Author: David Nargizian

Eight companies from different countries and one consortium have applied for participation in an international tender for construction of an overhead power line between Armenia and Georgia and substations, Press Service of the Ministry of Energy Infrastructures and Natural Resources reports.

The Chinese Sinohydro Corporation, the German Siemens AG companies and the Swedish-Spanish ABB AB-COBRA consortium have bid for construction of the high voltage DC converter station in Ayrum and substations.

The bidders for construction of the overhead power line include: Sinohydro Corporation LTD (China), Isolux Ingeneria (Spain), Dalekovod JSC (Croatia), Kaskad-Energo (Russia), KEC International limited (India) and Kaplataru Power Transmission limited (India).

The project to be implemented with the support of the German KfW Bank aims to unite the energy systems of the two countries. As a result, the capacity of electricity exchange will increase from 200 MW to 350 MW in the first stage and will reach 700 MW in the second. The capacity may reach 1,050 MW in the final stage, depending on demand.

The project will also promote the development of regional cooperation in Russia-Georgia-Armenia-Iran format. The construction works are expected to start this year.

In an example of the State Department’s expanding digital diplomacy and diasporan engagement, U.S. Ambassador to Armenia Richard Mills took part in an online Facebook exchange last week with the Armenian National Committee of America regarding the growth of the U.S.-Armenia economic partnership, a shared priority for both the Department of State and Americans of Armenian heritage.

“We welcome this transparent exchange of views with our diplomatic corps on pressing bilateral economic priorities, and look forward to similarly open, honest discussions about U.S. policy on Artsakh, the Armenian Genocide, and other issues as well,” said ANCA Communications Director Elizabeth Chouldjian. “We commend Ambassador Mills and our mission in Yerevan for leaning forward on social media, constructively using Facebook, Twitter, and other platforms to engage Americans in the vital work of U.S. diplomacy.”

ANCA National Board member Aida Dimejian recently highlighted the importance of a Double Tax Treaty in a video message, noting that it would “reinforce the friendship of the American and Armenian peoples, anchoring Armenia to the West and providing Yerevan with greater strategic options and independence in dealing with regional powers.”

The Facebook exchange, echoed on Twitter, stemmed from an ANCA comment on an Embassy post about the Ambassador’s recent speech at the American Chamber of Commerce on U.S.-Armenia relations. In this comment, Executive Director Aram Hamparian had asked for updates regarding three ANCA priorities: An MCC STEM education grant for Armenia, a Double Tax Treaty, and direct U.S. to Armenia flights.

Below is the Facebook exchange between Mills and Hamparian:

Ambassador Mills to ANCA:
Aram and our friends at ANCA:
– First step to a MCC for Armenia is to meet‎ the MCC criteria – why we are focused on fighting corruption and building rule of law so Armenia might again qualify; big test is how free and fair April elections are conducted. Even if these steps don’t lead to a new MCC, Armenia will be far better for it. Welcome ANCA’s engagement on these issues.

— ‎Without a welcoming business environment in Armenia a double tax treaty is for now an unnecessary diversion – why Embassy focuses on issues like rule of law, customs reforms, and ensuring an equal playing field for foreign investors. So far, little evidence the lack of a new tax treaty has kept out U.S. investment. If such cases exist, we’d like to hear them.

— The U.S. Embassy and Gov’t of Armenia jointly achieved the open skies reforms that now allow Western air carriers to consider the Armenian market. Thanks to this, passenger traffic at Zvartnots is up by 12% and ticket prices are lower across the board. Now up to Armenian Gov’t to make the business case for scheduling air services to Armenia. Embassy is supporting with a new focus on tourism projects that build economic justification, but private U.S. firms make their own business decisions.

ANCA’S Response To Ambassador Mills
Dear Ambassador Mills,
Thank you for your thoughtful responses, and – more broadly – for all you and our team at U.S. Embassy Yerevan and USAID Armenia are doing to grow the American Armenian relationship, including through increased bilateral trade and investment. You may have seen our yesterday on this point.

We welcome – in the very best of our American democratic tradition – an ongoing, open and transparent discourse on these issues of shared concern.

On your first and third points, dealing with MCC and direct U.S.-Armenia flights, you point to external dependencies: In the case of MCC, ratings by outside organizations regarding Armenia’s progress; on direct flights, the commercial interest of airlines. The actions taken by these other stakeholders, however, should not prevent any of us from voicing support for initiatives we consider worthwhile. For our part, we will continue to work for progress on both of these initiatives. We invite you to publicly express our government’s general support for both a potential new MCC grant and the launch of direct U.S. to Armenia flights.

Your second point, regarding a Tax Treaty, deserves a more detailed response.

Here is what you wrote: “‎Without a welcoming business environment in Armenia a double tax treaty is for now an unnecessary diversion – why Embassy focuses on issues like rule of law, customs reforms, and ensuring an equal playing field for foreign investors. So far, little evidence the lack of a new tax treaty has kept out U.S. investment. If such cases exist, we’d like to hear them.”

As you know, a double tax treaty is not a special privilege extended by one party or the other, but rather a baseline bilateral accord, a basic amenity of global commerce and a hallmark of good, transparent government.

Due to the absence of such a treaty between the U.S. and Armenia, there is today no clear legal framework for investors and individuals that have business activities in both jurisdictions. This creates legal uncertainty that deters potential U.S. investors, diverts investment flows, and disadvantages American businesses.

Think of it this way: A shop owner with an outdated storefront proclaims that no one has ever complained to him/her about his/her business’s appearance. The reason, of course, is that potential customers who consider his/her place unattractive just walk past the shop. In much the same way, the absence of a working tax treaty – a key element of the storefront appeal of U.S.-Armenia commercial partnerships – deters potential investors from ever seriously considering Armenia. A new treaty would eliminate this artificial and unnecessary barrier, allowing Armenia to compete for investment on its own merits.

The “chicken and egg” aspect of this matter has been explored by Congressman Brad Sherman, during Congressional hearings.

In Armenia, as in much of the developing world, businesses typically do not complain to foreign governments about their tax problems. The absence of reporting is not the same as an absence of problems. One could not, for example, credibly argue that the lack of criminal complaints about domestic violence is evidence of the absence of such crimes. Under-reporting needs to be taken into account in any serious analysis.

Consider also:

— Our government has Double Tax Treaties with many countries, including smaller ones, such as Estonia, Jamaica, Lativa, Lithuania, Malta, and Slovenia.

— Our government has Double Tax Treaties with many countries rated by Transparency International in the bottom half of its Corruption Perceptions Index, including Pakistan, Bangladesh, Egypt, Sri Lanka, Thailand, and Indonesia,

— Armenia has Double Tax Treaties with many advanced countries, including Austria, Belgium, Canada, China, France, Italy, the Netherlands, Poland, Russia, and the United Kingdom. (As you know, Armenia does not recognize the legal applicability of the 1973 U.S.-U.S.S.R. Tax Treaty.)

— U.S. firms have gone on record to our U.S. government regarding a Tax Treaty, among them Microsoft, FedEx, NASDAQ, Marriott, Grant Thornton. More recently Triada Studio and other IT firms operating in both Armenia and the U.S. have also publicly called for such an accord.

Please know how much we value the service of U.S. diplomats and all those working in our missions abroad.

Refusing from its own soldiers fully fits into Azerbaijani logic, Spokesman of the NKR Defense Ministry Senor Hasratyan has said.

The comments come after the Azerbaijani Defense Ministry said yesterday that the Azerbaijani citizen captured by the Karabakh forces on February 1 is not registered in the Armed Forces.

“In response to the report of the NKR Defense Ministry on an infiltration attempt on the part of the Azeri troops, the Azerbaijani Ministry of Defense issued a statement, claiming that Elnur Huseynzade, captured by Armenian forces had been expelled from the Armed Forces because of being an undisciplined serviceman,” Senor Hasratyan wrote in a Facebook post.

Baku’s refusal from its own soldiers fully fits into Azerbaijani logic, the Spokesman said.

“It’s not understandable and illogical how a serviceman expelled form army could penetrate into a zone between the positions of conflicting troops in military uniform and armed, try to carry out a special mission and get captures as a result,” Senot Hasratyan said.

The Karabakh conflict settlement is one of the priorities of the Russian foreign policy, Russian Foreign Ministry Spokesperson Maria Zakharova told a briefing today.

Commenting on the results of the Russian Foreign Minister Sergey Lavrov’s meetings with his Armenian and Azerbaijani counterparts earlier this month, Zakharova said “the negotiations were constructive” and added that “concrete ideas on the settlement of the Karabakh conflict were discussed.”

She said new meetings will be held in the future, but the timetable has not yet been finalized.

Photo: The Daily Star/NNA

 

Lebanon’s Culture Minister Ghattas Khoury kicked off his tenure Saturday as he visited the Armenian Genocide Museum in Jbeil, calling for renewed protection of ancient cultures in the northern port city, reports.

“I believe that those responsible for this project are keen, more than us, on preserving the harmony between what is going to be built along this coast and the Armenian Genocide Museum,” Khoury said at the site of a planned renovation for the “Bird’s Nest” orphanage that houses the museum.

The museum’s administration and the Armenian Orthodox Church plan to renovate the orphanage into a new museum that will also host a treatment center for those with social issues in the Armenian community.

The museum is set to have pictures and artifacts from Armenian Genocide survivors.

However, due to financial difficulties the Armenian Catholicosate launched the “Diplomatic Club” mission to raise funds for the renovation. The church hopes to raise money through boosting eco-tourism in Jbeil to draw attention to the ancient culture and history of local buildings. Through this project, the church hopes to build a traditional Armenian Church and renovate the Denmark Hall, which would employ around 150 local residents, a statement from the event read.

Accompanying Khoury at the event were former Minister Jean-Louis Kordahi, Jbeil Mayor Ziad Hawwat and a number of religious and local figures.

Arsenal legend Thierry Henry insists he has always been a fan of Manchester United midfielder Henrikh Mkhitaryan, according to .

The Armenia international moved to the Red Devils in a £30m transfer from Bundesliga giants Borussia Dortmund in the summer transfer window following Jose Mourinho’s appointment as the club’s new manager.

However, Mkhitaryan made a slow start to the 2016-17 season and made one Premier League start in August, September and October due to fitness problems and a lack of form at his new employers.

The attacking midfielder has come into his own in recent months, though, thanks to a return of three goals and three assists in his last 10 appearances in all competitions.

Speaking on Monday Night Football, former Arsenal striker Henry gave a glowing verdict on the Manchester United playmaker.

“I’ve always been a fan. He has come alive with Man United and hopefully he’s going to be a good player for them,” Henry said.

Prime Minister Karen Karapetyan received today Ambassador Extraordinary and Plenipotentiary of the Republic of Georgia to the Republic of Armenia Giorgi Saganelidze.

Pleased with the current level of political dialogue between Armenia and Georgia, the Prime Minister said more vigorous efforts are needed to overhaul economic cooperation and tap the existing potential.

Giorgi Saganelidze stressed that the Armenian-Georgian relations are based on centuries-old friendship between the two peoples, and Georgia is interested in developing mutually beneficial cooperation with our country.

During the meeting, the interlocutors discussed a broad range of issues high on bilateral cooperation agenda. In particular, they exchanged views on the joint projects and future plans in energy, logistics, transportation and other areas.

Manchester United manager Jose Mourinho has confirmed summer signing Henrikh Mkhitaryan will play on Thursday night when Feyenoord visit Old Trafford in the Europa League,according to Manchester United’sofficial website.

The Armenia international joined from Borussia Dortmund in July and has only made six competitive appearances in all competitions since then, partly due to a couple of unfortunate injuries but also because the manager feels his recruit requires more time to adapt to the rigours of English football.

Mkhitaryan watched from the Sir Bobby Charlton Stand on Saturday as the Reds drew 1-1 with Arsenal in the Premier League. However, the boss has since revealed a plan for the 27-year-old forward.

Asked by reporters if Mkhitaryan is closer to playing, Mourinho said: “Yes. I told him today [Saturday] that he is going to be involved in the game against Feyenoord. He is trying. Obviously he is not happy but he is transforming his frustration in a good way, which is to close the mouth, work hard and try to adapt.

“I told him ‘this was not the game for you’ because I don’t think he needs 10 or 20 minutes from the bench. I said ‘I think you need a good game and you need to either start or, if not, to come for the second half’. He needs less pressure and better conditions for him to express his qualities.”

Mkhitaryan’s appearance adds further intrigue to Thursday’s big game against Feyenoord, the Eredivisie leaders who beat United in the reverse fixture earlier in the Europa League campaign.

The Reds are currently third in Group A with six points from 12 and require a victory under the Old Trafford floodlights in order to leapfrog the second-placed Dutch club into the two qualification places, ahead of the final pool game against Ukrainian side Zorya Luhansk in December.

On 10 November Artsakh Republic President Bako Sahakyan sent a congratulatory letter to President-elect of the United States of America Donald Trump.

The letter runs as follows:

“Your Excellency,
On behalf of the people and authorities of Artsakh and myself personally I cordially congratulate You on being elected as the 45th President of the United States.

The USA is considered a fraternal country in Artsakh, a state which a home to one of the biggest segments of the Armenian Diaspora.
It has been a quarter of a century since our people struggled for their freedom and independence building a democratic and sovereign state, civil society – values that are basic and fundamental for the Americans too.

The United States, being among the co-chair countries of the OSCE Minsk Group, plays a substantial role in peaceful and just settlement of the Azerbaijani-Karabagh conflict. I am confident that during Your Presidency America will carry on this significant mission further on contributing to the maintenance and reinforcement of peace and stability in our region.

I once again congratulate You and the whole people of the United States, wishing peace, prosperity, success and all the best.”

Jose Mourinho is taking 21 players with him to Istanbul for Manchester United’s Europa League meeting with Fenerbahce on Thursday, accoridng to Manchester United’s official website. 

Phil Jones, who has yet to make an appearance this season, is included after injury but fellow defender Chris Smalling has not made the trip. Tim Fosu-Mensah, Henrikh Mkhitaryan and Anthony Martial have also been named in the squad but Michael Carrick, Memphis Depay and Antonio Valencia will remain in Manchester.

Bastian Schweinsteiger, who trained with the players this week, has not travelled as he is ineligible for the group stages of the Europa League.

The Reds are currently level on points with first-placed Feyenoord on six points. Both sides have won two and lost one, but the Dutch side are top of Group A by virtue of the head-to-head record following Feyenoord’s 1-0 win over the Reds in September. Fenerbahce, who the Reds overcame 4-1 at Old Traffordtwo weeks ago, lie third on four points, with Zorya Luhansk bottom of the group on just one point.

United squad: De Gea, Romero, Johnstone; Blind, Jones, Darmian, Fosu-Mensah, Rojo, Shaw; Fellaini, Herrera, Mkhitaryan, Lingard, Mata, Pogba, Schneiderlin, Young; Ibrahimovic, Martial, Rashford, Rooney.