As India & France Arm Armenia, Turkey Slams Military Powers That Are Supporting Yerevan

Eurasian Times
Dec 8 2023

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In a strong rebuttal against the French military and other supporters of Armenia, Turkish President Recep Tayyip Erdogan described the plan to arm Armenia as provocative. 

“What France is doing is a provocation. It should know that it is not doing Armenia a favor but the opposite. France has given Armenia a lot of support in the past. What result did they get? None,” Erdogan was quoted as saying.

The statement comes at a time when Azerbaijan and Armenia have agreed to build confidence and mutually work towards a peace deal. For this, the two sides have agreed to exchange prisoners of war (POWs) taken during the recent hostilities in the Nogorono-Karabakh region.

However, the military partnership forged between France and Armenia has not gone down well with Turkey. Firing his verbal shots, Erdogan emphasized that France was part of the now Organization for Security and Co-operation in Europe (OSCE) Minsk Group on Nagorno-Karabakh, which works towards ensuring a peaceful resolution of conflict between Armenia and Azerbaijan.

“There is no result [from the group’s work], and in such a situation, it provokes Armenia again. There will be no result from sending armored personnel carriers [there]. Because now, there is Azerbaijan, which has ended the occupation of its territory. The result of the conflict in Nagorno-Karabakh is obvious,” Erdogan said without mincing words.

He further added, “The Armenian leadership should learn the lessons of the recent past and not go for these provocations. It is in Armenia’s interest to seize the opportunity for peace and not to fall into the trap of countries that mislead Armenia. Peaceful relations with Azerbaijan is the best option for Armenia. Those who put weapons in Armenia’s hands are doing Armenia a disservice.”

Earlier, Erdogan had chastised Western nations harshly for arming Armenia, though he did not name them. He also urged Armenia to expeditiously conclude a peace accord with Azerbaijan. The statement made by Erdogan is significant, given that Ankara has been arming Baku to the teeth in its fight against Yerevan.

Having said that, Erdogan may not be the only one who has been displeased with French military assistance to Armenia. Earlier this week, Russian Foreign Ministry Spokeswoman Maria Zakharova said at a press briefing that the French Bastion armored vehicles that are being transferred to Armenia will not help the country.

“As for France and these Bastion armored vehicles – they are illiquid. This is obvious even from the situation unfolding in the context of the special military operation, I commented on this in detail at the briefing on November 22,” she said. This follows complaints that Russia, which is the primary ally of Armenia, hasn’t been able to deliver the ordered arms despite the purchase going through.

“Now, regarding that statement of the Armenian Defense Ministry that you quoted about the need to solve problems in concert, we can only welcome this. As [we] understand, the Russian Defense Ministry has a similar mindset,” she said.

However, the vacuum left by Russian arms has essentially been filled by countries like France and India, who have stepped up to arm Armenia in what has been seen as a reset in their respective foreign policies.

Armenia has been seeking to diversify its arms imports and find new allies after Russia failed to provide the country with ordered weapons worth around US $400 million. This has forced the country to seek other viable options to procure its military supplies.

French Foreign Minister Catherine Colonna, during her visit to Armenia’s capital, Yerevan, on October 3, said: “France has given its consent to sign a future contract with Armenia, which will enable the provision of military equipment to Armenia so that Armenia can ensure its defense, it is clear that I cannot elaborate on this issue for now.”

As part of the strengthening military relations between the two countries, parliamentarians in France have announced that they will be sending 50 Bastion armored personnel carriers to Armenia. Although no delivery has been confirmed by Yerevan, the Armenian news site Armenpress reported earlier this week that France had already delivered 24 Bastion armored vehicles.

In one of the agreements signed between France and Armenia, the latter is also anticipated to buy three air defense radar systems from Thales, a French defense company. Not just that, the two sides also signed a “letter of intent” on the future delivery of Mistral short-range surface-to-air missiles.

According to France’s Ministry of the Armed Forces, a second contract was for Yerevan to acquire night vision goggles and equipment manufactured by Safran.

A report published in local French media also indicated that France could supply 50 VAB MK3 armored vehicles manufactured by Renault Trucks Defense. It provides armed forces with high-level protection and multi-mission capabilities.

Meanwhile, in 2022, India inked the deal to supply PINAKA multi-barrel rocket launchers (MBRL), anti-tank munitions, and ammunition worth US $250 million to Armenia; it was seen as New Delhi taking a position in the conflict. It was the first export of PINAKA by India.

As previously reported by EurAsian Times, Armenia also contracted to buy India-developed Zen Anti-Drone System (ZADS), which is a Counter Unmanned Aerial System (CUAS).

This would come in handy for Yerevan’s forces, which are often fighting the cutting-edge Turkish drones like the TB2 Bayraktar that Baku has extensively deployed in the conflict.

In a recent statement, President Ilham Aliyev of Azerbaijan issued a warning to France and India, stating that arming Armenia with weaponry he considers dangerous could lead to the outbreak of a new conflict in the region.

Azerbaijan “will have to react to protect its people” should Armenia start receiving “serious installations” from France and India, Aliyev told a conference in Baku, saying he’d already given advance warning to “everybody.

U.S. diplomat visits Azerbaijan as bilateral tensions subside

eurasianet
Dec 8 2023
Dec 8, 2023

On December 6 a top U.S. diplomat made a visit to Azerbaijan against a backdrop of deteriorating relations between the two countries. 

The visit was received positively by Azerbaijani officials and media, but there is no sign that the hunt for "U.S. spies" in the country is about to let up. 

Elsewhere on the same day, President Ilham Aliyev issued a warning to France and India against arming Armenia, saying that doing so increases the chance of more war. 

Aliyev's reception of U.S. Assistant Secretary of State for European and Eurasian Affairs James O'Brien was the first high-level meeting between the two countries since the sides mutually canceled such visits last month over disagreements on Azerbaijan's military offensive in Karabakh in September. 

The sides stressed the importance of the visit "in terms of discussions on various aspects of bilateral relations and the exchange of ideas on regional issues," according to the readout on Aliyev's website. 

"Emphasizing that Azerbaijan supported the regional peace agenda, President Ilham Aliyev said that after the end of the conflict [with Armenia] and full restoration of Azerbaijan's sovereignty [over Karabakh], historic opportunities had arisen for the establishment of peace, noting that the United States could contribute to the process by considering the new realities," the statement read. 

The readout didn't mention the recent U.S.-Azerbaijani tensions, instead noting that the sides "described the resumption of reciprocal visits as a positive step for advancing bilateral relations." 

The State Department said Aliyev and O'Brien "discussed our countries' deep historical ties and the importance of the bilateral relationship." 

On the same day, O'Brien met Azerbaijani Foreign Minister Jeyhun Bayramov. 

O'Brien described his meetings as "positive and constructive" in a post on X. He wrote that the U.S. welcomes visits of Azerbaijani Central Bank governor and energy minister, and that U.S. State Secretary Anthony Blinken "looks forward to hosting" Bayramov and his Armenian counterpart Ararat Mirzoyan in Washington "soon for peace negotiations." 

Previously, in mid-November, Azerbaijan refused to send Bayramov to Washington for peace talks in protest against remarks by O'Brien at a congressional hearing. In that hearing, O'Brien said that the U.S. State Department "has made it clear to Azerbaijan that there cannot be business as usual in our bilateral relationship. The United States has condemned Azerbaijani actions in Nagorno-Karabakh, canceled high-level bilateral meetings and engagements with Azerbaijan, and suspended plans for future events." 

At around the same time, the U.S. Senate passed a bill titled the Armenian Protection Act that would suspend military assistance to Azerbaijan. The bill has not been taken up by the House of Representatives. 

"Looks like Azerbaijan-US relations are back to normal, which is very good as these relations are built over many important areas during the three decades," wrote Farid Shafiyev, chair of a Baku-based state-run think tank, on X. "Or it might face another challenge or spoiler in the US Congress."

While relations might be on a positive trajectory, the spat has resulted in lasting damage to Azerbaijan's small and already beleaguered independent media. 

A campaign in Azerbaijani state-run and pro-government media against American "spies" has been followed by arrests of journalists alleged to be taking U.S. money to do Washington's bidding in Azerbaijan. 

So far, six journalists and one rights activist have been arrested in the country on different charges. 

Abzas Media, a prominent independent investigative outlet, has been the biggest target. Its whole management team was arrested and placed in pretrial detention on smuggling charges after police said they discovered 40,000 euros in cash in a raid of Absaz's Baku office. 

"If we wanted, we would have done it"

A few hours before receiving O'Brien in Baku, Aliyev spoke at a forum in Baku. Responding to a participant's question, he touched on O'Brien's "no business as usual" remark. "Either, they should say that business as usual continues, and I hope to hear it today and we will restore the Washington process, or there'll be only Brussels and Moscow," Aliyev said in English, referring to three of the mediators overseeing the Armenia-Azerbaijan peace process. 

He also addressed widespread fears in Armenia and the international community that Baku might invade its neighbor and rival. "If we wanted, we would have done it. I can say this absolutely openly. From all points of view, it is not a big problem. In one day, they laid down their weapons in Karabakh, our flag was raised in Khankendi," he said. 

At the same time, he touched on recent arms supplies to Armenia by France and India and warned that they could trigger another war in the region. 

"This is provocative. The countries, who supply Armenia with weapons like France and India, now pour oil on the fire and create unrealistic illusions in Armenia that using these weapons they can take back Karabakh," he said. 

"My message to them is don't create a situation here – in the region, when we will be sure that you are planning to damage us. We are not sure yet. That's why we do not react, we observe what France is supplying to Armenia those armored vehicles which nobody wants to buy. They do not pose any danger to us. But if we see that there is some serious installation, which can be harmful, we will have to react. And I informed everybody about that. So, there'll be no complaints."



Turkish Press: Paylan: ‘I hope the joint statement becomes a milestone for the path to peace’

BIAnet, Turkey
Dec 8 2023
Garo Paylan, commenting on the joint statement made by Armenia and Azerbaijan, called on everyone to take responsibility for lasting peace between the two countries.

Armenia and Azerbaijan issued a joint statement without intermediaries for the first time yesterday (December 7) since the beginning of the Karabakh conflict in September.

Garo Paylan, former MP from the People's Democratic Party (HDP) in Diyarbakır and an Armenian in Turkey, commented on this joint statement made by Armenia and Azerbaijan, including the mutual release of prisoners.

Paylan's statement on the matter from his Twitter account is as follows:

"Great news! I hope the joint statement by Armenia and Azerbaijan heralding the mutual release of prisoners becomes a milestone on the path to peace. The road to peace will open with such confidence-building steps. Let's all take responsibility together for a lasting peace."

The joint statement made by Armenia and Azerbaijan reads: 

“The Republic of Armenia and the Republic of Azerbaijan share the view that there is a historical chance to achieve a long-awaited peace in the region." 

"The two countries reconfirm their intention to normalise relations and to reach the peace treaty on the basis of respect for the principles of sovereignty and territorial integrity."

As part of the agreement reached between two countries, Azerbaijan released 32 Armenian soldiers in exchange for two Azerbaijani soldiers “as driven by values of humanism and as a gesture of goodwill.”

The joint statement also says that “the Republic of Armenia supports the bid of the Republic of Azerbaijan to host the 29th Session of the Conference of Parties (COP29) to the UN Framework Convention on Climate Change, by withdrawing its own candidacy." 

Again according to the statement, Azerbaijan supports Armenia's candidacy for membership in the Eastern European Group of the Committee on Political Affairs and Security (COP) of the Council of Europe as a sign of goodwill. (TY/PE)

https://bianet.org/haber/top-court-invalidates-legal-provision-on-committing-crimes-on-behalf-of-a-criminal-organization-289023

Armenia ponders risks and rewards as sanctions loom on Russian diamonds

eurasianet
Dec 8 2023
Arshaluis Mgdesyan Dec 8, 2023

The EU appears set on including prohibitions on the sale of Russian diamonds in its upcoming 12th package of sanctions against Moscow over its invasion of Ukraine. 

The move, aimed at exerting pressure on Russia's economy and depriving it of financial resources to wage its war, is certain to have an effect on Armenia's important and growing diamond-cutting industry. 

Whether that effect is negative or positive will depend on how the EU will manage the difficult task of tracing cut diamonds to their rough origins in Russia's mines. 

Helpful or harmful?

The proposed sanctions, adopted by the European Commission and awaiting approval from the EU's 27 member states, will apply to diamonds of Russian origin that are cut in third countries, according to the AFP, which viewed a copy of the document.

Starting January 1, the ban would apply to "non-industrial natural and synthetic diamonds as well as diamond jewellery" while the import ban on Russian diamonds cut or polished in third countries would be phased in between March and September, AFP said.

The bans will affect Armenia's diamond-cutting industry, which gets a large proportion of its raw gems from Russia. They are purchased by the Armenian state company Hay-Almast, which was established in 2021 chiefly to enable bulk procurements from Russia's Alrosa, which is one of the world's largest suppliers of rough diamonds. 

"The whole idea behind creating Hay-Almast was to consolidate domestic demand and procurement of Russian rough diamonds, as Alrosa doesn't do small orders," said Hay-Almast director Tigran Khachatryan. 

Khachatryan told Eurasianet that EU sanctions would definitely have an impact on Armenia's diamond-cutting industry, but he found it difficult to speculate how.

At first glance it's hard to imagine that impact being anything other than harmful, since, according to Khachatryan, Hay-Almast buys 30-40 percent of its rough diamonds from Russia (the rest coming from various other countries, including in Africa).

Armenia's diamond-cutting industry has grown by leaps and bounds in recent years, attracting major foreign investors like India's KGK Diamonds. And with that growth has come a growing need for Russian raw diamonds. 

Armenia's total export of cut diamonds in 2022 totalled $418 million according to Armenian Customs Service statistics. That's four times the number for 2021. Growth has continued this year, though not quite at the same pace: $240 million of cut diamonds were sold in the first six months of 2023. (Cut diamonds ranked third among Armenia's exports for that period, coming in behind gold at $281 million and re-exported cars at $311 million.)

But some are pinning hopes on the prospect that Armenian diamonds of Russian origin will not be identified as such. 

"The new EU sanctions could have various kinds of effects on the Armenian diamond industry," a source in the Armenian government told Eurasianet on condition of anonymity. 

"The whole issue is how strictly the movements of Russian rough diamonds around the world will be monitored and how it will be determined whether a diamond cut in Armenia or some other country is of Russian origin or not."

In this context, the export/re-export supply chain will be a factor. Most Armenian cut diamonds of Russian origin are first sold to the United Arab Emirates and then find their way around the world from there.  

Banking on re-exports

Armenia has already seen economic growth from booming re-exports over the last two years.

Since the start of Russia's full-scale invasion of Ukraine early last year, Armenia's trade with Russia has grown severalfold thanks precisely to re-exports of goods like cars and household items that Western producers had supplied directly to Russia before the war. 

Finance Minister Vahe Hovhannisyan recently acknowledged the central role played by re-export in the overall structure of Armenia-Russia trade. He said that while exports to Russia were up 215 percent for the first half of 2023 compared to the same period last year, re-export accounted for 187 percentage points of this growth while exports of Armenian products accounted for just 28 percentage points. 

Sanctions enforcement difficulties

As the AFP noted, the origin of diamonds can easily be obscured by mixing them with stones from other sources. And they change weight and appearance as they are cut and polished. 

This, coupled with the gems' small size, means it will be exceedingly difficult to enforce sanctions against their circulation. 

In the absence of a sophisticated tracking system, a diamond that is mined in Russia, cut and polished in Armenia, and exported to the UAE will be hard to trace to its origin, experts say.

So if, as seems likely, enforcement is weak, it's possible to imagine a boon for the Armenian diamond-cutting industry. As other markets close to Russian rough diamonds, more of them could enter Armenia, whose exports of cut diamonds would consequently go up. 

One could imagine this developing into a scheme resembling the one under which India purchases Russian oil, refines it, and then sells the resulting fuels onward to Europe.  

"Purely theoretically, we could see a growth in supplies of Russian rough diamonds to Armenia for processing and sale to other countries. But we must be careful, as this could be seen as another attempt by Armenia to help Russia evade sanctions," economist Armen Ktoyan said in an interview with Eurasianet. 

Ktoyan further noted that, while the diamond processing industry is showing impressive growth, Armenian businesses are not seeing much of the profit. 

"Most of the profit goes to international companies involved in moving and selling this product on global markets. So one should think long and hard before betting on growth in the inflow of Russian rough diamonds and making new investments in this sphere," he said. 

Mitigating risks

Meanwhile some in Armenia are focused on the risks posed by the sanctions and see a need to diversify the country's rough diamond importers. Doing so would protect the diamond-cutting industry from a rapid decline should there at some point be a total (and enforceable) ban on Russian rough diamonds. 

The industry already experienced a sharp drop in raw materials in the mid-2000s. At that time production and exports took a dive both because of stronger global competition and because of a strengthening of the Armenian currency, the dram, against the dollar and euro, which drove up the cost of exports

Tigran Khachatryan, the director of the state raw diamond procurement company, says Hay-Almast has been talking for several months now with a potential new supplier. 

He refused to say who it is but expressed optimism that a deal will be reached. 

"We are halfway there in our talks with the new supplier. We hope to have a result soon," he said. 

Arshaluis Mgdesyan is a journalist based in Yerevan.

Turkish Press: Armenia can become Switzerland of region, business association deputy head says

Duvar, Turkey
Dec 8 2023

Vercihan Ziflioğlu / Gazete Duvar

One of the figures that try to improve the relations between Turkey and Armenia is the Turkish–Armenian Business Development Council (TABDC) Deputy Chair Noyan Soyak. 

In an interview, Soyak told Gazete Duvar that Armenia has the potential to become the “Switzerland of the region” if it seizes the opportunities, and said, “30 years were wasted with wrong policies. I hope they will make better use of their geographical advantages from now on.”

The general understanding in Turkey is that the period of Armenia's first President Levon Ter-Petrosyan was a missed opportunity for the relations between two countries. In the current period, all eyes are on the policies that will be implemented by the country's young Prime Minister Nikol Pashinyan, who came to power with the “Velvet Revolution” in 2018. Ankara follows the developments closely.

The 'football diplomacy', for which great hope was placed in 2008, could not achieve any results. The bilateral relations between Turkey and Armenia have not been improving. 

On the other hand, contacts have been made in social, cultural and economic contexts. Non-governmental organizations and businesspeople continue their contacts without slowing down.

Below are the questions asked by Gazete Duvar and Soyak’s answers:

What do you think is the course of Turkey-Armenia relations? Have you ever felt like you were trying to navigate a difficult path?

Turkish-Armenian relations are an interactive relationship. Standard solutions do not work. Various obstacles may arise along the path. For example, just when you say everything is going well, a country brings the genocide bill to its agenda. Or suddenly a heated statement regarding Turkey comes to the fore in the Armenian public. As a result, the process is disrupted.

Is it possible to briefly explain how you got involved in this process?

I can say that we got involved by chance. As a company, we were doing maritime transportation. I lived in Moscow for about four years. Then I settled in the USA. We continued our business there as a company. Again, we won tenders to transport humanitarian aid to Central Asia and the Caucasus by sea. We were also carrying aid to Armenia.

One of our partners was an Armenia national. I was invited to Armenia during the term of President Levon Ter-Petrosyan. At first I seriously hesitated whether to go or not. Armenia was a closed box for me. Our partner Arsen Ghazaryan convinced me. I went for the first time in 1996.

In fact, the idea of establishing relations with Turkey belonged to Levon Ter-Petrosyan's brother, the late Telman Ter-Petrosyan. He very much wanted bilateral relations to improve. At that time, the President of Turkey was Süleyman Demirel, and (Telman) said that they also met with him. Then we started thinking about what we could do with my partner Ghazaryan.

How did Demirel approach the process in those years? What path did you follow?

We met with Demirel and he gave us the green light. Likewise, discussions were held with the Turkish Armed Forces. We saw that there was no obstacle and we started. First of all, the issue of establishing a common platform between the two countries came to the agenda. The platform in question was the Black Sea Economic Cooperation. We had difficulty finding a name for ourselves within the union. It had to be a soft and innocent title. That's why we chose the business development concept. 

In the first stage, we brought together Turkish and Armenian businesspeople who do business through Georgian merchants. Then they started doing business without intermediaries. Cultural activities followed. On the 1700th anniversary of Armenians accepting Christianity as the official religion, we took a quartet from the Turkish Presidential Symphony Orchestra to Yerevan, where they played Khachaturian.

The general judgment in Turkey is that an opportunity was missed during the Levon Ter-Petrosyan period to re-establish bilateral relations. Do you agree with this? Is it really possible to establish such sensitive relations between two countries through cultural activities? Does public diplomacy really produce results when we look at all these contexts?

Of course. The Levon Ter-Petrosyan era was a missed opportunity. If progress had been made at that time, the process would have been different from today. But Petrosyan had to resign from his post. Therefore, the process froze. Of course, things won't work with cultural activities. These are only for infrastructure, that is, 'public diplomacy.'

What would you like to say when you look back? Since we cannot change the location of countries geographically, what should we do?

Today, Armenian Prime Minister Pashinyan is trying to implement what I tried to say 20 years ago. He announced a 'peace initiative' project.

You are right, we can neither take Armenia geographically and move it to another point, nor Turkey. We will live together as two neighboring countries, so we need to establish bilateral relations and also ensure economic integration.

While energy lines and transportation routes can be connected to Turkey via Armenia with an extremely easy route, it is drawn a curve through third countries. What would you like to say about this?

The lines coming out of Caspian draw a huge curve and increase the cost. It bypasses Armenia and connects via Georgia. So why do we have to draw an upward curve instead of passing a straight line through Armenia and extending it to the west?

Armenia has the potential to become the Switzerland of the region if it seizes the opportunities. 30 years were wasted with wrong policies. I hope they will make better use of their geographical advantages from now on.

As a businessperson who knows Armenia closely, where do you think mistakes were made?

Thousands of people died on both sides in the Karabakh conflict between Azerbaijan and Armenia in 2020. Since Armenia is a Christian country, it called for help from the West. This is a deeply flawed argument. Why would the West send aid just because it is a Christian country? What will they benefit from this? They need to think. If the gas pipes burning in the furnace of a man in France or Germany pass through Armenia, or if the internet of a man in Kazakhstan is connected through Armenia, then of course there will be concern on the other side.

How do you evaluate the Armenia policies during the AKP government in Turkey? After all, we are talking about a 21-year period.

We have been in this process for 26 years. The AKP has been in power for 21 years. Therefore, it is possible to say that a relaxed and conciliatory policy was followed until 2013. But at this point, the problems are still not solved.

Do you have contacts with Armenian Prime Minister Pashinyan during this process?

We are on hold for now, we have no contact. In principle, we follow and support his statements.

When we look at it from a professional perspective, there is a concern for Turkey in the Armenian market. It is thought that if the borders are opened, the economy will be taken over. What do you think about this? Is there really such a 'danger'?

I strongly disagree. I often encounter similar questions during my contacts in Armenia. I would like to give an example. During the years when Turkey joined the Customs Union, we were worried about European goods dominating the market. Maybe production slowed down at first, but Turkish businesspeople developed different models. For example, the export item changed from textile to automotive. The same things will probably happen in Armenia. If they start production and develop different policies, they will see that their fears are unfounded.

What do you think will happen when the borders open?

If you leave Iğdır when everything is fine, you can reach Yerevan in an hour. You start doing business together. The closest shoe factory to Kars is in Gaziantep, and once the borders open, it will be Gyumri. On the Armenian side, wheat grows in a small area. It has to be bought from Russia. Therefore, it can buy wheat from Turkey.

(English version by Alperen Şen)

https://www.duvarenglish.com/armenia-can-become-switzerland-of-region-business-association-deputy-head-says-news-63461

Soviet Mainframes To Silicon Mountains: Armenia As A Tech Powerhouse

Forbes
Dec 8 2023

Armenia shot from relative obscurity to global prominence recently over tensions with neighboring Azerbaijan. But there is another reason to pay attention to this rugged, mountainous country: it’s fast evolving tech sector.

It has emerged as a tech powerhouse with the presence of global players and a vibrant startup ecosystem. And while the country remains politically close to Russia and Iran as a counterbalance to hostile neighbors on the west (Turkey) and the east (Azerbaijan), it’s private sector remains firmly fixed on the West, particularly the United States with its near million-strong Armenian diaspora.

“We consider ourselves a network nation,” said Rem Darbinyan, founder of a startup called Viral Mango, which matches brands to influencers around the world. “We have generations of Armenians living overseas.”

In October, Adobe CEO Shantanu Narayen was in the vibrant capital Yereven to speak at the country’s Silicon Mountains conference and open a new Adobe building. Across town, dozens of startups displayed their innovations at the annual Digitec expo. Already, the small, landlocked country has produced one unicorn (Picsart) with more on the way.

With the snowcapped summit of distant Mount Ararat – the Armenian national symbol that rises across the border in Turkey – visible on clear days, Yerevan is filled with sophisticated restaurants crowded with tables of young tech entrepreneurs drinking apricot brandy and eating platters of stuffed grape leaves as they discuss the latest innovations.

Various indexes show Armenia as the emerging tech powerhouse of the Southern Caucasus region, a legacy of its role as one of the Soviet Union’s top technology centers – the USSR’s first general-purpose computers were developed there in the early 1960s

That history faltered during the breakup of the Union and the subsequent war with Azerbaijan to define Armenia’s national borders – a conflict that continues to reverberate today. But, Armenia recovered and has drawn on the success of its diaspora in the United States to become one of the strongest economies in the region.

People like Noubar Afeyan, co-founder of biotechnology powerhouse Moderna, Alexis Ohanian, co-founder of Reddit and Avie Tevanian, former CTO of Apple and creator of the macOS operating system, have all remained connected to the country.

Following its independence in 1991, Armenia began developing as a behind-the-scenes builder of software for Western companies, many founded by Armenians. But gradually, it has climbed the value chain to produce products of its own.

That trend only accelerated with the outbreak of Russia’s war with Ukraine which drove companies from both countries to relocate to Yerevan. The subsequent influx of capital drove up the Armenian dram against the dollar, hurting the competitiveness of the country’s outsource industry. Meanwhile, a small venture capital industry coalesced to fund tech development and today startups can raise as much as $1 million domestically before turning to VCs abroad.

Consequently, the country’s economy is booming – with projected 7 percent growth this year, according to the International Monetary Fund, making it the fastest growing economy in the region.

Many places in the world have developed technology hubs and startup ecosystems, but for Armenia it’s a matter of survival.

“The future of Armenian economic development in science-based, high-margin products,” the country’s minister of high-tech industry, Robert Khachatryan, told Forbes. He explained that because the country is landlocked, logistics costs mean it cannot export physical goods at competitive prices.

The tech industry is now the country’s the fastest-growing sector, expanding by more than 30 percent in 2023, surpassing resource extraction and agriculture as the primary drivers of the economy. And it is drawing foreign investment. Besides Adobe, many of the world’s most powerful technology firms have set up shop there, including Microsoft, Google, IBM and Cisco.

Artificial intelligence, of course, is the hot technology on offer. Picsart, a photo and video editing platform launched in 2011, has a team of data scientists building the company’s own generative AI foundation model. Krisp, a more recent startup, uses artificial intelligence to change the accents of Filipino and Indian English speakers in real time into plain midwestern U.S. pronunciation – a product it markets to call centers serving North America.

At the DigiTec expo, dozens of startups displayed their AI wares, from Viral Mango with a platform that matches influencers to brands, to Orders.co whose AI software, at the touch of a button, creates interactive menus for restaurants who want to integrate with food delivery services.

Armenia was late getting on the AI bandwagon but is catching up fast. While the country’s university system was strong on math, there were few machine-learning faculty available to guide students in 2016, when machine learning was already sweeping computer-science departments in the west. Hrant Khachatrian, a young researcher, and four friends rented an apartment in the capital and huddled around a single GPU to start exploring on their own.

The community and number GPUs grew into one of Armenia’s first AI labs: YerevaNN. By 2019 YerevaNN was publishing papers in top AI conferences, including Computer Vision and Pattern Recognition Conference (CVPR).

Universities began catching up, establishing graduate programs in AI. Today, Khachatrian is working with Yerevan State University to fold YerevaNN into a new AI lab being set up by the university, finally giving students there a place to conduct research.

The AI research community in Armenia has grown to over 600 people. However, a lack of compute resources threatens its competitiveness. GPUs are hard to come by and expensive when they are available.

That’s where the private sector comes in. Venture capital and Western connections among the country’s entrepreneurs are helping startups build products despite the hardware constraints.

"We now have venture funds in Armenia,” said Narek Vardanyan, CEO of Prelaunch.com, a validation platform creators can use to gauge market demand for their products before developing them. “Previously, Armenian companies had to go to Silicon Valley, for early-stage funding, we can raise $2 million to $3 million with Armenian funds."

The community is also focused on building human capital with private initiatives such as Armath (a contraction of Armenia and Math), sponsored by the Union of Advanced Technology Enterprises (UATE), which runs engineering labs across Armenia for students as young as 10.

At a village school in the countryside north of Yerevan, bright-eyed middle-school students gather in a classroom to demonstrate their projects – one, a shoebox-sized ‘smart home,’ with a keypad lock, smoke detector and automated lighting cobbled together with sensors, LED lights and bits of wire. Along a windowsill, a row of potted plants are fed by a student-built automatic irrigation system. The students, meanwhile, work at monitors attached to pocket-sized Rasberry Pi computers.

“In Armath, everything is open source and it’s all project-based learning," explained Arevik Hovhannisyan, a teacher. "The goal is to have the kids understand the basics of engineering, and maybe decide to become an engineer."

Armath works as a public-private partnership – companies sponsor the labs, which are then donated to schools where local government pays for their operation. So far, UATE has established more than 650 labs across Armenia and exported the model to several other countries.

In the far north of the country, sandwiched between steep mountain slopes, students at another program gather in the evening for folk dances and to show off their projects. This is Real School, another UATE initiative, a four-year vocational program for high schoolers, giving them hands on experience building technology solutions.

Back in the capital, kids 12 to 18 can attend TUMO, an extracurricular bootcamp where they learn to program and build software. The interior feels more like a well-funded tech company than a school, with custom-designed workstations on wheels and a carpeted, amphitheater-style meeting place. “We show them that everything can be created by them on their own,” said Zara Budaghyan, a TUMO graduate herself.

Another initiative, AI Generation, hopes to embed machine-learning education in high schools across the country. Initially funded by Moderna cofounder Noubar Afeyan, AI Generation already has hundreds of students enrolled in high schools in 16 cities hoping to develop artificial intelligence researchers and engineers.

“We want to show Armenian tech ecosystem on the map of like world market,” said Sargis Karapetyan, a tech entrepreneur and UATE’s interim CEO, adding that the country needs more outside capital. “Another target are people who are looking to open branches in Armenia, to expand and find good talent.”

Craig S. Smith is a former correspondent and executive at The New York Times. He is host of the podcast Eye on A.I. 

https://www.forbes.com/sites/craigsmith/2023/12/08/soviet-mainframes-to-silicon-mountains-armenia-as-a-tech-powerhouse/?sh=7082ce4734aa

Azerbaijan eyes up COP29 climate talks with Armenian agreement, Russian backing

Dec 8 2023
Azerbaijan needs approval from the UN eastern Europe regional group in order for it's bid to be successful.

Azerbaijan is tipped to host next year's UN climate summit, after striking a late deal with longtime adversary Armenia over its bid.

Diplomatic sources told Reuters the Azeri bid looked set to win support from other nations, though the issue is still being negotiated at the COP28 climate summit in Dubai.

The decision over who will take over from current COP28 host, the United Arab Emirates, has been in an unprecedented geopolitical deadlock, after Russia said it would veto any European Union country's bid to host. The EU has sanctioned Moscow over its invasion of Ukraine.

Azerbaijan confirmed late on Thursday it had struck a deal with Armenia that allows Baku to bid to host the COP29 talks without the threat of an Armenian veto.

The choice of a COP host needs support from all countries in the UN eastern Europe regional group.

"We received particular support from most of the countries [in the eastern European group]. Russia has also supported our bid," Azerbaijan's Ministry of Foreign Affairs spokesperson Aykhan Hajizada said on Friday.

A representative for Russia's delegation at COP28 declined to comment. Russia's Energy Ministry did not immediately respond to a request for comment.

Armenia agreed to back Azerbaijan's COP hosting bid in exchange for membership of the eastern European group's COP bureau.

The two Caucasian countries have been in conflict for decades, most notably over the region of Nagorno-Karabakh, internationally recognised as part of Azerbaijan but largely populated and controlled by ethnic Armenians. The region had been controlled by its ethnic Armenian majority until it was recaptured by Azerbaijan in September.

Diplomatic sources at COP28 told Reuters other eastern European countries are expected to back Baku's bid to host – even though Moldova had also made a bid and Serbia was mulling one.

Diplomats are racing to find a deal before COP28's scheduled end on 12 December.

The deadlock over the host has left next year's COP29 summit host with little time to prepare for the massive gathering – which can bring its host nation diplomatic prestige, as well as heavy scrutiny over its own record in fighting climate change.

Azerbaijan is an oil and gas producer and a member of OPEC+.

The United Arab Emirates has faced criticism for appointing Sultan al-Jaber, the head of its state-run oil company ADNOC, as president of this year's COP28 summit.

Some delegates at COP28 have raised concerns about holding the world's climate negotiations in an oil producer for a second year running.

"I do understand these concerns," Hajizada said.

"Despite the fact that Azerbaijan is rich in oil and gas, Azerbaijan's strategic goals are the diversification of energy, resources, especially applied to wind and solar energy," he said. 

(Reuters)


New Battleground for Antisemitism in Yerushalayim: Armenians’ Support for Palestinians

Dec 7 2023

The war that Israel is waging against the Hamas terror group gradually exposes its enemies, who until now have been sitting on the sidelines. However, as war goes on, it seems that those hostile countries are projecting poison and hatred towards Israel and the Jews.

One of those countries is Armenia, which in recent years has been involved in conflict with Azerbaijan, a country that has Israel’s support and maintains warm and staunch relations with Israel.

The story has no apparent connection to the war.

Several years ago, a 99-year lease agreement was signed for the development of a new luxury hotel in the Armenian quarter in Yerushalayim. A court hearing was recently held regarding the land and parking lot in the Yerushalayim court. The total area is approximately 11.5 dunams [1.15 hectares], which includes a parking lot.

The land was in possession of the Armenian Patriarchate and it was claimed to be a trust for the whole Armenian community. Several members of the community who were angry about this development filed a lawsuit, claiming that they would have to pay hundreds of shekels a month for parking. At the same time, according to a report by Al Jazeera, several Armenians claimed that the property offered for real estate development was allegedly stolen from them by a group of “settlers,” and that the State of Israel wants to expropriate the land in order to expel the Armenians from Yerushalayim. They even called it the State of Israel’s “ethnic cleansing” of non-Jews.

If that is not enough, it seems as though there were several members of the Armenian community under pressure from the Palestinians, who began initiating incitement in the global media, echoing pro-Palestinian claims against Israel, and presenting the real estate matter as proof, alleging that Israel wants to appropriate from them and dispossess Israeli land from non-Jews, even though anyone with a little common sense and who is not rabidly antisemitic, understands that there is no connection between this transaction and the current war.

There may be a financial dispute involving the plot, but there is definitely no place to turn the story into an attempt to ethnically cleanse Israel of other nationalities, and whoever makes such a connection, as has been done in several media outlets around the world, is making unsubstantiated claims to incite antisemitism.

The background to the Armenian unrest is probably due to the close, friendly relations between Israel and Azerbaijan, and Israel’s support for the Azerbaijanis in the context of the dispute over Karabakh, which has just recently returned to Azerbaijani control. The anger in the Arab world towards what Israel is doing in Gaza also gives license to aggressively attack Israel, so that everyone can make false claims that have nothing to do with the reality.

Proof that Armenia has recently come out against Israel and the Jewish world, does not only stem from the current story, but also from reports over the past month of the two attacks on the last synagogue in Armenia, where the perpetrators openly admitted that their actions were due to Israel’s support for Azerbaijan. To cover up for their actions, they claimed that they also acted in solidarity with and support for the Palestinians and the Lebanese.

Either way, the Palestinian pressure and desire to avenge Israel has resulted in savage incitement against Israel in several international media outlets, where the ludicrous claims of stealing land and ethnic cleansing are broadcast without any denial or offering an Israeli response.

Deputy Minster of Transport and Road Safety Rabbi Uri Maklev responded by saying, “We are sorry that a property dispute and the development of Yerushalayim is being used during these difficult times for Israel and the Jewish nation as a whole, as fuel to kindle fire in Yerushalayim and, chalilah, for and struggle between countries. Unfortunately we see over and over again that the pro-Palestinians attempt to light the fire with baseless antisemitic accusations. This is a danger to Yerushalayim and gives rise to disastrous consequences for the fabric of interreligious relations. We expect the Armenian leadership to come to their senses and to protect the local Jewish community exactly as Israel allows freedom of religion for all religions across the country.”

https://hamodia.com/2023/12/07/new-battleground-for-antisemitism-in-yerushalayim-armenians-support-for-palestinians/

Armenia, Azerbaijan agree to exchange POWs, take steps on normalising ties

France 24
Dec 7 2023

Arch-foes Armenia and Azerbaijan said Thursday they would exchange prisoners of war and work towards normalising their relations, in a joint statement hailed by the EU as a "breakthrough".

The Caucasus neighbours have been locked in a decades-long conflict over the Nagorno-Karabakh region, which Azerbaijan reclaimed after a lightning offensive against Armenian separatists in September.

Both countries have said a peace agreement could be signed by the end of the year, but peace talks — mediated separately by the European Union, the United States and Russia — have seen little progress.

On Thursday, the two sides agreed in a joint statement to seize "a historical chance to achieve a long-awaited peace in the region".

"The two countries reconfirm their intention to normalize relations and to reach the peace treaty on the basis of respect for the principles of sovereignty and territorial integrity," the statement said.

Baku will free 32 Armenian prisoners of war, while Yerevan will release two Azerbaijani servicemen, according to the statement.

The two countries also said they "will continue their discussions regarding the implementation of more confidence building measures, effective in the near future and call on the international community to support their efforts".

The agreements were reached during talks between the office of Armenia's Prime Minister Nikol Pashinyan and the administration of the President of Azerbaijan Ilham Aliyev.

Armenia's foreign ministry said Yerevan had "responded positively to the offer of US Secretary of State Antony Blinken to organise the meeting of the Foreign Ministers of Armenia and Azerbaijan in Washington".

EU Council President Charles Michel praised the statement Thursday in a post on social media, calling it a "key step".

"Delighted to welcome a major breakthrough in Armenia-Azerbaijan relations as they issue a joint statement," he said.

Aliyev and Pashinyan have met on several occasions for normalisation talks mediated by the European Union.

But the process has stalled over the last two months as two rounds of negotiations failed to take place.

Azerbaijan refused to participate in talks with Armenia that were planned in the United States on November 20, over what it said was Washington's "biased" position.

In October, Aliyev declined to attend a round of negotiations with Pashinyan in Spain, that time accusing France of bias.

French President Emmanuel Macron and German Chancellor Olaf Scholz had been scheduled to join Michel as mediators at those talks.

So far, there has been no visible progress in EU efforts to organise a fresh round of negotiations.

The traditional regional power broker Russia — bogged down in its Ukraine war — has seen its influence wane in the Caucasus. 

Aliyev sent troops to Karabakh on September 19, and after just one day of fighting, Armenian separatist forces that had controlled the disputed region for three decades laid down arms and agreed to reintegrate with Baku.

Over the following days, almost the entire Armenian population of the mountainous enclave — more than 100,000 people — fled Karabakh for Armenia, sparking a refugee crisis.

Azerbaijan's victory marked the end of the territorial dispute, which saw Azerbaijan and Armenia fight two wars — in 2020 and the 1990s — that have claimed tens of thousands of lives from both sides.

(AFP)


Defense Threat Reduction Agency supported Workshop on Cross Border Cooperation Between Armenia and Georgia

U.S. Department of State
Dec 8 2023

The US Defense Threat Reduction Agency (DTRA) supported the 2nd Armenia-Georgia Cross Border Cooperation workshop on veterinary practices, held in Yerevan on December 6-7, 2023. This event brought together key Armenian figures from the Ministry of Economy and Food Safety Inspection Body (FSIB), alongside their Georgian counterparts from the National Food Agency and State Laboratory of Agriculture. Building on the success of the inaugural workshop in Tbilisi, Georgia, in 2022, the event fostered collaboration and knowledge exchange.

 The workshop aimed to delve into the current veterinary programs in both countries, addressing crucial topics such as animal identification, registration, and traceability systems. Furthermore, it explored avenues for joint capacity building and experience sharing. The Georgian experts toured the Republican Veterinary-Sanitary and Phytosanitary Center of Laboratory Services of FSIB. Culminating in signing a Memorandum of Understanding, participants affirmed their commitment to enhancing cooperation in the veterinary sector between two countries.