Author: Nahapetian Zhanna

Today’s Zaman, Turkey
May 23 2009

French companies hurt by strained ties

French companies continue to get hurt by French President Nicolas
Sarkozy’s `poke in the eye’ approach with Turkey as relations turn for
the worse with Ankara over increasingly vocal and fierce French
opposition to Turkey’s full membership in the EU.

`I had no idea this many French companies have been operating in
Turkey,’ said a cab driver shaking his head. Ã-zgür
Batı, 29, the son of a retired iron and steel worker from
Ä°skenderun, says he was irked by the French rebuff against
Turkey. `I would rather go and buy an Italian-made Fiat car rather
than the French-built Renault and Citroën,’ he stated while
cruising down the streets of Ankara to make a living.

In recent years, anti-French sentiment seems to have gained traction
and Batı’s feelings are shared by many in Turkey, with e-mail
circulating with lists of French companies and products to boycott.

French companies continue to be battered by French President Nicolas
Sarkozy’s `poke in the eye’ approach to Turkey as relations with
Ankara turn for the worse over increasingly vocal and fierce French
opposition to Turkey’s full membership in the EU. In a move that might
be construed as retaliatory measures in response to Sarkozy’s
overtures, Today’s Zaman has learned that Turkish officials are now
working on a stick-and-carrot approach and drafting a list of policies
and actions to stem French obstructions while conveying a tough
message to French corporations interested in doing business in Turkey
and adjacent regions.

French firms continue to be battered by Sarkozy’s `poke in the eye’
approach to Turkey

The latest victim was France’s energy heavyweight Gaz de France (GDF),
which was denied entry to the 7.9 billion euro Nabucco pipeline
project over Turkish objections last year. The 3,300-kilometer-long
Nabucco pipeline will carry Caspian natural gas to Central Europe via
Turkey and aims to reduce Europe’s dependence on Russian gas. In a
phone interview with Today’s Zaman, a Paris-based GDF official said
the company had no interest in Nabucco. Turkish energy officials beg
to differ. One government official told Today’s Zaman that GDF was at
first very interested in taking part in the Nabucco project because of
its large profit potential. Because of the French parliament’s stance
on Armenian genocide claims, Turkey blacklisted GDF during
negotiations. The company was not listed in the agreement signed in
Prague earlier this month. The blacklisting sent tremors across the
board among 768 French companies registered to do business in
Turkey. France is the
number one country utilizing nuclear power in electricity generation
in continental Europe and one of the leading countries in nuclear
energy technology in the world.

Two French power companies, Vinci Construction Grand Projets and
Suez-Tractebel showed interest in nuclear power tenders in Turkey last
year and purchased bid specifications. However, after rumors that
their bids would be rejected and that the government would effectively
block their entry, they did not submit their price offers in the
tender. French nuclear giant Areva had also announced its interest in
the construction of power plants in both the Akkuyu and Sinop
provinces.

The aftershock is not limited to the geographic landscape of Turkey as
Ankara is also reaching out to neighboring countries and privately
relaying its concerns on French involvement in multimillion-dollar
projects. Earlier in May, a joint venture between Turkey’s TAV and the
Athens-based Consolidated Contractors Company won a $1.17 billion
contract to expand the main airport in Muscat, Oman, pushing aside
French competitor Vinci. GDF’s recent expansion in Azerbaijan met with
local resistance after Ankara expressed uneasiness over deals GDF was
trying to advance in the energy-rich Caspian Sea nation.

In addition to the energy and construction industries, French
companies also took a beating in defense tenders. Even though France’s
Eurocopter was the top contender in the shortlist of the Turkish
military’s attack helicopter tender in 2006, it was vetoed and Italian
AgustaWestland was awarded the $1.5 billion deal instead. Nationalist
Movement Party (MHP) deputy and retired Gen. KürÅ?at
Atılgan told Today’s Zaman that the blockage of French
companies from defense tenders has continued.

Worst time for France
The duel between Turkey and Sarkozy’s France could not come at a worse
time. The hope for French companies in Turkey and in the wider region,
where Turkey plays an active role, seems to be fading faster than the
decline in France’s gross domestic product (GDP), which fell 1.2
percent on a quarter-to-quarter basis in the first three months of the
year — the third-worst figures on record since 1968.

With the French economy in recession since last year, contracting 3.2
percent in the first quarter of 2009 — the fastest drop since 1949 —
along with falling investment and exports, any tender won abroad might
give a glimmer of hope to French corporations and may help compensate
for low demand at home.

The trade volume between the two countries has also plunged sharply,
with imports from France declining 43.7 percent in the January-March
period compared to the same period last year and exports dropping 35
percent over the same period. The negative news, partly blamed on the
world economic crisis, is particularly worrisome for Paris because
France is registering a clear surplus in bilateral trade. In contrast,
however, a comparison between Turkey’s January-March figures and those
of the first quarter of last year shows that Turkey achieved a 76.7
percent increase in exports to Iraq, a 107.1 percent to Egypt, a 70.9
percent to Algeria, 33.3 percent to Syria and 50.8 percent to Libya.

Economic retaliation against French companies is nothing new. In 2001,
following France’s recognition of the World War I-era killings of
Armenians as genocide, Turkey excluded French companies from defense
contracts. Ankara cancelled a $259 million satellite contract with
Alcatel and blocked French state-owned arms maker GIAT, the maker of
Leclerc tanks, from a tank modernization tender worth some $7.1
billion. A road tender valued at $1.44 billion was cancelled because
the foreign partners of the participating consortia were
French. Ankara also blocked French companies from a grain tender.

Despite everything, some French companies still successful
The deterioration of relations with France started in 2006, when
France passed a bill making it a crime to deny that the mass killings
of Armenians under Ottoman rule during World War I constituted
genocide, a claim Turkey strongly rejects.

Yet Ankara at times resorted to a stick-and-carrot policy and provided
incentives to French companies as well in a move to show what could be
gained should France drop its objections to Turkey’s EU candidacy. GDF
Suez was awarded the $232 million tender for Ä°zgaz, Turkey’s
third-largest distributor of natural gas, in 2008 by the municipality
of Ä°zmit following a privatization bid.

Ä°zgaz owns and operates a 2,900-kilometer gas distribution
network in the Kocaeli region, one of Turkey’s most industrialized,
and has 200,000 residential customers. GDF Suez posted record growth
in the first quarter of this year thanks primarily to growing sales in
Turkey, which amounted to $20 million euros. GDF Suez and Turkish
engineering firm Mimag-Samko signed a memorandum of understanding last
year to develop, build and operate a thermal power plant in Turkey
with an installed capacity of between 800 and 1,300 megawatts. The
total investment in the project is estimated to be more than $1.5
billion.

Similarly, last year a Turkish-French consortium, Cengiz
Ä°nÅ?aat-Makyol-DoÄ?u&# xC5;?
Ä°nÅ?aat-Vinci, offered the lowest bid in a tender for the
construction of an immersed auto tunnel project that is to connect the
European and Asian sides of Ä°stanbul.

Despite this, however, French companies continue to fall short of the
performance recorded by Italians, who have moved quickly to capitalize
on friendly relations with Turkey over the last decade. While the
trade volume between France and Turkey stands at $10 billion, Italy
and Turkey posted $19 billion in trade volume last year. What is more,
Italian companies have moved to the top of the list in winning public
tenders in Turkey.

23 May 2009, Saturday
ABDULLAH BOZKURT ANKARA

SOME CANDIDATES TO YEREVAN ELDERS’ COUNCIL WITHDRAW THEIR CANDIDACY

ArmInfo
2009-05-20 16:12:00

ArmInfo. Wednesday on May 20 the Central Electoral Commission of
Armenia approved the applications by the candidates to the Yerevan
Elders’ Council from Orinats Yerkir Party Gagik Baghdasaryan, Karen
Margaryan, Karapet Shahinyan and Kristine Ohanyan and the candidate
from ANC Igor Malkhasyan, for withdrawal of their candidacy.

The law on the local self-government in Yerevan has come into force
recently. It stipulates that the Elder’s Council through proportional
elections will elect Yerevan Mayor. The elections will be held on
May 31.

The Elder’s Council will comprise 65 people. The first candidate in
the list of the party that will gain majority at the Council will
automatically become Yerevan Mayor.

AZERBAIJAN TO PRODUCE ARTILLERY ARMS, AIR BOMBS

AzerNews Weekly
May 20 2009
Azerbaijan

Azerbaijan intends to launch production of air bombs and artillery
weapons, Minister of Defense Industry Yaver Jamalov has said.

"The ministries of defense industries of Azerbaijan and Pakistan are
in talks on transferring to Azerbaijan a technology on serial output
of ammunition slated for tank weapons, artillery arms from the 85mm
to 152mm caliber as well as of 50, 100, 250, and 500 kg air bombs,"
Jamalov told reporters.

The minister emphasized that Pakistan is also taking interest in
Azerbaijan`s defense industry products. For this purpose, a Pakistani
delegation led by Federal Minister for Defense Production Abdul
Qayyum Khan Jatoi, which has arrived in Baku, is expected to tour
the country`s enterprises operating in the field.

Jamalov said a number of other countries, including companies from
Bulgaria, Croatia, Turkey, and Egypt, are interested in Azerbaijan`s
defense industry products as well, and talks on the matter are
underway.

According to the minister, negotiations on purchasing certain types
of such goods from Azerbaijan were held with US counterparts on the
sidelines of the ninth international defense industry exhibition
IDEF-2009 in Turkey and respective letters of intent signed. The
Azerbaijan-made 12.7-14.5mm caliber sniper rifle is drawing particular
interest.

NATIONAL TEAM OF IRAN WINS RA PRIME MINISTER’S CUP

Noyan Tapan
May 20, 2009

YEREVAN, MAY 20, NOYAN TAPAN. The first International Handball
Tournament finished on May 20 in Yerevan. In the third round Iran’s
national team beat Armenia’s team with the score of 42 to 17 and
Georgia’s national team beat Armenia’s youth team with the score of
50 to 21.

Iran’s national team won the tournament ending all three matches with
a victory. Georgian handball players were the second and Armenia’s
first and second teams took the next two places.

The tournament will become traditional.

SARGSYAN IMPRESSED BY CZECH REPUBLIC

A1+
07:43 pm | May 19, 2009

Serzh Sargsyan received met today with Prosecutor General of the
Czech Republic Renata Vesetska who is on a working visit to Armenia.

The President said that he recently paid a visit to the capital of
the Czech Republic and is very impressed by the successes.

According to Serzh Sargsyan, Armenia is determined to get closer to
Europe and live with European standards, including in the sphere
of law-enforcement. He attached importance to the memorandum of
cooperation signed by the Prosecutor Generals of Armenia and the
Czech Republic.

Vesetska considered the memoranum as the foundation for cooperation
between the prosecutors of both countries. The President and the
Czech Prosecutor General agreed that the implementation of the
primary courses of the Memorandum will contribute to improving the
work of prosecutors, raising the level of productivity of work aimed
at revealing crimes, defending human and civil rights and freedoms
and more.

Press and Information Department
of the Ministry of Foreign Affairs
of the Republic of Armenia
Tel. + 37410 544041. ext. 202
Fax. + 37410 565601
e-mail: [email protected]
web:

The Ambassador of Cyprus presents the copies of his credentials to
Deputy Foreign Minister of Armenia Karine Kazinian

On May 19, Deputy Foreign Minister of Armenia Karine Kazinian received
Petros Kestoras, the newly appointed Ambassador of Cyprus to Armenia
(residence in Moscow) on the occasion of presenting the copies of his
credentials.

In her welcoming remarks, Armenian Deputy Foreign Minister mentioned
that warm and friendly relations have been established between Armenia
and Cyprus and expressed hope that the appointment of a new ambassador
can promote the further development and expansion of bilateral
relationship. Karine Kazinian expressed her gratitude for the
excellent cooperation between two countries within the international
organizations. .

Ambassador Kestoras emphasized that Cyprus is interested in further
strengthening of mutually beneficial cooperation with Armenian in
different areas, and added the organization of high-level visits could
stimulate it. Ambassador thanked for Armenia’s balanced position in
Cyprus issue and presented recent developments in negotiation process
and the expectations of the Cypriot side.

On the guest’s request Karine Kazinian presented the process of
normalization of Armenian-Turkish relations. The two exchanged views
on Artsakh (Nagorno Karabakh) peace process.

HOVIK ABRAHAMYAN: EUROPEAN INTEGRATION ONE OF THE PRIORITIES OF ARMENIA’S FOREIGN POLICY

armradio.am
16.05.2009 14:44

On May 16 the Speaker of the National Assembly of Armenia, Hovik
Abrahamyn, received the EU Special representative for the South
Caucasus, Peter Semneby. Chairman of the National Assembly’s Standing
Committee on European Integration Avet Adonts, Head of the European
Commission Delegation to Armenia Raul de Luzenberger, Poland’s
Ambassador to Armenia Thomas Knothe were present at the meeting.

Greeting the guests, the Armenian Parliament Speaker appreciated the
process of the EU Eastern Partnership Program, the results of the
summit held in Prague on May 7 and EU’s growing interest in the region.

Hovik Abrahamyan confirmed that European integration was one of the
priorities of Armenia’s foreign policy. He attached importance to
bilateral contacts, the intensification of parliamentary collaboration
for promoting regional stability, peace, as well as political and
economic cooperation.

Turning to the process of settlement of the Karabakh issue, NA Speaker
Hovik Abrahamyan noted that Armenia appreciated the mediating efforts
of the OSCE Minsk Group, underlining that the conflict should be
resolved on the basis of the right of the people of Nagorno Karabakh
for self-determination and non-use of force.

During the meeting reference was made to the internal political
situation in the Armenia . The Parliament Speaker emphasized
the importance of ensuring an atmosphere of tolerance, expressing
confidence that progress in that direction would be noticeable within
the coming months.

Peter Semneby also attached importance to the launch of the Eastern
Partnership and the signing of the declaration in Prague. The EU
Special Representative hailed Mr. Abrahamyan’s suggestion to promote
interparliamentary cooperation in the region and the bilateral
contacts, which would greatly contribute to the peaceful settlement
of the conflict and establishment of stability in the region.

The parties stressed the importance of the fair and transparent
conduct of the elections for the Yerevan City Council.

TURKEY ASSURES AZERBAIJAN IN FACE OF ARMENIA DEAL
Natalia Leshchenko

World Markets Research Centre
Global Insight
May 14, 2009

A meeting between Turkish Prime Minister Recep Tayyip Erdogan and
Azerbaijani President Ilham Aliyev in the Azerbaijani capital, Baku,
resulted in further confusion over relations in the Caucasus. Erdogan
gave Aliyev the long-sought promise that Turkey’s recent rapprochement
with Armenia will depend on the resolution of Azerbaijan-Armenia
conflicts over Nagornu Karabakh. Namely, Erdogan said that the
Turkish-Armenia border will not reopen until Armenia withdraws troops
from the disputed territory in Azerbaijan. This is very much to the
satisfaction of Azerbaijan, which had openly objected to reconciliation
between Armenia and Turkey, something that had become particularly
visible over the last two months.

Significance:In making this promise to Aliyev, Erdogan has seriously
undermined the new-found policy of reconciliation with Armenia as
attempts to resolve the Nagorno Karabakh conflict have so far hit a
dead end. Optimists might argue that the need to normalise trilateral
relations will drive all participants to find a solution, especially
given that Turkey itself has pushed for renewed efforts on the Nagorno
Karabach peace process of late, with the apparent tacit approval and
support of Russia. A discouraging factor, however, is that Erdogan is
likely to have made his promise to Aliyev according to very different
reasoning, based on Azerbaijani gas deliveries to Turkey and the
purported Nabucco pipeline, which is of key importance to Turkey’s
own plans for closer involvement with Europe. No official reaction
to the Turkey-Azeri deal has come from Armenia so far. Although
Erdogan’s promise to Azerbaijan could have been expected, it further
illustrates the tightness of the knot the three countries’ leaders
have to untangle.

PRESIDENT OF AZERBAIJAN: "ARMENIANS USED THEIR RIGHT OF SELF-DETERMINATION WHEN THEY ESTABLISHED THE STATE OF ARMENIA"

APA
May 14 2009
Azerbaijan

Baku – APA. "There are various approaches and evaluation of the
situation. Some people think that we are close to the agreement and
others claimed that there is a huge work to be done.

Regarding the negotiations, I valued it as a process going in positive
direction, the progress was achieved in some issues of the agreement,
but it was not possible several years ago. But this progress is not
enough for the settlement of the conflict or achieving the agreement",
said President of Azerbaijan Ilham Aliyev in his meeting with the
members of the US Council on Foreign Relations answering their
question about the current situation of the negotiations over the
peaceful settlement of Armenian-Azerbaijani Nagorny Karabakh conflict.

The president said 17 years have passed since the establishing of
OSCE Minsk Group, but there is no result yet. "The situation remains
as it was earlier. Our lands are under the occupation. Seven regions
outside the administrative borders of Nagorny Karabakh were occupied
by the Armenians. Nearly one million Azerbaijanis became refugees and
internally displaced persons as a result of ethnic cleansing policy
of Armenia and this situation continues to remain that.

Regarding the settlement of the conflict, it must be resolved on
the strong basis of the norms of international law. The conflict
must be resolved only and only on the basis of the norms of
international law. UN Security Council adopted four resolutions
demanding unconditional withdrawal of Armenian forces from the
occupied lands. The international community recognized the fact of
occupation of our lands. The territorial integrity of Azerbaijan
was internationally recognized and supported. The OSCE Minsk Group
co-chairs made several statements on the protection of the territorial
integrity of Azerbaijan. When Azerbaijan became the member of the
United Nations, this organization recognized its territorial integrity.

I want to say about the right of self-determination, which Armenia
intends to use as an argument, that Armenians already used this right
when they established the state of Armenia. If it is based on their
logic, many Armenian states should be established all over the world.

This is a wrong approach. We have always drawn Armenia’s attention
to the Helsinki Final Act in the talks. This final act obviously
reflects the items of on inviolability of territorial integrity and
self-determination rights: self-determination cannot violate the
principles of internationally-recognized territorial integrity of any
state. Therefore, the conflict must be regulated on the basis of the
international legal norms and it will allow the restoration of our
territorial integrity and make Armenians and Azerbaijanis live in
peace in Nagorny Karabakh region of Azerbaijan.

IRAN STARTED SUPPLYING GAS TO ARMENIA

/PanARMENIAN.Net/
14.05.2009 18:51 GMT+04:00

/PanARMENIAN.Net/ Iran has started delivering gas to Armenia in
exchange for electric power supply, Press Service of Energy and
Natural Resources Ministry reports.

According to the report, the Iranian delegation headed by Director
of National Gas Export Company Sayyed Reza was on a visit to Armenia
from 11 to 13 May. The goal of the visit was the launch of "Gas for
Electric Power" project.

During the meeting, group members introduced discussion
reasults. Parties signed four-way agreement on "Coordinating the
Process of Exchanging Electric Power for Gas".

Armenian signatories to the document were Heads of Yerevan Thermo
Electric Station CJSC and Vorotan Cascade Hydro Power Station. The
Iranian signatories were Heads of National Gas Export Company and
Tavanir company.

In 2004, RA Government launched Iran-Armenia gas pipeline construction
with the purpose of extending natural gas supply resources and opening
second technological route to Armenia.

So far, Armenia has received only Russian gas via transit route in
Georgia. Monopoly right for gas delivery and consumption belonged to
Armrosgazprom CJSC.