Apathy And Silence Over Trandsniester

APATHY AND SILENCE OVER TRANDSNIESTER
By Jeremy Druker in Chisinau for ISN Security Watch

ISN, Switzerland
Aug 9 2007

While a series of rumors about secret plans to end Moldova’s frozen
conflict hint at progress, local apathy, misunderstanding and
international silence block the way forward.

After a flurry of talk this spring of secret plans and backroom deals
to end the "frozen conflict" over Moldova’s breakaway Transdniester
republic, past weeks have offered few hints that any real progress
is imminent. And despite attention in the international media,
the population at home remains in the dark over developments and
relatively apathetic about the notion of a settlement.

On 21 July, Moldova marked the 15th anniversary of the end of
the fighting over Transdniester (also Transnistria), a mostly
Russian-speaking region along the country’s border with Ukraine that
broke away in 1992, shortly after Moldova’s independence from the
Soviet Union. More than 1,000 people died in the resulting conflict,
which left the authorities in Tiraspol, the region’s capital, in
control of a sliver of territory along the left bank of the river
but without any international recognition.

Russia has kept 1,500 troops in Transdniester, ostensibly as
peacekeepers, but many believe – including the Moldovan government –
that the Russian presence is really intended to preserve the status
quo and protect a puppet regime willing to do Moscow’s bidding.

Talks have been at a standstill since spring 2006, with officials
in Tiraspol saying they will not participate until the interested
parties first sign a deal forbidding any pressure on Transdniester.

That demand came after Moldova had urged Ukraine to impose a new
customs regime for the separatist republic and Kiev had complied in
March 2006.

Wider ramifications The unresolved conflict has wider ramifications
for security in Europe. As long as Russia maintains troops in
Transdniester, against the wishes of Moldova, the US and NATO have
refused to ratify a 1999 version of the Conventional Forces in Europe
Treaty (CFE), which governs the deployment of non-nuclear arms on
the continent.

Saying Moscow would wait no longer, Russian President Vladimir Putin
announced earlier this month that Moscow would withdraw from the
treaty – a move many tied to US plans to station parts of a missile
defense system in Central Europe.

But in recent weeks, change has seemed in the offing, though not
necessarily change that would please governments in Western Europe or
the US. In June, Moldovan President Vladimir Voronin met three times
with Putin, including a meeting on 22 June at the Russian president’s
residence in Novo-Ogarevo outside Moscow.

Few details emerged, but relations seemed improved from the coolness
prevalent since the two countries fell into disharmony over the 2003
Kozak Memorandum. That plan offered up a federalized state to end the
conflict, but Voronin rebuffed such intentions and then dramatically
reoriented Moldova toward EU integration.

After the meeting with Putin in Novo-Ogarevo, Voronin announced that
Chisinau would push for the resumption of talks as soon as possible in
the "Five Plus Two" format (Moldova, Transdniester, Russia, Ukraine,
and the Organization for Security and Cooperation in Europe, along
with observers from the US and EU).

A matter of "orientation," not ethnicity On the ground in Moldova,
most locals express frustration over the lack of a settlement, but
for a variety of reasons, they are not fixated with the issue to
the degree seen in other former Soviet states where conflicts also
remain frozen (Abkhazia and South Ossetia in Georgia, for example,
or Nagorno Karabakh in Armenia/Azerbaijan).

Most Moldovans will tell visitors that so much intermarriage over the
years and the mixing of the two populations have removed any "ethnic"
differences, and that even language presents no obstacles since
locals switch back and forth between Russian and Romanian/Moldovan
with few problems.

"There’s no ethnic animosity," says Dumitru Minzarari, a foreign and
security policy analyst at the Institute for Development and Social
Initiatives in Chisinau. "Even the authorities in Tiraspol don’t use
this argument anymore. They now stress the ‘different orientations’
of the two territories."

While Moldova aspires toward the EU and the West, people in
Transdniester, the argument goes, feel their future lies with Russia.

The Tiraspol Times, a publication that the authorities allegedly
support, recently published comments by Bogdan Diordiev, identified
as "a political organizer with good contacts in both communities"
that get to the heart of that viewpoint:

"Like it or not, Transnistria has an undeniable element of Russian
culture. You can’t change that, so it is best to just deal with it
and accept it. This dates back to its peculiar history, which is very
different from Moldova’s history, of course: For hundreds of years,
it has been Russian land," Diordiev told ISN Security Watch.

"Compare that with the almost non-existent ties to Moldova and
Romania. Has Transnistria ever been part of Moldova? Never. Has it
ever been part of Romania? Well, it was occupied for three or four
years in World War II, but that was against their will. It isn’t
right to occupy them again, and force them to be part of a country
that they don’t want to live in, against their will."

The way forward The new mayor of Chisinau, Dorin Chirtoaca of the
Liberal Party, tells ISN Security Watch that the key is to make Moldova
more attractive for citizens of Transdniester. "Then Transdniester
citizens would be willing to become citizens of Moldova. We need direct
dialogue with the citizens of Transdniester – they’ve been isolated."

Chirtoaca knows the situation well; as deputy director of the local
Helsinki Committee, he helped monitor the human rights situation in
Transdniester and met with those Moldova considers political prisoners.

"When Moldova has new leadership and the country begins to transform,
then I suspect the Transdniester youth (or what’s left of it) can
start to be drawn to reunification under Moldova’s terms," Fredo
Arias-King, an expert on Moldova and the founder of the academic
quarterly Demokratizatsiya: The Journal of Post-Soviet Democratization,
tells ISN Security Watch.

Others say the right bank is already more attractive than the left,
and that more workers commute to Chisinau than vice versa. And that
anyway, talk of raising living standards is a long-term solution,
while action is necessary now.

"There is a danger if you wait too long, then the new generation will
be educated in this anti-Moldovan spirit, and it will be difficult
to reunite the two banks," says Minzarari.

There have already been reports that the new authorities have placed
a new emphasis on encouraging, perhaps financially, the formation
of pro-government youth groups in the same vein as those backed by
Putin in Russia.

Some also worry that further delay will solidify attachment to
the status quo among youth in Moldova, as well. "For the younger
generations, it was already so long ago that they don’t think about
it," says Yanina Cozari-Rozhkova, a professor at the Chisinau School
of Advanced Journalism.

"They don’t remember how we once lived together. If this conflict
isn’t solved in a few years and no one really cares, it won’t be a
problem to keep us divided," she told ISN Security Watch.

For commuters between the two regions or for those with family
or friends on one side or another, the payment of a fee to enter
Transdniester is an annoyance, rather than a cause to take up arms.

"People just care about customs problems when they want to visit
resort areas in Transdniester or to get through Transdniester to
Ukraine – otherwise, the conflict doesn’t affect their lives,"
said Cozari-Rozhkova.

RFE/RL recently cited a poll by the Institute for Public Policy in
which only 3.7 percent of Moldovans rated solving the Transdniester
conflict as most important among a list of priorities. And most people
haven’t heard anything about the various settlement options debated
now behind closed doors and in foreign media.

Some of those scenarios apparently being bandied about, however, could
radically change the political landscape in Moldova and affect people’s
daily lives. At face value, a deal that incorporates Transdniester
into the central government in the supposed name of peace might seem
like a good thing.

Ending the silence Yet critics see Voronin and his allies more
interested in creating a back-handed way for them to hold onto power
for generations to come.

Under one scenario that has been floated, both parliaments would
be dissolved and parallel elections held, with Transdniester
guaranteed around 20 seats in the new joint parliament and positions
in the government. Add the votes of the Communists to those of the
authorities in Tiraspol, and a pro-Russian majority could dominate
a joint parliament.

Some say that Voronin has already been laying the groundwork to sell
off a large stake in Moldova’s economy in return for such an agreement.

"…a frustrated Voronin is continually raising the price he would
pay for Putin’s consent to a deal that Moldova could tolerate,"
wrote analyst Vladimir Socor in The Jamestown Foundation’s Eurasia
Daily Monitor on 29 June. "… that price may now involve a takeover,
perhaps wholesale, of Moldova’s economy by Russian interests."

According to Socor, who obtained a leaked version of a possible
agreement, Chisinau had earlier offered a set number of posts in
federal institutions to Tiraspol officials but no to avail.

Worries over the non-transparent way that negotiations appear to be
taking place have many saying that the EU and US should lean harder
on Moscow to work with all the involved parties on a peace deal and
not pressure Moldova into giving away too much for a solution.

The EU is paying more attention these days. On 12 July, the European
Parliament unanimously adopted a resolution calling for the EU to
become a full participant in the negotiations over a settlement. The
resolution also slammed the "the repression, harassment and persecution
of citizens and NGOs currently taking place in Transdniester, which
is the work of the totalitarian Transdniestrian regime."

But it is still not enough, says Minzarari. "The international
community must be tougher on Russia," he says, arguing that keeping
silent is encouraging Moscow to go even further.

"The Russians say, ‘look, we’ve been here 15 years and there hasn’t
been any major incident,’ while the Moldovans say, ‘there hasn’t been
any major incident for 15 years, so why are you here?’"

Jeremy Druker is executive director, editor in chief and one of the
founders of Transitions Online.

And for their part, officials at the US State Department said they
had been discussing the idea of a multinational peacekeeping force
for Transdniester with European allies.

Agricultural Production Declines By 1.9% In Armenia In First Half Of

AGRICULTURAL PRODUCTION DECLINES BY 1.9% IN ARMENIA IN FIRST HALF OF 2007 ON SAME PERIOD OF LAST YEAR

Noyan Tapan
Aug 08 2007

YEREVAN, AUGUST 8, NOYAN TAPAN. The gross agricultural output made 127
bln drams (over 356 mln USD) in current prices in January-June 2007,
declining by 1.9% on the same period of 2006.

According to the RA National Statistical Service, plant growing
output amounted to 39 bln 527.8 mln drams in the first half of
2007, declining by 11.9% on the same period of last year, while
stock-breeding production made 87 bln 474.7 mln drams, growing by 3.4%
on the same period of 2006.

Fishing made 997 mln drams in January-June 2007, exceeding by 30.4%
the respective index of 2006. The whole amount of fish caught in the
first half of this year has been sold.

Armenian Cause Office Says Hoagland’s Non-Appointment Victory Of Arm

ARMENIAN CAUSE OFFICE SAYS HOAGLAND’S NON-APPOINTMENT VICTORY OF ARMENIAN COMMUNITY IN USA

Panorama.am
18:17 07/08/2007

"I think the non-appointment of Richard Hoagland as an ambassador
to Armenia was the victory of the Armenian community in America in
the sense that it was possible to halt an American diplomat that
questioned the fact of the Armenian genocide," Head of Dashnaksutiun
Armenian Cause Office in Armenia Kiro Manoyan told reporters at
Friday Club. In his words, US top official do not put the fact of
the genocide under question even though they do not use the word
"genocide", however, when Hoagland was asked "what genocide is" and
"why USA does not qualify the Armenian incidents as genocide," Hoagland
answered: "USA is concerned that the crime must be "predetermined"
which assumes that the Armenian incidents were not "predetermined"
and thus were not a genocide."

Manoyan informed that Hoagland has applied to White House "on his own"
in order for an opportunity to be appointed at another post. The head
of the Armenian Cause Office wished that next ambassador to Armenia
had the same attitude the White House has.

By refusing to use the word "genocide", the USA is simply trying not
to insult Turkey, Manoyan said also saying it is an additional "hook"
against Turkey, too.

More than 220-224 congress officials have signed under the genocide
resolution in the House of Representatives. Not only does it recognize
but re-confirms USA’s recognition and demands from U.S. president to
qualify the incidents as genocide, Manoyan concludes.

3148 Entrants Receive Unsatisfactory Marks From HEI Entrance Examina

3148 ENTRANTS RECEIVE UNSATISFACTORY MARKS FROM HEI ENTRANCE EXAMINATIONS BY AUGUST 5

Noyan Tapan
Aug 07 2007

YEREVAN, AUGUST 7, NOYAN TAPAN. 4141 out of the 12 thousand and
693 entrants, who took Armenian Higher Educational Institutional
entrance examinations by August 5, received between 18 to 20 points
and another 3148 received unsatisfactory marks, that is to say less
than eight points.

According to the information provided to a Noyan Tapan correspondent
by the Republican Admission Commission, 457 entrants received the
highest mark, that is, 20 points, 267 out of which from the English
examination in the written form. 1776 entrants received 19 points,
1908 entrants 18, 1173 and 847 out of which, correspondingly, again
from the written English examination.

Marks lower than eight points were mainly received from the
written examinations of the subjects "Mathematics" and "Physics",
correspondingly, 1254 and 500 entrants. There have been no
unsatisfactory marks from the oral examinations in the Persian and
Italian languages so far.

In general, there are no 20 points registered from the examinations
in the subjects, such as "Biology", "Physics", General History",
"Chemistry", and "History of Armenian People", as well as from the
oral examinations in the Armenian and German languages, and from the
creative competition.

85 examination works were twice appealed between July 20 to August 5,
as a result of which the marks of the 65 entrants remained the same
and those of the 20 were improved.

Armenia Leaves Behind Neighbors In IT Productiveness, Garegin Chugas

ARMENIA LEAVES BEHIND NEIGHBORS IN IT PRODUCTIVENESS, GAREGIN CHUGASZYAN

arminfo
2007-08-07 18:43:00

Armenia leaves its neighbors, including Azerbaijan, rather behind
in the sphere of information technologies, USAID CAPS (Competitive
Armenian Private Sector) Program IT Cluster Coordinator Garegin
Chugaszyan told journalists, Tuesday.

He said competition in the sphere is high enough in the South Caucasus
and Eastern Europe. Such countries as Russia, Romania, Bulgaria, Poland
have recently intensified the activity in the sphere. G. Chugaszyan
said Azerbaijan makes large investments in the IT sphere due to its
oil resources, which boost the sphere. He also added that despite
the 50-year history and traditions of IT sphere in Armenia and the
support from Diaspora, the government must stimulate the competition.

In response to ArmInfo’s question if IT-month will be held in Armenia
next year, G. Chugaszyan said the government is currently studying
the issue to make a decision within the coming days. IT-Month was
held in Armenia for the first time from September 15 to October 14
in 2006. Specialists say some 80% of IT-products made in Armenia are
exported, including 60% to the USA, 20% to Europe. High technology
market in Armenia is estimated at $60-70 million or 2% of GDP.

BAKU: Azeri Official Warns Russia Against Arms Supplies To Armenia

AZERI OFFICIAL WARNS RUSSIA AGAINST ARMS SUPPLIES TO ARMENIA

Day.az website, Baku
6 Aug 07

6 August: As can be seen, Armenia is trying to actively arm itself
and increase its military potential, which Azerbaijan will not allow
to happen, the press service of the Azerbaijani Foreign Ministry,
Xazar Ibrahim, has said.

He pointed out that the story with Albanian arms supplies to Armenia
showed that Azerbaijan can counter this and that our counter-measures
are effective.

"Azerbaijan is working in all directions to prevent arms supplies to
Armenia. According to international law, arms supplies to an occupier
country are illegal. It will be regretted if Russia tries to supply
arms to Armenia at a time when the whole world sees Armenia as an
aggressor country," he said.

At the same time, the head of the Azerbaijani Foreign Ministry press
service stressed that Russia has an opportunity to help Armenia
with arms within the framework of the Collective Security Treaty
Organization, but the Russian co-chairmanship of the OSCE Minsk Group
to settle the Nagornyy Karabakh conflict should hold Russia back.

"It would be illogical if Russia, as a country brokering the Nagornyy
Karabakh conflict settlement, tried to supply weapons to Armenia,
a country that is one of the sides to the conflict. This will run
counter to its status and role as a co-chair of the OSCE Minsk Group,"
Ibrahim said in conclusion.

U.S. Provides $3 Million Of Field Equipment To Armenian Peacekeeping

U.S. PROVIDES $3 MILLION OF FIELD EQUIPMENT TO ARMENIAN PEACEKEEPING BATTALION

PanARMENIAN.Net
01.08.2007 14:04 GMT+04:00

/PanARMENIAN.Net/ On July 27 and 31, approximately $3 million of NATO
interoperable military equipment for the Armenian 12th Peacekeeping
Battalion was delivered to the Armenian Ministry of Defense. The
U.S. field equipment was provided as part of an $8 million plan by
the U.S. Foreign Military Financing program to assist the Armenian
government achieve its goal of developing a NATO interoperable
Peacekeeping Battalion by 2009. With the arrival of additional
shipments in coming weeks, the battalion should be fully equipped
with U.S. and NATO interoperable equipment before the end of the
year, thereby easing its logistical requirements regarding equipment
re-supply during deployment. The Armenian government currently provides
troops to the stability and peacekeeping operations in Kosovo and Iraq.

Chief of the U.S. Embassy’s Office of Defense Cooperation Lieutenant
Colonel Doug Peterson commented that this event marked the largest
shipment of U.S.

military equipment for the Peacekeeping Battalion to date. Included
in the shipment were desert uniforms and clothing, boots, backpacks,
protective masks, field equipment, medical supplies, cold weather
clothing, and maintenance equipment. Peterson said that U.S. military
assistance in 2008 will be directed towards the new Armenian
Peacekeeping Brigade, plus continued assistance to the Armenian field
hospital that was provided by the U.S. government this past January.

The U.S. Office of Defense Cooperation in Armenia works to foster
U.S. government and industry assistance to Armenia in the defense
sphere. The office operates under the authority of the U.S. Chief of
Mission in Armenia and the U.S. European Command, located in Stuttgart,
Germany, reported the U.S.Embassy press office.

WB Releases More Funds For Rehabilitation Of Armenia’s Tertiary Cana

WB RELEASES MORE FUNDS FOR REHABILITATION OF ARMENIA’S TERTIARY CANALS

ARMENPRESS
Aug 1, 2007

YEREVAN, AUGUST 1, ARMENPRESS: The World Bank’s Board of Directors
approved July 31 a US$5.0 million credit for additional financing for
the Irrigation Development Project (IDP) for Armenia. The additional
financing will support the government’s efforts in scaling up
activities implemented under the on-going IDP through rehabilitation
of tertiary irrigation systems, and through providing training and
technical assistance to Water Users’ Associations (WUAs).

A press release by World Bank said Armenia has achieved substantial
progress in preventing deterioration of its irrigation and drainage
system and in establishing the basis for the sustainable management
of irrigation and drainage infrastructure.

A long-term national program was conceived in the mid-1990s with
the support of the World Bank to support the rehabilitation and
restructuring of the irrigation and drainage system.

The first phase of the program consisted of emergency interventions
to secure the system’s continued operation. Implementation of this
phase was initiated under the Bank-funded Irrigation Rehabilitation
Project, followed by the Dam Safety Project, and subsequently by
the Irrigation Dam Safety Project II, which is expected to conclude
the emergency intervention phase. The second phase of the program is
focused on restructuring and development and building a solid basis
for irrigation system sustainability initiated by the Irrigation
Development Project Stage I (IDP) "Institutional reform is the most
challenging aspect of the Project," said Giuseppe Fantozzi, Head of the
World Bank team designing the project. "The Water Supply Agency has
been restructured and 52 Water Users Associations were established
throughout the country during the period 2003-2004. Continued
support to Water Users Associations is crucial, since they represent
the core of a more effective institutional set-up that has notably
improved, in recent years, the sector’s financial sustainability and
efficiency. That’s why capacity building and training activities for
the staff of Water Users Associations will continue."

The existing IDP project does not have sufficient funds to ensure
continued capacity building and training activities. In this
context, the Bank agreed to provide additional financing to assist
in the rehabilitation of tertiary-level infrastructure with 15%
co-financing from water users. To-date, the grant scheme under the
IDP financed about US$7.2 million for the rehabilitation of tertiary
canals. Eighty-five percent of this amount was financed with the credit
proceeds while 15 percent was financed by the WUAs as counterpart
funding. Proposals worth an additional US$9.0 million could not be
funded due to a lack of resources. The additional financing would
partially cover this surplus demand.

By the time the project is completed, 37 proposals for the
rehabilitation of some 110 km of tertiary level canals for Water
Users Associations in 37 communities in Ararat, Yerevan, Armavir,
Gegharkunik, Aragatsotn and Kotayk marzes will be implemented.

The expansion of irrigated areas will also allow for an increase in
the amount of water that is available per hectare in these areas. The
percentage of irrigated hectares cultivated with high value-added
crops is expected to increase from 71 to 78 percent.

Similarly, cost recovery will be strengthened, and will rise from 42
to 60 percent. The percentage of farmers satisfied by irrigation water
supply services will be measured by an annual sociological survey.

The credit is provided on "hardened’ IDA terms with a maturity of 20
years, and a grace period of 10 years included. Armenia has been in
the process of graduating from IDA since July 1, 2006 joined the World
Bank in 1992 and IDA in 1993. Commitments to date total approximately
US $1.030 billion for 48 operations.

Ministry Official Says Service Level Not Low In Armenia

MINISTRY OFFICIAL SAYS SERVICE LEVEL NOT LOW IN ARMENIA

Panorama.am
15:32 31/07/2007

Speaking about high prices at the Lake Sevan, Mekhak Apresyan, tourism
department head at the ministry of trade and economic development,
said. "Armenia’s image is not created with small cottages only. There
are big organizations rendering services in Sevan where people can
go," the department head told Panorama.am. The ministry official
refused to accept that the service level is low. "I would not say
that the service level is low in Armenia. The service level is not
low compared with neighboring and European counties," he said.

Banking System Of Armenia Completed 2Q, 2007, With Net Profit Of $29

BANKING SYSTEM OF ARMENIA COMPLETED 2Q, 2007, WITH NET PROFIT OF $29.5 MLN

arminfo
2007-07-27 12:50:00

The gross revenue of Armenia’s commercial banks over the second
quarter, 2007, grew more tan twice to 49.7 bln drams ($145.7 mln). The
expenses over the reporting period made up 37.4 bln drams ($109.7
mln) against 17.5 bln drams ($48.2 mln) in 1Q. As a result of this,
the banking system assured a balance sheet profit of 12.3 bln drams
or $36 mln upon results of 2Q, 2007 (quarterly growth more than
twice). As the press-service of RA Central Bank told ArmInfo, the
net profit over 2Q, 2007, grew more than twice to 10.1 bln drams or
$29.5 mln. In the structure of the commercial banks’ gross revenue,
the interest yields over 2Q made up 26 bln drams ($76.4 mln) or 52,4%.

Specific weight of non-interest yields in the structure of gross
revenue made up 22,9% or 11.4 bln drams ($33.4 mln). According to CB
data, 21 banks and 306 branches have been functioning in Armenia as
of June 30, 2007.