Armenian winemakers work toward recovery after war

The Week
Jan 2 2021
Andrew Connelly
onveyor belts rattle at the Stepanakert Brandy Factory while technicians in white coats peer into flasks and workers pack bottles into cases. It's the first day of business in Nagorno-Karabakh's de-facto capital since war erupted on Sept. 27, and operations director Vladik Alibabayan is seeing what can be salvaged.

"We managed to collect 1,700 tons of grapes before the war and then everything shut down," Alibabayan explained. "Some of our fields near the frontlines where we grew grapes and pomegranates are now under the control of Azerbaijani forces, so we don't know what will happen next. The loss for the industry will be significant."

It could have been worse.

A shaft of sunlight beams through a small hole in the roof of a warehouse next door to the brandy factory. Underneath, protruding from the bottom of a cylindrical tank is a gigantic unexploded rocket, one of the thousands that rained down on the city during Armenia's 44-day war with Azerbaijan.

The rocket hit an empty tank, narrowly missing a vat full of 15-year-old Madatoff cognac. A lucky escape for the factory but for the country's nascent wine industry in general, the war has been a huge setback. The latest conflict flared up in the middle of the harvest season.

.

But some people were able to adapt. At a small farm on the other side of the city, artisan winemaker David Astsatryan makes brandy from grape residue on a rattling homemade stove.

On the first day of shelling on the city of Stepanakert, Astsatryan's son headed for the frontline. Astsatryan joined him days later with a few hundred bottles from the cellar to boost the troops' morale.

Winemaker David Astsatryan on his farm in Stepanakert, Nagorno-Karabakh. | (Andrew Connelly/Courtesy The World)

Astsatryan produces tangy, orange-colored wines in clay amphoras submerged in soil, and full-bodied, inky reds using khndoghni — a grape native to the Nagorno-Karabakh area.

"Khndoghni is our local grape, there's no sense to use any others," Astsatryan said, holding up a bottle to the light. "…This is a trademark of Karabakh, and it's been growing here for centuries with this soil, air, and sunshine. If you grow the same grape in Armenia, it tastes totally different."

Khndoghni is derived from the word "laughter" in Armenian, though there has been little to laugh about this year. Astsatryan's land, bathed in early December sunshine, looks out across the valley and up to the mountaintop city of Shushi.

As the highest and most strategic settlement in Karabakh, the war was effectively finished when Azerbaijan captured it, ending over three decades of Armenian control. And now, though people displaced during the war are coming back home to Stepanakert, many feel vulnerable to attack from the new Azerbaijani positions above them.

"I see the people coming back," he said cautiously, casting an eye up to the hills, "but I don't see life returning to normal. We'll have to wait and see."

A wine-drinking renaissance

Vahe Keushguerian is one of the top winemakers and entrepreneurs in Armenia. For him, encouraging investment in the vineyards of an unrecognized country in a warzone has never been easy. Under most international law, Nagorno-Karabakh is considered part of Azerbaijan.

"Institutions, by their charter, would not touch Karabakh, because of the status. And vineyards are a very long-term investment, it's at least 10 years until you can even see something let alone get a return." Keushguerian explained. "So, I see two ways out for Karabakh; it is formally acknowledged as a region of Armenia, or as an independent country, then there might be funding opportunities available."

International recognition of the territory seems like a pipe dream but, despite the ruins of war, Keushguerian said he wants to start a cooperative winery, "as a symbol." "Regardless of whatever calamity happened, we need to go on forward," he said.

Armenia has one of the world's oldest wine industries — archaeologists have unearthed fragments of jugs and presses dating back more than 6,000 years. But the country's turbulent history has held it back from becoming a Napa Valley of the Caucasus.

For 70 years, the Soviet economy demanded that Armenia prioritize brandy production instead of wine, and occasionally experimented with prohibition. Poverty in the 1980s and conflict with Azerbaijan also stymied business.

But in the last decade, Armenia has experienced a wine-drinking renaissance. In Vino, on Yerevan's Martiros Saryan street, was the city's first modern wine bar. Opening in 2012, with just 10 Armenian wines, it now sells over 180, with numbers from the Nagorno-Karabakh among the bestselling.

"By drinking wine from Karabakh I feel that people are connecting with the situation," said Mariam Saghatelyan, a partner at the business. "Every single bottle of wine has the philosophy and ideology of that certain producer and the region. You feel the terroir in your glass — especially now."

Just as the business was in full bloom, the war came to Armenia once again and some of the country's most notable vineyards had to be urgently evacuated and are now behind enemy lines. Within days, bottles from the lost territories flew off the shelves to be resold by speculators and, Saghatelyan said, decades-old family businesses evaporated overnight.

"The industry is just about to bloom, then this happens. It's heart-breaking and there are all these unanswered questions. What will be the fate of those wineries?"

Saghatelyan hopes that the conflict will encourage outsiders, including Armenia's huge global diaspora, to support the struggling region even more.

"We have to treasure what we have, and then other people might be interested, as well. … Making wine here, you always wonder what if another war breaks out? But if you keep thinking 'what if,' you never really do anything. Life is short, it really is."

War and the COVID-19 pandemic have wrecked the Armenian economy. The same attachment to the land of Nagorno-Karabakh that has produced such fine wines has also cost thousands of lives.

But against all the odds, Armenia's winemakers are defiant and hope that by invigorating the country's ancient tradition and boosting local businesses, the region one day might have something to celebrate.

This article originally appeared at The World. Follow them on Twitter.

UK sanctions on Armenia and Azerbaijan

The Government of the United Kingdom
Jan 2 2021

This page provides guidance on the arms embargoes in place on Armenia and Azerbaijan.

In February 1992, the Organisation for Security and Co-operation in Europe (OSCE) requested that all participating states should introduce an embargo on ‘all deliveries of weapons and munitions to forces engaged in combat in the Nagorno-Karabakh area’. This embargo is still in effect.

On 2 July 2014, the UK refined its interpretation of the arms embargo as covering the export, supply or delivery of all goods and items on the UK military list (which forms a part of the UK strategic export control lists) where this equipment could be used:

  • in the Nagorno-Karabakh region, or
  • on the land border between Azerbaijan and Armenia

This embargo is implemented through the Export Control Order 2008. All export and trade licence applications for Armenia and Azerbaijan as elsewhere will be assessed on a case-by-case basis against the UK Strategic Export Licensing Criteria and we will not issue a licence where to do so would be inconsistent with the Criteria.

Additionally, some goods which are not on the UK military list might also need an export licence. These are covered by the military end-use control.

For further information on financial sanctions: contact the Office of Financial Sanctions Implementation [email protected] or subscribe to the Office of Financial Sanctions Implementation’s e-alerts

For further information on trade sanctions: contact the Export Control Joint Unit Helpline on 020 7215 4594 or email [email protected] or subscribe to the Export Control Joint Unit’s notices to exporters

For further information on transport sanctions: contact the Department for Transport on [email protected]

For general information on sanctions: contact the Foreign, Commonwealth & Development Office’s Sanctions Unit on [email protected]

2020 was a year of multiple defeats for Turkey

Ahval


By Haluk Özdalga
Jan 03 2021

This past year has been one of defeats and retreats in almost every
area for Turkey.

The country has turned into one of the darkest places on Earth with
respect to the rule of law and freedom of expression. Its contracting
economy has resulted in rampant and near-permanent poverty. Its
international relations have devolved into an eerie isolation. These
are not subjective expressions of pessimism; they are all based on
facts.

Turkey ranked 107th out of 128 countries in the Rule of Law Index for
2020, made by the World Justice Project, an internationally renowned
civil society organisation that advances the rule of law worldwide. If
you divide these countries into five groups, Turkey would be in the
bottom fifth.

Even worse, the same report ranks Turkey 124th for independent civil
and criminal courts systems, free from improper government influence.
The only four countries worse off than Turkey are Cameroon, Russia,
Nicaragua and Venezuela.

Turkey also ranks 154th among 180 countries in the 2020 World Press
Freedom Index. In a similar fashion, we are in the bottom fifth group
for free media.

One can see the many clear signs that we have dropped to the bottom
league. Despite binding provisions in the Constitution, lower courts
have refused to implement rulings by the Constitutional Court and the
European Court of Human Rights (ECHR) due to political influence. A
well-known member of the ruling Justice and Development Party (AKP)
said on a TV programme that “not even a child would write these
indictments” – yet people remain in prison over such indictments.

If a country’s democracy is only as good as the rule of law and media
freedom it maintains, then our democracy is also fifth-class.

The most striking feature of the Turkish economy in 2020 was that it
sank into a cycle of perpetual impoverishment.

The gross domestic product and income per capita have both continued
to drop in the last seven consecutive years, plummeting sharply in
2020. Between 2013 and 2020, one-third of the GDP disappeared,
dropping from $960 billion to $650 billion. Income per capita fell
from $12,500 to $7,800 in the same period.

Taking the increasing inflation rate into account, our welfare
declined by more than 40 percent in the last seven years, a first
since at least 1960. I couldn’t find another country in the World Bank
data base that experienced such a drop within the same period.

Turkey is paying for an ideological approach to the management of
economy. President Recep Tayyip Erdoğan has said repeatedly that
“interest rate is the cause; inflation is the effect”. The Financial
Times estimated that the failed currency intervention has cost $140
billion over the past two years, putting currency reserves at minus
$50 billion.

Tax revenues don’t even cover salaries of civil servants, deficits in
social security and interest on debts, without payments on the
principal. Turkey needs foreign capital.

But when you have a fifth-class rule of law, serious investors may be
hard to come by.

An example of this was when Volkswagen liquidated its $1.4 billion
investment in the western Manisa province, despite the AKP government
providing the German automotive giant with generous subsidies.

Countries in similar situations often attract speculative investors
who make windfall profits via short-term market transactions and pull
out. As interest rates are suddenly raised, Turkey is now
unfortunately facing such a situation. Turkey will most probably
continue its descent into poverty in 2021.

Separately, the health minister said 50 million people will be
vaccinated to COVID-19 by the year’s end – too little, too late. We
have a population close to 90 million, including immigrants, but the
contracts signed for vaccine shipments don’t even cover the 50 million
as promised. Turkey's economy and tourism may suffer greatly in 2021
because of that.

In terms of international relations, Ankara faced such a heavy
isolation as never experienced before.

The AKP jumps into any conflict it comes across in the region, always
taking sides in a partisan way. No other country, big or small, does
that.

The ruling party also has a proclivity to employ military means with
ease – often before all diplomatic options are exhausted.

The primary factor that shapes AKP’s foreign policy is ideology rather
than national interest; it is comprised of pro-Muslim Brotherhood
(Ikhwan) ambitions in the Middle East and an ideologically motivated,
anti-West attitude in the West.

There are unresolved issues with Greece and Greek Cypriots that date
back to the years before the AKP. However, the ideological posture
adopted by the ruling party has resulted in a decline in relations
with many other countries: Syria, Lebanon, Israel, Iraq, Saudi Arabia,
United Arab Emirates, Bahrain, Egypt, Sudan, half of Libya, the
European Union, the United States and more.

The AKP is now trying to mend fences with Israel and Egypt, so far
without any known positive outcome. If the party's policies for Egypt
and Israel were right in the first place, why would it want to change
things?

Turkey's focus on EU membership has dissipated – even though it should
be a strategic priority for Ankara – simply because of the fifth-class
democracy the AKP has moulded.

These days, the ruling party has spoken about turning a new page with
the EU, making it appear like a fresh start for the ascension process.
Many Turkish commentators view it that way. The EU can’t ignore
Turkey, whatever its regime may be – a country with a population
approaching 90 million, adjacent to its borders. There must be some
form of relation between the two.

But for the European bloc, it is no longer a relationship with a
prospective member. The AKP has destroyed the road to EU membership.
It is over. Now, the new page is about defining the nature of new
EU-Turkey relations.

Another masterfully presented recent piece of discourse by the ruling
party is that its current engagement in ‘reforms for democracy and
rule of law’.

I recollect the famous dictum in the Italian author Giuseppe Tomasi’s
book “Il Gattopardo”: for everything to remain the same, everything
must change.

In a cunning way, the ruling party in Ankara is trying to implement
Tomasi’s dictum with some distortion: for everything to remain the
same, everything must seem to change.

I do wish you a healthy and prosperous 2021.

(The opinions expressed in this column are those of the author and do
not necessarily reflect those of Ahval.)


 

5 children born in Karabakh on New Year’s Day, one of them weighs 5.5 kg

News.am, Armenia
Jan 1 2021
 
 
5 children born in Karabakh on New Year's Day, one of them weighs 5.5 kg
18:15, 01.01.2021
 
The Ministry of Health of Artsakh (Nagorno-Karabakh) reports the following:
 
“Five children were born in Artsakh on New Year’s Day. Out of the children born at the Mother and Child Health Center, four were natural born, and one was born through C-section, and the latter weighed 5 kilograms and 450 grams.
 
“Three of the newborns are male and two are female. Doctors say the mothers and newborns are in satisfactory health condition.
 
The Ministry of Health congratulates the newborns’ parents, relatives and all Armenians,” the press release reads.
 
 
 
 
 
 
 

Armenia’s village head: Azerbaijanis set up a post in the village

News.am, Armenia
Jan 1 2021
 
 
 
Armenia's village head: Azerbaijanis set up a post in the village
15:06, 02.01.2021
 
 
Azerbaijanis set up a post in a Shurnukh village of Syunik province, head of the village Hakob Arshakyan told during the live broadcast.
 
According to him, they gave time until January 5 to leave the village.
 
Earlier, Azerbaijanis claimed 12 houses in the village. Despite repeated statements by lawyers about the illegality of the process, the Armenian government continues to give the Armenian territories to Azerbaijan.
 
 
 
 

Turkish press: Russia clears mines in Nagorno-Karabakh, facilitates refugee returns

The Russian Defense Ministry announced on Sunday that its peacekeeping troops have defused 16,000 explosives in the recently liberated Nagorno-Karabakh region and added that more than 130 refugees have returned to their hometowns in the region recently.

Explosives have been removed from an area larger than 400 hectares (980 acres) as well as from along 152 kilometers (95 miles) of highway and 617 buildings, including social facilities, the ministry said. Uran-6 systems were used to clear the area, which helped peacekeepers to work more easily under harsh weather conditions and in a mountainous area, the ministry said. Uran-6 mine-clearing robots are multifunctioning systems produced by JSC 766 UPTK for the Russian army.

According to the ministry's statement, quoted by Sputnik Turkey, more than 130 refugees returned to their hometowns in the region thanks to these latest efforts. So far, since the end of the conflict back in November 2019, more than 47,100 refugees have returned to Nagorno-Karabakh, the ministry added.

Nagorno-Karabakh lies within Azerbaijan but was under Armenian occupation since a separatist war there ended in 1994. That conflict left the predominantly Armenian-populated Nagorno-Karabakh region and substantial surrounding territories in Yerevan's hands. Heavy fighting erupted between Armenia and Azerbaijan in late September in the biggest escalation of the decades-old conflict, killing more than 5,600 people on both sides. The Russia-brokered agreement last month ended the recent fighting in which the Azerbaijani army routed Armenia's forces. The cease-fire deal stipulated that Yerevan hand over some areas it held outside Nagorno-Karabakh's borders. Baku also retained control over the areas of Nagorno-Karabakh that it had taken during the armed conflict.

Around 2,000 Russian peacekeepers have been deployed to Nagorno-Karabakh under the terms of the deal and are expected to stay in the region for at least five years. The Turkish Parliament also last month overwhelmingly approved the deployment of Turkish peacekeeping troops to Azerbaijan after Turkey and Russia signed an agreement for establishing a joint center to monitor the cease-fire in the region. The mandate allows Turkish forces to be stationed at a security center for one year. Azerbaijan has been pushing for its close ally Turkey to play a central role in the implementation of the agreement, as Ankara pledged full support for Baku during fighting in the region.

Turkish press: Turkey’s defense industry comes out on top in annus horribilis for other sectors

An Azerbaijan army Bayraktar TB2, a medium-altitude, long-endurance unmanned combat aerial vehicle, is displayed during a military parade to mark the victory in the Nagorno-Karabakh conflict, in Baku, Azerbaijan, Dec. 10, 2020. (Turkish Presidential Press Office / Handout via Reuters)

Humanity has undergone and still is trying to overcome a horrible year, one that could easily be dubbed our annus horribilis. Besides health care, almost all sectors have taken their share of the hit from the COVID-19 pandemic that sent shock waves around the world. But one sector, the defense industry, was among those that kept growing.

The Turkish defense industry, in particular, not just completed several critical projects but with the use of its products in recent conflicts, made headlines in local and international media throughout the year. It is now looking ahead with even more ambition.

One of the primary motives behind the rapid progress of Turkey's defense industry, which maintained growth last year, is the sanctions on the country in the recent past. Instead of remaining idle amid the sanctions, Ankara fostered a defense industry from scratch now capable of exporting products worldwide while also driving the development of cutting-edge systems, like unmanned aerial vehicles (UAV).

These UAVs have been used by the Turkish Armed Forces (TSK) in recent conflicts in neighboring Syria against terrorist elements and the brutal Bashar Assad regime. They've also seen action in war-torn Libya and were used by the Azerbaijani army in Nagorno-Karabakh. This use has raised questions about whether the relatively cheaper aircraft may eventually replace expensive advanced fighter jets. The answer is no, not entirely.

In an exclusive interview with Daily Sabah, Turkish defense analyst Hakan Kılıç said he expects a clear-cut task sharing between UAVs and manned aircraft in the future.

"I think, in the near future, UAVs will even replace electronic jamming aircraft, while the tasks of manned systems will focus on carrying anti-radiation and cruise missiles, heavy bombardment and air to air missions," he said.

Further explaining the tasks of both vehicles and the missions that have been carried out by the UAVs in the field, including the ones dubbed global, Kılıç said drones can perform almost all of the tasks executed by larger aircraft "when air superiority is established" and that they "can operate under the air umbrella provided by combat aircraft."

For example, he continued, we saw the most recent example of this in Operation Spring Shield – a cross-border military operation kicked off on Feb. 27, 2020, by the TSK against Syrian regime elements – in retaliation for an attack that killed 33 Turkish soldiers.

"If Turkish F-16s did not intercept the warplanes of the Assad regime with their beyond-visual-range air-to-air missiles (BVRAAM) by conducting a combat air patrol (CAP) mission along the border, Turkish UAVs Bayraktar TB-2 and Anka-S would not have been able to operate in the region," he said.

Through cooperation, these two armed UAVs, manufactured by Baykar Makina and Turkish Aerospace Industries (TAI), performed a first in history, with the support of electronic jamming elements. They executed "suppress enemy air defense (SEAD)" missions and "destroy enemy air defense (DEAD)" tasks "normally requiring F-16s."

However, Kılıç continued, "Would this have been accomplished if the F-16s did not remotely protect the Turkish UAVs in the Syrian airspace without entering the country's airspace due to military and political obstacles?"

"If the two Syrian SU-24 and one L-39 warplane that came to hunt the Turkish drones were not downed by our F-16s, how would the UAVs protect themselves?" he rhetorically asked, pointing out the unavoidable cooperation between fighters and UAVs.

"Many Russian-made Syrian air defense missile systems were destroyed by the drones this way," Kılıç said. The destruction of the Russian systems, video footage of which was published later, continued in Nagorno Karabakh as well. There, the drones were used by Baku, who has previously purchased them from Turkey, and the air defense systems were deployed by Armenia, who were fighting an already losing battle on occupied Azerbaijani lands.

"Furthermore, in Azerbaijan, the TB-2 destroyed an Armenian Scud-B ballistic missile while on the launch vehicle (TEL), thus making history as the first ballistic missile launcher destroyed by a UAV in the history of war," Kılıç added.

Asbarez: Armenian Bar Association Issues PSA on the Loss of Artsakh Investments

January 2,  2020



Armenian Bar Association

Follows Up with “Roads to Recovery” Webinar

On November 26, the Armenian Bar Association issued a public service announcement (PSA) for owners of property and businesses in the parts of Artsakh occupied by Azerbaijan. The purpose of this outreach effort is to highlight the rights and guarantees afforded under international law arising from Azerbaijan’s actions which negatively affected the property in Artsakh.  The PSA describes the international investment law and customary international law regimes that protect foreign-owned investments and property from destruction and unlawful taking by a home State.

A key pillar of the international investment law is the network of dozens of bilateral and multilateral investment protection treaties that Azerbaijan has agreed to with other sovereign States (meaning countries).  The treaties directly extend to the individuals and companies of those States the substantive and procedural guarantees described in the relevant treaties.  Although the exact provisions vary from treaty to treaty, typical protections include the guarantee not to be deprived of the value of an investment without prompt and adequate compensation and the obligation by Azerbaijan to accord full physical protection and security to investments within its territory.

Most of the treaties also allow injured business owners to seek compensation directly from Azerbaijan in an international arbitration proceeding under the auspices of the World Bank or another international organization.

The Armenian Bar’s PSA concludes with three important steps for all business and property owners in Azeri-occupied Artsakh: (i) document all titles to personal and real property; (ii) review the list of bilateral and multilateral investment protection treaties concluded by Azerbaijan and see which treaties may afford coverage to the investor or one of the intermediary investment vehicles; and (iii) contact the relevant countries’ commercial attachés at the respective embassies in Baku, Azerbaijan to notify them of the existence of property and investments within the Azeri-occupied territory.

Building on the premise of potential legal actions stemming from the recent hostilities, on December 17, 2020, the Armenian Bar Association hosted a webinar program titled “Roads to Recovery under International Law.”  It was the first installment in the Artsakh Sequel broadcasts, with this one explaining the implications of the 2020 war under international law.  The gist of this initial program was the accountability of Azerbaijani State entities and officials for wrongful acts under international law. 

In the panel, arbitrator Grant Hanessian of Hanessian ADR and attorneys Levon Golendukhin of Eversheds Sutherland (US) LLP and Harout Ekmanian of Alston & Bird LLP discussed and exchanged ideas on the various fora available under international law for seeking such accountability for war crimes and other wrongful acts in connection with Azerbaijan’s aggression, including some of the considerations involved in the pursuit of investment arbitration claims for destroyed and expropriated investments.  The lively and informative presentation was moderated by Armenian Bar Association Board Member, Armen K. Hovannisian.

Sovereign Artsakh: New Year Message to Armenia from US Ambassador Inspires My Rant

Patheos
Jan 4 2021

‘It’s Beautiful’: COVID Vaccines Arrive At Jamaica Plain Nursing Home After Delay

CBS Boston
Jan 4 2021
By Bill Shields
January 4, 2021 at 6:32 pm

BOSTON (CBS) — The day had finally come at the Armenian Women’s Nursing Home in Jamaica Plain: the COVID vaccines arrived Monday.

“In addition to relief, getting the vaccine today was one more validation that we are going in a different direction, a hopeful direction,” said CEO Scott Ariel.

Josphine Grove and her roommate Ruth Johns were in the front of the line. For them, the day could not have come any sooner.

“I feel like I’m relaxed, peace of mind,” said Grove. “I can go and do anything I want.”

Eighty-seven-year-old Johns said, “I think it’s beautiful because it’s for a worthy cause and it’s prevention, and to do nothing is sad. So this is a positive thing that we’re doing.”

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Josphine Grove and Ruth John were ready to be vaccinated Monday (WBZ-TV)

The home was devastated by the virus during the first surge last spring. But on Monday, all 50 residents were vaccinated, along with many staff members.

The federal government left much of the vaccine distribution up to individual states. The rollout has been bumpy: the Armenian Women’s Nursing Home anticipating receiving vaccines last week and they didn’t arrive until Monday. But Massachusetts officials say the vaccine plans are starting to hum along.