Precedents for Europe on Azerbaijan’s Conquest of Nagorno-Karabakh

           Dec 12 2023

By David Davidian

Despite the seemingly never-ending classic debate between territorial integrity and national self-determination, international jurisprudence nevertheless accords all peoples the entitlement to self-determination. 

The international community purportedly supports and gives attention to remedial secession. The international law doctrine of remedial secession grants to a group within a state the right to secede and form its own independent state in response to severe and ongoing human rights abuses or denial of fundamental rights by the central government. This idea challenges the traditional principles of state sovereignty and territorial integrity, suggesting that under certain circumstances, the international community may recognize the right of a specific group to secede from a state that is violating their basic rights.

A strong affirmative case existed for the remedial secession for the Armenians of Nagorno-Karabakh, considering the Soviet Red Army colonized the Southern Caucasus and its leadership transferred this region with a 95% Armenian population to Azerbaijani jurisdiction in 1921. Albeit with autonomous status, the Soviets placated Armenians, giving the illusion they would have their land in perpetuity. Other than a mechanism of Soviet control, why assign a nearly mono-ethnic region’s jurisdiction to a belligerent?

Demands for justice by survivors of the 1915 Turkish genocide of the Armenians needed to be suppressed by both the Soviets and Turkey, each synergistically fulfilling their interests. The engendering of a novel Turkic Azerbaijani national ethos and the reduction of territory under Armenian jurisdiction has as its basis the 1921 disposition of Nagorno-Karabakh. To this day, not only is the term Armenian a pejorative in Turkish society, but in Azerbaijan, the more anti-Armenian one is, the more one is considered an Azerbaijani patriot. This socialization is enshrined in the Azerbaijani educational system and is expressed today by Azerbaijani leaders who call for the complete elimination of Armenians.

Armenia’s ability to achieve recognized self-rule over Nagorno-Karabakh and other regions extending south to the Iran border in the First Karabakh War (1988-1994) was never achieved, lacking the requisite diplomacy to gain “remedial secession.” The Alma-Ata Declaration formed the basis for international recognition of existing Soviet borders, which included Nagorno-Karabakh within Azerbaijan. Considering the significant number of ethnic groups demanding remedies for almost seventy years of Soviet gerrymandering, a failure to adopt this declaration would have created a horror show of precedent that could have extended across much of Europe. Even in the wake of today’s Russian special military operation in Ukraine, Poland, Hungary, Romania, and others have made claims against Ukrainian territory or at least made demands for cultural autonomy for their respective minorities. Alma-Ata thus codified the international recognition of existing Soviet republican borders, setting the precedent of restricting autonomy and any expectation of secessionist self-determination akin to state boundaries in the E.U.

As Azerbaijan seized control of Nagorno-Karabakh in the fall 2020 in the Second Karabakh War, international diplomatic verbal outrage ensued, but no state came to oppose Azerbaijani actions, however barbaric. No economic sanctions were placed on Azerbaijan. No country helped the Armenians of Nagorno-Karabakh, who a generation earlier had declared themselves an independent self-ruling entity, albeit one lacking international recognition. Azerbaijan’s exports of its huge reserves of Caspian gas to Europe trumped any chance of economic sanctions against Baku.

Even though Armenia is a member of the CSTO, Russia offered no assistance to Armenia or the Armenians of Nagorno-Karabakh, claiming the battle was on Azerbaijani sovereign territory. Beyond Azerbaijan’s usurping of Nagorno-Karabakh, by the summer of 2023, the Azerbaijani military had occupied nearly 150 sq km of territory inside the internationally recognized borders of Armenia proper, as outlined in the Alma-ATA Declaration. Subsequently, there were calls by major world powers for Azerbaijan to respect Armenian sovereignty. Those nations challenging Azerbaijan included, but were not limited to, nations in the EUFrancethe USAIranand China.  In particular, France also called for the withdrawal of Azerbaijani troops from Armenia. 

These declarations of support for Armenian sovereignty were merely reiterations of all currently recognized borders, that is, the official national borders absent regard for the international jurisprudence doctrine of the right to self-determination.  The same nations who called for Azerbaijan to vacate sovereign Armenia were deafeningly silent regarding  Nagorno-Karabakh.  Those nations wanted to avoid setting a precedent for separatist movements and declarations of the right to self-determination by others. Europe has approximately one hundred twenty-five active, distinct separatist movements. This activity follows the approximately two hundred and fifty national border changes since WWI. National governments fear loss of control over territory, loss of access to mineral and natural resource rights, a weakening of military power and the ability to protect sovereign borders, and a host of other related concerns.  

The prevalence of separatism and regionalism across Europe is extensive and multifaceted, as evidenced by Catalonia, the Basque regions along the borders of Spain and France, Scotland, Flanders, and others. Other movements actively pursue regional autonomy, notably in Italy’s Lombardy and Veneto, where demands to govern and administer the interests of the local people according to its own initiatives. Other separatist movements in recent years involved the creation of entities with a de facto status such as Kosovo (a creation of NATO) and  Turkey’s expansive presence in North Cyprus. 

National governments fear loss of control over territory, loss of access to mineral and natural resource rights, a weakening of military power and the ability to protect sovereign borders,  and a host of other related concerns.  It is clear that, in Europe, other than the forced creation of Kosovo by NATO as a way to degrade Serbia as a Russian ally, there is distinct pressure not to create the precedent of any successful separatist or re-integration movements. Thus, it should not be surprising that Europe not only didn’t pressure Azerbaijan to cease and desist in its 2020 war waged to integrate Nagorno-Karabakh into its ‘internationally recognized borders,’ but it didn’t blink an eye when 120,000 Armenians, were forcibly expelled by Azerbaijani forces in 2023.

Documents, such as the Universal Declaration of Human Rights, used as one of the excuses for NATO ‘liberating’ Kosovo Albanians from ‘Serbian oppression,’ were seemingly irrelevant in September of 2023 when Azerbaijan forced the exodus of 120,000 Armenians from Nagorno-Karabakh. The only thing worse would have been the wholesale extermination of the lives of the 120,000 Armenians of Artsakh. That forcible expulsion of 120,000 Armenians involved a full-scale physical blockade, starvation, shutting off of the water supply to the entire region, shutting off of all electricity and communications, and constant attacks against the civilian Armenians, which are all activities constituting genocide according to the definition in international law.  

It was not in the interest of the existing world order for the Republic of Artsakh or Republic of Nagorno-Karabakh to be a successfully recognized entity — the abject lack of active or competent Armenian diplomacy notwithstanding. So, Russia, for its parochial interests, and the E.U. out of fear of setting any precedent, watched as Azerbaijan forced the ethnic cleansing of Nagorno-Karabakh Armenians. International geopolitical interests trump all else.

Despite the resistance to separatist movements, there is arguably another aspect to the aforementioned desire of nations. As nations vie for access to and control of the world’s natural resources, Europe in particular recognizes its vulnerability and dependence on the East for its energy.  

As a result of Europe’s naïve and obsequious deference to the US’s instigation and machinations in Ukraine and its relentless beleaguering of Russia, Europe finds itself paying three or four times the cost of Russian energy that is now delivered via pipelines running through Azerbaijan and Turkey. Upsetting Azerbaijan would be a risky move for Europe

Baku, emboldened by the frozen inaction of the international community, and encouraged by Russia’s agreements of collaboration with Azerbaijan and Russia’s disparaging of Armenians, is amplifying its rhetoric and claims that the southern part of internationally-recognized Armenia proper is really part of an imaginary Azerbaijani state in the past.  

Perhaps out of fear of regional instability that could mushroom into a far-reaching chaos that might descend into war across the Caucasus, South Caucasus and even the Middle East, the U.S. has begun pressuring Azerbaijan in the form of the Armenian Protection Act of 2023. Concomitantly, France and India have sold military equipment and training to Armenia. Baku has retaliated by closing the USAID operation in Azerbaijan. This pressure, perhaps, is to force Azerbaijan to sign a peace treaty with Armenia, considering Baku is hindering such efforts as a pretext for further aggression: a full-scale invasion of Armenia proper, further violating its recognized territorial integrity. Pressure on Azerbaijan and the apparent Western tilt toward Armenia encourages Armenia to pull away from its Russian orbit further.  

It will be interesting to observe if the precedent of one state [Azerbaijan] claiming territory within another’s internationally-recognized borders [Armenia] will be as vigorously opposed as the destruction of Armenian civilization in Nagorno-Karabakh was silently endorsed. The former precedent will not be welcome anywhere, especially across Europe.

Author: David Davidian – Lecturer at the American University of Armenia. He has spent over a decade in technical intelligence analysis at major high technology firms. He resides in Yerevan, Armenia.

(The views expressed in this article belong  only to the author and do not necessarily reflect the  views of World Geostrategic Insights)

 

Sports: Borussia Forward Ranos: Armenian National Team Has Great Potential, We Had Good Euro-2024 Qualifiers

Dec 12 2023
Marina Magomedova

Borussia Mönchengladbach and Armenian national team forward Grant-Leon Ranos spoke about the performance of the national team in the qualifying round of the European Championship-2024.

Grant-Leon Ranos, exclusively for Telecom Asia Sport

I would say that we had a good qualifying round. We lacked stability in the games, we lost points in important matches. Perhaps we lacked some experience and game practice at this level. I think that our national team has great potential, you could see it in some of our games. We hope that more of our players will move to European championships and thus raise the level of the national team. When I first came to the national team, all the players and staff helped me a lot to adapt in the team. It helped me to feel comfortable in the Armenian national team.

"The defeat against Latvia? Every game had its own meaning. We need to learn from our matches and keep improving. As we have seen already, we need to constantly concentrate in all matches to get the best possible result for us," Ranos told Telecomasia.net.

Armenia finished in fourth place in qualifying Group D with eight points in eight matches. Turkey and Croatia got direct access to Euro 2024 from this qualifying group.

Earlier it became known that ex-Kuban and Spartak midfielder Aras Ozbiliz is running for the post of the president of the Football Federation of Armenia.

https://www.telecomasia.net/news/football/borussia-forward-ranos-armenian-national-team-has-great-potential-we-had-good-euro-2024-qualifiers/

Armenia receives $2.9M grant to support wellbeing of displaced children in schools

Dec 11 2023
World Bank

The World Bank announced today that Armenia has been selected to receive a new grant from the State and Peacebuilding Umbrella Trust Fund to support the mental health and wellbeing of displaced children and adolescents from Nagorno-Karabakh region in over 200 schools across the country. The grant will finance an upcoming project to be implemented jointly by the World Bank and the Teach for Armenia Foundation, in collaboration with the Ministry of Education, Science, Culture and Sport, the Republican Pedagogical-Psychological Center, and the Armenian State Pedagogical University.

The $2.9 million grant will support the social integration of displaced children and adolescents into Armenian schools, and capacity building and mentoring of school staff to deliver tailored mental health and psychosocial support to displaced children and adolescents, their families, and students from the hosting communities.

It will provide technical assistance to design a comprehensive approach for the integration of displaced children and adolescents into the education system along with a specialized mental health and psychosocial support program through a combination of change-based learning, engagement with local communities, and robust monitoring and evaluation systems in schools. The grant will also support integrating the provision of mental health and psychosocial support into the new curriculum.

The State and Peacebuilding Umbrella Trust Fund (SPF) is a global multi-donor fund administered by the World Bank that works with partners to address the drivers and impacts of fragility, conflict, and violence and strengthen the resilience of countries and affected populations, communities, and institutions. SPF is supported by Denmark, Germany, Netherlands, Norway, Sweden, Switzerland.

The World Bank is currently financing 10 projects in Armenia totaling $500 million. Since its inception in Armenia in 1992, the World Bank has provided around $2.7 billion from International Development Association (IDA) to which Armenia became a donor in 2023, from the International Bank for Reconstruction and Development (IBRD), and from trust funds. The World Bank is committed to continuing its support to Armenia in its development path for ending extreme poverty and boosting shared prosperity on a livable planet. 

https://www.devdiscourse.com/article/business/2742160-forex-dollar-rises-ahead-of-us-inflation-data-fed-meeting-yuan-heavy

Armenia, Azerbaijan Announce Steps Towards Normalising Relations, Prisoner Exchange

Arise TV
Dec 8 2023

This exchange is seen as a positive step towards building trust and fostering peace between the two nations.

Armenia and Azerbaijan have declared their intention to move towards normalising relations and exchange prisoners captured during the recent conflict in Nagorno-Karabakh. The joint statement released on Thursday night expressed a shared belief in a “historical chance” for achieving “long-awaited peace,” marking a potential turning point in their decades-long conflict over the disputed territory.

In a bid to solidify their commitment to the peace process, both countries expressed their hope to sign a comprehensive peace treaty by the end of the year. The conflict escalated in September when Azerbaijan launched a rapid military offensive, ending three decades of ethnic Armenian rule in Nagorno-Karabakh, which is internationally recognized as Azerbaijani territory. The offensive resulted in the displacement of most of the region’s 120,000 ethnic Armenians to neighbouring Armenia.

As a gesture of goodwill, Azerbaijan is set to release 32 Armenian military servicemen, while Armenia will release two military servicemen. This exchange is seen as a positive step towards building trust and fostering peace between the two nations. European Council President Charles Michel praised the joint statement, calling it a “major breakthrough in Armenia-Azerbaijan relations,” and the U.S. welcomed it as an “important confidence-building measure.”

In addition to the prisoner exchange, Armenia and Azerbaijan announced their commitment to signing a comprehensive peace treaty, emphasising mutual respect for each other’s territorial integrity. Other significant measures include Armenia’s withdrawal of its candidacy for hosting the COP29 climate summit in support of Azerbaijan’s bid, and Azerbaijan’s support for Armenia’s candidacy in a regional group associated with climate talks. The countries also called on the international community to support their efforts for lasting peace.

The breakthrough was achieved during talks between Armenia’s Prime Minister Nikol Pashinyan’s office and Azerbaijan’s President Ilham Aliyev’s administration. These talks, mediated by the EU, the U.S., and Russia, have been ongoing, with both leaders meeting on multiple occasions to facilitate normalisation. Talks had faced a setback when Azerbaijan refused to participate in discussions in the U.S. and Spain, citing perceived bias. However, negotiations resumed in Iran at the end of October, leading to this recent positive development.

Kiki Garba

Sports: World Junior Champion from Armenia aims for Olympic gold

Inside the Games
Dec 10 2023

Tigran Ovsepyan (50 kg) from Armenia was one of the biggest hopes of the host country in IBA Junior World Championships in Yerevan during November 24 to December 4. The European champion from 2023 was the main contender for the world gold medal and he didn’t disappoint.

“The preparation is the hardest period, the tournament passes very fast, and the world championship wasn’t an exception. I had many positive emotions,” told Ovsepyan Insidethegames about his journey in the World Championship. “The hardest fight was in the final against the Bulgarian boxer, because I had a temperature and a sore throat. I gave up the first round, and had to find something to change in the bout, to come back to take the gold medal.

The other bouts of the tournament Ovsepyan won by big advantage, but he believes that the world champion’s title was harder to claim and that the home crowd helped him very much. 

“Of course it was harder to claim the gold medal in the World Championship than in the European Championship. I fought against Bulgarian and Hungarian boxers in the European championship too, but it was obvious that they did their best to improve. Well, we did the same and had a good result. 

I think it was easier to fight in Yerevan. The home crowd helped very much, and when we are united we are stronger,” said Ovsepyan.

The rising star of Armenian boxing has big ambitions for the future.

“We don’t have many big events next year, besides the European Championship. It will be my second junior year, I will do my best to retain the European title. If I manage it, I will change the weight category. In the future, of course, I will aim for Olympic gold”

Central Bank of Armenia: exchange rates and prices of precious metals – 07-12-23

 17:13, 7 December 2023

YEREVAN, 7 DECEMBER, ARMENPRESS. The Central Bank of Armenia informs “Armenpress” that today, 7 December, USD exchange rate up by 0.33 drams to 403.43 drams. EUR exchange rate down by 0.24 drams to 434.70 drams. Russian Ruble exchange rate stood at 4.35 drams. GBP exchange rate up by 0.09 drams to 507.96 drams.

The Central Bank has set the following prices for precious metals.

Gold price up by 61.03 drams to 26283.57 drams. Silver price down by 2.01 drams to 312.53 drams.

Armenian Parliament rejects criminalization of recognition of NK as part of another country

Dec 5 2023
  • JAMnews
  • Yerevan

Project “Hayakve”

The Armenian Parliament has voted against the inclusion in the agenda of a bill submitted by the Hayakve initiative on criminalizing the recognition of Nagorno-Karabakh as part of another state. “Twenty-six deputies representing the opposition voted in favo; 57 deputies of the ruling majority voted “against.” Nor was the draft was not approved by the commission on state-legal issues yesterday.

The authors of the initiative proposed to introduce an amendment to the Criminal Code, according to which violators of the law would face 10 to 15 imprisonment for recognizing NK as part of another state, as well as refusal of international recognition of the Armenian Genocide of the early 20th century.

Political observer Armen Baghdasaryan believes that the project is not directly related to the future of Nagorno-Karabakh. He characterizes the process started by the “Hayakve” initiative as “another episode of internal political struggle”.


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According to the Armenian Constitution, in order to put an issue on the agenda of the National Assembly, a civic initiative had to collect signatures from 50 thousand citizens. Collection started at the end of June 2023, and the project was supported by 58 thousand citizens of the country.

As a result, the issue reached the Parliament, but did not receive a favorable opinion among the relevant commission of the National Assembly, and during the regular session it did not reach the stage of discussion.

The project can be submitted to a national referendum. However, for that the authors of the initiative will need to collect many more signatures — 300,000. “Hayakve” have not yet announced whether they will go this way.

Opinion on what steps the Armenian side should have taken after signing the 2020 statement on ceasefire in Karabakh, on the mistakes of the Armenian authorities and the unrecognized NKR

The opposition believes that the deputies from the ruling majority ignored the opinion of more than 50 thousand citizens of the country who supported the initiative. This was stated at the session by the secretary of the Hayastan opposition faction, Artsvik Minasyan. According to him, the ruling team has confirmed by its position that it refuses to fulfill its pre-election promises:

“‘Civil Pact’ [the ruling party] also wants to come out with a message: forget what we promised, what we told you, we are doing what we need to do to keep our seats”.

Aram Petrosyan, representative of the Hayakve initiative, also recalled the provisions of the ruling faction’s pre-election program, with which it won the 2021 snap elections:

“They promised to guarantee the security of the people of Artsakh, talked about the settlement of the problem on the basis of the right to self-determination, but did the exact opposite. This is nothing but usurpation of power. Citizens would not give their votes if their program says that Artsakh will be recognized as part of Azerbaijan, the Republic of Armenia will not protect the people of Artsakh when Azerbaijan unleashes a genocidal war against them, and the issues of the so-called enclaves and the return of Azerbaijanis to Armenia will also be discussed.”

The authors of the initiative and the parliamentary opposition announced that the government deputies reject the draft “without any legal arguments”. While the draft fully complies with the provisions of the country’s constitution and declaration of independence.

What the Armenian government offers to the Karabakh Armenians, their views on it and experts’ comments

MP Vladimir Vardanyan responded to the opposition that the parliamentary commission on state-legal issues, which he heads, issued a negative opinion on the draft after “substantial discussion for 7 hours”.

Vardanyan said he sees problems in the submitted draft “from the point of view of legal certainty.” In particular, he emphasized that the country’s criminal code already has provisions related to the denial of the Armenian genocide.

Deputies of the ruling team asked the opposition members what benefit this amendment would bring “besides the fact that it may create many problems.”

Opposition MP Artsvik Minasyan did not give a direct answer regarding the benefits and risks of the bill, but stated that “there are many reasons” for its adoption:

“The draft is important from the point of view of ensuring Armenia’s security, establishing Artsakh’s subjectivity, as well as ensuring the unity of the Armenian people, delivering the right messages to the international community from the point of view that the Artsakh issue is not closed.”

Swedish anthropologist and expert on the Karabakh conflict Rasmus Kanback – on Russia’s role in the exodus of almost the entire Armenian population from Nagorno-Karabakh

Political observer Armen Baghdasaryan believes that the goal of the initiative’s authors was not to pass the bill at all. In his opinion, it was an attempt to show the society that “the authorities betray national and state interests, so it is necessary to get rid of them as soon as possible.”

“Even after there are no Armenians left in Artsakh at all, it becomes the main pretext for internal political struggle, struggle for power. Just a pretext.”

The analyst believes that the Armenian authorities also realize this and “conduct this not very meaningful discussion” simply because they cannot avoid it.

According to Baghdasaryan, at the session of the state-legal issues commission held a day earlier, the ruling team, once again, tried to prove that “the former authorities are to blame for everything.”

“Meanwhile, it would have been more serious if a much more urgent question had been discussed: will the adoption of this project somehow help to solve the Artsakh problem in the future, at least partially, or will it harm it?”

He emphasizes that instead of discussions about the future, debates with “accusations of each other’s actions in the past” continue in the political field of Armenia.

https://jam-news.net/hayakve-project-rejected-by-the-armenian-parliament/

Turkish Press: Blinken holds separate calls with Azerbaijani, Armenian leaders to discuss peace process

Anadolu Agency, Turkey
Nov 28 2023
Rabia Iclal Turan

WASHINGTON

US Secretary of State Antony Blinken held separate phone calls on Monday with Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan to discuss efforts to reach a peace agreement between the two countries.

According to a readout of the phone call between Blinken and Aliyev, the Secretary welcomed Aliyev’s commitment to "conclude a durable and dignified peace agreement between Azerbaijan and Armenia."

"The Secretary recognized the suffering that this long-standing conflict has caused Azerbaijanis and Armenians alike and underscored the benefits that peace would bring to everyone in the region," State Department spokesman Matthew Miller said in a statement.

"The Secretary discussed our enduring relations with Azerbaijan, noted recent points of concern in the relationship and also spoke about opportunities to strengthen cooperation, especially around the peace process, and the importance of high-level engagement," Miller added.

Blinken held a separate phone call with Pashinyan to discuss US support for efforts to reach a "durable and dignified" peace agreement between Azerbaijan and Armenia.

"The Secretary reaffirmed the United States’ ongoing support for Armenia’s sovereignty and territorial integrity and outlined efforts to increase bilateral cooperation with Armenia as we work to support its vision for a prosperous and democratic future," said Miller in a statement.

Relations between the two former Soviet republics have been tense since 1991, when the Armenian military occupied Nagorno-Karabakh, a territory internationally recognized as part of Azerbaijan, and seven adjacent regions.


Most of the territory was liberated by Azerbaijan during a war in the fall of 2020, which ended after a Russian-brokered peace agreement and also opened the door to normalization.

Azerbaijan established full sovereignty in Karabakh after an "anti-terrorism operation" in September, after which separatist forces in the region surrendered.

In a statement on Nov. 21, Azerbaijan's Foreign Ministry called on Armenia to resume negotiations and "to avoid new unnecessary delays" in the peace process.

Delegations from Azerbaijan and Armenia are expected to meet on Nov. 30 to discuss border delimitation issues.

Mirzoyan Meets with Blinken, Lavrov

Foreign Minister Ararat Mirzoyan meets with Sergey Lavrov (left) and Antony Blinken

No Meetings Expected with his Azerbaijani Counterpart

Foreign Minister Ararat Mirzoyan on Thursday held separate meeting with his Russian counterpart, Sergey Lavrov, and Secretary of State Antony Blinken on the margins of an OSCE summit in Skopje, the capital of North Macedonia.

The meeting with Lavrov was the first since Azerbaijan’s large-scale attack on Artsakh that forced the exodus of more than 100,000 Artsakh resident to Armenia. Yerevan has blamed the inaction by Russian peacekeepers as relations with Moscow have significantly strained.

Armenia’s Foreign Ministry in a statement simply said that Mirzoyan presented Yerevan’s positions regarding Moscow’s policies and efforts regarding regional issues.

The Russian foreign ministry’s read out of the meeting specifically discussed efforts to normalize relations between Armenia and Azerbaijan.

It said Lavrov reaffirmed Moscow’s readiness to “vigorously” facilitate an Armenian-Azerbaijani peace deal based on understandings brokered by Russian President Vladimir Putin.

Armenia’s foreign ministry also announced that Mirzoyan did not have a meeting scheduled with his Azerbaijani counterpart Jeyhum Bayramov.

According to an Armenian foreign ministry statement, Mirzoyan and Blinken discussed issues related to security in the South Caucasus, among them the latest developments in the Armenia-Azerbaijan normalization process.

“Foreign Minister Mirzoyan underscored that despite Azerbaijan’s non-constructive conduct and the ethnic cleansing that was perpetrated in Nagorno-Karabakh, as well as the humanitarian issues, Armenia has conveyed to Azerbaijan proposals regarding the draft peace treaty in line with the well-known principles,” the Armenian foreign ministry said.

Foreign Minister Ararat Mirzoyan meets with NATO’s Javier Colomina in Skopje, North Macedomian on Nov. 30

Mirzoyan added that in the event that Azerbaijan clearly commits to these principles, “it will be possible to achieve significant progress in agreeing to a draft.”

While in Skopje, Morzoyan also met with Javier Colomina, the NATO Secretary General’s Special Representative for the Caucasus and Central Asia.

Mirzoyan reportedly Armenia stressed that Armenia, reaffirming its strong commitment to establish stability in the region and despite the existing challenges deriving also from the ethnic cleansing of Nagorno-Karabakh by Azerbaijan, is continuing to actively engage in the negotiation of a draft agreement on the normalization of relations with Azerbaijan.

Mirzoyan also stressed that for the process to advance, it is imperative that Azerbaijan publicly recognize Armenia’s territorial integrity and agree to border delimitation based on an agreement reached in 1991 and the utilization Soviet-era maps.

Citibank discriminated against customers with Armenian names, lawsuit alleges

Los Angeles Times
Nov 27 2023

When Mary Smbatian started hearing rumors a few year ago that Citibank was closing the accounts of Armenian Americans in the San Fernando Valley, she thought it impossible the giant Wall Street bank would ever shutter hers.

A residential loan broker who also runs an apartment management business, the Encino resident had been a Citibank client for more than a decade, with both company and personal accounts, as well as credit cards issued through the bank.

Then, on Feb. 1 of last year, she got a letter from Citibank informing her that all of her accounts and cards were being closed — without any reason provided. What ensued was chaos, as Smbatian scrambled to get her money back, open new accounts elsewhere and save her businesses.

“This was a mess. This was horrible. This was so depressing,” said Smbatian, 42, a mother of five who said she was still shaken by the events. “I was so stressed out, I literally started crying.”

Smbatian and others whose accounts were closed suspected discrimination was at play — and say they were proven correct when Citibank signed a consent order Nov. 7 with the Consumer Financial Protection Bureau, agreeing to pay $25.9 million to cover alleged violations of fair lending laws from at least 2015 to 2021.

The agency alleged that a unit responsible for issuing store-branded credit cards from Home Depot, Best Buy and other retailers had discriminated against applicants whose surnames ended with “ian” or “yan,” and particularly those who lived in and near Glendale.

The bank suspected that applicants seeking new cards or credit increases would be more likely to commit fraud and not pay their charges, with some employees referring to them as “Armenian bad guys” or the “Southern California Armenian Mafia.” The applicants were subjected to higher scrutiny and many were turned down, approved credit on less favorable terms or subject to possible account freezes and closures, according to the order.

The agency also also found that the bank took “corrective action” against employees who failed to identify and deny the applications. Employees were ordered not to tell customers the real reasons for their rejections or to discuss it in writing or on recorded lines.

The bank agreed to set aside $1.4 million for victims of the discrimination, but the vast share of the penalty is going into a pool that compensates all consumers harmed by violations of federal consumer financial protection laws.

Now, Smbatian is a lead plaintiff in a proposed class-action lawsuit filed Nov. 17 in Los Angeles federal court on behalf of victims of Citibank’s discriminatory practices. The suit alleges far greater harm than is detailed in the CFPB’s order.

“The fine is actually minuscule compared to the damage done, and it’s very significant from what we are hearing from our clients,” said attorney Tamar Arminak, whose Glendale firm filed the lawsuit. “It really wrecked them.”

Los Angeles County is home to nearly 190,000 people of Armenian descent, according to the 2020 census, making it the largest diaspora community in the country.

The lawsuit seeks to compensate the plaintiffs due to losses suffered from a wide range of alleged injustices, including damage to credit scores and the financial hardship arising from account closures and the inability to access their money. It is also seeking punitive damages due to “the indignity of discrimination.”

Arminak said she had heard from Smbatian, a friend, and others in the Armenian community about the closed accounts and decided to proceed with the lawsuit after the CFPB action was announced earlier this month. After advertising the class action on social media and her firm’s website, she said she was deluged with responses and has signed up more than 100 clients who want to participate.

The attorney said clients have told her that they didn’t just have store accounts closed but checking, savings and business accounts, with the money tied for up weeks or months. Some business people told her their SBA loan funds were frozen for years. Meanwhile, they had trouble accessing their banks records and couldn’t get a straight answer about what was happening.

“People suffered far more than a Macy’s account not being approved,” she said. “And I don’t think the fine addresses the humiliation involved.”

Despite the consent order focusing on a period through 2021, Arminak said, the stories she has heard from clients indicate account closures actually accelerated last year.

Smbatian’s lawsuit is the second proposed class action arising from the fallout surrounding the CFPB’s order. It follows a narrower lawsuit filed Nov. 13 by a San Mateo law firm on behalf of a Grenada Hills woman of Armenian descent who held a Citibank Costco-branded card and alleges she was turned down for a credit line increase this year. A New York law firm announced it is looking into potential breaches of fiduciary duties by the bank’s officers and directors.

Citibank did not respond directly to request for comment regarding the lawsuit but directed The Times toward a statement it previously issued about the CFPB settlement, in which it did not deny or admit the agency’s findings.

“Regrettably, in trying to thwart a well-documented Armenian fraud ring operating in certain parts of California, a few employees took impermissible actions. While we prioritize protecting our bank and our customers from fraud, it is unacceptable to base credit decisions on national origin. We sincerely apologize to any applicant who was evaluated unfairly by the small number of employees who circumvented our fraud detection protocols,” it said.

The alleged Citibank credit denials and account closures follow decades of increasingly tough “know your customer rules” that aim to reduce financial crimes. They were first imposed in 1970 and strengthened after the Sept. 11, 2001, terrorist attacks and the 2008 financial crisis. Banks violators have been subjected to sometimes huge fines totaling in the billions of dollars domestically and abroad.

Lauren Saunders, associate director of the National Consumer Law Center, said banks have a responsibility to look out for illegal activity such as accounts being used by drug cartels and for money laundering and perpetrating fraud — but it has gone beyond that.

“What we are seeing right now is that some are overreacting or indiscriminately freezing or closing accounts based on supposed red flags, catching innocent people in the process and without giving them any clear procedure or remedy or timeline to get their money back when they, in fact, are not criminals,” she said.

Among the most high-profile recent example, she noted, was that of Bank of America, which froze the debit-card accounts of Californians receiving unemployment benefits at the height of the pandemic using a crude algorithm to detect fraud — and then holding on to the money as customers fruitlessly called for weeks. The bank paid fines totaling $225 million to two federal agencies last year.

Saunders said that regulations need to be strengthened to require banks to provide a reason for shutting accounts and to have a consumer dispute process in place. “I think we need to make sure that banks aren’t closing accounts for discriminatory reasons. And right now, they are not being required to give any reasons, and that can be a cover for discrimination,” she said.

The consent agreement prompted Rep. Maxine Waters, (D-Los Angeles) to call for the Office of the Comptroller of the Currency, the bank’s regulator, to revisit an “outstanding” performance rating Citibank received in 2021 for its compliance with the Community Reinvestment Act. The 1977 law encourages banks to take steps to improve access to credit and other banking services in minority communities.

The CFPB would not comment on what prompted it to investigate Citibank, but the consent order states that it discovered the alleged discrimination through a statistical analysis of credit applications in the retail services unit from 2015 to 2021. Citibank must now develop a plan to identify and compensate harmed customers, who will not have to apply for compensation.

Under federal rules governing proposed class actions, any related lawsuits would be combined and a lead counsel appointed. The cases also would have to meet certain criteria to be certified and proceed, a process that could take at least six months to a year. Successful class actions typically result in settlements.

Karl Asatryan, a real estate agent and developer, is the other named plaintiff in the case. The lawsuit alleges he received a letter from bank in May of last year stating his accounts would be closed in 30 days. No reason was given and his line of credit also was shut down.

He said he had been a Citibank client for some 20 years and had even refinanced his home mortgage with the bank.

“That’s disrespect toward the customer,” said Asatryan, 44, of Valley Glen. “And for a customer like myself, that’s ridiculous.”

https://www.latimes.com/business/story/2023-11-27/citibank-discriminated-against-customers-with-armenian-names-lawsuit-alleges