Author: Diana Dabaghian

                                        Friday, 

Armenian Parliament Rejects Tax Cuts Demanded By Opposition


 . Nane Sahakian


Armenia - Opposition leader Nikol Pashinian speaks in the parliament
during a debate on tax cuts demanded by his Yelk alliance, 16 February
2018.

The National Assembly voted down on Friday an opposition bill that
would reverse recent increases in personal income and fuel taxes
initiated by the Armenian government.

The opposition Yelk alliance, which drafted the bill, has been
particularly critical of higher excise duties on fuel that came into
force on January 1. It blames them for recent weeks' sizable rises in
fuel prices in Armenia. It also says that the higher income tax rates
will hurt the middle class hard.

Presenting the bill to fellow lawmakers, Yelk's Nikol Pashinian said
that a repeal of the new tax rates would mitigate the impact on the
population of the increased cost of fuel and some basic
foodstuffs. "Otherwise the social crisis in our country will deepen
further," Pashinian said during a three-hour parliament debate.

The government spoke out against the Yelk bill even before it reached
the parliament floor. It insisted last week that the impact of the
higher tax rates on consumer price inflation has been minimal.

Speaking in the parliament, Deputy Finance Minister Davit Ananian said
that the higher fuel taxes had to be introduced to make up for what he
called a loss of state revenue resulting from government efforts to
improve tax administration and Armenia's broader business
environment. Ananian also said that the proposed tax cuts, if passed
by the parliament, would result in a revenue shortfall of 32 billion
drams ($66 million).

Khosrov Harutiunian, the pro-government chairman of the parliament
committee on economic issues, also criticized the Yelk bill before the
National Assembly voted to reject it.

Yelk put forward the bill after holding two demonstrations in Yerevan
to protest against the price hikes. The rallies attracted only several
hundred people.

The recent amendments to Armenia's Tax Code criticized by Yelk raised
from 26 percent to 28 percent the tax rate for monthly incomes ranging
from 150,000 to 2 million drams ($310-$4,150). The rate for those
earning more was set at 36 percent. The amended code at the same time
cut the tax rate from 24.4 percent to 23 percent for workers making
less than 150,000 drams a month.

Government officials insist that the more progressive tax will put a
heavier financial burden only on high-income individuals. They argue
that 90 percent of employed Armenians, who make between 150,000 and
280,000 drams, will not have any additional sums deducted from their
wages because of a complex method of income calculation. And those who
earn from 280,000 to 330,000 drams will pay an extra amount of only up
to 820 drams ($1.7) a month, they say.



Moscow Chides Aliyev Over `Historic Azeri Lands'


RUSSIA -- Russian Foreign Minister Sergei Lavrov, accompanied by
Russian foreign ministry spokeswoman Maria Zakharova, attends his
annual press conference in Moscow, January 15, 2018

Russia has criticized Azerbaijan's President Ilham Aliyev for again
publicly declaring that Yerevan and other parts of Armenia are
"historic Azerbaijani lands."

Aliyev pledged to "return Azerbaijanis" to Yerevan, Armenia's
southeastern Syunik province and the area around Lake Sevan when he
addressed a pre-election congress of his Yeni Azerbaycan party on
Thursday. That, he said, is a "strategic goal" of his regime.

Armenia condemned the statement, with President Serzh Sarkisian saying
it shows that Baku is not committed to a compromise solution to the
Nagorno-Karabakh conflict.

"Reports about Azerbaijani President Ilham Aliyev's speech at a
congress of the ruling party have certainly been seen in Moscow," the
Russian Foreign Ministry spokeswoman, Maria Zakharova, said on
Thursday. "We are well aware that Azerbaijan's relations with
neighboring Armenia are extremely tense. The comment in question will
clearly not help to reduce the tensions."

The Azerbaijani Foreign Ministry rejected the Russian criticism on
Friday. A ministry spokesman, Hikmet Hajiyev, said it runs count to
Russia's "strategic partnership" with Azerbaijan.

Hajiyev was quoted by Azerbaijani media saying that Aliyev did not lay
any territorial claims to Armenia and only spoke of an eventual
"return of Azerbaijanis to their historical lands."

Aliyev has repeatedly made similar statements in the past. In 2014,
for instance, he stated that Baku will eventually gain control of not
only Karabakh but also parts of the "fascist" Armenian state which he
said had been created on "historic Azerbaijani lands."

The Russian, U.S. and French mediators may have referred to the
Azerbaijani leader's latest claim when they urged the parties to the
Karabakh conflict to avoid "inflammatory statements" after wrapping up
their latest regional tour on February 11.

Aliyev will be seeking a fourth term in office in a snap presidential
election slated for April 11. The ballot will be held two days after
Sarkisian completes his second and final presidential term. Sarkisian
is tipped to become prime minister immediately after Armenia is
transformed into a parliamentary republic later in April.

Aliyev and Sarkisian pledged to intensify the Karabakh peace process
when they last met in Geneva in October. Their foreign ministers held
follow-up talks in December and January.



Armen Sarkissian Agrees To Be Armenia's Next President


 . Emil Danielyan


Armenia - President Serzh Sarkisian (R) meets with former Prime
Minister Armen Sarkissian in Yerevan, 16 February 2017.

A former Armenian prime minister who has lived in Britain for nearly
three decades officially accepted on Friday the outgoing President
Serzh Sarkisian's offer to serve as Armenia's next president under a
new, parliamentary system of government.

Armen Sarkissian (no relation) communicated his widely anticipated
decision to Sarkisian after a series of meetings held with Armenian
political parties, non-governmental organizations, prominent
intellectuals and business circles.

The next president of the republic will be elected by the Armenian
parliament, controlled by the ruling Republican Party (HHK), one month
before the current head of state completes his final term on April
9. Armenia will then be transformed into a parliamentary republic,
meaning that the most of the presently sweeping presidential powers
will be given to the prime minister.

The outgoing president offered to nominate Armen Sarkissian as the
HHK's presidential candidate on January 19. Sarkissian, who has served
as Armenia's ambassador to Britain since 2013, said he needs time to
decide whether to accept the proposal.


Armenia - Former Prime Minister Armen Sarkissian meets with members of
the National Academy of Sciences in Yerevan, 30 January 2018.

"With my entire essence and vigor, I am ready to get involved in that
very important endeavor if the National Assembly elects me president,"
Sarkissian told the president on Friday.

The 64-year-old former scholar said his month-long meetings reinforced
his belief that "a lot needs to be done in various areas." He said
that as president he will strive to "make my contributions" to
Armenia's foreign policy, international economic relations and, in
particular, government efforts to attract more foreign investment. He
said he will also try to improve the quality of public education and
strengthen the Armenian civil society.

Under Armenia's amended constitution, Serzh Sarkisian's successor will
be primarily tasked with ensuring "observance of the constitution" by
various branches of government. He will be empowered to appoint
members of the government, ambassadors abroad and the Armenian army's
top brass. But all of those officials will be nominated by the prime
minister, who will also be the army's commander-in-chief.

Sarkissian has insisted during his frequent contacts with journalists
in recent weeks that he will be more than a figurehead if he runs for
president and gets elected. He has also called for a "national
dialogue" among Armenia's political and other organizations, saying
that it is necessary for healing serious divisions existing in the
society.

The presidential frontrunner said on Friday that he intends to launch
such a dialogue. Serzh Sarkisian praised his "readiness for dialogue"
in his opening remarks at the meeting.

A physicist and mathematician by education, Armen Sarkissian worked at
the Cambridge University when he was appointed as newly independent
Armenia's first ambassador to the United Kingdom in 1991. He served as
prime minister for four months in 1996-1997 before being again named
ambassador in London.


Armenia - Former Prime Minister Armen Sarkissian visits the TUMO
Center for Creative Technologies in Yerevan, 31 January 2018.

His second ambassadorial stint was cut short in 1999 by then President
Robert Kocharian. Sarkissian stayed in Britain where he made a big
fortune in the following decade, mainly working as an advisor and
consultant for Western corporations doing business in the former
Soviet Union. He was appointed as Armenian ambassador to Britain for a
third time in 2013.

Sarkissian will have to be backed by a three-fourths and two-thirds
majority of lawmakers in order to win in the first and second rounds
of voting respectively. A simple majority of votes is enough to win
the presidency in the third round. The HHK has such a majority.

Nevertheless, the president expressed hope last month that the former
premier will win outright in the first round. In that case, he would
need the backing of at least 79 members of the 105-seat parliament.

The HHK and its junior coalition partner, the Armenian Revolutionary
Federation (Dashnaktsutyun), control 65 seats between them. They will
therefore need the votes of businessman Gagik Tsarukian's alliance
which holds 31 seats. Despite being officially in opposition to the
government, Tsarukian has not ruled out the possibility of endorsing
an HHK candidate.



Key Suspect Questioned In Court Hearing On Babayan


 . Karlen Aslanian


Georgia - A screenshot of official video of the arrest in Tbilisi of
Robert Aghvanian, 27Mar2017.

A man recently extradited from Georgia admitted on Friday possessing a
sophisticated weapon which was confiscated and used by Armenian
law-enforcement authorities in their controversial criminal case
against Samvel Babayan, a retired army general linked to an opposition
group.

The Armenian national, Robert Aghvanian, insisted at the same time
that he never knew Babayan personally or thought that he is selling
the shoulder-fired surface-to-air rocket system to the latter.

Aghvanian was detained in Tbilisi in March last year just days after
Babayan's controversial arrest. Armenia's National Security Service
(NSS) said at the time that the former commander of Nagorno-Karabakh's
army paid two other arrested suspects to smuggle the Igla system from
or through Georgia. The NSS claimed to have found and confiscated the
Russian-made weapon in Karabakh.

Subsequent NSS statements were more ambiguous about the origin of the
weapon. Investigators said only that Aghvanian delivered the weapon in
return for $38,000 that was promised by Sanasar Gabrielian, a longtime
Babayan associate. Gabrielian allegedly acted on the general's orders.

Babayan repeatedly denied the accusations as baseless before being
sentenced to six years in prison by a Yerevan district court in
November. Gabrielian, who received a three-year prison sentence,
insisted at their trial that it was he, not Babayan, who commissioned
the confiscated Igla. He said he planned to donate it to the Karabakh
military.

Both men appealed against what they call a politically motivated
verdict. Aghvanian was brought to the Court of Appeals to give
evidence at their request.


Armenia - Samvel Babayan, a retired army general, goes on trial in
Yerevan, 31Jul2017.
The 40-year-old told the court that the Igla rocket was for years kept
in his house in Echmiadzin. He said it was left over from his father,
the town's former mayor who he said had obtained many weapons for the
Armenian army in 1990s.

Aghvanian went on to admit selling the rocket to Hrachya Mayilian, a
man who the NSS claims "voluntarily" surrendered it to law-enforcement
authorities and avoided imprisonment because of that. "As for what
Mayilian did after that, ask him," he added. "I know neither
Mr. Babayan nor Sanasar Gabrielian."

According to the prosecution, Mayilian is one of the two middlemen
through whom Gabrielian purchased the rocket for the once powerful
general. In his testimony, Mayilian has not implicated Babayan in the
illegal arms deal.

Babayan seized upon Aghvanian's testimony as further proof that he is
innocent. He insisted that the authorities have failed to come up with
any compelling evidence to the contrary.

Babayan was arrested about two weeks before Armenia's last
parliamentary elections. He was unofficially affiliated with the ORO
alliance led by former Defense Minister Seyran Ohanian and two other
opposition politicians. ORO condemned the criminal case as politically
motivated. The opposition bloc failed to win any parliament seats.



Press Review



Citing weekend comments by Armen Ashotian, a deputy chairman of the
ruling HHK, "Chorrord Ishkhanutyun" says there is no doubt that
President Serzh Sarkisian will become prime minister immediately after
completing his final presidential term on April 9. The paper says
Ashotian's remarks prove that recent years' political processes in
Armenia were a "political show" designed to enable Sarkisian to extend
his rule.

"The HHK seems to be becoming divided," writes "Zhamanak." "Some party
members do not hesitate to speak about Serzh Sarkisian being
irreplaceable and about his prime-ministerial future. But there are
also those who do not rush to join that partisan act of allegiance,
saying that there is still no decision and that they will speak up
when the issue is discussed. After all, few in Armenia can imagine
Sarkisian giving up his status as the number one government
figure. Especially now that the constitutional hurdle to that has been
eliminated and he has secured a constitutional opportunity to
indefinitely remain the number one figure." The paper says that his
HHK allies have no say whatsoever in his decision making.

"Zhoghovurd" says that former President Armen Sarkissian will be "part
of an illegitimate government" if he agrees to become Armenia's next
president. The paper is also skeptical about his calls for national
unity. It argues that Serzh Sarkisian made similar calls when he took
over as president in April 2008 in the wake of a deadly post-election
unrest in Yerevan. "So Armen Sarkissian will hardly live up to
expectations especially given that he will have mainly symbolic
powers," it says,

"Our oppositionists have failed for the past 25 years not because
their methods of struggle are not eccentric or extreme enough," writes
"Aravot." "The problem runs deeper. For the past quarter of a century
the opposition has pinned its hopes on a popular revolt # They should
have had enough time to understand that this is a methodological
mistake. But if you just listen to any opposition speech you will see
that `vision' from the second or third sentence. It's about the time
they realized that this path cannot lead them anywhere."

(Tigran Avetisian)


Reprinted on ANN/Armenian News with permission from RFE/RL
Copyright (c) 2018 Radio Free Europe / Radio Liberty, Inc.
1201 Connecticut Ave., N.W. Washington DC 20036.
www.rferl.org

                                        Tuesday, February 6, 2017

Opposition MPs Decry Another Curb On President's Powers


 . Sisak Gabrielian


Armenia - Edmon Marukian, a leader of the opposition Yelk alliance,
speaks during a parliament session in Yerevan, 6 February 2018.

Opposition lawmakers on Tuesday rejected as unconstitutional a
government bill that would seriously limit the next Armenian
president's power to grant pardons.

Under Armenia's radically amended constitution, the head of state to
be elected by the parliament next month will play a largely ceremonial
role in view of the country's transition to the parliamentary system
of government. Pardoning individuals convicted of various crimes will
be one of the few executive powers vested in the presidency.

Article 135 of the constitution stipulates that the president can
grant pardons "in a manner and cases defined by the law." It does not
elaborate.

A draft Law on Pardons submitted by the government to the National
Assembly makes clear that all presidential decisions on clemency
sought by convicts will have to be approved by the prime minister
beforehand. The latter would also set up a special advisory commission
examining requests for early release from prison and concluding
whether they should be granted.

Edmon Marukian, a senior lawmaker representing the opposition Yelk
alliance, insisted that the bill runs counter to the relevant
constitutional provision."The president would simply be presented with
draft decisions [on pardons] and told to sign them," argued
Marukian. "Yet the constitution says that he is the one who can pardon
people."

Gevorg Petrosian, a parliament deputy from the Tsarukian Bloc, agreed,
saying that the president of the republic would be effectively
stripped of their constitutional authority to pardon people. He also
complained that the bill does not specify the grounds on which the
prime minister will be recommending or arguing against presidential
pardons.

However, Arpine Hovannisian, a deputy parliament speaker representing
the ruling Republican Party of Armenia (HHK), denied any contradiction
between the proposed law and the constitution. The HHK majority in the
parliament will also almost certainly side with the government.

The government is also planning to push through the parliament a
number of other bills that would underline the next prime minister's
status as Armenia's most powerful official. In particular, the premier
will head a new Security Council tasked with formulating the country's
policy on national defense. It will be more powerful than a similar
presidential body currently advising Sarkisian on national security.

Some observers view these bills as a further indication that Sarkisian
is intent on becoming prime minister right after completing his second
and final presidential term on April 9. The outgoing president has
still not clarified his political plans.



EU Plans New Aid Package For Armenian Regions


 . Satenik Kaghzvantsian


Armenia - Piotr Switalski (R), head of the EU Delegation in Armenia,
awards a participant of an EU-sponsored cross-country ski festival in
Ashotsk, 4 February 2018.

The European Parliament is planning to allocate around 40 million
euros ($50 million) for development projects that will be launched in
three regions in northern Armenia this year, according to a senior EU
diplomat.

"We are discussing with the Armenian government our action plan for
2018 and will most probably focus on three directions: tourism,
agriculture and creative economy," Piotr Switalski, head of the EU
Delegation in Yerevan, said over the weekend.

Speaking during an EU-sponsored cross-country ski festival in Ashotsk,
a small town in northwestern Armenia, Switalski said the fresh aid
package is aimed at stimulating economic activity and reducing poverty
in the Shirak, Lori and Tavush provinces.

Shirak has long been the country's poorest region. It is still reeling
from a devastating earthquake in 1988 that killed tens of thousands of
people and left many others homeless.

Commenting on aid programs planned for Shirak, Switalski said in
particular that the EU will spend more than 500,000 on euros on a
pilot project designed to support commercial wool processing in
Amasia, an impoverished provincial town 23 kilometers southwest of
Ashotsk. The EU will also be promoting tourism in the area known for
harsh winter weather, he said. The ski festival held there is part of
that effort.

"We see a potential here," Switalski told reporters. "We believe that
together with its Armenian and other partners the EU can help to
create employment and other opportunities for locals so that they see
the realization of their dreams here."

The EU has been one of Armenia's leading foreign donors ever since the
early 1990s. Switalski said in November that it will provide the
country with at least 170 million euros in fresh aid over the next
three years. The diplomat spoke shortly after the signing of a
Comprehensive and Enhanced Partnership Agreement between the EU and
Armenia.



Armenian Opposition Pushes For Parliament Debate On Tax Cuts


 . Astghik Bedevian


Armenia - The opposition Yelk alliance holds an anti-government rally
in Yerevan, 5 February 2018.

The opposition Yelk alliance moved closer on Tuesday to forcing a
parliament debate on its demands for repealing government-drafted
legislation which it blames for recent increases in the prices of fuel
and some foodstuffs in Armenia.

A bill put forward by Yelk calls for reversing higher excise duties on
fuel, tobacco and alcohol as well as income taxes collected from
Armenians earning well above the national average wage. The bill was
formally backed by 29 members of the 105-seat National Assembly,
meaning that it has to be debated on the parliament floor on February
16.

Yelk, which holds 9 parliament seats, secured more than 27 signatures
needed for holding the emergency parliament session thanks to the
backing of businessman Gagik Tsarukian's alliance, the second largest
parliamentary force. The Tsarukian Bloc is also officially in
opposition to the government.

Naira Zohrabian, a senior Tsarukian Bloc lawmaker, voiced support for
the Yelk initiative. She cautioned that deputies from the ruling
Republican Party of Armenia (HHK) may scuttle the debate by preventing
the legislature from making a quorum.

"They block any rational and positive initiative that doesn't fit into
their intra-clan rules of the game," charged Zohrabian. "We will carry
on with our tactic. Unfortunately, this is all the opposition can do."

Yelk's Edmon Marukian was careful not to predict an HHK boycott of the
February 16 session. He said that the pro-government majority could
make serious concessions as a result of "public pressure."

Yelk held demonstrations in Yerevan in support of its demands on
January 19 and February 5. The protests attracted only several hundred
people.

Nevertheless, Marukian sought to put a brave face on the modest
turnout. "Had it not been for those protests there would have been no
emergency session of the parliament," he claimed.

Meanwhile, the HHK-controlled majority was in no rush to pass judgment
on the Yelk bill or say whether its lawmakers will turn up for the
debate.The ruling party's parliamentary leader, Vahram Baghdasarian,
said only that it will discuss the opposition motion. "Their proposals
have to be realistic, rather than populistic, and correspond to our
resources," he told RFE/RL's Armenian service (Azatutyun.am).

In that regard, Baghdasarian defended the Armenian government's
economic policies which are aimed, among other things, at increasing
tax revenue. "If we want to ensure our progress, to be able to speak
of raising salaries and pensions later on # we need to look at our
[financial] means," he said.

Prime Minister Karen Karapetian downplayed last month the
socioeconomic impact of the increased prices of fuel and products such
as meat, butter and potatoes, insisting that inflation in Armenia
remains low. Karapetian also defended the higher income tax rates for
high-earners.



Press Review



"Zhamanak" reports and comments on Azerbaijani President Ilham
Aliyev's decision to bring forward Azerbaijan's next presidential
election, initially scheduled for October 2018, by six months. The
paper wonders if Aliyev is worried about unexpected internal or
external developments later this year that could complicate his
reelection. It notes that the snap Azerbaijani election will be held
just two days after President Serzh Sarkisian completes his final
term. Later in April, the Armenian parliament will elect a new prime
minister who will likely be the country's most powerful official.

"Zhoghovurd" says Sarkisian is now keen to ensure that the power
levers are concentrated in the prime minister's hands after the end of
his presidency. "And since Serzh Sarkisian himself is regarded as the
main candidate for the post of prime minister, they are attempting to
write up the entire legislation relating to the work of government
bodies in accordance with that logic," writes the paper. It says that
some of those new laws drafted by the government run counter to the
Armenian constitution. In particular, the constitution empowers the
next president of republic to grant pardons. However, a new government
bill submitted to the National Assembly makes clear that presidential
pardons must be formally proposed by the prime minister.

"Haykakan Zhamanak" reports that the prices of gasoline in Armenia
rose by another 2 percent over the weekend." "Why? It's not clear,"
writes the paper. "At least there is no logical economic explanation
for that. The bulk of Armenia's petrol is imported from Russia. The
petrol price in Russia has not risen in the past week. A mystery? Yes,
from the economic standpoint. But in reality everything is clear." The
fuel prices in Armenia are determined by a handful of importers, not
the market, concludes the paper.

"Aravot" deplores the controversial cancellation of presentations of
the Armenian translation of a memoir written by former Georgian
President Mikheil Saakashvili. "Who are our authorities afraid of when
they ban the Saakashvili book presentations?" the paper asks in an
editorial. "The Kremlin or Georgia's current government? It does not
really matter. What should matter in this case is a far more simple
principle: does that book violate Armenia's laws?"

(Tigran Avetisian)


Reprinted on ANN/Armenian News with permission from RFE/RL
Copyright (c) 2018 Radio Free Europe / Radio Liberty, Inc.
1201 Connecticut Ave., N.W. Washington DC 20036.
www.rferl.org