Author: Kafian Jirair

OSCE CHAIRMAN-IN OFFICE TO MEET NKR PRESIDENT

news.am
Feb 15 2010
Armenia

February 16, 2010 OSCE Chairman-in Office and Kazakh Secretary of
State-Foreign Minister Kanat Saudabayev will meet with NKR President
Bako Sahakyan in Yerevan.

February 15 Saudabayev will pay a 2-day visit to Armenia. He will
hold meetings with RA President Serzh Sargsyan, RA National Assembly
Speaker Hovik Abrahamyan and Foreign Minister Edward Nalbandian.

Saudabayev has met with Azerbaijani President Ilham Aliyev and other
high-ranking officials.

Kazakhstan assumed OSCE chairmanship early in 2010 and has made a
number of proposals for the settlement of protracted conflicts.

Anadolu Agency, Turkey
Feb 12 2010

Turkish foreign minister, Kazakh leaders discuss Karabakh solution

Astana, 12 February: Turkish Foreign Minister Ahmet Davutoglu said
Kazakhstan might step in for the solution of the Nagornyy Karabakh
issue, as the chair of the Organization for Security and Co-operation
in Europe (OSCE).

Davutoglu who is on an official visit to Kazakhstan told AA that he
was confident that Kazakhstan would take important steps for the
solution of the Nagornyy Karabakh issue between Azerbaijan and
Armenia.

Davutoglu said they discussed the issue with his Kazakh counterpart
Kanat Saudabayev and Kazakh President Nursultan Nazarbayev.

"As far as I know Mr. Saudabayev will be visiting both Baku and
Yerevan in the days to come. We communicated our position to them.
Kazakhstan may make significant contributions regarding Nagornyy
Karabakh issue. We are hopeful about the term ahead" said Davutoglu.

Referring to the remarks made by Armenian President Serzh Sargsyan at
a conference in London, refusing to take any steps for the solution of
the Nagornyy Karabakh issue, and calling on Turkey to reveal its
intention, Davutoglu said Turkey’s made its intention clear to all
parties.

"Turkey will support all steps taken toward the establishment of
peace," said Davutoglu.

Sargsyan had said during his address at a conference Wednesday in
London that Turkey set forth the Nagornyy Karabakh issue as a
precondition for the approval of the normalization protocols with
Armenia, adding that such an attitude jeopardized both the Nagornyy
Karabakh issue and the normalization of relations with Turkey.

Commenting on the recent raw between Iran and the international
community, Davutoglu said he wanted to visit Iran next Tuesday,
signalling a Turkish initiative for mediation.

"We are ready to do everything within our reach for overcoming the
current tension through peaceful means," said Davutoglu.

Davutoglu who also commented on the Cyprus issue reiterated Turkey’s
stance in support of a lasting solution, said they did not want
settlement talks to be interrupted.

CONCESSIONS PUTTING PEOPLE OF NAGORNO-KARABAKH AT RISK ARE RULED OUT: SARGSYAN

Tert.am
09:58 11.02.10

Today the Republic of Nagorno-Karabakh is an established state with
its structures, army and, most importantly, with its citizens who
can be in charge of their own fortune, President of Armenia Serzh
Sargsyan said in his speech in London.

"Today we, as well as the international community, witness Artsakh
[Nagorno-Karabakh] as a contemporary state that is implementing the
ideals of freedom, sovereignty, and democracy; in spite of natural
and manmade difficulties and grave challenges; it is progressing,
strengthening its democratic institutions, government, economy,
and culture, and defending peace.

"In its Freedom in the World Report, a reputable human rights watchdog,
the Freedom House, has ranked the Republic of Mountainous Karabakh
among partially free democratic states, while ranking Azerbaijan as
a non-free state. No further comments are needed here," said Sargsyan
in a press release issued yesterday.

The obvious conclusion, according to him, is that the times of
colonizing a people living on its own soil have long passed.

"Our belief is that the settlement of the Karabakh conflict should
be based on human rights and the will of the Karabakh people as an
expression of their collective identity. It is the only way to achieve
lasting, feasible, and peaceful settlement.

"The alternative to this settlement is the forcing of the Karabakh
people back into Azerbaijan, which will inevitably lead to attempts of
new ethnic cleansing of Armenians in Karabakh. There is no alternative
here, especially given that Azerbaijan has labelled the vast majority
of the Karabakh population as ‘criminals’ over the last two decades.

"Hence, in view of the consequences of this alternative, we clearly
rule out any pressure-driven concessions in the Karabakh process that
would threaten the Artsakh people’s physical existence, security,
and right to live in dignity," said the RA president.

GUL RESPONDS TO SARGSYAN’S STATEMENT

Tert.am
15:31 11.02.10

Turkish President Abdullah Gul issued a formal (and longer) statement
in response to Armenian President Serzh Sargsyan’s inflight message
to him sent earlier this week.

The letter, as published on the Turkish government’s official site
and available in English, reads:

"Your Excellency, Dear Friend,

"I would like to thank you for the kind message that you have sent on
the occasion of your flight over the Turkish territory. Please accept
my reciprocal greetings to you and the people of neighbouring Armenia.

"I welcome the thoughts conveyed to us in your message. I do share
the view that our bilateral efforts aimed at the normalization of
Turkish-Armenian relations attracted due attention world-wide by
creating a new hope for peace in our conflict-ridden region.

Overcoming the long-established prejudices and nurturing mutual
understanding and trust among our two neighbouring peoples were indeed
our main objectives when endorsing the process of normalization between
our countries. You should have no doubt that our determination to
take these objectives forward is intact, provided that this resolve
and commitment remains reciprocal.

"I also agree with you that responsible governance necessitates both
standing behind words and supporting words with deeds. Hence, we will
continue to work toward taking our normalization process forward
based upon the understanding reached between our two countries. We
have to be aware that concluding this historic process will require
honoring our commitments in their entirety as well as displaying
adequate political courage and vision.

"A future characterized by sustainable peace, security, prosperity
and cooperation for all the people living in our region is our common
goal and I will remain personally engaged in this process hoping to
see it reach a satisfactory conclusion for both of our countries."

ARMENIAN AUTHORITIES ENSURE WAY BACK

news.am
Feb 11 2010
Armenia

On February 11, the Armenian Government approved draft amendments to
the RA Law on International Agreements.

According to the draft amendments, the signer of an international
agreement reserves the right not to accede to the agreement any
moment before the agreement takes effect, clearly informing the other
signatory or signatories of his intention.

A few weeks ago RA President Serzh Sargsyan ordered a bill on
repudiating and invalidating international agreements and revoking
signatures to be drafted and submitted to Parliament. This will allow
Armenia to renounce the Armenian-Turkish protocols in case Turkey
fails to ratify them.

SERZH SARGSYAN: ARMENIA OVERCOMES DIFFERENCES ON THE MODEL OF EUROPE

ArmInfo.
2010-02-10 20:38:00

ArmInfo. "The newest history of Europe is one of overcoming differences
through cooperation. Armenia has always been a proponent of this
approach. It lies at the heart of our policies. It is also the way
in which we are ready to move forward in resolving the Mountainous
Karabakh issue, a vital cause for the Armenian people, a problem that
has inflicted unspeakable pain and losses to my people",- said Serzh
Sargsyan, the President of the Republic of Armenia, in the Chattem
House British Royal Institute of International Affairs.

"We have witnessed a policy of the most brutal ethnic cleansing and
displacement. The people of Mountainous Karabakh were forced to pay by
blood to defend their right to live freely in a war that was imposed
on them. We must find solutions the implementation of which will not
lead to further displacement and ethnic cleansing. We have to realize
that the people of Karabakh consider that they have managed, on the
one hand, to restore historical justice distorted during Stalin’s
dictatorship, and, on the other, to safeguard the minimum conditions
necessary for their physical survival. It is with this realization
that we continue the talks with Azerbaijan and perceive the peace
process and the efforts of the mediators",- he said.

"The truth is that Karabakh was never a part of independent
Azerbaijan. It was forced into Azerbaijan by a decision of the Soviet
Union party authority, which, defiant of the League of Nations decision
and the popular referendum as a means of determining the border between
Armenia and Azerbaijan, decided in its Caucasus Bureau session in 1921,
under Stalin’s direct pressure, and in violation of the procedure,
to annex Mountainous Karabakh on the condition of forming a national
autonomy on these Armenian territories within the Soviet Socialist
Republic of Azerbaijan",- stressed Serzh Sargsyan.

To recall, the Armenian president is paying a three-day working visit
to London.

ARMENIA SAYS TURKEY MUST VOTE FIRST ON PEACE DEAL
By Adrian Croft

Reuters
Feb 10 2010
UK

* Armenia warns it could break off peace process
* Accord would bring big gains

LONDON, Feb 10 (Reuters) – Accords aimed at burying a century of
hostility between Turkey and Armenia must be voted on by the Turkish
parliament before Armenia’s parliament will approve them, Armenia’s
president said on Wednesday.

Serzh Sarksyan also warned that Armenia could break off the effort
to normalise relations if Turkey dragged its feet.

Armenia and Turkey agreed last year to establish diplomatic ties and
open their common border within two months of parliamentary approval.

The accords were signed with the endorsement of the United States,
European Union and Russia, but the Armenian and Turkish governments
have since accused each other of trying to re-write the texts,
throwing the process into question.

Sarksyan said he would tell his staff on Wednesday to submit the
accords to the Armenian parliament, but that Turkey’s parliament
would have to be first to ratify them.

"The parliament of Armenia will vote on the protocols if the Turkish
parliament goes ahead with that," he said, answering questions at
the Chatham House thinktank in London.

"Otherwise we can find ourselves in a situation where the Armenian
parliament ratifies and the Turkish parliament fails to," he said,
speaking through an interpreter.

Sarksyan said he could guarantee a positive vote in the Armenian
parliament "if the Turkish side does it in a reasonable time frame
and without pre-conditions".

But he said Turkish officials had said their parliament was independent
and its decisions unpredictable.

LONGSTANDING DIVISIONS

The deal is the closest the sides have come to overcoming the legacy of
the mass killings of Armenians by Ottoman Turks during World War One.

It would bring big economic gains to poor, landlocked Armenia. Turkey
would burnish its credentials as a potential EU entry state and boost
its clout in the South Caucasus, a region criss-crossed by pipelines
carrying oil and gas to the West.

Sarksyan said Armenia was committed to rapprochement with Turkey. "We
have agreed to move forward without any pre-conditions, not making
our relations contingent upon Turkey’s recognition of the Armenian
genocide," Sarksyan said.

"However, if, as many suspect, it is proven that Turkey’s goal is
to protract rather than to normalise relations, we will have to
discontinue this process," he said.

Turkey has also warned that the peace process could fail unless it
was carried out properly.

It has demanded that ethnic Armenian forces pull back from the
frontlines of the disputed mountain region of Nagorno- Karabakh as
a condition for ratifying the peace deal. This has aroused fierce
resistance in Armenia.

The Turkish condition is aimed at placating close Muslim ally
Azerbaijan, an oil and gas exporter which lost control over
Nagorno-Karabakh when ethnic Armenians backed by Christian Armenia
broke away as the Soviet Union collapsed. Ankara closed the border
with Armenia in 1993 in solidarity with Azerbaijan.

Sarksyan said he would invite Azerbaijan President Ilham Aliyev if
a ceremony was held to mark the opening of the Armenian-Turkish border.

Sarksyan accused Azerbaijan of stockpiling weapons and said that,
while Armenia despised war, "we realise that we must be ready for
war in case others wish to fight." (Editing by Noah Barkin)

DEPUTY FOREIGN MINISTER OF ARMENIA KARINE GHAZINIAN TO LEAVE FOR POLAND ON FEBRUARY 10

Noyan Tapan
Feb 9, 2010

YEREVAN, FEBRUARY 9, NOYAN TAPAN. Deputy Foreign Minister of
Armenia Ms. Karine Ghazinian will leave for Warsaw on February 10 to
participate in political consultations between the foreign ministries
of Armenia and Poland, the RA MFA Press and Information Department
reported.

TAX REFORM IN FOCUS OF ARMENIAN GOVERNMENT

/PanARMENIAN.Net/
06.02.2010 GMT+04:00

The Armenian parliament debated amendments and changes to a number
of laws: On Taxes, On Budget System and On Local Self-Government. The
revision of the list of local taxes caused a heated debate among MPs.

In particular, representatives of Prosperous Armenia offered to
organize additional hearings, involving all interested stakeholders
to finalize this package of legislative initiatives.

/PanARMENIAN.Net/ The Armenian state revenue committee exceeded
the quotas at the beginning of the year. Tax and customs proceeds
increased by 14% in Jan. 2010, the committee’s press office said.

Social payments totaled AMD 6.78 billion, growing by 41.8% against
last year’s index.

*

Turkish-Armenian Business Development Council (TABDC) Co-Chairman Kaan
Soyak said Tuesday that bilateral trade between Turkey and Armenia
totaled USD 300 million, what is a success. Noting that TABDC forecast
USD 150 million turnover, Mr. Soyak said that the World Bank predicted
this figure as USD 200 million.

He said that trade between Armenia and Turkey was carried out via
third countries like Georgia and Iran, so it was hard to calculate
an exact figure.

*

Agarak Copper Molybdenum Combine CJSC processed around 1.3 million
tons of ore in the first half year of 2009, exceeding 2008 results
(second half year) by 5%. As predicted, the volumes of ore mining and
processing shall increase up to 3-3,5 million ton in the current year.

In 2009 the Company produced about 248 ton molybdenum concentrate and
13.500 ton copper concentrate. In February of 2009, because of the
impact of global economic crisis the Company stopped its production
activities and resumed its full scale operation starting from June 30.

Since the end of 2008 ACMC’s operation became instable and starting
from the month of October it started to accumulate losses, which were
covered at the expense of investments of the shareholders. From the
moment of stoppage of the Company 500 employees out of 900 continued
renovation-recovery works and received full salaries, and 400 employees
were on downtime vacation, and received 2/3 of their salaries. After
the Company restarted it operation all the employees were reinstated.

Increase of the processing volumes last year was achieved due to
the anti-crisis program, which was aimed at technical re-equipment,
which resulted in increase of mining and production effectiveness. The
program suggests a systematized approach, including capital investments
for modernization of production, raising of qualification of junior
staff, as well as changes of organizational structure of the Company.

In 2010 the Company is planning to increase mining and processing
volumes up to 3-3,5 million ton, and reach the volumes of stripping
works up to 2.2 million cubic meters. Growth shall be obtained due to
technical re-equipment and, particularly due to modernization of the
processing plant. In the result of such re-equipment ore processing
capacity of the plant and the extraction level of useful matter will
increase. Due to modernization of the plant the self-cost of the
production will considerably reduce, because the costs for electric
power, photo-reagents and other components will decrease.

For mining of 3,5 million tons of ore it is important to increase the
number of mining machinery and vehicles. Increase of ore mining will
bring about increase of stripping works.

Social issues are one of the most important problems for
the management. Salaries are regularly paid and all social
responsibilities are being carried out. City-formation policy is one
of the Company’s priorities. It is actively cooperates with the Agarak
city administration, and to the extent of its abilities participates
in realization of social projects.

*

The Armenian parliament debated amendments and changes to a number
of laws: On Taxes, On Budget System and On Local Self-Government.

Presenting the bill, RA Deputy Minister of Territorial Administration
Vache Terteryan said that sales tax, hotel tax, unfinished construction
tax, tax on unprocessed agricultural land, value tax on parking of
vehicles and other taxes are classified as local taxes.

These taxes, except taxes on property and land, will be applied by
communities at their discretion.

As a PanARMENIAN.Net correspondent reported from the National Assembly
of Armenia, the revision of the list of local taxes caused a heated
debate among MPs. In particular, representatives of Prosperous Armenia
offered to organize additional hearings, involving all interested
stakeholders to finalize this package of legislative initiatives.

Given the prevailing disagreement on this bill, the chairman of the
National Assembly Hovik Abrahamyan suggested to postpone the vote
for 15 days, during which changes in the above mentioned laws will be
discussed and supplemented in the relevant committees of the National
Assembly of Armenia.

*

The Armenian National Assembly ratified Tuesday two international loan
agreements between Armenia and Asian Development Bank over crediting
the North-South Highway construction.

The total cost of the North-South Highway investment program reaches
USD 1 billion, while the implementation period is estimated between
10 and 15 years. The investment program, funded by Asian Development
Bank, involves construction of the Agarak-Kapan-Yerevan-Gyumri-Bavra
highways and the road infrastructures. The construction of the corridor
will improve the road link with Iran and Georgia, providing access
to international destinations and markets. USD 120 million worth
construction works were initially projected for 2010. The North-South
transport corridor will promote economic growth in the country,
generating annual USD 15-16 million revenues.

*

1.7 per cent growth in consumer prices recorded in January in Armenia
compared to December 2009, which is conditioned with seasonal price
changes for some food products.

According to the official data of the Armenian National Statistical
Service, in January 2010 compared with December 2009 prices for food
products (including alcoholic beverages and tobacco) increased by 3.3
per cent. The prices for industrial goods and tariffs for services
decreased by 0,1 per cent.

The consumer price index reached 107 per cent in January 2010 compared
with the last January, the price index for food products (including
alcoholic beverages and tobacco) amounted to 103,2 per cent, while
price index for industrial goods reached 116 per cent and tariffs in
the service industry made 109,9 per cent.

*

The natural gas supplies to Armenia decreased by 19.7 per cent in
2009 amounting to 1809.3 million cubic meters against 2254.4 million
cubic meters in 2008, press office of ArmRosgazprom reported.

The volume of gas sales decreased by 20.1 per cent reaching 1660.8
million cubic meters against 2079.0 million cubic meters in 2008. Gas
consumption by the population reduced by 6.1 per cent amounting to
553.2 million cubic meters against 589.5 million cubic meters in 2008.

Gas consumption in the energy sector has significantly reduced
amounting to 366.2 million cubic meters, 39.7 per cent less than
in 2008.

The volume of gas consumption by the industry decreased amounting to
259.7 million cubic meters.

*

Armenian PostBank will launch activities in spring 2010, RA Minister
of Transport and Communication Gurgen Sargsyan said.

The bank will be a specialized structure functioning on the basis
of Haypost offices and will offer financial and insuring services
throughout Armenia.

$12 million will be invested in formation of the PostBank.

*

USD 54,741,745 was bought at average price of AMD 375.94 /USD 1 and
USD 56,179,602 was sold at average price of AMD 377.5 / USD 1 at
Armenian foreign currency market on February 1 -5.

Deals amounting to USD 1.800.000 at average price of AMD 378.67 /USD
1 were struck at interbank market.

Deals amounting to USD 11.511.000 at average price AMD 377.43 /USD
1 were concluded at NASDAQ OMX Armenia.

On January 25-31 AMD loans granted by banks totaled 15.8 billion. USD
loans totaled 19.3 million, Central Bank of Armenia press office
reported.

IT IS IN AMERICA’S INTERESTS TO KEEP PROCESS MOVING FORWARD: U.S. EXPERT

news.am
Feb 5 2010
Armenia

Obama administration presses Ankara at the highest level and if
Armenia-Turkey Protocols’ ratification fails, it might seriously impact
U.S.-Turkey relations, U.S. scholar David Phillips told RFE/RL. "It
is also in America’s interests to keep the process moving forward so
that U.S.-Turkish cooperation is in effect," Phillips said.

According to Phillips, who coordinated the work of the U.S.-sponsored
Turkish-Armenian Reconciliation Commission (TARC) in 2001-2004,
pressure on Ankara will decrease only after Turkey ratifies the
Protocols.

"And its efforts to use its leverage should intensify in the near
future," he told RFE/RL. "The U.S. needs to be actively engaged in
this process if it is going to work." Phillips underlined that James
Steinberg’s visit to Yerevan is "a clear indication that the Obama
administration understands the importance of this matter and the need
to raise the profile of its involvement."

Phillips suggests President Sargsyan to formally submit the protocols
to Armenia’s parliament "without necessarily calling for a vote",
thus the onus of responsibility for a potential diplomatic breakdown
would rest with Ankara."

The expert reckons that Armenia cannot wait for Turkish ratification
for much longer. "I know that for domestic political reasons, this
can’t be an open-ended process, and April 24, as the anniversary of
the Armenian genocide, has been put forward as a deadline," Phillips
stated. "Whether or not April 24 is a deadline is something for
the Armenian government to decide. But there clearly needs to be an
end point."

As to Karabakh conflict settlement, Phillips pointed out that
Nagorno-Karabakh is not mentioned in the documents.