ARMENIA’S ECONOMY SUFFERS $680 MLN. DAMAGE FROM RUSSIAN-GEORGIAN CONFLICT

ARKA
Sep 12, 2008

YEREVAN, September 12. /ARKA/. Chairman Howard Berman (D-CA) opened
Sept 9 hearing entitled "U.S.-Russia Relations in the Aftermath of
the Georgia Crisis" to address concerns and to "consider the future
of U.S. relations with Russia in the aftermath of the crisis that
erupted with sudden ferocity in the Republic of Georgia five weeks
ago," reported the Armenian Assembly of America (Assembly).

Testifying on behalf of the Bush Administration, Daniel Fried,
Assistant Secretary of State for European and Eurasian Affairs,
starting with the region’s history, told Members of Congress that the
collapse of the former Soviet Union "was marked by ethnically-based
violence, especially in the South Caucasus."

Fried also explained, in greater detail, the Administration’s $1
billion economic support package that Secretary of State Condoleezza
Rice announced on September 3, in an effort to help meet "Georgia’s
pressing humanitarian needs, repair infrastructure damaged by
Russia’s invasion, sustain commercial confidence, and restore economic
growth." He added that the Administration would be working extensively
with Congress, as to fine-tune how the assistance will be delivered.

Fried commented that Armenia is already a recipient of significant
amount of aid, although he acknowledged that Armenia has been impacted
by the crisis.

Sherman added that due to strife, Armenia has suffer ed an estimated
$680 million in damage to its economy and again asked if additional
aid would be provided. Fried responded that there would be more,
but would have to look into the figure as to an amount.

"The Administration has an important opportunity to reinforce
stated U.S.

policy goals of regional cooperation and economic integration in the
South Caucasus region," said Congressman Sherman. "As such, I was
deeply troubled that the Administration failed to take into account
the impact that this recent crisis has had on our ally Armenia. We must
ensure that any aid package also includes Armenia," Sherman concluded.

The House Appropriations Committee will need to review the aid package,
of which the Assembly last week sent a letter to Members of Congress
pointing out the impact not only for Georgia, but Armenia as well.