RFE/RL Armenian Report – 10/26/2017

                                        Thursday, 

Armenian Official Warns Against `Excessive Expectations' From Deal
With EU


 . Hovannes Movsisian


Armenia - Armen Ashotian, a deputy chairman of the ruling Republican
Party of Armenia, holds a news conference in Yerevan, 13Jul2016.

A planned agreement on Armenia's "enhanced partnership" with the
European Union is not as significant as it is portrayed by some
pro-Western elements in the county, a deputy chairman of President
Serzh Sarkisian's Republican Party said on Thursday.

"The document that will be signed is beautiful and important, but I
think that it's wrong to give it extra lighting, gloss and other stuff
or turn into a Christmas tree," said Armen Ashotian. "Because we are
thereby heightening our expectations which will not be met later on
and we will say that the European vector [of Armenian foreign policy]
has failed."

The draft Comprehensive and Enhanced Partnership Agreement (CEPA) is
designed to deepen Armenia's political and economic ties with the
EU. Citing "common values" shared by the two sides, the 350-page
document commits the Armenian government to implementing political
reforms and "approximating" national economic laws and regulations to
those of the EU.

The CEPA does not contain far-reaching free trade-related provisions,
unlike an Association Agreement that was negotiated by Armenian and EU
officials in the summer of 2013. The Armenian leadership scuttled that
agreement by opting to join a Russian-led trade bloc.

Ashotian, who also chairs the Armenian parliament committee on foreign
relations, seemed to imply that the CEPA will be signed as planned at
an EU summit in Brussels scheduled for November 24. He said the two
sides will make clear that the deal is not directed against third
parties.

Speaking at a Yerevan-based think-tank, Ashotian also made the point
that the CEPA is important to only Armenia but also the EU because the
latter needs to showcase a "success story" at the Brussels summit.

"The EU need to have another partner in the region alongside Georgia,"
said Ashotian. "There are many other reasons as well. For instance,
this agreement will contribute to regional stability and therefore the
risk of a new war or other instability could significantly
decrease. This is a mutually beneficial document."

Johannes Hahn, the EU commissioner for European neighborhood policy,
hailed "the groundbreaking new agreement" with Armenia when he visited
Yerevan earlier this month. He said it will not only deepen the EU's
ties with Armenia but also serve as a "blueprint" for other countries.



Karabakh Truce Violations `Unrelated' To Sarkisian-Aliyev Meeting


 . Artak Hambardzumian


SWITZERLAND -- Azerbaijani President Ilham Aliyev (L) poses next to
Armenian President Serzh Sarkisian at the opening of talks in Geneva,
October 16, 2017

Armenia's First Deputy Defense Minister Artak Zakarian denied on
Thursday any connection between last week's Armenian-Azerbaijani
summit in Geneva and subsequent deadly ceasefire violations around
Nagorno-Karabakh.

President Serzh Sarkisian and his Azerbaijani counterpart Ilham Aliyev
met in Geneva on October 16. In a joint statement issued there, their
foreign ministers and international mediators said the two leaders
"agreed to take measures to intensify the negotiation process and to
take additional steps to reduce tensions on the Line of Contact." They
said the U.S., Russian and French co-chairs of the Minsk Group are
satisfied with the summit and are planning to hold follow-up talks
with the two ministers.

Just three days later, an Armenian soldier was shot dead in Karabakh
by Azerbaijani sniper fire. The Azerbaijani military reported that
Armenian forces killed one of its soldiers on Sunday. Karabakh's
Armenian-backed army said the Azerbaijani side shelled its frontline
positions with mortars and anti-tank weapons later on Sunday, Monday
and Tuesday. No major truce violations have been reported since then.

"Linking the tension to the Geneva meeting is totally inappropriate,"
Zakarian told RFE/RL's Armenian service (Azatutyun.am). "There has
periodically been tension on the border. It results from one fact:
inside Azerbaijan they don't come to terms with the reality that there
is no alternative to the realization of Nagorno-Karabakh's right to
self-determination. At the same time I presume that that is also an
opportunity to solve some issues in Azerbaijan."

Speaking right after the Geneva summit, Sarkisian again ruled out any
peaceful settlement that would lead to the restoration of Azerbaijani
control over Karabakh. That statement angered Azerbaijani
officials. They accused the Armenian president of breaching
understandings reached with Aliyev.

Sarkisian shrugged off those accusations on Wednesday. "We spoke one
on one, and if we agreed not to tell anyone [details of the
conversation,] then how did [Aliyev's] aides familiarize themselves
with the subject?" he told senior military officials in Yerevan. "I
can assure you that I have not uttered even half a word about our
conversation in any other place."

Meanwhile, the Russian Foreign Ministry said on Thursday Moscow
regrets the fact that "the state of affairs in the conflict zone
remains uneasy." "We are calling on Yerevan and Baku to demonstrate a
constructive approach to looking for solutions to unresolved issues,"
the ministry spokeswoman, Maria Zakharova, told reporters.

At the same time, Zakharova welcomed the warring sides' stated
readiness to intensify the negotiation process and bolster the
ceasefire regime.

For his part, the Minsk Group's U.S. co-chair, Andrew Schofer, told
the Armenpress news agency that the Geneva meeting was a "positive
sign of commitment by both presidents" to seek a Karabakh
settlement. Schofer also said that he and fellow mediators from Russia
and France expect to meet the Armenian and Azerbaijani foreign
ministers in the next few weeks.



Denmark Withdraws Funding For Armenian Mining Project


 . Tatevik Lazarian
 . Artak Hambardzumian


Armenia - Open-pit mining at Teghut copper deposit, 20Dec2014.

A Danish state agency has decided to withdraw an export credit
guarantee for a $62 million investment in Armenia's second largest
copper mine, accusing its private owner of failing to comply with
environmental standards.

Vallex Group, an Armenian mining company, launched productions
operations at the Teghut deposit in the northern Lori province three
years ago as part of a $380 million project to mine copper and
molybdenum there.

Open-pit mining at Teghut will lead to the destruction of hundreds of
hectares of rich forest. Hence, strong opposition to the project
voiced by Armenian environment protection groups.

Vallex pledged to offset this damage by planting a new and bigger
forest in adjacent areas. It denied environmentalists' claims that ore
crushing and enrichment will pollute a local river and underground
waters. The company also promised to create 1,300 new jobs, build new
schools and upgrade other infrastructure in nearby villages.

The project is mostly financed by VTB, a leading Russian commercial
bank that has extended loans to Vallex. VTB in turn obtained one of
those loans, reportedly worth $62 million, from a Danish pension fund,
PensionDanmark.

According to Denmark's Export Credit Agency (EKF), the money lent by
PensionDanmark was due to be spent on the purchase of mining equipment
from a Danish engineering company.

In an October 15 statement, EKF said it granted in 2013
PensionDanmark's request to guarantee the export credit to VTB. It
said the decision was conditional on the Teghut operator complying
with "the World Bank's guidelines on environmental and social
sustainability."

The statement announced that EKF decided to withdraw that credit
guarantee because "the mine has unfortunately not complied with the
terms of the agreement." "This decision is the culmination of a
lengthy process in which we have been forced on multiple occasions to
reprimand the mine," EKF's chief executive, Anette Eberhard, was
quoted as saying.

The Danish agency did not specify the environmental standards that
have allegedly not been met by the Armenian company.


Armenia - A newly constructed ore-processing plant at the Teghut
copper mine, 20Dec2014.
Vallex said on Thursday that it had never signed any loan agreements
with EKF and will therefore not comment on the announced halt in
Danish funding. It stressed that it has been financing mining and
ore-processing operations at Teghut with its own resources and VTB
loans. In a statement, the company also insisted that it is operating
in strict compliance with environmental standards.

Levon Galstian of the Armenian Ecological Front, a non-governmental
organization strongly opposed to the Teghut project, dismissed the
Vallex reaction as "primitive manipulations." Galstian welcomed EKF's
decision, saying that it set a "precedent" that could help to prevent
the emergence of more metal mines in Armenia. He also said that his
group will use EKF's decision to ask the Armenian government to
inspect and eventually stop the Teghut operation.

Environment Protection Minister Artsvik Minasian told RFE/RL's
Armenian service (Azatutyun.am) that his ministry is already looking
into the matter and will assess Vallex's compliance with its
environment protection obligations. "We will present our actions
soon," he said.

Copper, molybdenum and other non-ferrous metals as well as their ore
concentrates have long been the number one source of Armenia's export
revenue. They accounted for at least 44 percent of Armenian exports in
January-August this year. The Armenian mining industry reportedly
employs about 8,000 people at present.



U.S. Official Lauds Armenia's Post-Soviet Progress


U.S. - U.S. Deputy Assistant Secretary of State Bridget Brink and
Armenian Ambassador Grigor Hovannisian mark the 26th anniversary of
Armenia's independence at an official reception in Washington,
24Oct2017.

A senior U.S. State Department official reportedly praised Armenia's
"strong partnership" with the United States, "vibrant" political
scene, and burgeoning information technology industry as she
celebrated the 26th anniversary of the country's independence in
Washington on Tuesday.

Bridget Brink, a U.S. deputy assistant secretary of state, was among
dignitaries that attended and spoke at a reception hosted by the
Armenian Embassy in Washington and the U.S. Congressional Armenian
Caucus on Capitol Hill on the occasion.

"This year, Armenia celebrates twenty six years of independence. In
this time, it is quite remarkable how much progress has been made,"
she said in remarks cited by the Armenian Assembly of America, a
lobbying group that sponsored the event.

"We all remember all too well the difficult years immediately after
independence," Brink went on. "But in a relatively short period of
time, Armenia has modernized its economy and has become a tech hub in
the region, created a vibrant political system that allows space for
civil society, and has built a strong, enduring partnership with the
United States, of which I am deeply proud."

The U.S. official also praised Armenia's participation in NATO-led
missions in Afghanistan and Kosovo, saying that it underscores "the
shared strategic interests between our two countries."

The Armenian ambassador in Washington, Grigor Hovannisian, described
U.S.-Armenian relations as "thriving" when he addressed the
reception. The U.S., he said, is a "reliable friend and partner that
helped Armenia face formidable odds" following the Soviet break-up.

Also attending the event were about two dozen pro-Armenian members of
the U.S. House of Representatives. Some of them visited Yerevan last
month to take part in official ceremonies that marked the country's
independence anniversary.

"As we celebrate the freedom that the Armenian people gained over two
decades ago, let us also keep in mind those in Artsakh who continue in
their struggle for independence," Ed Royce, the chairman of the House
Foreign Affairs Committee, said, using the Armenian name of
Nagorno-Karabakh.



Press Review



"Zhoghovurd" claims that the Armenian Defense Ministry's proposal to
practically abolish all remaining draft deferments enjoyed by
university students has caused a "big wave of discontent." The paper
too is critical of a relevant bill drafted by the ministry, saying
that it was strongly defended in the Armenian parliament on Wednesday
by individuals who themselves did not serve in the armed forces. "A
considerable number of government members and other officials did not
serve in the army either and received deferments for continuing their
studies," it says, adding that their arguments in support of the bill
are therefore disingenuous.

"Hayots Ashkhar" takes a different view, criticizing "groundless"
claims about military service hampering the development of science in
Armenia. The paper says such claims are mainly made by those who have
only "superficial knowledge about the real state of affairs in those
areas." "The issue is really serious and important but it does not
represent a clash of the interests of the army and the
educational-scientific complex," it says.

"Zhamanak" claims that "everything except investments" was discussed
during Russian Prime Minister Dmitry Medvedev's October 24-25 visit to
Yerevan. The paper recalls that when Prime Minister Karen Karapetian
visited Moscow in January he discussed with Medvedev the possible
creation of a Russian-Armenian investment fund. It says there was "no
word" on that idea in public statements made during Medvedev's trip to
Yerevan.

Diogo Pinto, the director of the European Friends of Armenia, a
Brussels-based group, tells "168 Zham" that he is optimistic about the
upcoming signing of the Comprehensive and Enhanced Partnership
Agreement (CEPA) between Armenia and the EU. "If the EU and EU member
states are doing their best, then I think that the agreement will be
signed either during the [EU's November 24] summit or in the run-up to
it," he says. "If not, then I am sure that the agreement will be
signed right after it. If the agreement is successfully ratified [by
the EU member states] we could switch to negotiations on the
liberalization of the visa regime. A visa-free regime [for Armenian
nationals] would facilitate Armenia-EU relations."

(Tigran Avetisian)


Reprinted on ANN/Armenian News with permission from RFE/RL
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