Category: 2017

                                        Thursday, 

Armenia Set To Sign Landmark Deal With EU


 . Harry Tamrazian


Armenia -- RFE/RL Armenian Service Director Harry Tamrazian reporting
from Brussel, 23Nov, 2017

The European Union and Armenia are expected to sign an agreement aimed
at significantly deepening their relations at a ceremony which is due
to be held in Brussels on Friday on the sidelines of the Eastern
Partnership summit.

Armenian President Serzh Sarkisian is attending the summit that brings
together the leaders of six Eastern Partnership countries.

The signing of the Comprehensive and Enhanced Partnership Agreement
(CEPA) between Yerevan and Brussels is likely to become the main event
of the summit. The accord, however, omits free trade and is less
ambitious than the association agreements secured by Georgia, Moldova
and Ukraine.

The EU launched the Eastern Partnership in 2009 to promote economic
integration and European values in six eastern European and South
Caucasus countries.

Like Georgia, Moldova and Ukraine, Armenia previously negotiated an
association agreement with the EU, but it walked away from the deal in
2013 and later joined the Russian-led Eurasian Economic Union (EEU).

The text of the new agreement contains quite a few provisions seen as
favorable for Armenia. In particular, the CEPA commits Armenia to
reform its institutions, political system and to further strengthen
human rights. And if Armenia fulfills all its commitments, it can
receive substantial economic support from the European Union under the
so-called "more-for-more" principle. In other words, if Armenia lives
up to its commitments under the CEPA, the EU is committed to
supporting and promoting investments in Armenia.

The CEPA also contains some good news for small and medium-sized
enterprises with its so-called "access to local currency
lending". Observers say this can also become a stimulus for Armenia's
economic development.

Boris Navasardian, who formerly coordinated the Eastern Partnership
Civil Forum's Armenian National Platform, believes that the agreement
expected to be signed on November 24 is also important for Armenia in
terms of economic development.

"There are opinions that the economic field is not covered by the
agreement, but we see that there are quite serious wordings
specifically for economic cooperation," said Navasardian, stressing
that it is also important how Armenia benefits from the opportunities
offered under the CEPA.

This year's summit in Brussels could also see clashes over its final
declaration. One paragraph concerning conflicts in the region has been
left open after both Armenia and Azerbaijan wanted specific, but
conflicting, statements on Nagorno-Karabakh, according to a draft text
seen by RFE/RL.

The current text of the declaration reads: "The summit participants
call for renewed efforts to promote the peaceful settlement of
conflicts in the region on the basis of the principles and norms of
international law." It adds that "the resolution of the conflicts,
building trust and good neighborly relations are essential to economic
and social development and cooperation."

Negotiations over the matter appear to be still ongoing behind closed
doors.

If everything goes well, the EU will start a dialogue with Armenia on
visa liberalization.

The agreement envisages cooperation not only in economic and political
issues, but also in security matters. In fact, Armenia has no
security-related commitments within the framework of the EEU and in
this sense Armenia can enter into such agreements with the European
Union. The EU's commitments to help Armenia in the security issue are
also seen as beneficial for Yerevan.

While in Brussels Armenian President Sarkisian today met with King
Philippe of Belgium and members of the Board of European Friends of
Armenia international non-governmental organization.

Later on Tuesday, the Armenian leader attended the summit of the
European People's Party.



EU Eyes Closer Ties With Armenia Amid Tensions Over Brussels Summit
Declaration


 . Rikard Jozwiak


The EU's foreign policy chief, Federica Mogherini, greets Armenian
President Serzh Sarkisian (EU leaders prepare to meet Eastern
Neighbors

(RFE/RL) BRUSSELS -- The leaders of the European Union and the six
Eastern Partnership countries will meet in Brussels on November 24 in
an effort to deepen ties between the EU and the former Soviet
republics.

The summit's main event will likely be the signing of an enhanced EU
partnership deal with Armenia. That pact, however, omits free trade
and is less ambitious than the association agreements secured by
Georgia, Moldova, and Ukraine.

Like those three countries, Armenia previously negotiated an EU
Association Agreement. But Armenian President Serzh Sarkisian walked
away from the deal in 2013 under pressure from Russia.

Armenia later joined the Moscow-led Eurasian Economic Union (EEU).

The EU launched the Eastern Partnership in 2009 to promote economic
integration and European values in six eastern European and South
Caucasus countries.

The run-up to this year's summit has otherwise been dominated by
speculation about whether authoritarian Belarusian President
Alyaksandr Lukashenka would show up. Minsk said on November 21 that
Foreign Minister Uladzimer Makei would lead its delegation.

In October, EU sources told RFE/RL that Lukashenka had received an
invitation "without restrictions," just like the leaders of the other
five Eastern Partnership states: Armenia, Azerbaijan, Georgia,
Moldova, and Ukraine.

This was a U-turn compared to the previous four summits, when he was
blocked after being hit with EU sanctions following a violent
crackdown on protesters after the Belarusian presidential elections in
2010.

Most of the sanctions, including those on Lukashenka, were lifted in
February 2016.

Conflicting Statements

This year's summit in Brussels could also see clashes over the
gathering's final declaration, according to EU diplomats familiar with
the talks.

One paragraph concerning conflicts in the region has been left open
after both Armenia and Azerbaijan wanted specific, but conflicting,
statements on the breakaway Azerbaijani region of Nagorno-Karabakh,
according to a draft text seen by RFE/RL.

The current text also fails to mention the war between Kyiv and
Russia-backed separatists in eastern Ukraine, a conflict that has
killed more than 10,000 people since April 2014.

"The summit participants call for renewed efforts to promote the
peaceful settlement of conflicts in the region on the basis of the
principles and norms of international law," it reads.

It adds that "the resolution of the conflicts, building trust and good
neighborly relations are essential to economic and social development
and cooperation."

EU diplomats told RFE/RL that they wanted neutral wording in the
statement and to omit any mention of specific conflicts in the Eastern
Partnership countries, citing squabbles between Baku and Yerevan over
the 2015 declaration that delayed the summit by several hours.

Ukraine is also likely to make a final push to secure more positive
wording concerning its prospects of eventually joining the EU.

The current draft language on that topic is identical to that of the
previous summit, stating that "the summit participants acknowledge the
European aspirations and European choice of the partners concerned, as
stated in the association agreements."

The text references a December 2016 decision by EU heads of state that
included a legally binding supplement to its association agreement
underscoring that Brussels will not give Kyiv the right to automatic
EU membership or guarantee any EU military aid for Ukraine.

The addendum allowed the Netherlands to finally ratify the Ukraine
Association Agreement earlier this year despite the fact that 61
percent of Dutch voters disapproved of the deal in a citizen-driven,
nonbinding referendum held in April 2016.

The draft declaration also outlines some future EU strategies in the
Eastern Partnership countries.

These include "facilitating access to local currency lending" for
local small and medium-sized enterprises, supporting "increased access
to high-speed broadband," and "progressing towards reduced roaming
tariffs among the partner countries."

Rikard Jozwiak covers the European Union and NATO for RFE/RL from his
base in Brussels



NATO Urges Armenia, Azerbaijan To Continue Talks On Karabakh


 . Heghine Buniatian


BELGIUM -- Azerbaijani President Ilham Aliyev (L) and NATO
Secretary-General Jens Stoltenberg give a press conference at the end
of a meeting at NATO headquarters in Brussels, 

NATO has called on Armenia and Azerbaijan to continue negotiations on
the long-standing Nagorno-Karabakh problem and "avoid any new
escalation" of the conflict.

After a meeting with Azerbaijani President Ilham Aliyev in Brussels on
Thursday, NATO's Secretary-General Jens Stoltenberg called the
Nagorno-Karabakh conflict a "matter of concern" for the Western
military alliance.

At the same time, he emphasized that this conflict cannot be resolved
militarily.

Stoltenberg said that NATO has no direct role in the matter, but
supports the co-chairs of the Organization for Security and
Cooperation in Europe's Minsk Group, an international format jointly
headed by the United States, Russia and France that brokers a peaceful
solution to the conflict.

The NATO chief added that he was encouraged by "renewed dialogue"
between Aliyev and Armenian President Serzh Sarkisian, who held talks
in Geneva last month that the two sides called "constructive."

Aliyev said the situation surrounding Nagorno-Karabakh was "not
changing, unfortunately," and accused Armenia of seeking "to keep the
status quo."

"The unsettled conflict between Armenia and Azerbaijan is the greatest
danger to regional security," the Azerbaijani leader said.

Both Aliyev and Sarkisian are slated to meet EU leaders at the Eastern
Partnership summit in the Belgian capital on November 24.



Armenia To Issue New Banknotes In 2018


 . Tatevik Lazarian


Armenia -- A presentation of the new composite banknotes of the third
generation

The Central Bank of Armenia plans to introduce new, composite
banknotes in 2018, gradually removing the current ones from
circulation.

New 1,000-, 5,000-, 10,000-, 20,000- and 50,000-dram bills said to be
more durable and protected are due to be put into circulation next
autumn when the 25th anniversary of the introduction of the Armenian
national currency will be marked.

A new 2,000-dram bill is expected to be introduced earlier as,
according to a Central Bank official, there is a demand for the bill
of this face value on the market. No new issue of the 100,000-dram
bill (over $200) is planned.

Like the current banknotes, Armenia's third-generation bills will also
bear the images of noted Armenians: poet Paruyr Sevak, former world
chess champion Tigran Petrosian, writer William Saroyan, composer
Komitas, painter Hovhannes (Ivan) Aivazovsky and St. Gregory the
Illuminator, the first official head of the Armenian Apostolic Church.

Both the choice of the figures and the design of the new banknote
presented by the Central Bank on Wednesday have sparked a debate in
Armenian social media.

Secretary General of the Central Bank David Nahapetian dismissed
criticism, saying that the design for the new banknotes was chosen
after a contest to which as many as 17 applications had been
submitted. He said he could not accept the criticism because "we are
dealing with banknotes and not with pieces of art." He added that the
final design of the banknotes will be conditioned by the requirements
of protective features such as watermarks, etc.

Economist Artak Manukian, meanwhile, claimed that with Armenia
expected to have a tense economic year ahead, the issue of the new
banknotes could be fraught with certain inflation risks. "It is clear
that such emissions are usually accompanied with a certain devaluation
of the currency. This's what experience shows," he said.

The Central Bank's representative dismissed such concerns, saying that
he did not see any inflation risks connected with the introduction of
new banknotes. "We do not change the currency. We simply introduce a
new series of banknotes. The nominal values do not change, and no
changes occur in terms of money supply or money base. It cannot create
any inflation pressure," Nahapetian explained.



Acclaimed Armenian-American Jazz Producer George Avakian Dies At 98


Acclaimed record producer George Avakian in 2008.

(RFE/RL) - George Avakian, an acclaimed Russia-born music producer who
collaborated with U.S. jazz icons like Louis Armstrong and Miles
Davis, has died at the age of 98.

Avakian, who was born to Armenian parents in southern Russia and moved
to the United States shortly after his birth, died at his home in New
York City on November 23, his daughter confirmed.

He served as an executive at major U.S. music labels, including
Columbia Records and Warner Bros., and played a prominent role in
popularizing industry innovations such as live and long-playing
albums.

A graduate of Yale University who served in the Philippines during
World War II, Avakian became a full-time member of the production
staff at Columbia Records in 1946.

He brought Davis and Dave Brubeck to the label, helping to turn them
into worldwide stars.

Armstrong also joined Columbia in the mid-1950s, and it was Avakian
who introduced him to the German theater song Mack The Knife, which
became one of the trumpeter's most famous hits.

Avakian was born on March 15, 1919, to wealthy Armenian parents in the
southern Russian city of Armavir. His family left the country shortly
thereafter amid the civil war that broke out following the 1917
revolution, eventually settling in New York.

Avakian was among the founders of the National Academy of Recording
Arts and Sciences, which presents the Grammy Awards, and received
numerous achievement awards in the United States and abroad.

The recording academy honored Avakian with a Trustees Award for
lifetime achievement in 2009. He was also honored with France's
Commandeur des Arts et Lettres and received the Soviet Union's highest
state award, the Order of Lenin, in 1990.

Based on reporting by the New York Times and AP



Armenia Offers Repatriation Of Dead Azerbaijani Serviceman


Armenia - Soldiers on an Armenian army post on the border with
Azerbaijan

Military authorities in Yerevan are ready to repatriate the body of an
Azerbaijani serviceman that they say has been found by Armenian armed
forces near the border with Azerbaijan's exclave of Nakhijevan.

Armenia's Ministry of Defense said on Thursday that such repatriation
can be organized through the mediation of the International Committee
of the Red Cross.

In a report released by its press office the Ministry explained that
the body was found in no man's land in front of Armenia's combat
positions at the southwestern border with Azerbaijan.

"According to operative-intelligence data, the mentioned serviceman
was a captain of the Azerbaijani Armed Forces, a company commander,
who escaped after a crime at his military unit," the report said.

No other details were reported immediately.

The Azerbaijani Ministry of Defense confirmed later on Thursday that
the dead serviceman was 19-year-old Bakhruz Jalilbeyli who left the
military unit without permission after committing a crime.

Armenia and Azerbaijan are locked in a simmering armed conflict over
Nagorno-Karabakh, a mostly Armenian-populated region that declared its
independence from Baku amid a 1988-94 war that claimed an estimated
30,000 lives and displaced hundreds of thousands of people.



Diplomat: Azerbaijan Will Have To End Blockade Of Armenia Before
Joining EEU


 . Sargis Harutyunyan


Armenia - Deputy Foreign Minister Shavarsh Kocharian, 10August, 2017

Official Yerevan will welcome Azerbaijan's membership or observer
status in the Eurasian Economic Union (EEU) if Baku lifts the current
blockade of Armenia and ceases hostile actions against its neighbor,
Armenian Deputy Foreign Minister Shavarsh Kocharian said at a news
briefing in Yerevan on Thursday.

During his latest trip to Baku, Russian Foreign Minister Sergei Lavrov
was asked about Azerbaijan's possible membership in the Moscow-led
trade bloc that besides Armenia also includes Belarus, Kazakhstan and
Kyrgyzstan.

In his answer to an auditorium at Baku's Diplomatic Academy on
November 20 Lavrov, in particular, said: "The Eurasian Economic Union
is an open integration union. We do not force anyone to become a
member of this organization. At present, Tajikistan's membership in
the organization is being considered. We receive applications also
from non-CIS [non-post-Soviet] countries. We will be very happy to see
Azerbaijan in that structure as well."

"Azerbaijan's accession to the EEU would mean its commitment to the
provision of the Treaty that not only a member country but even a
country with an observer status must not take action to the detriment
of another member state or the Eurasian Economic Union in
general. This means that if Azerbaijan wishes to approach the Eurasian
Economic Union in one way or another it must not take such steps,"
Armenia's deputy foreign minister said when asked about the prospect
of Baku's membership in the Union.

"If we are talking about the economy, it is enough to remember that
Azerbaijan is blockading Armenia, and it is clear that these actions
are aimed against the interests of the member state."

According to Kocharian, Azerbaijan's joining the EEU could be welcomed
if the country complied with the trade bloc's commitments. "And this
means that it must end the blockade of Armenia and stop committing
hostile actions against Armenia," the senior Armenian diplomat said.

Armenia joined the EEU formed by Russia, Belarus and Kazakhstan in
2015. Kyrgyzstan joined the trade bloc later that year. Observers in
Armenia have speculated about Russia's desire to see Azerbaijan within
the Union as well. For nearly three decades Armenia and Azerbaijan
have been locked in a bitter dispute over Nagorno-Karabakh. The two
South Caucasus neighbors have no diplomatic, political or trade
relations.



Press Review



"Zhamanak" reports on the recent reportedly non-combat deaths in the
Armenian army, claiming that the armed forces gradually become related
in Armenian public perception to losses. "On the one hand, there is
the attrition warfare waged by Azerbaijan that claims the lives of
young people, on the other hand problems existing in our army cause
regrettable deaths," the paper contends, noting the Armenian
government's "irresponsible and complacent behavior" against the
background of these losses.

The editor of "Hraparak" suggests that "the efforts of the authorities
to man the armed forces would be commendable if officials' sons were
also drafted to serve in the army." "Answers of officials that their
sons also serve are not convincing, since if we had such cases, the
state propaganda machine would be advertising such facts from morning
till night." According to the paper, the policies of the government
aimed at enlisting more and more young men to the military has
resulted in the considerable drop in the number of students pursuing
scientific careers.

"Zhoghovurd" reports on another closure of the Upper Lars checkpoint
at the Russian-Georgian border, which is a vital route for Armenia's
trade. The shutdown of the border is due to bad weather
conditions. "Armenia again will be deprived of the only land link with
Russia and other Eurasian Economic Union member countries and will
simply not be able to export goods to its trade bloc partners or
import goods from them," writes the paper, suggesting that it is
likely to deliver a blow to Armenia's economy.

"168 Zham" reports that the final declaration at the EU Eastern
Partnership Summit may contain some "unpleasant surprises" for Armenia
in terms of its references to regional conflicts, in particular, the
Nagorno-Karabakh conflict, "since Azerbaijan has actively worked in
this direction." "In order to neutralize these surprises European
diplomats advise that the Armenian side should also show activeness."
In an interview with the daily Armen Ashotian, the head of the
Armenian National Assembly's standing foreign relations committee,
gives assurances that "Armenia has fully done its work."

(Anush Mkrtchian)

Reprinted on ANN/Armenian News with permission from RFE/RL
Copyright (c) 2017 Radio Free Europe / Radio Liberty, Inc.
1201 Connecticut Ave., N.W. Washington DC 20036.
www.rferl.org

                                        Friday, 

EU, Armenia Sign Landmark Deal


 . Harry Tamrazian


Armenia - Minister of Foreign Affair of Armenia Edward Nalbandian and
High Representative of the European Union for Foreign Affairs and
Security Policy Federica Mogherini sign the EU-Armenia agreement,
Brussels, 24 Nov, 2017

The European Union and Armenia signed an agreement aimed at
significantly deepening their relations at a ceremony in Brussels on
Friday held on the sidelines of the Eastern Partnership Summit.

Signatures to the document entitled the Comprehensive and Enhanced
Partnership Agreement (CEPA) were put by High Representative of the
European Union for Foreign Affairs and Security Policy Federica
Mogherini and Armenia's Foreign Minister Edward Nalbandian.

The signing ceremony took place in the presence of European Council
President Donald Tusk and Armenian President Serzh Sarkisian.

In her remarks after the signing of the document Mogherini said that
the CEPA "is based on our common commitment to democracy, human rights
and rule of law."

"This agreement is the first of this kind that is concluded with a
party that is also a member of the Eurasian Economic Union. It will
now be very important to implement it," the EU's foreign policy chief
said.


(From left to right) Armenian President Serzh Sarkisian, Armenian
Minister of Foreign Affairs Edward Nalbandian, High Representative of
the European Union for Foreign Affairs and Security Policy Federica
Mogherini and President of the European Council Donald Tusk pose for a
photo after the signing of the EU-Armenia Agreement, Brussels, 24Nov.,
2017
Nalbandian, for his part, described the "wide-ranging and ambitious
document" as "our joint endeavor that opens a new chapter in the
bilateral relations between the Republic of Armenia and the European
Union."

"The Agreement establishes a solid legal basis for strengthening the
political dialogue, broadening the scope of economic and sectoral
cooperation, creating a framework for new opportunities in trade and
investments and increased mobility for the benefit of our citizens,"
the top Armenian diplomat said.

According to Nalbandian, "it is important that the Agreement reaffirms
the stated commitment of the European Union to support the efforts and
approaches of the Co-Chairs of the OSCE Minsk Group for the peaceful
settlement of the Nagorno-Karabakh conflict based on the norms and
principles of international law, in particular, non-use of force or
threat of force, equal rights and self-determination of peoples, and
territorial integrity."

"Armenia is determined to further develop and strengthen a
comprehensive cooperation with the EU in all areas of mutual interest
based on this Agreement," Nalbandian stressed.

The ceremony became one of the focal points of the EU's Eastern
Partnership summit that brought together the leaders of six Eastern
European and South Caucasus nations in the Belgian capital on November
24.

Since the launch of the Eastern Partnership program in 2009 Russia has
regarded it as a potential threat to its geopolitical interests in the
post-Soviet territory.

In the case with Armenia, officials in both Yerevan and Brussels have
repeatedly stated that the deal does not contradict Yerevan's allied
relations with Moscow or jeopardize the South Caucasus nation's
membership in the Eurasian Economic Union, a Russian-led trade bloc
that also includes Belarus, Kazakhstan and Kyrgyzstan.

Russian pressure exerted on Yerevan is widely believed to have
scuttled a more ambitious Association Agreement which Armenia and the
EU nearly finalized in 2013. President Sarkisian precluded that accord
with his unexpected decision to join the Russian-led customs union
less than three months before the planned initialing of the document.

Speaking to RFE/RL's Armenian Service (Azatutyun.am) ahead of the
summit, President Sarkisian again denied any Russian pressure in
Armenia's dealings with the EU.

Russian Ambassador to Armenia Ivan Volynkin told local Arminfo news
agency today that "Armenia is a sovereign nation" and "has the right
to participate in any pacts and associations that do not breach its
existing commitments."

Meanwhile, German Chancellor Angela Merkel, who also attended the
summit in Brussels, acknowledged Russia's "central role" in countries
like Armenia and Azerbaijan as she spoke to Deutsche Welle earlier on
Friday.

Unlike the Association Agreement that Yerevan negotiated but did not
sign with Brussels four years ago, the CEPA does not make Armenia part
of a "deep and comprehensive free trade area" with the EU. Still, the
350-page document commits Yerevan to "approximating" Armenian economic
laws and regulations to those of the European Union.



Sarkisian Hopes For `Productive' Discussions At Eastern Partnership Summit


Armenian President Serzh Sarkisian (R) at the European People's Party
summit in Brussels, 23Nov, 2017

Armenian President Serzh Sarkisian expressed a hope for "productive"
discussions as he spoke ahead of the Eastern Partnership summit, which
opens in Brussels on November 24.

As part of his working visit to Belgium, the Armenian leader on
Thursday attended the summit of the European People's Party (EPP),
which was chaired by EPP President Joseph Daul.

The summit was also attended by European Council and European
Commission Presidents Donald Tusk and Jean-Claude Juncker, President
of the European Parliament Antonio Tajani, as well as the heads of
state and government representing EPP-member countries and Eastern
Partnership-member states.

The summit's discussions focused on topical issues of Pan-European
significance and preparations for the Eastern Partnership summit,
which will focus on issues of further strengthening cooperation in the
priority spheres as defined at the Riga Summit in 2015.

President Sarkisian delivered a speech at the EPP summit, in which,
according to his press office, he addressed "the agenda of EU-Armenia
cooperation and the dynamics of relationship development, the
importance of those issues of interest to Armenia to be discussed at
the EPP and Eastern Partnership summits in Brussels, the Comprehensive
and Enhanced Partnership Agreement (CEPA) between Armenia and the
European Union, as well as inter-party cooperation-related
activities."

The signing of the CEPA, an agreement aimed at significantly deepening
EU-Armenia relations, is expected to become the main event at the
Eastern Partnership summit today.

Sarkisian is also the leader of Armenia's ruling Republican Party
(HHK), which has been a member of the EPP with an observer status
since 2012. "The HHK's cooperation with the EPP has become one of the
most important platforms for Armenia's involvement in European
politics," Sarkisian stressed in his speech.

The Armenian leader also reportedly noted the November 15 resolution
of the European Parliament that qualifies Armenia as "a country which
successfully combines its Eurasian Economic Union membership with
participation in the EU Neighborhood Strategy." In this view,
Sarkisian gave assurances that "in the future as well, Armenia will
abide by the aforementioned formula of co-existence."

In his speech President Sarkisian also expressed a hope that
"tomorrow's discussions at the EU Eastern Partnership Summit will be
so productive as to make the joint initiatives more targeted, and the
results more visible and tangible for societies."



Pan-Armenian Charity Raises More Money To Support Karabakh


US/Armenia - Annual Telethon of the Hayastan All-Armenian Fund,
23-24Nov,2017

In another Thanksgiving Day fundraiser a pan-Armenian charity has
raised over $12.5 million that it plans to mostly spend on the support
of agricultural-development projects in Nagorno-Karabakh.

The Hayastan (Armenia) All-Armenian Fund received the donations and
pledges of donations during its annual 12-hour telethon broadcast from
Los Angeles, USA, on Thursday.

Hayastan raised almost $15.5 million during last year's televised
fundraiser earmarked for the reconstruction of war-ravaged communities
in Nagorno-Karabakh and other local infrastructure projects.

The focus of the 2017 telethon is support for two major
agricultural-development projects in Nagorno-Karabakh: the drilling of
deep-water wells and construction of irrigation networks; and the
installation of solar power stations.

As always, sizable contributions have been provided by several ethnic
Armenian businessmen from the United States, Russia and Armenia. An
anonymous Armenian-American entrepreneur made the single largest
donation of $ 2.5 million. He was followed by Russian-Armenian tycoon
Samvel Karapetian, who donated $2.25 million. Armenia's
Copper-Molybdenum Plant donated $350,000, Armenia-based wealthy
business owner Samvel Aleksanian contributed $200,000 for the cause
and the Vardanian family donated $125,000. Valex Group donated
$100,000. Several families from the United States, Iran and Armenia
provided hefty donations ranging from $50,000 to $100,000. Thousands
of Armenians from around the world also made smaller contributions
ranging from a few dollars to several thousand dollars.

Hayastan has implemented over $350 million worth of projects in
Armenia and Nagorno-Karabakh since its establishment in 1992. The
fund's current Board of Trustees is headed by President Serzh
Sarkisian and comprises other senior Armenian state officials,
Catholicos Garegin II as well as prominent representatives of Armenian
communities around the world.

In particular, in recent years the fund has partly financed the
construction of a second 116-kilometer-long highway connecting
Nagorno-Karabakh to Armenia.



Armenians `With Time' Will Feel Benefits Of Agreement With EU, Says Sarkisian


 . Harry Tamrazian


Belgium -- Armenian President Serzh Sarkisian gives an interview to
RFE/RL's Armenian Service, Brussels, 23Nov2017

Armenians will feel the benefits of their new accord with the European
Union "with time", President Serzh Sarkisian said hours before the
planned signing of the Comprehensive and Enhanced Partnership
Agreement (CEPA) in Brussels.

The signing ceremony due today is expected to become one of the focal
points of the current EU Eastern Partnership Summit that brings
together leaders of six Eastern European and South Caucasus countries
that are members of the program launched in 2009.

RFE/RL Armenian Service Director Harry Tamrazian, who is reporting on
the summit from Brussels, asked Sarkisian late on Thursday about what
an ordinary citizen of Armenia would get from the planned accord.

"Perhaps [ordinary citizens] will not feel its benefits immediately,
but with time they will, because we are able to carry out reforms
quickly with the help of the European Union," said the Armenian
leader.

"We don't want to invent a bicycle, there are absolute truths, and we
should be guided with these truths. But in addition to internal
freedoms, Armenian citizens will get an opportunity of free travel to
Brussels, to Paris, to other European countries."

The CEPA, which was initialed by Armenia and the EU in March, commits
Armenia to reforming its institutions and strengthening human rights
protection with the assistance of the EU. The 350-page document does
not make Armenia part of a "deep and comprehensive free trade area",
but still commits Yerevan to "approximating" Armenian economic laws
and regulations to those of the EU.

Some analysts believe the CEPA will also provide Armenia with an
"alternative security direction."

"The word `alternative' is not correct here," said Sarkisian when
asked to comment on such opinions. "But, of course, especially in the
case of the main challenges threatening our security, the co-chairs of
the OSCE Minsk Group [on Nagorno-Karabakh], and especially the United
States and Russia, have the same positions, and this is one of the few
issues on which they fully cooperate, as they declare
themselves. This, of course, is an achievement for us."

In 2013, Armenia was on track to sign a more ambitious association
agreement with the EU, but several months before the initialing of the
document, President Sarkisian stated about Yerevan's desire to become
a member of a trade bloc led by Russia, which effectively aborted
plans for a deep and comprehensive free trade area with the
EU. Sarkisian announced that decision during a meeting with Russian
President Vladimir Putin in Moscow, but denied any Russian pressure
was involved.

Last week the Armenian president also met with Putin in the Russian
capital. No references to the planned EU-Armenia deal were made at
that meeting, according to official publications.

In an interview with RFE/RL's Armenian Service (Azatutyun.am)
Sarkisian again denied that Russia has ever meddled in Armenia's
dealings with the EU.

"Soon it will be ten years that I have served as president and before
that I occupied different [government] posts. I have never heard even
half a word from any Russian leader, especially from President Putin,
that would contain any reproach in terms of our cooperation with the
European Union," the Armenian leader underscored.

Sarkisian's second and final term as president expires in April
2018. According to constitutional changes approved in a 2015
referendum, Armenia has switched to a parliamentary form of
government, which potentially creates an opportunity for Sarkisian to
continue to govern the country as prime minister. Before the
constitutional reform Sarkisian pledged not to seek a top government
post after the expiry of his presidential powers, but in his later
public statements he has been less categorical on this account.

Asked whether he had any ideas about where he will be after the end of
his presidential term, Sarkisian said: "If I had an idea, I would have
already stated about it. I will speak about it when I do have an
idea."



EaP Summit `No Platform' For Discussing Armenian-Azerbaijani Relations


 . Rikard Jozwiak


Armenian President Serzh Sarkisian in Brussels, 23Nov., 2017

Armenian President Serzh Sarkisian believes that the current Eastern
Partnership (EaP) summit in Brussels is not "the right platform" where
relations between Armenia and Azerbaijan can be discussed and
resolved.

He said this in comments to RFE/RL's Brussels correspondent Rikard
Jozwiak ahead of the opening of the biennial event bringing together
leaders of six Eastern European and South Caucasus nations cooperating
with the EU under a program launched in 2009.

This year's summit in Brussels could also see clashes over the
gathering's final declaration, according to EU diplomats familiar with
the talks.

One paragraph concerning conflicts in the region has been left open
after both Armenia and Azerbaijan wanted specific, but conflicting,
statements on Nagorno-Karabakh, according to a draft text seen by
RFE/RL.

"Azerbaijan can push difficult language, but who will accept that?"
Sarkisian said, adding that he did not see obstructions to the final
declaration.

"I don't think this Eastern Partnership summit is the right platform
where our relations with Azerbaijan should be discussed," he added.

The Armenian leader emphasized that it is the Organization for
Cooperation and Security in Europe's Minsk Group and its co-chairs
(represented by the United States, Russia and France) that deal with
the Nagorno-Karabakh issue. "The EU has extended its full supports to
the activities of the OSCE Minsk Group [co-chairs]. And we are fully
content with that," Sarkisian concluded.

The current text of the declaration reads: "The summit participants
call for renewed efforts to promote the peaceful settlement of
conflicts in the region on the basis of the principles and norms of
international law."

It adds that "the resolution of the conflicts, building trust and good
neighborly relations are essential to economic and social development
and cooperation."

EU diplomats told RFE/RL that they wanted neutral wording in the
statement and to omit any mention of specific conflicts in the Eastern
Partnership countries, citing squabbles between Baku and Yerevan over
the 2015 declaration that delayed the summit by several hours.



Sarkisian Lauds New EU-Armenia Accord


BELGIUM -- Armenian President Serzh Sarkisian arrives for an EU
Eastern Partnership summit with six eastern partner countries at the
European Council in Brussels, 

The new agreement between Armenia and the European Union is "our joint
achievement" that can become "a positive precedent for other
cooperation projects", Armenian President Serzh Sarkisian stated on
Friday as he attended an Eastern Partnership Summit in Brussels.

"We consider 2017 as, indeed, one of the important milestones in the
quarter-century-long history of the relations between Armenia and the
EU, which is signified today under the framework of this Summit by
signing of the Comprehensive and Enhanced Partnership Agreement. It is
a comprehensive document that reflects the significant developments of
the recent period of our collaboration and defines the guidelines that
are necessary to deepen these relations," Sarkisian said, as quoted by
his press office.

The agreement known as the CEPA commits Armenia to reforming its
institutions and strengthening human rights protection with the
assistance of the EU. The 350-page document does not make Armenia part
of a "deep and comprehensive free trade area", but still commits
Yerevan to "approximating" Armenian economic laws and regulations to
those of the EU.

"This Agreement is not merely a legal document, but a reflection on
the wealth of values of human rights and fundamental freedoms that we
share. Important elements of the strengthening of democracy such as
rule of law, consolidation of judiciary, development of public and
social institutes, good governance are the core of this Agreement. The
efficient realization of these elements is of vital importance for our
nation in order to implement successfully the envisaged reforms. It is
exactly the development based on these shared values that ensures the
long-lasting and sustainable development for any responsible member of
the international community," the Armenian leader said shortly before
the official signing ceremony scheduled for the evening.

According to Sarkisian, the importance of the Agreement is not limited
to just Armenia-EU relations. "Many of our international counterparts
describe Armenia as a nation that brings various integration processes
closer to each other, a nation that is led by the desire to reconcile
and complement interests in the spirit of cooperation and
cohabitation, and it is something that seriously obliges us to meet
the expectation," he said.

Sarkisian went on to say that Armenia is one of those EU partners that
have managed to "almost fully implement commitments undertaken in
2015" under the Joint Declaration of the Riga Summit. "We believe that
Armenia's determination in this process, as well as the determination
of our EU partners will soon result in further bringing our societies
closer together, for which, of course, launching of the visa
liberalization dialogue would be of great significance," he said.

In his statement, Sarkisian scolded his Azerbaijani counterpart Ilham
Aliyev who, he claimed, "has voiced ill-grounded accusations against
Armenia."

"As much as the Azerbaijani side may try to distort and misinterpret
the essence of the Nagorno-Karabakh conflict and its peaceful
settlement, the conflict has to be settled on the basis of three
principles of international law: the non-use of force or threat of
force, territorial integrity and the peoples' right to
self-determination as proposed by the OSCE Minsk Group Co-Chairs,
which is the only structure vested with an international mandate," the
Armenian president emphasized.

"The position of the international community on the Nagorno-Karabakh
conflict is reflected in the statements issued by the leaders of the
OSCE Minsk Group Co-Chair countries. In this context, any solution to
the conflict without the exercise of Nagorno-Karabakh people's right
to self-determination is simply impossible."

Armenia and Azerbaijan have reportedly been at odds over language in
the final declaration of the summit concerning Nagorno-Karabakh. One
paragraph concerning conflicts in the region had been left open for
the two South Caucasus neighbors to agree on compromise wording.

EU diplomats told RFE/RL that they wanted neutral wording in the
statement and to omit any mention of specific conflicts in the Eastern
Partnership countries, citing squabbles between Baku and Yerevan over
the 2015 declaration that delayed the summit by several hours.

The current text of the final declaration reads: "The summit
participants call for renewed efforts to promote the peaceful
settlement of conflicts in the region on the basis of the principles
and norms of international law." It adds that "the resolution of the
conflicts, building trust and good neighborly relations are essential
to economic and social development and cooperation."



Final Declaration At EaP Summit Omits Mention Of Karabakh


 . Rikard Jozwiak


BELGIUM -- A general view shows political leaders sitting at the round
table for an EU Eastern Partnership summit with six eastern partner
countries at the European Council in Brussels, 

European Union leaders and six former Soviet republics have swiftly
agreed on a final joint declaration of their Eastern Partnership (EaP)
summit in Brussels, avoiding a repeat of the squabbling between
Armenia and Azerbaijan that triggered delays at the last summit two
years ago.

The final declaration, published on the European Council's website,
does not mention any specific conflicts in the region, including the
Armenian-Azerbaijani conflict over Nagorno-Karabakh.

But it states that the "summit participants remain deeply concerned
about the continued violations of principles of international law in
many parts of the region."

It adds that they welcome "the EU's strengthened role in conflict
resolution and confidence building in the framework or in support of
existing agreed negotiating formats and processes, including through
field presence, when appropriate."

That language was enough to secure approval from Armenia and
Azerbaijan. The two neighbors, who have been locked in a decades-long
standoff over Nagorno-Karabakh, clashed over the final text of the
declaration at the 2015 summit in Riga.

The final text of this year's declaration features the same language
as the Riga declaration concerning the potential future EU accession
of Georgia, Moldova, and Ukraine, each of which have signed
Association Agreements with the 28-member bloc.

It states that "the summit participants acknowledge the European
aspirations and European choice of the partners concerned, as stated
in the association agreements."

The EU launched the Eastern Partnership in 2009 to promote economic
integration and European values in six Eastern European and South
Caucasus countries.

The summit's main event will likely be the signing of an enhanced EU
partnership deal with Armenia. That pact, however, omits free trade
and is less ambitious than the Association Agreements secured by
Georgia, Moldova, and Ukraine.

Like those three countries, Armenia previously negotiated an EU
Association Agreement. But Armenian President Serzh Sarkisian walked
away from the deal in 2013 under apparent pressure from Russia, and
Armenia later joined the Moscow-led Eurasian Economic Union (EEU).

However, Sarkisian told RFE/RL's Armenian Service upon arrival in
Brussels on November 23 that there was no contradiction between
Yerevan's EU partnership and its EEU membership.

"By signing this agreement we're saying that indeed it is possible to
be a member of the Eurasian Economic Union and also be a member of the
Eastern Partnership," Sarkisian said.

He added that he has "never heard from any Russian leader, and
especially from President Vladimir Putin, so much as a word of
reproach about Armenia's cooperation with the EU."



Press Review



Armenian media focus on the signing of the Comprehensive and Enhanced
Partnership Agreement (CEPA) between Armenia and the European Union
scheduled at the Eastern Partnership summit in Brussels on Friday.

"Haykakan Zhamanak" stresses that "the signing of the document clearly
meets Armenia's interests as it presents a serious counterbalance to
Armenian-Russian relations that pose a threat to Armenian
sovereignty." The paper at the same time warns that Armenia's failure
to sign the document this time around will spell an end to its
independent statehood and will reduce it to a "Russian province".

"Zhamanak" reports that Russian Foreign Ministry spokeswoman Maria
Zakharova stated at a news briefing on Thursday that Moscow treats the
EU-Armenia agreement with respect. "It means or at least should mean a
major guarantee that the agreement will be signed," the daily writes,
adding that "however historic the new accord between Yerevan and
Brussels may be, it won't change Armenia's life automatically, but the
country should be able to benefit from the opportunities offered by
it."

In an interview with "Aravot" political analyst Suren Sargsian
excludes the possibility that some wording in the new accord could
make Armenia refuse to sign it. "There is no wording that cannot be
rephrased so as to satisfy both or all parties," he explains. In this
view, the analyst does not rule out some "ambiguous wording" that can
be interpreted differently by the two sides.

(Tigran Avetisian)


Reprinted on ANN/Armenian News with permission from RFE/RL
Copyright (c) 2017 Radio Free Europe / Radio Liberty, Inc.
1201 Connecticut Ave., N.W. Washington DC 20036.
www.rferl.org

Emerging Europe
Nov 22 2017


The Azerbaijani Laundromat: Why It Matters


About Audrey L Altstadt

Audrey L. Altstadt is Professor of History at the University of
Massachusetts Amherst. She is the author of several dozen articles
published in the US, Europe, Turkey, and Azerbaijan, and of three
books, most recently The Politics of Culture in Soviet Azerbaijan,
1920-1940 (Routledge, 2016) and Frustrated Democracy in Post-Soviet
Azerbaijan (Woodrow Wilson Centre Press and Columbia University Press,
2017.) She has been a consultant with the US Foreign Service
Institute, the Department of Justice, the US Institute of Peace,
Freedom House. She has been a fellow at Harvard’s Davis Russian
Research Centre, the Kennan Institute, and the Woodrow Wilson
International Centre for Scholars. She was also awarded an Honorary
Doctorate in 2000 by Khazar University in Baku.

Money laundering may not be theft, but it is a product of theft.
Sources of laundered money may include illegal activities such as
trafficking in drugs or humans, or it may be diverted income from
natural resources, inflated costs, bribes, fake loans, or other
financial manipulation. The money might be stolen from the state, in
the form of unpaid taxes or other charges, or from the people of a
country – as with stolen revenues from the sale of natural resources
from oil to diamonds. Money laundering thus reflects economic and
moral damage to individuals and institutions and thereby threatens the
stability and security of states, societies, and regions.

In September, the Organized Crime and Corruption Reporting Project
(OCCRP), in partnership with more than a dozen European and US news
organisations, broke the story of an Azerbaijani laundromat which
“cleaned” 2.5 billion euros (almost 3 billion US dollars) in a
two-year period using UK-registered shell companies and a European
bank.

The news was hardly surprising to those who follow Azerbaijan. In
2012, the OCCRP named Azerbaijani President Ilham Aliyev its Person of
the Year. At that time the OCCRP cited not only the deep corruption in
the country, but the thorough documentation of various types of
corruption by the ruling family and associated oligarchs. As
subsequent revelations affirm, Aliyev fully deserved the 2012 OCCRP
title.

The recent “Azerbaijani Laundromat” report traces the routing of
payments from 2012 to 2014 in bundles of tens to hundreds of thousands
of euros. The origin of these millions is murky. Some came from
Azerbaijani ministries, some from the Russian arms exporter
Rosoboronexport and other actual companies. The largest single source
(about 1.4 billion US dollars) came from the International Bank of
Azerbaijan (IBA), from accounts linked to “mystery” companies whose
business activities, or even websites or physical locations, cannot be
located.

Turning a Blind Eye

Some of the money was used to purchase luxury goods. Large sums were
apparently spent to influence businessmen and influential political
figures particularly in the Council of Europe. Most of the money went
to other shell companies registered in the UK as well as entities in
the UAE and Turkey, showing that this report, though extensive and
complex, probably does not cover the full scope of the money flow.
Payments went through the Estonian branch of the Danske Bank where
bank officials, says the report, turned a “blind eye” to the large
transactions.

Aligning money transfers with specific actions of influential European
recipients, OCCRP and its partners make a strong case for Azerbaijan
buying influence. From a human rights vantage point, the most
distressing series of payments was to deputies in the Parliamentary
Assembly of the Council of Europe (PACE), Italy’s Luca Volonté and
German’s Eduard Lintner. At present, Volonté is being prosecuted in
Italy for corruption and prosecutors say he worked to quash a PACE
report on political prisoners in Azerbaijan. Ilham Aliyev used the
failure of PACE to adopt its own commission’s report to claim there
were no political prisoners in Azerbaijan.  Volonté received nearly 2
million euros from the Azerbaijani laundromat.

Lintner, a German parliamentarian and later PACE deputy, received
large payments from the laundromat during his service as an election
monitor. He got one payment just after his claim that Azerbaijan’s
2013 presidential elections – denounced as not free or fair by
domestic, US, and OSCE monitors – were up to German standards. He got
another when a domestic critic of those elections was arrested.
Lintner ultimately received a total of 820,000 euros (just over 1
million US dollars) between 2012 and 2014.

The story is reminiscent of the Russian laundromat, reported by OCCRP
in 2014 which involved much more money – 30 billion US dollars –
reflecting no doubt the greater size and complexity of the Russian
economy and the greater number of oligarchs. More important, both
operations involved 33 of the same companies, illustrating another
aspect of strong post-Soviet bonds between the two energy-producing
and corrupt former Soviet republics.

Naming & Shaming

The scope of this international activity makes observers wonder what
might be done to curtail the money laundering on which bribery and
theft depend. The damage of criminal behavior is significant and it is
both material and moral.  Money is diverted from stated business
purposes, which in the case of oil revenues is stolen from the people
of the country who may be considered its owners and the rightful
beneficiaries of its sale.[1] Money of uncertain origin goes into the
pockets of influential European political figures.  When such
subversion of judgment affects the Council of Europe, it casts doubt
on the Council’s own integrity and plays into the hands of
authoritarian propagandists who argue that Western institutions are
corrupt, so they are no worse. The propagandists can blur the lines
between institutions that strive to uphold the law and those that
flout it while claiming they represent a legitimate variation on the
ideal.

Watchdog groups and human rights organisations, if they are unable to
bring legal action to bear or if it fails, have tried “naming and
shaming.” Sceptics doubt the efficacy of this tactic noting that
perpetrators of high-level crime such as international money
laundering, might be named but hardly shamed. The case of Azerbaijan
over the last decade, highlighted by the laundromat report, suggests
we revisit the strategy and arguments against it. Although the
perpetrators themselves seem shameless, not all their partners are
immune to the shame of publicity and public criticism.

Despite rampant global corruption, there are still laws and ethical
standards and there are still entities that strive to conform to them.
There are still international organisations that want, or can be
compelled, to uphold their own stated norms and ideals. Sponsors can
withdraw advertising and other support if their business partners
complain or shame them. Thus corruption can be made more difficult and
more costly.

The 2012 report Caviar Diplomacy, produced by European Stability
Initiative (ESI), documented Azerbaijani gifts and payments to CoE
members. After five years, the report was used to force the
resignation this past October of PACE President Pedro Agramunt,
considered a supporter of the Aliyev regime who quashed criticism of
Azerbaijan’s human rights record and mismanaged corruption charges
against CoE deputies.

International financial institutions (IFIs) that articulate
transparency and ethical standards among their basic principles have
not always followed those as a guide to their investments especially
in countries that produce oil, gas or need vast and lucrative
infrastructure investments. The World Bank has had a troubled history
in this regard.[2] In recent months the NGO Crude Accountability has
called on IFIs to link their investments more closely to transparency
and honesty/ legality.  A present director of the European Bank for
Research and Development is identified in the Azerbaijani laundromat
as a recipient of more than 800,000 Euros.

Finally, naming and shaming deprives collaborators of an important
tool – claiming they did not know of illegality and abuses. Moreover,
naming and shaming – and documenting – gives ammunition to people and
organizations that fight for transparency, legality, and responsible
management of resources, and against erosion of the rule of law.

Creating a safe haven for one batch of money launderers puts out the
welcome mat for other crooks. Money laundering and other forms of
corruption are already infecting the international financial system
and aiding the drift of wealth to the top 1 per cent.  Transparency
efforts can be used to stop it or international actors can be
complicit. There is no middle ground.

—

[1] This is the position of the Extractive Industries Transparency
Initiative (EITI).

[2] For this and similar cases in Azerbaijan, see Audrey L. Altstadt,
Frustrated Democracy in Post-Soviet Azerbaijan, (Woodrow Wilson Center
Press and Columbia University Press, 2017), Chapter 4.

—

The views expressed in this opinion editorial are the author’s own and
do not necessarily reflect Emerging Europe’s editorial policy.