldiers and
meet his Iraqi counterpart. Mr. Sargsyan has asked the National
Assembly to prolong the service commitment of the Armenian detachment
in Iraq. "Armenia cannot only be a security consumer. It ought to
have its modest but consistent contribution to the world security
processes," Mr. Sargsyan told reporters. "As time shows, our officers
and soldiers are on an important and difficult mission, but it is
first of all Armenia that needs this mission, and by their duty our
soldiers once again confirm that Armenia is a full-fledged state."

A sixth rotation of Armenian troops left for Kosovo this week.

After recovering, Mr. Nalbandian, the wounded soldier, is expected to
return to Armenia to continue his military service.

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4. Vimpel set to buy ArmenTel from Greeks; promises to relinquish
ArmenTel’s controversial monopolies

YEREVAN–In what may be the largest business transaction in Armenia’s
history, the Russian mobile operator Vimpel Communications is buying
a 90 percent stake in Armenia Telephone Company (ArmenTel) from the
Hellenic Telecommunications Organization for 341.9 million Euros
($436.3 million) plus about 40 million Euros in debt.

The Armenian government’s Public Services Regulatory Commission
approved the sale on November 14.

ArmenTel holds a monopoly on landlines in Armenia, for which it has
about 600,000 subscribers. It holds about 40 percent of the mobile
market with about 400,000 mobile subscribers. It also holds a
monopoly on Internet data transmission.

Vimpel says it will relinquish the monopolies ArmenTel holds within a
year. It says it will compete by increasing the quality and variety
of ArmenTel’s services. It is expected to make a $100 million
investment in Armenia in 2007.

Vahe Yacoubian, a Los Angeles attorney representing the Armenian
government in its dealings with ArmenTel, says that Vimpel has
offered to give up the Internet data transmission monopoly
immediately.

"Both sides are interested in completing this process as soon as
possible as VimpelCom itself states that they think that an open
market is better for their company’s business and profits," Yaghubian
said, according to RFE/RL.

Vimpel operates phone services in Russia and Kazakhstan. It has
recently acquired cellular operators in Ukraine, Tajikistan,
Uzbekistan, and Georgia.

Whereas the main Russian investors in Armenia have in the past been
state companies, Vimpel is publicly traded. The largest shareholder,
at 33 percent, is Altimo, part of Mikail Fridman’s Alfa holding
company, which is publicly traded in the U.S. A Norwegian company,
Telenor, is the second-largest shareholder at 27 percent.

Another Russian company that took part in the tender and for months
claimed to have won it has closer ties to the Russian state.

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5. "Armenian Reporter" opens D.C. bureau; Emil Sanamyan is Washington
Editor

Yerevan–The "Armenian Reporter" has established a bureau in the
nation’s capital, announced Vincent Lima, the newsweekly’s editor.
Emil Sanamyan has been appointed Washington editor of the "Armenian
Reporter" and will lead the bureau.

"Our community recognizes that what goes on in Washington is
important for Armenia, Artsakh, and Armenian-Americans," Mr. Lima
said. "True to our calling as an independent newspaper, we are doing
what we must in order to bring our readers first-hand accounts of
these goings on."

The "Reporter"’s Washington Bureau will follow developments of
interest in the administration and Congress, at the Armenian Embassy
and Nagorno-Karabakh office, and in Washington think tanks. It will
also report on the activities of Armenian lobbying and advocacy
groups and on Armenians in Washington–officials, staffers, visitors,
and interns.

"I am truly delighted to join the Reporter staff," Mr. Sanamyan said.
"This is a unique and exciting opportunity to contribute to the
understanding of the United States’ policymaking, particularly as it
relates to Armenian concerns."

"Emil Sanamyan is a great resource for our readers. He is not afraid
to pick up the phone, call a source, and get to the bottom of
things," said Chris Zakian, managing editor of the "Reporter." "And
he knows whom to call. As a researcher and analyst, he has been
following news, attending talks, reading reports, and networking in
Washington for years."

A graduate of the University of Arizona, Mr. Sanamyan has studied,
worked, and lived in Washington since 1998. While attending the
George Washington University’s Elliott School of International
Affairs, he served as assistant to the Representative of the
Nagorno-Karabakh Republic in the United States. Since 2000 and until
recently, he was Research and Information Associate at the Armenian
Assembly of America.

Mr. Sanamyan and his wife Oksana make their home in Rosslyn, VA.

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6. Editorial: Thankfully

It is the week before Thanksgiving, and we are counting our
blessings.

Armenia celebrated the fifteenth anniversary of its independence this
year, a joyous milestone. And it is the fifteenth anniversary too of
the overwhelming vote of the people of Karabagh in favor of
independence.

Armenia has a long way to go, of course. But we can be grateful for
the progress that has been made over the past year. The economy has
attracted increased investments; there are thousands of new jobs.
This progress is reflected in double-digit growth in the gross
domestic product, coupled with low inflation.

The progress will continue–in the economy as well as in the
political and

social arenas.

Only this week Armenia and the European Union signed a European
Neighborhood Policy Action Plan. The plan helps Armenia implement
political and economic reforms, while lifting trade barriers and
investing perhaps 125 million euros ($160 million) in the country
over the next five years.

This April Armenia and the United States signed the Millennium
Challenge Compact, which invests a much-needed $237 million in
Armenia’s rural infrastructure.

Both programs come with strings attached: Armenia must fulfill
commitments to political, economic, and social reforms. But these
strings are not encumbrances; they insist simply on the
implementation of commitments Armenia has chosen to make. These
commitments are in line with our collective desire to see a more
democratic, more transparent, more prosperous, and peaceful country.

* * *

Meanwhile, we have seen Armenian issues take an ever-higher
international profile over the past year. In April, PBS broadcast a
documentary on the Armenian Genocide. The broadcast got the attention
of major newspapers thanks to our collective response to an
ill-advised decision of the network brass. The decision was to
balance out the well-balanced documentary with a panel discussion
that gave legitimacy to falsifiers of the historical record.

The Genocide stayed in the news, grabbing headlines again in late
September when President Jacques Chirac announced that France
considered recognition of the Genocide a precondition for Turkey’s
accession to the European Union. EU officials who were trying to get
Turkey to meet other agreed-upon preconditions condemned the
announcement. But the French opposition agreed with the president on
this one–making the precondition very real.

Armenians and the Armenian Genocide grabbed headlines again in
October when Orhan Pamuk–one of the growing circle of Turkish
intellectuals at odd with the national chauvinism of his country’s
old elite–won the Nobel Prize for Literature. The same day, the
French National Assembly voted in favor of a bill that would
criminalize denial of the Genocide.

The publication with much fanfare this week of Taner Akcam’s book, A
Shameful Act, is a further step in the right direction.

* * *

The year has also been replete with cultural happenings: concerts,
dance performances, plays, photo exhibits, films, novels, radio
shows, and so much more have made it a joy to be part of the Armenian
community.

Our gratitude is not simply for the events, but for the people who
make them possible. The events reflect an enormous investment of
time, energy, talent, and money by activists, by scholars, by
artists, by engaged philanthropists, by government officials and
pressure groups alike.

We say, "Thank you," and we say, "Let’s carry on."

* * *

If it’s Thanksgiving, it’s time for the Armenia Fund Telethon. It’s
time for an extravaganza of live entertainment from some of the most
popular Armenian talent around. It’s time for engaging hosts. It’s
time to see the work your donations last year have made possible.
It’s time to watch online ( ) or tune in. And it’s
definitely time to call in.

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