U.S. To Block Russia’s Proposal To Continue Talks On Kosovo

U.S. TO BLOCK RUSSIA’S PROPOSAL TO CONTINUE TALKS ON KOSOVO

PanARMENIAN.Net
13.12.2007 14:15 GMT+04:00

/PanARMENIAN.Net/ U.S. Ambassador Zalmay Khalilzad said Washington
and the Europeans believe there was no "basis for a (statement),
given that we fundamentally differ with the Russians on this issue."

"The negotiations have been exhausted," he told journalists. "Now is
the time for the (Security) Council to decide, and if the council
doesn’t decide there has to be a remedy found outside the council
for the problem."

A push by Russia for more talks over the future of Kosovo ran into
immediate opposition on Wednesday in the U.N. Security Council from
Western countries who say such talks would be pointless.

Russia handed its 14 Security Council partners at a meeting on
Wednesday what it called "key elements" of a council statement calling
for fresh talks to resolve Kosovo’s status, Reuters reports.

EU Summit: Parliament President Outlines Challenges Ahead

EU SUMMIT: PARLIAMENT PRESIDENT OUTLINES CHALLENGES AHEAD

EUPolitix.com
Dec 14 2007
Belgium

Hans-Gert Pottering spoke of the major challenges facing Europe at
the Brussels summit – and predicted that parliament would continue
to grow in influence.

He said with a smile that national leaders now comment and discuss
the parliament president’s speech to council, whereas before they
might simply have listened politely.

He also emphasised that Friday’s summit in Brussels would help shape
the future direction of the EU.

"This is a working summit," he told journalists Friday.

"This is no less important than yesterday’s signing of the treaty
in Lisbon, or the signing of the charter of fundamental rights in
Strasbourg. Europe is not just about important events, but is a
step-by-step process."

Pottering spent most of his time discussing long-term challenges. He
said for example that member states should be united in ensuring that
Kosovan independence is linked to security, and followed a clear
timeframe. "Firm principles combined with procedural flexibility,"
he said.

He added that Serbia has a future in the EU, and that Serbia and
Kosovo could one day find themselves together in the EU.

The issue of human rights – with particular reference to the alleged
massacre of Armenians around the First World War – and Turkish entry
into the EU was also raised. Pottering said that, as a German, he
had reason to be proud of the fact that his country’s own ghastly
past has been put behind it.

"If we want to move into the future, we have to recognise what we carry
as way of burden from the past," he said. "I’m grateful and a bit proud
that this spiritual and political absorption process has been achieved.

"Nazism was unique and cannot compare to anything else, but I would
hope that Turkey, in time, will come to terms with what happened to
the Armenian people."

Human rights, he said, was at the "heart" of parliament’s political
commitment. "We do not remain silent," he said. "~TTurkey wants to
accede to the EU. It therefore has to adapt to our value system."

Pottering also identified more short-term achievements. On 21 December,
border controls will be removed in several new member states, and in
March 2008, checks in airports will likewise be abolished.

He also repeated parliament’s commitment to funding the Galileo
project. "Galileo has thrown off its chains and is ready for launch,"
he said. "Parliament has always supported the commission in this."

Artashes Geghamian Stated That The Former Authorities Of Armenia Pre

ARTASHES GEGHAMIAN STATED THAT THE FORMER AUTHORITIES OF ARMENIA PREPARE PROVOCATIONS AND CIVIL COLLISIONS ON THE THRESHOLD OF THE ELECTIONS

Mediamax
December 13, 2007

Yerevan /Mediamax/. Former authorities of Armenia, headed by the
Ex-President Levon Ter-Petrosian, are preparing provocations and
civil collision during the pre-election campaign of the presidential
elections, candidate for the position of the Armenian President,
Leader of oppositional "National Unification" party Artashes Geghamian
said this in Yerevan today.

According to him, Levon Ter-Petrosian does not hope to become a
President again, since he will gain no more than 6% of votes during
the upcoming elections. "The first President, being a seasonal patriot
of his country, intentionally spoils the pre-election atmosphere
in Armenia and after the elections, most likely, will change his
citizenship", Geghamian stressed.

He noted that the speeches of the first President during the rallies
consisted of direct calls for violent shift of power, which can provoke
unpredictable and serious consequences. Geghamian urged the citizens
of Armenia to refrain from participating in mass actions, capable
of becoming a perquisite for provocations by Ter-Petrosian’s team,
"which has the corresponding experience from the beginning of 90s".

The oppositional politician admitted that in the course of the
four-hour meeting with Levon Ter-Petrosian on September 3, an agreement
was reached on preservation of mutual correctness in the process of
the election campaign.

"Despite this, already in the course of over 2 weeks, there is an
unceasing flow of "black PR" against me from the pages of the media
under the Ex-President’s control", he stated.

According to him, the very regime of Ter-Petrosian is behind the
notorious murders of the beginning of 90s. At that, Artashes Geghamian
condemned the explosion, which took place last night near the editorial
office of the oppositional "Chorord Ishkhanutiun" ("Fourth Power")
newspaper under the control of the Ex-President’s entourage.

Utility Firms Armenia’s Main Pension Contributors

UTILITY FIRMS ARMENIA’S MAIN PENSION CONTRIBUTORS
By Anna Saghabalian

Radio Liberty, Czech Rep.
Dec 12 2007

Social security taxes levied from Armenia’s leading utility companies
are the single largest source of pensions paid to hundreds of thousands
of elderly citizens, a senior government official said on Wednesday.

Vazgen Khachikian, head of the State Social Security Fund, unveiled
the list of the country’s biggest pension taxpayers, which is topped
by the Armenian electricity and natural gas distribution networks as
well as ArmenTel, the national telecommunications company.

Armenia’s moribund state railway is in a surprising fourth place,
paying more to the pension fund than the country’s largest corporate
taxpayer, the Zangezur Copper-Molybdenum Plant. Zangezur is only
sixth on the list made available to RFE/RL by Khachikian.

Other big and lucrative Armenian companies are much lower in the
rankings. The Sanex company, for example, which enjoys a de facto
monopoly on imports of basic food commodities, paid less in social
security taxes than each of the country’s main hospitals.

According to Khachikian, this does not necessarily testify to gross
tax evasion as the main factor in pension tax collection is the
number of people employed by a particular company and the size of
their wages. "We have to keep in mind that it is possible to make
big profits with few employees," he said.

"But this doesn’t mean there are no companies evading social security
and other taxes," Khachikian said, adding that the practice is
particularly widespread among construction companies, restaurants
and numerous taxi firms.

They are believed to artificially reduce their contributions to the
State Social Security Fund by underreporting the number of their
employees. It is also not uncommon for private firms to underreport
their workers’ wages. The practice is thought to be commonplace in
all sectors of the economy.

With the total annual amount of officially declared wages paid in
the private and public sectors estimated at 500 billion drams ($1.65
billion), analysts say the Armenian government should be able to
collect at least 110 billion drams in social security tax this year.

However, the pension fund’s revenues are expected to come in at only
85 billion drams.

In an effort to address the problem, the government decided two years
ago to transfer the authority to collect pension tax from the fund
to the State Tax Service. Khachikian said the move has worked as his
agency rapidly balanced its books and posted a net surplus of more
than 4 billion drams in 2006. The surplus is on course to reach at
least 7 billion drams next year, he said.

450 Million Drams For Newlyweds

450 MILLION DRAMS FOR NEWLYWEDS

KarabakhOpen
11-12-2007 11:33:56

>From January 1, 2008 the newlyweds who register their marriage will
get 300 thousand drams from the government, stated the minister of
social security of NKR Narine Azatyan during the discussion of the
budget bill at the National Assembly.

The minister informed that 450 million drams has been allocated
from the state budget for this purpose. It means that in 2008 1500
couples will get 300 thousand drams each. In 2006 827 marriages were
registered, and 751 were registered in 2005. There is no data for 2007,
however, the government took into account that most young families
who got married in 2007 preferred to put off registration until 2008.

BAKU: Azeri Official Divulges Core Principles Of New Proposals For N

AZERI OFFICIAL DIVULGES CORE PRINCIPLES OF NEW PROPOSALS FOR KARABAKH SETTLEMENT

Ekspress
Dec 10 2007
Azerbaijan

A package of proposals, dubbed as "the best compromises draft project",
envisages liberation of five Azerbaijani districts under occupation
at first stage, an Azerbaijani official has said. In an interview
with Ekspress newspaper, the head of foreign relations department
of the Azerbaijani presidential administration, Novruz Mammadov,
further divulged details of the document. The official believes that
Azerbaijan’s reaction to the "Madrid document" will soon be made public
once the president studies it. Mammadov blamed Armenia for abandoning
his pledges to the Minsk Group co-chairs. The official believes that
the people’s diplomacy cannot contribute to the resolution of the
problem. He called on Karabakh’s ethnic Armenians to share benefits
of Azerbaijan’s development and coexist peacefully. Nevertheless,
the former foreign policy aide, Vafa Quluzada, described the Madrid
document as "a trap" for Azerbaijan.

The following is the text of Alakbar Raufoglu report in Ekspress
newspaper headlined "’The best compromises draft project’ has been
made public" and subheaded "Novruz Mammadov: `Five districts must
be liberated at the first stage with Lacin and Kalbacar at the next;
the status of Nagornyy Karabakh might be discussed in 15-20 years’";
subheadings as published:

In an interview with our newspaper yesterday, the head of foreign
relations department of the Azerbaijani presidential administration,
Novruz Mammadov, made public details of the document on principles [of
the resolution of the Karabakh conflict] submitted to the Azerbaijani
and Armenian foreign ministers by the OSCE Minsk Group co-chairmen
in Madrid last week.

The head of the department believes that "they are the proposals
which have been discussed under the Prague process for about four
years". A stage-by-stage resolution is the cornerstone of the document:

"In the first stage, five of the districts around Nagornyy Karabakh,
with the exception of Lacin and Kalbacar, and later on others
must be liberated one by one or both at once. Once this happens,
those districts must be cleared of mines, the infrastructure of
the territories must be restored, refugees must go their homes,
the communications between Armenia and Azerbaijan must be opened,
international peace-keepers must be deployed in the region although
Azerbaijan is ready to guarantee its pledges and the status quo in
the region must be restored."

Mammadov also added that Azerbaijan within the limits of the
settlement process is ready to give the go-ahead to the opening of
the Baku-Naxcivan railway and if possible to give consent to extending
it to Armenia. Baku proposes 15-20 years for these processes and then
is ready to determine Karabakh’s status.

At the same time, the official of the presidential administration said
that there was not any agreement to this effect so far: "Should this
be the case, the co-chairmen would not have submitted the principles
to the sides again."

As soon as the Azerbaijani president studies the document, he will
express his position and amendments will be proposed if need be. In
its turn, Yerevan should also express its attitude towards the
proposals. Nevertheless, Baku is anxious that the opposite side will
take advantage of the existing situation and try to win time.

Mammadov has drawn attention to Yerevan plans to speculate about the
conflict in the run-up to the election although the negotiations are
not frozen during the elections in Azerbaijan.

Kocharyan escaped for "consultations" from St Petersburg

Mammadov also responded to the Armenian president’s claims that there
were conditions to sign agreements twice on core Karabakh principles
alleging that they both did not take place due to Baku’s fault: "On the
contrary, Robert Kocharyan himself gave promises to the co-chairmen and
Azerbaijan more than once and went back on them at next meetings. This
was the case at the St Petersburg meeting in June 2007."

Mammadov recalled that a similar situation emerged twice in 1998 and
1999. At that time, the sides backed by international community did
really agreed. However, what has happened in Armenia did not allow
them to come true.

First, Kocharyan with his supporters succeeded in removing his
predecessor Levon Ter-Petrosyan from power, second, a terrorist act
was committed in the Armenian parliament: "Robert Kocharyan should
call a spade a spade if he bears them in mind. Because he himself
gave promises to the co-chairmen more than once and then extracted
them. For the last time, there were certain expectations in June
this year. However, Kocharyan said in St Petersburg that he should
consult. However, he had promised it earlier and it was a pretext."

"People’s diplomacy is inappropriate now"

The official also commented on international calls to take advantage of
the people’s diplomacy in the resolution of the conflict. He believes
that this is impossible at the current stage. Because Armenia is not
taking any steps to renounce its aggressive policy, and given this,
the people’s diplomacy cannot be successful: "The people of Armenia
are under pressure of their leaders. Therefore, given the essence of
the current relations, the people’s diplomacy is unnecessary and is
not justifiable. There is no place for it in the current anatomy of
the negotiations."

At the same time, Mammadov hailed the mutual visits of the Azerbaijani
and Armenian intelligentsia representatives [to Karabakh, Yerevan and
Baku] some months ago as "necessary". With this visit [to Karabakh]
Baku managed to verify available reports about Karabakh with what
happens there.

Mammadov believes that similar visits can be repeated if need be.

Mammadov also dismissed international concerns about Azerbaijan’s
belligerent statements because a resort to war is at the bottom of
Azerbaijan’s Karabakh conception. "But we should first analyze what is
behind the concern. They are probably concerned [at the statements]
because interest of them international organizations are exposed
to danger. Second, we believe Armenia is more concerned about the
situation and sends us messages through their Diaspora, lobbyists
on behalf of international organizations. However, international
community, the co-chairs and Armenia itself should know that sooner
or later Azerbaijan must regain its territories. Whatever option fits
them to have our territories returned, let them help us to follow
that option.

Baku’s message to the Karabakh Armenians

Baku hopes that the Armenian people will soon or later understand the
reality and show constructive position. Although the negotiations
stalled off, the regional processes advance. "Asked what is the
message of the Azerbaijani leadership to the Armenian public?"

Mammadov said:

"The key message is to the Karabakh Armenians. We want to say:
Armenians, be in your right mind. Despite wide-ranging processes
over many years, you have been the dearest citizens of Azerbaijan
and we coexisted as friends, neighbours and relatives, you tasted
the best of everything, you were in the best positions and posts,
and we can also continue them from now on. We are magnanimous and
share what we have with others. Now you on those territories can
benefit Azerbaijan’s current development and your life can be better
organized here than in France, the USA and Russia. Come and live here
within Azerbaijan’s sovereignty. This is the best way for you.

History will prove this once again."

Vafa Quluzada: "The Madrid document is a trap"

It should be noted that the abovementioned views deny what Yerevan
describes as the "emergence of fresh political realities" with
the presentation of "the best compromises draft project" submitted
[to the sides] by the OSCE Minsk Group. And the impression is that
the Karabakh negotiations are at low ebb. The sides uninterested
in meetings threat each other and the co-chairmen are engaged in
imitation. Despite their efforts "to bring the negotiations process
to an end", nothing comes out of this.

Therefore, they tried to sell their "peace principles" in their
hands for many months to the sides last week in written, however,
it is already obvious that with two months to complete his tenure in
office (the Armenian president will quit his post in February 2008),
Kocharyan can neither make a surprise move in the settlement process,
nor can threat Baku in a persuasive manner over its refusal from
the accepted agreements. In a nutshell, the key success of the "the
Madrid draft project" for Baku is that it deprives Kocharyan from
chances of manipulation with the Karabakh conflict.

However, another reality is that the co-chairmen have lost levers
on the sides especially to Yerevan. Given this, Baku has two
opportunities either to sit idle until the election year is over or
unleash hostilities by turning a blind eye to all dissatisfactions.

We should say that the sides were also close to agreements in the
peace negotiations for several times (in Key West, Istanbul); however,
a final step was taken back rather than forward.

Incidentally, in a conversation with Ekspress, the former state
foreign policy aide, Vafa Quluzada, who was closely involved in
the Karabakh talks in his time, described "the Madrid document"
as a trap. He believes that the principles are also deceptive for
Azerbaijan because keeping the discussion of the status of Nagornyy
Karabakh to future means to lose it.

Against "Political Sensuality"

AGAINST "POLITICAL SENSUALITY"

A1+
[06:11 pm] 11 December, 2007

"I do not want to get engaged in the political sensuality",
said the Chairman of the Armenian Marxist party David Hakobyan,
reflecting on the reason he appeared next to Levon Ter-Petrosyan. In
his opinion "those who consider themselves opposition, but do not
join Ter-Petrosyan are engaged in political sensuality". According to
Hakobyan, the authorities want to see either the ARF candidate or the
"Orinats Yerkir" party’s candidate in the second stage.

Mr Hakobyan considers that all opposition actors should join
Ter-Petrosyan, irrespective of their ideological diversity. "We have
no time to spend on ideological diversities and national powers should
join to change the authorities.

Number one Marxist of Armenia is confirmed that no one but
Ter-Petrosyan can liberate the nation from the functioning
administration. Commenting on Ter-Perosyan’s declaration that he
needed 3 years to put the country on the right path, he said that
Ter-Petrosyan intended to follow Yeltsin’s example and liberate the
country from the criminals. "I think that Ter-Petrosyan follows this
saying: "I gave birth to you, I will kill you"".

Hakobyan considers that Ter-Petrosyan’s victory exceeds 50 percent
at this moment, and for the final victory he needs new resources and
strong ideological principles.

Mr Hakobyan also considers that he can support Ter-Petrosyan in
two important issues. "We are mutually complementary. This is the
problem. We are nothing separately, but together we are everything",
said David Hakobyan.

After the victory David Hakobyan is going to provide Ter-Petrosyan his
approaches on Karabakh problem. He proposes to establish the second
Armenian state in the territory of Artsakh. He reminded that Karabakh
and other territories were liberated owing to Ter-Petrosyan. In
David Hakobyan’s opinion more vital issues should be solved during
the upcoming 5 years: "We should reach the budget to 5-6 million,
the population – to 4-5 million. I insist that biological safety and
producing powers demand change of authorities", ensures the Marxist.

EU And Nato Secretary Generals Attach Importance To Holding Presiden

EU AND NATO SECRETARY GENERALS ATTACH IMPORTANCE TO HOLDING PRESIDENTIAL ELECTIONS IN ARMENIA IN LINE WITH INTERNATIONAL STANDARDS

Noyan Tapan
Dec 11, 2007

BRUSSELS, DECEMBER 11, NOYAN TAPAN. RA Prime Minister Serge Sargsian,
who is in Brussels on a working visit, met with Javier Solana, the
Secretary General of the European Union, on December 10.

Welcoming the RA Prime Minister’s visit to Brussels, Javier Solana
said that it is taking place timely, as presidential elections
are to be held in Armenia soon. He attached importance to holding
of the elections in line with international standards, as well as
participation of OSCE ODIHR delegation in the elections.

In his turn, S. Sargsian emphasized that one of Armenia’s key tasks
is the very elections, country’s democratization process, which first
of all proceeds from country’s and people’s interests. "We strive for
holding good elections for them to be appreciated not only by others,
but also in our country," the RA Prime Minister said. He said that
today Armenia has a number of complicated problems: the Nagorno
Karabakh conflict, normalization of relations with Turkey, holding
of reforms of second stage, which can be only solved by a person,
who will become President as a result of elections held in line with
international standards.

As Noyan Tapan was informed by the Information and Public Relations
Department of the RA government, during the meeting, the interlocutors
also touched upon regional problems, including the Nagorno Karabakh
settlement.

S. Sargsian stressed that Armenia sees settlement of Nagorno Karabakh
problem only by peaceful way. According to him, in spite of bellicose
statements more and more frequently voiced by Azerbaijan, there
are still great possibilities for it, as there is no alternative to
conflict’s peaceful settlement. J. Solana also considered inadmissible
conflict’s settlement by war stressing that EU will not permit
such worsening of the situation. The RA Prime Minister emphasized
that having EU’s assistance, the relations with Turkey can be also
normalized, for which, according to him, the Armenian party proposes
establishing bilateral diplomatic relations without preconditions.

The same day the RA Prime Minister met with Wilfried Martens, the
Chairman of the European People’s Party (EPP). During the conversation,
the parties discussed issues related to the process of development
of democracy in Armenia, party system formed, the place and role of
RPA in it, EPP-RPA cooperation. Regional problems, the process of
recognition of the Armenian Genocide, current state and prospects
of relations with the neighboring countries were also touched upon
during the conversation.

The RA Prime Minister’s next meeting was with Jaap de Hoop Scheffer,
the NATO Secretary General. The latter stated that serious progress
is noticed in the RA-NATO relations. In his turn, S. Sargsian said
that the Armenian party evaluates cooperation with NATO as one of
the important components of Armenia’s multi-layer security system.

The interlocutors touched upon the issue of Nagorno Karabakh
settlement, holding of presidential elections in line with
international standards during the meeting. Jaap de Hoop Scheffer
expressed the hope that after the elections it will be possible to
touch upon the Individual Partnership Actions Plan again.

A reception was organized in honor of the RA Prime Minister at the
Mayor’s Office of Brussels in the evening. Representatives of the
Armenian community of Belgium also took part in the reception.

The RA Prime Minister will meet with Terry Davis, the Secretary
General of the Council of Europe, Hans-Gert Pottering, the Chairman
of the European Parliament, Yacek Saryush-Wolski, the Chairman of
the European Parliament’s Commission for Foreign Relations, Benita
Ferrero-Waldner, the European Commissioner for External Relations on
December 11 in Strasbourg.

2907 Families Become Beneficiaries Of Children Of Armenia Fund’S Pro

2907 FAMILIES BECOME BENEFICIARIES OF CHILDREN OF ARMENIA FUND’S PROGRAM AIMED AT POVERTY REDUCTION

Noyan Tapan
Dec 10 2007

YEREVAN, DECEMBER 10, NOYAN TAPAN. Assistance was provided to 2907
families of six communities making part of the Model Grouping of
Villages of Armavir region within the framework of the RA Rural Areas’
All-Round Development Participation Program of the Children of Armenia
Fund. As it was mentioned in the report provided to Noyan Tapan by
the Fund, lately each family has received 2-7 apricot trees.

For the purpose of reducing poverty in rural communities and promoting
profitable activity, the Fund cooperates with the ATP Charity Fund
and American Armenian businessman Bryan Bedrosian. Bryan and Rosie
Bedrosians, cooperating with the Fund since 2004, have founded an
apricot hotbed in Karakert. The program’s goal was to give the young
plants grown in the hotbed to the local farmers.

In total, 14729 trees have been given out to the families of the
Model Grouping of Villages thanks to the assistance of the Bedrosians.

Ter-Petrosian Reaches Out To ‘Enslaved’ Oligarchs

TER-PETROSIAN REACHES OUT TO ‘ENSLAVED’ OLIGARCHS
By Emil Danielyan

Radio Liberty, Czech Republic
Dec 10 2007

Former President Levon Ter-Petrosian appealed to Armenia’s leading
businessmen to defy the government and back his presidential bid as
he again rallied thousands of opposition supporters in Yerevan at
the weekend.

In another wide-ranging speech, Ter-Petrosian also sought to reach
out to other, much bigger segments of the population, condemning
government plans to raise taxes levied from small business and
describing Armenian farmers as the country’s "unacknowledged" heroes.

He also angrily hit back at continuing government claims that he
"wrecked" the Armenian economy while in office.

Ter-Petrosian spent a considerable part of the 90-minute speech
providing, in a characteristic academic manner, a detailed description
of the politico-economic system of the medieval Mongol Empire which he
said bears a striking resemblance to that of modern-day Armenia. He
claimed that even the wealthiest Armenians are essentially at the
mercy of President Robert Kocharian and Prime Minister Serzh Sarkisian,
comparing the two men to Mongol khans who wielded unlimited power over
their subjects. Mentioning Armenia’s leading government-connected
"oligarchs" by name, he described them as "slaves" and said they
will run the constant risk of losing their assets as long as
Kocharian-Sarkisian duo remains in power.

"Until when will you put up with that humiliation?" Ter-Petrosian
asked, addressing about 20,000 people who gathered in the city’s
Liberty Square. "Until when will you put up with your slave-like
status? Don’t you understand that with your servility you prop up the
foundations of the khanate and condemn our entire nation, including
your own children, to slavery?

"What keeps you from closing ranks and toppling the khan yoke loathed
by everyone, including yourself? … How do you sleep at night? Can
you look your wives and children in the eyes?"

"If you continue to dishonorably serve the current authorities, they
will be able to destroy you one by one at any moment," he continued.

"But if you jointly oppose them, they won’t last even for one day."

So far only one of the "oligarchs," who made their fortunes thanks to
their government connections, has lent support to Ter-Petrosian’s bid
to return to power. Khachatur Sukiasian, a parliament deputy and the
main owner of SIL Group, pledged last week to stand by the ex-president
"until our victory" despite an ongoing government crackdown on his
businesses.

Virtually all other tycoons remain loyal to Armenia’s top leaders.

They have financed Kocharian’s and his allies’ election campaigns
and are expected to render similar assistance to Sarkisian in the
upcoming presidential election. Sukiasian has claimed that many them
privately sympathize with Ter-Petrosian but are too scared to revolt
against the authorities.

But one tycoon, who is believed to be close to Sarkisian, insisted
on Monday he did not and will not get involved in politics. "I did
very well even in 1996-1997, when Levon Ter-Petrosian was in power,"
said Mikhail Baghdasarian, whose business interests range from fuel
imports to civil aviation. "Incidentally, I came here [from Russia]
at his initiative."

"I do business not for Levon Ter-Petrosian or Robert Kocharian but
for Armenia, for those people who work for me," said the Russian
citizen of Armenian descent.

In his speech, Ter-Petrosian disputed the widely held belief that the
"oligarchs" are allowed to grossly evade taxes in return for their
political and economic support for the ruling regime. He alleged that
most of the taxes paid by them end up in the pockets of "jackals"
running the country — his most bitter personal attack on Sarkisian
and Kocharian yet. "In fact, you have fulfilled your tax obligations
but your payments have gone not to the state budget but to a totally
different place," he said.

Ter-Petrosian also sought to win over tens of thousands of Armenians
owning small businesses. Many of them have until now paid only a
so-called "simplified tax" and have been exempted from other, heftier
duties. Citing the need to combat tax evasion, the Armenian government
pushed through parliament earlier this year a legal amendment that
will make it much harder for small firms to qualify for simplified tax.

Ter-Petrosian condemned the measure, which will take effect on
January 1, and reiterated his claims that the Armenian economy is
being increasingly monopolized by the government-linked super rich.

"The majority of entrepreneurs representing the middle class, having
long lost their independence, are trapped in the net of monopolist
companies involved in wholesale trade," he said.

Responding to such allegations, Kocharian has said that Ter-Petrosian
has no moral right to speak about economics because he "wrecked"
Armenia’s Soviet-era industry and made the nation one of the poorest
in the world during the turbulent first years of its independence.

Armenia’s GDP shrunk by more than half amid a sever energy crisis
in 1992-1993. Kocharian has downplayed the impact of the war in
Nagorno-Karabakh and the Azerbaijani and Turkish economic blockades
on the economic collapse.

Ter-Petrosian insisted that Soviet-era manufacturing industries were
too backward to adapt to the free market and went into decline in
all former Communist states. He said the decline was much steeper in
Armenia because of the Karabakh war, the economic blockades, turmoil in
neighboring Georgia, the presence of hundreds of thousands of Armenian
refugees from Azerbaijan as well as devastating consequences of the
1988 earthquake. "If you put any other state in those conditions,
you would see the same results," he said.

Ter-Petrosian further declared that the fact that Armenia managed to
defeat Azerbaijan against the odds while registering modest economic
growth in 1994 makes his time in office one of the most glorious
periods in Armenian history. "It is hard not to agree that it was
a feat that has no precedent in the modern history of the Armenian
people," he said.