Thursday, More Progress Reported In Armenia-Azerbaijan Peace Talks U.S. - U.S. Secretary of State Antony Blinken meets Armenian Foreign Minister Ararat Mirzoyan and Azerbaijani Foreign Minoster Jeyhun Bayramov, Washington, June 27, 2023. The Armenian and Azerbaijani foreign ministers made further progress towards a bilateral peace treaty but still disagree on some of its key terms, official Yerevan said on Thursday night after they concluded a new round of U.S.-mediated negotiations. Foreign Minister Ararat Mirzoyan and his Azerbaijani counterpart Jeyhun Bayramov met outside Washington for three consecutive days. They also held trilateral meetings with U.S. Secretary of State Antony Blinken and National Security Adviser Jake Sullivan. “The Ministers and their teams continued progress on the draft bilateral ‘Agreement on Peace and Establishment of Interstate Relations,’” read a statement released by the Armenian Foreign Ministry. “They reached an agreement on additional articles and advanced mutual understanding of the draft agreement, meanwhile acknowledging that the positions on some key issues require further work,” it said, adding that Mirzoyan and Bayramov pledged to “continue their negotiations.” The statement did not disclose those articles or the remaining sticking points. It reflected Blinken’s comments made during the final session of the three-day talks. The top U.S. diplomat also said that “there remains hard work to be done to try to reach a final agreement.” “I think there is also a clear understanding on everyone’s part that the closer you get to reaching agreement, in some cases the harder it gets by definition. The most difficult issues are left for the end,” added Blinken. The two sides were understood to disagree before the latest talks on practical modalities of delimiting the Armenian-Azerbaijani border and a dialogue between Baku and Nagorno-Karabakh’s leadership as well as international safeguards against non-compliance with the treaty. Yerevan has been pressing for an “international mechanism” for such a dialogue, saying that it is essential for protecting “the rights and security” of Karabakh’s ethnic Armenian population. Bayramov made clear late last week that Baku will not agree to any special security arrangements for the Karabakh Armenians. Minister Confident About Grape Purchases By Armenian Brandy Giant • Robert Zargarian Armenia -- A truckload of grapes is transported to a storage facility in Ararat region run by the Yerevan Brandy Company, 14Sep2010 Economy Minister Vahan Kerobian said on Thursday that Armenia’s leading brandy producer will not cut back on purchases of grapes from domestic farmers this year despite the uncertain future of its vital exports to Russia. The French group Pernod Ricard, which owns the Yerevan Brandy Company (YBC), announced in May that all of its subsidiaries around the world will stop exporting alcoholic beverages to Russia. The move linked to Western sanctions against Moscow raised serious concerns in Armenia about the YBC’s continued operations. The bulk of its brandy, famous across the former Soviet Union, is sold in Russia. More importantly, the company has long been Armenia’s largest wholesale buyer of grapes grown by tens of thousands of farmers. “[YBC] will not reduce the volume of its purchases compared with the previous years,” Kerobian told journalists. “This was our main concern and it has been dispelled.” The YBC management has made no statements to that effect, however. It also remains reluctant to officially comment on the future of its exports to Russia. Russian and Armenian media outlets quoted unnamed company sources as saying after the Pernod Ricard announcement that the YBC is continuing brandy shipments to the Russian market. Armenia - A vineyard in Armavir province, October 10, 2022. Other Armenian brandy makers look set to buy fewer grapes this year. They already cut their purchases in 2022, sparking protests by hundreds of angry winegrowers unable to sell their main crop. “The situation is already uncertain,” Arsen Simonian, a farmer from the wine-growing Ararat province, told RFE/RL’s Armenian Service. Simonian, who owns a large vineyard in the village of Verin Artashat and heads a provincial association of winegrowers, said that about one-fifth of the local farmers have already decided to cut down their vineyards and possibly switch to other crops. “We do not expect that the entire [2023] grape harvest will be bought,” Kerobian acknowledged earlier this month. “We are now trying to figure out methods for making the two ends meet.” The minister said on Thursday that the Armenian government will impose stricter quality controls and other regulations on local brandy firms. “Control of the quality of brandy will definitely lead to a large volume of [grape] purchases,” he said. Simonian agreed that such oversight could greatly benefit grape farmers. But he questioned the government’s ability to enforce it properly. U.S. Sanctions Official Visits Armenia Armenia - Prime Minister Nikol Pashinian meets James O'Brien, head of the U.S. Department of State's Sanctions Coordination Office, Yerevan, . A senior U.S. official met with Prime Minister Nikol Pashinian on Thursday for talks that were expected to focus on Armenia’s compliance with Western sanctions imposed on Russia over its invasion of Ukraine. The U.S. Embassy in Armenia said earlier in the day that James O’Brien, the sanctions coordinator at the State Department, has arrived in Yerevan to discuss with Pashinian and other Armenian officials “cooperation on U.S. sanctions” and “express appreciation for Armenia’s continued commitment to upholding U.S. sanctions.” An Armenian government statement on Pashinian’s talks with O’Brien did not mention the issue. It said the two men spoke about the Nagorno-Karabakh conflict, Turkish-Armenian relations and “various issues of mutual interest.” O’Brien arrived in the Armenian capital from Tbilisi where he held similar talks with Georgian leaders earlier this week. U.S. officials pressed the Armenian government to prevent Russia from evading the sanctions through Armenian companies during a series of meetings held this spring. Pashinian said on May 22 that despite its “strategic” relations with Russia Armenia “cannot afford to be placed under Western sanctions.” A few days later, Pashinian’s government announced that Armenian exporters will now need government permission to deliver microchips, transformers, video cameras, antennas and other electronic equipment to Russia. The Armenian Ministry of Economy, which proposed the measure, cited the need to prevent the use of such items by foreign defense industries. The Armenian Central Bank essentially confirmed on June 7 reports that local commercial banks have frequently blocked payments for such supplies wired by Russian buyers in the past few weeks. According to government data, Armenia’s exports to Russia almost tripled in 2022 and nearly quadrupled in January-April 2023. Goods manufactured in third countries and re-exported by Armenian firms are believed to have accounted for most of that gain. They include consumer electronics and other hi-tech goods and components which the Western powers believe could be used by the Russian defense industry. The increased trade with and other cash flows from Russia are the main reason why the Armenian economy grew by 12 percent in 2022. Yerevan To Continue Talks With Baku After Deadly ‘Provocation’ • Ruzanna Stepanian U.S. - U.S. Secretary of State Antony Blinken, Armenian Foreign Minister Ararat Mirzoyan and Azerbaijani Foreign Minister Jeyhun Bayramov start a new round of talks in Arlington, Virginia, June 27, 2023. Prime Minister Nikol Pashinian on Thursday effectively dismissed Nagorno-Karabakh leaders’ call to halt Armenian-Azerbaijani peace talks made after four Karabakh soldiers were killed by Azerbaijani forces early on Wednesday. In a statement adopted later on Wednesday, the Karabakh parliament said Yerevan must refuse to negotiate until Baku ends truce violations along the Karabakh “line of contact” and the Armenian-Azerbaijani border. It warned that failure to do so “would mean the encouragement of the Azerbaijani side’s aggressive behavior.” Pashinian said that the soldiers’ deaths were the result of Baku’s pre-planned “military provocation” aimed at undermining his administration’s “efforts to establish peace between Armenia and Azerbaijan and address the issue of the Nagorno-Karabakh people’s rights and security.” He noted in this regard that the Armenian and Azerbaijani foreign ministers are continuing their latest round of U.S.-mediated negotiations that began outside Washington on Tuesday. “There is no alternative to peace in our region, and our government, faced with all difficulties and complications, will continue the political path of peace,” Pashinian added at the start of a weekly cabinet meeting in Yerevan. A U.S. State Department spokesman, Vedant Patel, said late on Wednesday that there is “no change in the schedule” of the Washington talks that are due to be wrapped up on Thursday evening. “We are deeply disturbed by the loss of life in Nagorno-Karabakh, and we offer our condolences to the families of all of those who were killed,” Patel told reporters. “These latest incidents underscore the need to refrain from hostilities and for a durable and dignified peace.” Earlier on Wednesday, Foreign Minister Ararat Mirzoyan and his Azerbaijani counterpart Jeyhun Bayramov held a trilateral meeting with Jake Sullivan, the U.S. national security adviser, at the White House. Sullivan said he urged Baku and Yerevan to “continue making progress toward peace, as well as to avoid provocations and de-escalate tensions in order to build confidence.” According to the Armenian Foreign Ministry, Mirzoyan told Sullivan that Azerbaijani artillery and drone attacks that left the four Karabakh soldiers dead are part of continuing Azerbaijani efforts to “subject Nagorno-Karabakh to ethnic cleansing.” Pashinian likewise accused Baku of pursuing a “consistent policy” of depopulating the Armenian-populated region. Pashinian drew strong condemnation from the Karabakh leaders and the Armenian opposition after he pledged in May to recognize Azerbaijani sovereignty over Karabakh through an Armenian-Azerbaijani peace treaty discussed during the ongoing peace talks. His critics maintain that the Karabakh Armenians cannot live safely under Azerbaijani rule and would inevitably leave their homeland in that case. Reposted on ANN/Armenian News with permission from RFE/RL Copyright (c) 2023 Radio Free Europe / Radio Liberty, Inc. 1201 Connecticut Ave., N.W. Washington DC 20036.