Armenian Companies Rendering IP and TDM Services Refuse To Stick To

ARMENIAN COMPANIES RENDERING IP AND TDM SERVICES REFUSE TO STICK TO
RULES OF ARMENTEL

Yerevan, January 22. ArmInfo. Today, a protest action against the
decision of the Armenian Regulatory Commission of Public Services
was held in Yerevan. According to the decision, the exclusive right
to render the voice data communication services under IP and TDM
technologies, is legally assigned to the "ArmenTel" CJSC.

In his conversation with an ArmInfo correspondent, Artsrun Burnazyan,
the head of the "SkyTel Corp" LLC, one of the protesting companies,
emphasized that the protest rally is aimed at liquidation of this
decision, as over 3 thsd people will be left without a job after the
decision comes into force.

The statement of Oleg Bliznyuk, the head of "ArmenTel", about a free
competition among the companies rendering IP and TDM services is a
real farce, as after the withdrawal of our licenses, from May till
November 2007 only "ArmenTel" will render voice services, until a
new licensing form is worked out. "As a result, our companies will
suffer losses", he noted.

A.Burnazyan considers O.Bliznyuk’s proposal to Armenian companies to
take up selling the "ArmenTel’s phone cards absurd. We have honestly
conducted our business for several years not to turn into unemployed
or ArmenTel’s dealers", he said.

At the same time, Chairman of the Commission Robert Nazaryan who
agreed to meet with the heads of the protesting companies, noted that
he is sorry for this situation, but he considers the settlement of
the problem by these methods inadmissible. He emphasized that the
members of the Commission are ready to start cooperation and an open
dialogue with Armenian companies. But if the companies consider that
the Commission hasn’t done its best to change the situation, they
have the right to demand compensation for moral and material damage
in the court, R.Nazaryan said. He also promised to take into account
the protestants’ proposal to reconsider the Commission’s decision.

To remind, Armentel’s monopoly in rendering IP and TDM services doesn’t
spread to voice messages sent from one’s PC situated on Armenia’s
territory and the messages used for personal use, but for transfer
to a third person for payment.

EU’s Rehn ”Shocked” Over Turkish-Armenian Journalist”s Murder

Mediafax, Romania
Jan 19 2007

EU”s Rehn ”Shocked” Over Turkish-Armenian Journalist”s Murder

BRUSSELS, Jan 19

The European Commission voiced shock on Friday at the murder of
Turkish-Armenian journalist Hrant Dink and urged Turkish authorities
to carry out a full investigation, EUbusiness online reported.

"I am shocked and saddened by this brutal act of violence," said EU
Enlargement Commissioner Olli Rehn in a statement.

ANKARA: E U Commissioner Rehn Condemns Assassination Of Dink

Turkish Press
Jan 20 2007

E U Commissioner Rehn Condemns Assassination Of Dink
Published: 1/20/2007

BRUSSELS – European Commissioner for enlargement Olli Rehn said that
he was shocked and felt deep sorrow over assassination of Hrant Dink,
editor-in-chief of bilingual Turkish-Armenian weekly Agos.

Rehn noted that Dink was the defender of freedom of expression in
Turkey, and expressed his confidence to Turkish officials over arrest
of assailants.

Rehn also offered condolences to Dink’s family.

Dink was shot dead in front of his office building in Halaskargazi
street in Sisli district of Istanbul, and died instantly at the
scene.

Armenian journalist assassinated in Turkey

Financial Mirror, Cyprus
Jan 19 2007

Armenian journalist assassinated in Turkey

19/01/2007

Hrant Dink, the editor of Turkey’s main Armenian-language newspaper
Agos who had questioned Turkey’s denial of the Armenian genocide, was
shot dead in Istanbul Friday.

Prime Minister Recep Tayyip Erdogan called the assassination an
attack against `Turkey’s stability.’

Turkish stocks fell after the shooting was reported by as much as 1%
in Istanbul following the attack after rising 1.4% earlier, Bloomberg
reported, fearing new civil strife from nationalist elements.

Dink, one of the most prominent ethnic Armenians in Turkey, received
a sixth-month suspended jail term from a Turkish court in July for
`insulting Turkishness’ in a 2004 article he wrote about the killing
of hundreds of thousands of Armenians by Ottoman Turks at the time of
World War I. Turkey denies that a genocide took place.

`This attack against Hrant Dink is against the Turkish nation’s
togetherness and peace,’ Erdogan said. `A bullet was fired at freedom
of thought and democratic life.’

According to Sabah, Erdogan said `the chief editor of Agos newspaper
Hrant Dink has become an innocent victim of an obnoxious murder.
Shady forces have once more chosen our country to reach their ill
desires. The bullets that shot Hrant Dink today are in fact bullets
fired for the unity of our nation. I have already commissioned the
minister of justice as well as the minister of internal affairs to
capture the assassin.
We have lived on these lands together for many centuries. No ill plot
can ruin Turley’s unity. I believe Turkish and Armenian citizens have
the common sense to recover from such treachery."

The European Union has called on Turkey to halt the prosecution of
writers and journalists for expressing their opinion or face a halt
to its membership bid.

Dink was killed by an unidentified gunman outside his office in
Istanbul’s Sisli district, a spokeswoman for Agos said in a telephone
interview with Bloomberg.

`Whatever the motive, this is a despicable act,’ said Ilter Turkmen,
a former Turkish foreign minister, in a telephone interview. `The
government needs to find the assailant immediately.’

Just before his assassination, Dink had complained of death threats
he was receiving from nationalists.

`My computer is laden with lines filled with angry threats,’ Dink
wrote in a January 10 article for Agos. He said he found one letter
`extremely worrying’ and said police took no action after he
complained.

Police have arrested two people in connection with the murder, NTV
television reported. Police believe a male aged 18 or 19 may have
killed Dink, CNN Turk television reported citing unidentified police
officials.

Akin Birdal, the former head of Turkey’s Human Rights Association who
was shot six times in 1998 in his office by a suspected nationalist,
called the shooting `an organized attempt by those who want to
destroy Turkey’s European Union aspirations to cast Turkey into
darkness.’

Police in riot gear surrounded Dink’s office in downtown Istanbul.
Forensic teams were combing the pavement outside for clues to the
murder.

Dink, born in Malatya, southeast Turkey in 1954, was a member of
Turkey’s small ethnic Armenian community, and a Turkish citizen. He
was editor-in-chief of the bilingual Turkish and Armenian weekly Agos
().
Dink had been convicted of insulting Turkishness — under the
controversial article 301 of Turkey’s penal code — and handed a
six-month suspended sentence in 2005. The case was prompted by an
article he wrote in which he referred to an Armenian nationalist idea
of ethnic purity.

The European Union has repeatedly called on Ankara to change the law
and the government has promised to revise it.
Of his conviction, Dink had told Reuters: "I may be paying the price
for this, but Turkish democracy will gain from it, I hope."
Armenians have long campaigned for recognition of the genocide by
Ottoman Turks during World War One, but Dink opposed the French
parliament’s passing of a law banning denial of the Armenian
genocide. He said he would even be ready to go to prison in France in
defence of free speech.

www.agos.com.tr

President, defence minister frontrunners in May polls

Haykakan Zhamanak, Yerevan,
18 Jan 2007 p 1

President, defence minister frontrunners in May polls

The agenda of Armenia’s domestic political life will not change much
in future. It is developing around two persons – [President] Robert
Kocharyan and [Defence Minister] Serzh Sarkisyan. Will they manage to
divide power peacefully? If yes, how will they do this?

The opposition de facto has not influenced this scenario in any way.
On the contrary, the number of those involved in government
infighting is on the rise. What is the gist of the activity of the
groups in power? For instance, the Prosperous Armenia Party [PAP] has
one mission: to support Robert Kocharyan’s government and preserve
him de facto in his status of Armenian president for one more term.
Anyway, it is very much likely that Kocharyan is planning to stay for
another presidential term in the status of prime minister and then
return to the post of president.

The next political project is one of Serzh Sarkisyan’s, who does not
want to lose his de facto power and is planning to become the
president of Armenia. And in fact, all those who are going to vote
for the RPA [the Republican Party of Armenia; one of the two parties
in the ruling coalition] during the forthcoming parliamentary
election will also vote in favour of Serzh Sarkisyan becoming the
president, and those who are going to vote for the Prosperous Armenia
Party will also vote for Robert Kocharyan becoming the prime
minister. This is the only reality. This is the point of the
parliamentary election that will be held in May.

As there is no other problem on the agenda of the election, one of
the abovementioned persons will lose and the other will win in the
election, or a draw will be registered. All the remaining forces
taking part in the election will become the background of this event.
Certainly, this does not mean that the real opposition should boycott
the election. But there is no point in taking part in the election
without changing its agenda. This is the priority task of the real
opposition. But the fact is that today’s opposition has not managed
to do that because part of the opposition is protecting Gagik [PAP
leader Gagik Tsarukyan] from Serzh and another part is protecting
Serzh from Gagik. Accidental persons within the opposition should be
removed in order to change the abovementioned agenda.

Displays Of Neighborly Affection

DISPLAYS OF NEIGHBORLY AFFECTION
Mikhail Zygar

Kommersant, Russia
Jan 17 2007

A year before the 15-year anniversary of the collapse of the Soviet
Union, Russian President Vladimir Putin called the Commonwealth of
Independent States (CIS) "a form of civilized divorce." The past year
has shown to what degree Russia and the former Soviet republics have
gone their separate ways. Four of the republics consider Moscow an
outright enemy, while the rest of them are looking for an escape from
Russia’s watchful eye.

Resistance

Last year was a turning point in relations between Russia and
Ukraine. The year started off with a gas war: on January 1,
2006 Russian gas giant Gazprom shut off gas supplies to Ukrainian
consumers. The dispute was resolved by January 4, and the median price
of gas delivered to Ukraine was fixed at $95. Simultaneously with
the gas war, however, all of the other simmering conflicts between
the two countries flared up, including those concerning the status
of the Black Sea Fleet, lighthouses in the Crimea, and deliveries of
Ukrainian agricultural products. The extraordinary level of tension
coincided with the approach of parliamentary elections in Ukraine,
in which Russia unambiguously supported Viktor Yanukovych’s opposition
Party of Regions and clearly hoped that its sanctions on Ukraine would
break the back of the popularity enjoyed by Ukrainian President Viktor
Yushchenko and his allies.

The victory won by the Party of Regions quickly changed the tone of
relations between Kiev and Moscow. The Kremlin ceased its attacks
on Ukraine, and Prime Minister Yanukovych is now a frequent visitor
to Russia who regularly competes with Ukrainian rada [parliamentary]
speaker Alexander Moroz for the title of "Moscow’s best friend."

Nevertheless, it cannot really be said that Russia has finally gotten
an obedient government in Kiev. The majority of the pro-Russian
campaign slogans spouted by Viktor Yanukovych have remained nothing
more than empty phrases. Mr. Yanukovych recently made a landmark
visit the United States that was calculated to demonstrate that he
is an independent politician, not a puppet of Moscow. Kiev has also
confirmed that it intends to fight for lower gas prices and plans to
cooperate with the other countries of the Commonwealth of Independent
States (CIS) that are dissatisfied with Gazprom’s actions.

In the last year, Moldova set a record for political flexibility. At
the beginning of 2006, relations between Chisinau and Moscow were at
their nadir: among the countries of the Soviet Union, Moldova was
competing with Georgia for the dubious honor of being considered
public enemy number one by Moscow. The low point in the relations
between Moscow and Chisinau was occasioned by the new customs regime
introduced by Moldova and Ukraine for goods crossing the border between
Transdniestr, a breakaway self-proclaimed republic of Moldova, and
Ukraine. In Tiraspol and Moscow, the new regime, which was aimed at
weakening the government of Transdniestr President Igor Smirnov, was
derided as an "economic blockade." The Russian authorities not only
came out in full support of Tiraspol but even slapped sanctions on
Moldova. Russia’s top health authority, Gennady Onishchenko, declared
a ban on the import of Moldovan wine to Russia, and Gazprom announced
that the price paid by Moldova for its gas would be raised from $110
to $160 per thousand cubic meters.

Chisinau’s long-suffering attempts to resolve the conflict have yet
to bear fruit. Not long ago, Moldavian President Vladimir Voronin
was refused an invitation to visit Moscow for several months in a row.

Eventually Mr. Voronin, who managed to endure the wait without giving
in to the temptation of harsh words, was rewarded for his forbearance
with a meeting with Vladimir Putin in August.

However, Mr. Voronin had not yet faced the last test of his patience.

Chisinau uttered barely a murmur as a referendum on independence,
which was basically a popularity contest between Russia and Moldova
in which Moldova was seriously overmatched, was held in Transdniestr
last fall. Afterwards, at the CIS summit in November, the Russian
president finally pronounced forgiveness for Chisinau and decreed
that, thanks to President Voronin’s exemplary behavior, Moldavian
wine would once again be allowed into the Russian market. However,
the rosy mood is likely to be short-lived: Moldova remains a member
of the GUAM (Georgia-Ukraine-Azerbaijan-Moldova) alliance and still
hopes to return Transdniestr to the fold. In addition, Moldova’s
neighbor Romania entered the EU at the beginning of this year, and
similar European protection would give Moldova’s confidence a boost.

A turning point also came last year in the relations between Russia
and Belarus, when Gazprom undertook to resolve its problem with
Belarus once and for all by issuing an ultimatum to Alexander
Lukashenko demanding that Beltransgaz be sold to the Russian gas
giant for a token sum. The Belarussian president, conscious that
he would lose his ace in the hole if he were to give in to Moscow’s
demand, refused. Mr. Lukashenko’s refusal was a sign of fundamentally
changing times in the history of his relationship with Moscow: the
former close ally has become something akin to an enemy of the Kremlin.

However, Russia maintained its loyal relations with President
Lukashenko right up until the Belarussian presidential elections in
March of 2006. While the West pilloried Mr. Lukashenko’s regime for
trampling on democratic freedoms, a contingent of observers from the
CIS, organized by Moscow, was the only group to declare the elections
legitimate. It was not until after the elections were over, when the
image of the "batka" (Mr. Lukashenko’s preferred nickname, which means
"little father") was irretrievably tarnished in the eyes of the West
and Minsk was almost completely isolated, that Moscow launched its
attack. Right before Mr. Lukashenko was sworn in for his third term,
Gazprom announced a new price for its Belarussian client: instead of
$46 per thousand cubic meters of gas, Minsk would now be required to
pay $200.

Faced with being deprived of the preferential price enjoyed by his
country for Russian gas, on which hung the entire "Belarussian economic
miracle," Alexander Lukashenko was initially at a loss. He did not
appear in public for several days after the elections, and it was
whispered in Minsk that the president was seriously ill. However,
Mr. Lukashenko eventually decided to fight back, and he spent the
remainder of the year attempting to show the Kremlin that he can
survive without Russian help. He faced down more ultimatums from
Moscow and flatly refused to transfer control of Belarus’s network of
gas pipelines to Gazprom. In September, in response to the Kremlin’s
decision to completely halt subsidies for the Belarussian economy,
Mr. Lukashenko decided to go for broke and threatened to quit the
loose federation that exists between the two countries if Moscow
raised the price of gas.

Then he began to search for new partners. First he hailed China as a
strategic partner before moving on to attempt to ingratiate himself
with the European Community by claiming to admire Viktor Yushchenko
and expressing a wish to create a unified state with Ukraine. He
also asked Azeri President Ilham Aliev to help Belarus avoid Russia’s
interference by supplying gas and oil to Belarus through Ukraine.

However, Mr. Lukashenko’s search for allies did not relieve Belarus
of the necessity of seeking a compromise with Gazprom. Vladimir Putin
insisted that Belarus would be required to pay the market price for gas
in 2007, but he also mentioned that the price hike could be included
in the price of Beltransgaz, whose value was estimated by the Dutch
bank AVN Amro to be $3.5 billion. In response, Alexander Lukashenko
has already warned Belarussian companies to be prepared to pay $120
per thousand cubic meters for gas.

The scuffle will continue throughout this year, and not only over
gas. It is clear that the plan to create a unified state with Russia
and Ukraine is already dead and buried, and the longevity of the
Lukashenko regime is in question. The most severe trials still lie
ahead for Minsk in the new year.

Thus far, Azerbaijan has always had a reputation as one of Moscow’s
most cautious partners in the CIS. The Azeri government has tried
not to quarrel with Russia, but it has also cultivated the image of
a pro-Western state by joining the GUAM alliance and building the
Baku-Tbilisi-Ceyhan gas pipeline, much to Moscow’s displeasure. The
pipeline was finally opened in 2006, and since then Azerbaijan has
been behaving more independently than ever.

The Baku authorities, despite pressure from Moscow, do not support
Russia’s sanctions against Georgia. At the end of 2006, Gazprom
threatened to raise the price of gas for Azerbaijan from $110 to $230
per thousand cubic meters if Baku did not toe the line on Russia’s
energy policies, but Azerbaijan has blithely ignored Moscow’s bellicose
mood. Ilham Aliyev also snubbed the Kremlin by agreeing to supply
electrical energy to Georgia and Iran for this winter, and then he
charged his government with calculating the outcome of refusing to
transport gas through Russian territory via the Baku-Novorossisk
pipeline. The next logical step on Mr. Aliyev’s current course may
be to bring Azerbaijan into the orbit of NATO.

At the beginning of 2006, Armenia had the reputation of being Russia’s
most important ally in the Southern Caucasus. Nevertheless, Yerevan
did once attempt to demonstrate its readiness to rebel against Moscow’s
will, but the mood did not last long.

Gazprom’s announcement last year that Armenia would be required
to pay the market price for gas outraged Yerevan. The Armenian
authorities maintained that, as a special friend of Moscow, Armenia
should receive a discount. The Kremlin refused, and the Russian
government consequently demanded that Armenia sell a fifth of the
energy conglomerate Razdanskaya TES and the country’s entire gas
transit network to Russia for $140 million: an amount that would have
kept Armenia supplied with gas at the old price for only a year.

Yerevan was nudged towards disobedience by its second major partner,
Tehran. The Iranians financed the Razdanskaya thermoelectric power
plant and the Iran-Armenia gas pipeline, and they were annoyed by
Russia’s acquisitive overtures. Nevertheless, Russia put the screws to
Yerevan until Gazprom was allowed to take control of the energy company
Armrosgazprom and to commit itself to investing around $570 million in
the Armenian economy before 2009. The next acquisition in the works
is a bid by Russian Railways to take over the Armenian rail network
in 2007. However, it is not a foregone conclusion that the Armenian
authorities will again roll over at Moscow’s command. The Armenian
parliament has already proposed to demand payment from Russia for its
airbase in Gyumri, although Armenian President Robert Kocharian so
far has not been willing to risk raising his voice against the Kremlin.

No country had such officially promising relations with Russia in the
last year as Kazakhstan, whose presidents met with each other no fewer
than ten times in 2006. However, last year’s amiable relationship
between Vladimir Putin and Nursultan Nazarbayev pales somewhat in
comparison to their near-unanimity the year before, when they were
united against a common enemy: the so-called "color revolutions"
in Georgia, Ukraine, and Kyrgyzstan. Once that threat was gone, it
turned out that the future paths of Moscow and Astana are destined
to diverge as Kazakhstan, busy massing its economic might, begins to
pursue politics more and more independently of Russia.

In the last year, energy-rich Kazakhstan has been a pilgrimage site for
important Western guests: European energy commissioner Andreas Pibalgs
and American vice president Dick Cheney both visited the country and
urged Nursultan Nazarbayev to bypass Russia by exporting Kazakh oil
via the Baku-Tbilisi-Ceyhan pipeline. Astana eventually agreed.

Another piece of unpleasant news for Moscow was an increase in the
price of Kazakh gas. Following Gazprom’s example, Nursultan Nazarbayev
has begun to sell his gas to Russia at the market price.

Finally, at the end of last year Moscow and Astana clashed over
President Nazarbayev’s expressed desire to reform the CIS. He proposed
to make the organization more effective by cutting back the numbers of
areas in which its members are expected to coordinate their efforts and
by restricting membership in the CIS to countries that are prepared to
adopt the new arrangements. Russia quickly squelched Astana’s reforming
fervor, but the struggle will continue in 2007 as Kazakhstan becomes
increasingly eager to flex its muscles in the post-Soviet world.

With regard to Kyrgyzstan, the most restless country in Central Asia,
this year has been fraught with difficulties for Russia. At the
beginning of 2006, acting on Moscow’s advice, Bishkek demanded an
increase from $3 million to $200 million in the annual rent that the
United States pays for its Ganci airbase. Washington refused, but the
question of payment for the base remained on the negotiating table,
and for several months Bishkek found itself caught between the US,
which demanded a lower price, and Russia, which wanted an end to the
American military presence in Kyrgyzstan. Eventually, at the end of
July, the US and Kyrgyzstan agreed that Washington would pay $150
million in installments for use of the base. Moscow was incensed.

In the fall, the Kremlin gave full rein to its dissatisfaction with
Kyrgyz President Kurmanbek Bakiyev. First, the Russian prosecutor
general’s office demanded that its Kyrgyz colleagues gave an
explanation for London-based billionaire Boris Berezovsky’s visit
to Kyrgyzstan. Then, when Kyrgyzstan faced the prospect of another
revolution, Russian state-owned television channels instituted a
near-blackout of the authorities and gave time instead to opposition
politicians. The situation was eventually tamed, but uncertainty
remains both in Kyrgyz politics and in relations between Bishkek
and Moscow.

In 2005, Uzbekistan performed an epic and limber about-face: after the
Andijan incident in May of that year, Uzbek President Islam Karimov
simultaneously made himself a pariah in the West and was welcomed
into Russia’s embrace. Throughout 2006, Moscow and Tashkent drew
together along a carefully-drawn path: following Moscow’s orders,
Islam Karimov signed a cooperation agreement with Russia that gave
him political security, and he also led his country into the Eurasian
Economic Community and the Collective Security Treaty Organization. In
addition, many Russian bureaucrats and businessmen live in Uzbekistan,
and Tashkent has promised to cut them deals on acquisitions of
Uzbekistan’s unprivatized strategic enterprises.

But not everything has gone off without a hitch. Many profitable
deals involving Russian capital have been stalled by bureaucratic
heel-dragging, meaning that, thanks to petty local bureaucrats,
the Russian re-conquest of Uzbekistan is not yet complete.

Thanks to the peculiar personality of its president, Saparmurat
Niyazov, and his certainty that his enormous gas reserves allow him
to take certain liberties, Turkmenistan has always stood apart from
the other members of the CIS. Last year in Ashgabat Turkmenbashi
carried on negotiations concerning increased gas supplies – in which,
according to the opinions of many experts, he offered the same gas to
different clients. He signed an agreement with Gazprom to sell gas to
Russia for $100 per thousand cubic meters instead of $44, and then
he turned around and concluded a deal with China for a much lower
price, apparently with the express purpose of creating competition
for Russia. Previously, much of Turkmenistan’s gas has been bought
by Iran and Ukraine, but this year the list was expanded to include
Pakistan as well. There is no proof, however, that Turkmenistan’s
gas reserves will be enough to satisfy all comers.

Both Moscow and Beijing conceptualize their contracts with Ashgabat in
political terms: the two countries signed them mainly with the goal
of consolidating their influence in the region. When Turkmenbashi
came up with the plan to create a navy in the Caspian last year, a
whimsy that would be impossible to fulfill without help from abroad,
Russia and China set about preparing for a struggle.

Though that plan was presumably abandoned when Turkmenbashi died
unexpectedly on December 21, 2006, many countries are still hustling
for influence in Turkmenistan. For example, the European Union is
interested in diversifying its sources of energy, which may mean
that its leaders will approach Turkmenistan with a proposal for a
trans-Caspian gas pipeline that would deliver gas to Europe without
passing through Russia.

Last year was an extremely important one for Tajikistan. The small
ex-Soviet republic reelected its president, Emomali Rakhmonov, after
a campaign in which Dushanbe expended enormous amounts of effort on,
among other things, winning Moscow over to its side. But towards the
end of the year, relations between Russian businesses and the Tajik
authorities became increasingly complicated. First, Dushanbe announced
that it would not permit the Russian company RusAl to participate in
the privatization of Tajikistan’s aluminum plant. Then Mr. Rakhmonov
decided that the Ragunskaya hydroelectric power station would be built
without assistance from RusAl. Pakistan is known to have expressed
interest in replacing Russia on the project, and Iran and China are
also paying increased attention to Tajikistan.

Confrontation

In 2006, Georgia set a record for plumbing the depths of post-Soviet
relations with Russia.

The harbinger of bad times to come in Russian-Georgian relations was a
series of explosions on two branches of the gas pipeline from Mozdok
to Tbilisi, as a result of which gas supplies to Georgia and Armenia
were interrupted. Georgian President Mikheil Saakashvili blamed Russia.

Moscow struck back with a ban on the import of Georgian wine and
Borjomi mineral water into Russia, a provocation that the Georgian
authorities were all too happy to use as a pretext to attempt
to force Russia to withdraw its peacekeepers from South Ossetia
and Abkhazia. The Georgian parliament has already adopted several
resolutions declaring the present of the peacekeepers illegal, but
they have yet to be withdrawn.

The real escalation of tensions began in the summer. In the Stavropol
region, the Russian army undertook military exercises called "The
Caucasian Frontier 2006" that were designed to prepare troops to
support the Russian peacekeepers in Abkhazia and South Ossetia.

Meanwhile, in Georgia’s Kodori Gorge, rebel commander Emzar Kvitsiani
staged a revolt against the Georgian authorities. The government in
Tbilisi, convinced that the two events were related, launched a wave
of arrests of opposition members in what the authorities claimed was
an attempt to thwart a supposed coup.

In September Georgia won an important victory when NATO announced
that it would begin an "intensive dialog" with Tbilisi, a step that
is widely understood as a tacit invitation to join the alliance. The
next day Mikheil Saakashvili, in a speech to the United Nations,
accused Russia of the "annexation" and "criminal occupation" of
Abkhazia and South Ossetia. Soon after that another series of arrests
took place in Tbilisi, this time of four Russian intelligence agents
whom the Georgian government accused of espionage and participation
in planning a coup.

It is unclear exactly which one of these three events provoked Moscow’s
ferocious reaction, but in any case the magnitude of the fusillade
launched against Georgia was colossal. Russia severed all air,
automobile, sea, and rail links with its Caucasian neighbor. All postal
communications between the two countries were halted, and monetary
transfers were banned. Even more scandalous was the anti-Georgian
campaign unleashed by Moscow. The Federal Migration Service began
to detain and deport Georgian citizens, in the course of which three
people died in official custody. Tbilisi promptly accused Russia of
genocide and threatened to bring the case before the International
Court of Justice.

Towards the end of the year, Russian and Tbilisi had a chance to
dispel some of the tension when Mikheil Saakashvili fired Irakli
Okruashvili, the chief hawk in his administration. Soon afterwards,
the Russian and Georgian presidents met at the CIS summit in Minsk
for the first time after a long hiatus. However, no breakthroughs
were made, and the fight appears certain to drag on, particularly
since the price of gas for Georgia was raised to $230 per thousand
cubic meters at the beginning of the year.

Latvia has always been able to boast of the dubious distinction of
having terrible relations with Russia, even for a Baltic country,
and last year was no exception. Some notable events included the
decision by Rospotrebnadzor to ban the import of Latvian sprats to
Russia, as well as Russia’s opposition to the candidacy of Latvian
President Vaira Vike-Freiberga for the position of United Nations
general secretary. Ms. Freiberga repaid Moscow for its efforts with a
thinly-veiled barb of her own: before the November NATO summit in Riga,
Ms. Freiberga said that "if Martians attack us, I believe that NATO
will react immediately and will take all necessary steps to organize
our defenses," a comment that clearly refers to Russia. "It seems to
me that Russia and the Russians do not resemble extraterrestrials,"
replied Russian Defense Minister Sergei Lavrov a few days later.

The relationship between Russia and Estonia has also been stagnant at
a low point over the last year. After the Estonian parliament accused
Russia of having territorial aspirations in 2005 and Vladimir Putin
subsequently withdrew his signature from a border treaty, relations
between the two countries could hardly be any worse.

In 2006, a former journalist for Radio Free Europe, Toomas Hendrik
Ilves, became Estonia’s president – and the first leader of the
country’s post-WWII government who does not speak Russian. At the end
of that year Ants Laaneots, the new head of the state committee on
defense, provoked a scandal by saying that Russia is an "unfriendly
country" and Estonia’s "biggest security problem."

Lithuania and Russia also endured fairly stormy relations over
the last year. In May the countries of the Baltics and the Black
Sea region held a summit in Vilnius attended by the leaders of many
countries in Eastern Europe and the CIS who are united in opposition
to Moscow’s heavy hand. It was at this summit that US vice president
Dick Cheney gave the famous speech that was interpreted by Moscow
as a rekindling of the Cold War. Moscow also endured criticism from
Lithuanian President Valdas Adamkus, who called on the countries
of the European Community to create a unified front against the
construction of the Northern European gas pipeline. In response,
Gazprom quickly hiked the gas price for Lithuania from $105 to $135
per thousand cubic meters.

Another casualty of the crisis in relations between Vilnius and
Moscow was the government of Algirdas Brazauskas, whose cabinet
was forced to resign after several ministers from the Labor Party,
headed by Russian-born millionaire Viktor Uspassky, were accused of
having ties to Russian intelligence services.

The biggest flare-up of tension, however, came near the end of last
year. Soon after the Lithuanian authorities sold the Mazeikiu nafta
oil refinery to the Polish company Orlen, despite interest expressed
by Russian companies in buying it first, Russia shut off oil supplies
to the plant, claiming that the Druzhba pipeline (whose name,
ironically enough, means "friendship") was in need of repairs. The
Lithuanian government and the European Commission called the repairs
"politically motivated," and the Lithuanian Ministry of Internal
Affairs even threatened to begin "repairs" on the railroad that
links Russia with its Baltic enclave of Kaliningrad. So once again,
the battle will continue in the new year.

Senator Schumer Calls On President To Withdraw Hoagland Nomination

SENATOR SCHUMER CALLS ON PRESIDENT TO WITHDRAW HOAGLAND NOMINATION

ArmRadio.am
18.01.2007 10:47

Senator Charles Schumer (D-NY), a long-time friend of New York’s
Armenian community and senior member of the Senate leadership, has
joined Majority Leader Harry Reid (D-NV) and Senator Robert Menendez
(D-NJ) in urging President George W. Bush to withdraw the controversial
nomination of Richard Hoagland to serve as US Ambassador to Armenia,
reported the Armenian National Committee of America (ANCA).

Citing the nominee’s denial of the Armenian Genocide, Senator Schumer,
who serves as Vice-Chairman of the Democratic Caucus, noted, a January
17th letter to the President, that the nominee’s confirmation would
undermine diplomatic relations between the U.S. and Armenia, and
offend the Armenian-American community. The Empire State Senator has
been sharply critical of the Administration’s policy on the Armenian
Genocide and its premature replacement of the pr evious Ambassador,
John M. Evans, after he spoke truthfully in characterizing this crime
as a genocide in speeches last year to Armenian American civic groups.

"Genocide cannot be neatly swept under the carpet. Armenian Americans
are justifiably up in arms over the potential nomination of Richard
Hoagland as the US Ambassador to their native country," said Senator
Schumer. "Hoagland’s reluctance to classify the Armenian Genocide as
the 20th century’s first genocide is a travesty, which leaves us to
believe that he will march lock and step with the administration’s
politically motivated stance of denial." He added that, "In order
for justice to prevail, for progress to be realized and genuine
reconciliation to be possible, there must first be recognition of
the facts of history. That must start with a simple, unequivocal
declaration that the Ottoman’s actions during the period in question
were tantamount to genocide.

I cannot support Mr. Hoagland, because, regrettably, he has not met
that standard."

Armenia Living On Credit Cannot Surpass A Number Of European Countri

ARMENIA LIVING ON CREDIT CANNOT SURPASS A NUMBER OF EUROPEAN COUNTRIES BY ECONOMIC INDICES, TATUL MANASERIAN DECLARES

Noyan Tapan
Jan 17 2007

YEREVAN, JANUARY 17, NOYAN TAPAN. "It is a paradox that Armenia
living on credit surpasses the economic index of a number of
European countries. Armenia living on credit cannot appear on high
economic scales, as poverty also grows simultaneously with economic
growth." RA MP, Economics Doctor Tatul Manaserian expressed such
an opinion at the January 17 press conference. He said that the
data of the report publicized lately by the Heritage Foundation
organization cannot be objective, as in case of Armenia the
expression "economic growth" indeed means only rehabilitation growth
of economy. In T.Manaserian’s words, state structures provide data
to such authoritative international organizations. And these data,
in the MP’s words, remind of Soviet years, when "there was falsehood,
terrible falsehood and statistics."

T.Manaserian said that the three factors providing main growth of gross
output – construction, agriculture and industry underwent serious
changes in 2006. According to his observation, industry declined by
16-20%, agriculture made 0% in the growth of GDP, the lion’s share
of which belongs to construction.

And 90% of the latter, as T.Manaserian emphasized, is in shade.

Internet Phone Communication Providers Of Armenia To Be Disconnected

INTERNET PHONE COMMUNICATION PROVIDERS OF ARMENIA TO BE DISCONNECTED FROM JANUARY 25
By Ara Martirosian

AZG Armenian Daily
17/01/2007

ArmenTel Director Declares a War Against Illegal Providers

The activity of internet phone communication providers in Armenia runs
contary to the license number 60, which provides for the monomply
of ArmenTel in that sphere, said on an interview Oleg Blizniuk,
ArmenTel Director General. He added that on January 25 all those
illegal provider compaies will be disconnected from the ArmenTel
network and warned the citizens that they will not be able to use
their services any more.

According to Mr. Blizniuk, ArmenTel will take severe actions to stop
the illegal use of ArmenTel Communications. "ArmenTel company welcomes
healthy competition and after a while will resign all monopoly,"
he said, "But that will take place not in an instant but through
gradual legislation reforms".

Oleg Blizniuk said that 8 major of the 300 Armenian internet phone
comunication provider companies were offered to become dealers of
ArmenTel under mutually beneficial conditions. He said it is too soon
to speak of any agreements but certain companies were interested with
the proposal.

As for ArmenTel, the Director General said that the company wil
not raise the prices for internet phone communications and will
improve the quality of the connection. Blizniuk promissed to meet
with representatives of Armenian mass media at least once in three
months and report on the company’s plans and activity.

Armenian Defence Ministry: Azeri Side’s Charge Of Breach Of Treaty O

ARMENIAN DEFENCE MINISTRY: AZERI SIDE’S CHARGE OF BREACH OF TREATY ON CONVENTIONAL ARMED FORCES IN EUROPE IS MISINFORMATION

Yerevan, January 15. ArmInfo. The Defense Ministry of Armenia considers
the Azeri side’s charges of breach of the Treaty on Conventional
Armed Forces in Europe to be misinformation.

Today, the APA news agency reported about Azerbaijan’s intention to
set up a special inspection within the framework of NATO and OSCE
for investigating and preventing the facts of arming of Armenia
violating the Treaty on Conventional Armed Forces in Europe. In his
interview to an ArmInfo correspondent, Colonel Seyran Shahsuvaryan,
the press-secretary of the Armenian Defence Minister, emphasized that
the Azeri side’s accusation doesn’t comply with reality, and the latest
monitoring held by their colleagues from NATO proves this. The Colonel
noted that no similar monitoring was held in Azerbaijan because of
the Azeri side’s position.

To note, the mass media has recently reported that Armenia purchased
a consignment of arms in Serbia. This upset the Azeri side, perhaps.

To remind, the Armenian side repeatedly paid attention to the breaches
of the Treaty by Azerbaijan.