Category: News

ARMENIA THIS WEEK
Friday, March 19, 2004

PRESIDENT PROMISES CRACKDOWN ON CORRUPTION
President Robert Kocharian this week criticized Armenia’s law-enforcement
bodies for not being “active and resolute” enough in fighting crime and
corruption. The criticism came as Kocharian appointed his close ally Aghvan
Hovsepian as Prosecutor-General, the position he held between 1998-99 before
being forced to resign by Kocharian’s political opponents. Kocharian said
that he expects the law-enforcement bodies to follow through in
investigating corrupt practice revealed by the Presidential Oversight
Service.

Earlier in the week, head of the Service Vahram Barseghian publicized
results of 2003 inspections, revealing abuse of office and misappropriations
of public property by the customs, transportation, justice and local
government officials. Barseghian particularly singled out the Mayor of
Gyumri Vartan Ghoukasian, who is accused of misappropriating apartments
built for earthquake victims. Ghoukasian, who was one of Kocharian’s key
backers in the last elections, is now facing potential criminal charges and,
if convicted, would be removed from the post. Already dismissed is head of
Armenia’s forest administration, also accused of corruption.

Last November, Armenia’s three-party coalition government adopted an
anti-corruption program and the officials have repeatedly pledged to fight
the problem. While organizations such as Transparency International have
noted some headway against corruption in Armenia during Kocharian’s first
term, much of the Armenian public remains skeptical.

According to a recent poll conducted by the U.S.-funded International
Foundation for Electoral Systems (IFES), a full 44 percent of 600 people
contacted in Yerevan, Vanadzor, Ararat and Goris never heard of the
government’s anti-corruption plan, while 74 percent were unaware of its
content. Half of those polled did not view the plan as confirmation of the
government’s intention to fight corruption. (Sources: Armenia This Week
10-25, 11-22-02; 6-27, 10-10, 11-7; Arminfo 3-3, 18; RFE/RL Armenia Report
3-12, 18; Noyan Tapan 3-19)

GEORGIA, AJARIA STEP BACK FROM BRINK
The central government of Georgia and authoritarian leadership of the
Ajarian autonomous republic this week came to the brink of armed conflict
before striking a new power-sharing deal. The standoff had immediate
repercussions throughout the region, with Ajaria’s Batumi port virtually
shut down for days and traffic rerouted through Georgia’s only other port of
Poti. Georgian President Mikheil Saakashvili ordered a blockade of Ajaria
and both sides mobilized forces after Saakashvili and his security retinue
were barred from entering the republic by local police loyal to Ajarian
leader Aslan Abashidze. Saakashvili and Abashidze have been at loggerheads
for some time, and pro-Saakashvili forces in Ajaria have in recent months
intensified campaigning for Abashidze’s ouster.

While Armenian companies mostly use the port of Poti for their import and
export operations, Batumi’s long-term closure could have potentially
overloaded Poti leading to delays and price increases, especially on
gasoline. The Armenian government publicly urged both sides to settle their
differences peacefully earlier this week. In the meantime, Armenian
companies rerouted shipments of diesel fuel from Ukraine, while another ship
with Armenia-bound sugar was stranded in the port of Batumi.

In a deal described as a “temporary truce” by most observers, Abashidze
reportedly promised Saakashvili to stop pressuring opponents in the run-up
to parliamentary elections next week and share more of the profits from the
Batumi port and border crossing with Turkey. The deal came following intense
diplomatic pressure from Russia, Turkey and the United States to avoid an
armed confrontation.

Abashidze, who has ruled the ethnically Georgian and traditionally Muslim
Ajaria as his fiefdom for over a decade, has close relationships in both
Russia and Turkey. There is a Russian base in Ajaria and Turkish officials
have claimed that under Soviet-Turkish treaties Turkey has a right to
intervene in Ajaria (as well as Nakhichevan). But both Georgian officials
and most legal scholars deny that Turkey has any such right. (Sources:
; RFE/RL 3-15, 16; Interfax 3-15, 17; Arminfo 3-15, 17;
RFE/RL Armenia Report 3-16, 17; Eurasia.net 3-18; Ekho 3-19)

KARABAKH HOSTS CHESS TOURNAMENT
A first major international sporting event concluded this week in
Stepanakert amid largely unsuccessful efforts by Azerbaijan to undermine it.
The Tigran Petrosian memorial tournament brought together some of the
strongest chess players from Armenia, Latvia, Georgia, Iran, Poland, Russia
and Switzerland. Petrosian, an Armenia native, was the world champion for
much of the 1960s, before being defeated by Boris Spassky. Spassky, now a
French national and retired from the game, was the guest of honor at the
Stepanakert tournament.

Chairman of the International Chess Federation, FIDE, Kirsan Ilyumzhinov
sent a letter welcoming the competition as contributing to the “unique
Armenian chess culture.” One of the world’s strongest chess players, Garry
Kasparov, welcomed the selection of Stepanakert as the site for the
tournament as another confirmation that Karabakh has overcome the difficult
post-war legacy. Kasparov, who is an ethnic Armenian on his mother’s side,
was forced to flee anti-Armenian violence in his native Baku in 1990.

The Azerbaijani government put pressure on chess federations of
participating nationals to recall their players and judges, claiming that
their participation was “illegal.” Two players, a Georgian and Iranian were
forced to withdraw towards the end of the tournament, which Spassky
described as a “real chess holiday.”

In the end, Armenia’s Karen Asriyan narrowly won the hard-fought series with
six out of nine possible points. Bartlomiej Macieja of Poland was a close
second with 5.5 points and Gabriel Sargsian of Armenia was third with 5
points. (Sources: ; Azat Artsakh 3-8, 10; RFE/RL Armenia
Report 3-9; Turan 3-10; Day.az 3-12; Artsakh TV 3-18; Ekho 3-19; Noyan Tapan
3-19)

A WEEKLY NEWSLETTER PUBLISHED BY THE ARMENIAN ASSEMBLY OF AMERICA
122 C Street, N.W., Suite 350, Washington, D.C. 20001 (202) 393-3434 FAX
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Melkonian students threatened with expulsion

Phileleftheros daily – Friday, March 18, 2004

By Christina Kyriakidou

NICOSIA – Melkonian students are facing the risk of being expelled,
according to Masis der Parthogh, the vice president of the school’s
Alumni Association.

In statements he made to this newspaper, Mr. der Parthogh argued that
officials of the Armenian General Benevolent Union based in New York,
have sent warning messages that they would expel any school children
who take part in any activities or demonstrations opposed to the
Melkonian’s closure.

The same students, however, seem fearless of any repercussions as
yesterday and the day before they stayed away from classes.
Furthermore, they are getting ready to take part in a large
demonstration on Wednesday organized by the Alumni and the Parents
Association. As said by the vice president of the Alumni, whose
daughter is also a student at the school, the children have lost their
will to attend classes, as they know that in fifteen months’ time,
their school will be shut down. He added, however, that the Armenian
community of Cyprus will not give up so easily and is resorting to use
every legal means possible to overturn the decision made by the AGBU a
few days ago.

Meanwhile, according to our information, the Alumni Association
recently sent a letter to the Presidential Palace, protesting the fact
that the agency that is handling the public relations for AGBU, has
strong ties to a leading political state official.

As reported earlier, the Union’s decision is to terminate the
Melkonian’s operations in June 2005, with the excuse that “the
educational institute no longer corresponds to the challenges within
the parameters of the present day mission of the Armenian people.”

Also, one of the rumoured scenarios is for the Boarding House to close
in June 2005 and the Melkonian to continue as a day school for
Armenian Cypriots. This will result in the student body dropping from
206 today to only 60 (as the remainder come from foreign countries and
until now reside in the boarding house). Based on the projections of
the community, the drastic reduction of the number of students will
lead to a final closure of the school and sale of the 125,000 sq.m. of
land that comprises this property.

(Translated from Greek)

Prime-Tass English-language Business Newswire
March 18, 2004

OSS-Zvezda fails to get license for mobile services in Armenia

MOSCOW, Mar 18 (Prime-Tass) — Russian-Armenian telecommunications
joint venture OSS-Zvezda failed to receive a license from Armenia’s
Transport and Communications Ministry to provide GSM 1800 mobile
services in Armenia, the company’s information service told
Prime-Tass Thursday.

The ministry refused to provide the license to the company, saying
that another company, the Armenian Telephone Company is currently
licensed to provide mobile services in the country.

In spite of the ministry’s rejection, OSS-Zvezda plans to bid for a
license as well as to open its affiliates in the country acting under
local legislation.

The company’s total investments into its Armenian project are
estimated at 60 million euros.

The company also plans to build a mobile network to cover the
Caucasus Region, including Georgia, under the brand name Kavkazskaya
Zvezda (Caucasian Star). End

Agency WPS
TELECOMMUNICATION SERVICES MARKET (Russia)
March 19, 2004, Friday

Zvezda, a Russian-American-Armenian joint venture, is going to build
cellular networks all over Transcaucasia.

Zvezda has recently applied for a GSM-license for Armenia. It also
plans to obtain GSM licenses for two other Transcaucasian countries –
Georgia and Azerbaijan – and unite all networks under a single brand
Kavkazskaya Zvezda (Caucasian Star)

Russia’s Defense Ministry is among LanRusinvest’s major clients, and
until recently, the company used military communication channels in
exchange for the services provided to the Defense Ministry. Now
LanRusinvest leases telecommunication channels not only from Defense
Ministry and Voyentelecom, but also from civil operators Rostelecom
and TransTeleCom, according to V.Zatynaiko, Director General of
LanRusinvest.

Waiting for the GSM license for Armenia, Zvezda began building an
IP-network there. It also plans to launch IP-telephony business in
Georgia and Azerbaijan. “That will allow us provide communication
services with Transcaucasian countries at low rates. Besides, people
living in these countries will have low rates for calls to Russia
through our network, says Zatynako. Zvezda plans to invest about 60
million euros into IP-telephony and GSM projects in Armenia.

According to General Director of Zvezda E.Akobyan, the company has
applied to Georgian Prime Minister Zurab Zhvania with a proposition
to build a unified mobile communications system, which would cover
Georgia and Armenia. Zvezda plans to invest the same amount of money
in Georgia as in Armenia and operate under the single brand name
Kavkazskaya Zvesda in three countries – Armenia, Georgia, and
Azerbaijan. Although the license for Armenia has not been granted
yet, and licenses for Georgia and Azerbaijan have not been even
applied for, Mr Akobyan already gives figures for GSM tariffs in
Svezda network. According to him, incoming and outgoing calls will
cost $0.15/min at $10 /month subscription charge.

Participants of the project do not disclose information about
shareholders’ stakes in Zvezda authorized capital stock. It is known
however, that there are several legal entities and natural persons
among Armenian participants of the project, and also representatives
of Armenian diaspora from the USA and Canada. Alcatel is named as the
most likely provider of GSM equipment for Zvezda networks.

There is only one GSM operator in Armenia so far – local
telecommunication giant ArmenTel, which was recently deprived of its
cellular service monopoly by the Armenian government. This move
enraged Greek operator OTE who had bought 90% shares of ArmenTel six
years ago. ATE filed a lawsuit in London arbitration court against
the decision of the Armenian government who had promised that
ArmenTel’s monopoly would continue for 15 years after the
privatization.

ORIGINAL-LANGUAGE: RUSSIAN

ITAR-TASS News Agency
TASS
March 19, 2004 Friday

Russia interested in removing terrorism from Caucasus

By Igor Shamshin

BRATISLAVA

Russia is interested in the removal of elements of terrorism and
extremism from the Caucasus. It is closely watching the regional
developments and taking an active part in them. Russia wants the
Black Sea region and Transcaucasia to be a zone of prosperity,
Russian delegation head and Deputy Foreign Minister Vladimir Chizhov
said at an international conference “Development of Europe: New
Horizons” in Bratislava on Friday.

The positive example of regional associations, such as the Vyshegrad
Group and the Vilnius Ten, should be used in the development of the
Caucasian region, he said. The mechanism of interaction between
Russia, Georgia, Armenia and Azerbaijan has proven to be efficient.

The problem of international terrorism is global, Chizhov said. The
recent terrorist acts in the Moscow metro and Madrid have much in
common, both of them are targeted against democracy and humanity, he
said. The whole world must unite to combat terrorism. Russia and
Caucasian nations are cooperating in the anti-terrorist fight, the
diplomat said.

RosBusinessConsulting Database
March 19, 2004 Friday 11:14 am, EST

Vneshtorgbank managers to consider expansion in Belarus and
Azerbaijan

Vneshtorgbank might be interested in affiliates in Belarus and
Azerbaijan, senior deputy president of the bank Alexey Akinshin told
RBC. According to him, the bank has elaborated on its regional
expansion program, which suggests expansion into the CIS and European
markets. Vneshtorgbank plans to become the sole shareholder in the
Armenian Armsberbank. Vneshtorgbank is also working to create a
Ukrainian subsidiary.

Earlier Vneshtorgbank top-managers reported that the talks were held
on the possible creation of Kazakhstani and Georgian subsidiaries. A
lot of western rivals are present on the Kazakhstani market now.

As for expansion in Europe, Akinshin said that Vneshtorgbank in
cooperation with the Central Bank of Russia is considering a buyout
of the Central Bank’s stake in OST-West Handelsbank (OWHB) and Donau
bank. Currently the Russian Central Bank owns 51.62 percent in OWHB
and Vneshtorgbank holds a 31.92 stake.

It is too soon to consider the buyout of Vneshtorgbank’s stakes in
Eurobank (Paris) and the Moscow Narodny Bank (London), Akinshin
emphasized.

Vneshtorgbank owns 53 percent in Luxembourg-based East-West United
Bank, 100 percent in Zurich-based Russische Kommerzial Bank, 32
percent in Frankfurt-based Ost-West Handelsbank, 100 percent in
Cyprus-based Russian Commercial Bank and 85 percent in Viennese
Donau-Bank.

The Independent (London)
March 19, 2004, Friday

BOOKS: LOVE AND DEATH IN A TURKISH MELTING-POT;

YOUNG TURK BY MORIS FARHI SAQI BOOKS POUNDS 9.99 (391PP) POUNDS 9.99

by ALEV ADIL The waterfront of Salonika in the late 1930s

The anxieties and fixations of adolescence are universal. Like
teenagers today, the group of youngsters in mid-20th-century Turkey
whom Moris Farhi brings to life in his latest novel are preoccupied
by burgeoning sexual desires and the contradictory need to impress
parents and peers. The secret rituals of growing up, the first crush,
the bonds of friendship, the desire to understand and make one’s mark
on the world, take place against the darker canvas of Turkish and
European history between 1939 and 1959.

Like the Turkish national identity he describes, Farhi’s novel is a
mosaic of ethnicities: Jews, Armenians, Kurds, Gypsies, Greeks,
Levantines, Pomaks. The weave of voices and stories that emerges
speaks of the interconnectness of fates. While their parents
reconcile themselves to the betrayal of Ataturk’s idealistic vision
of Turkish identity, the children have their own battles.

Tubby Rifat, a convert from Judaism to Islam, is desperate to join
Naim’s neighbourhood gang and secretly in love with Naim’s sister Gul
de Taranto: a beautiful Jewish girl who has premonitions of the
genocide that will sweep across Europe. Bilal and his friends hatch
an ill-fated plot to save his relatives from the Nazis in Salonika.
Selma has to deal with the pain of first love, and the destitution
forced upon her family by the tax on Jews, Armenians and Greeks
imposed in 1943. The neighbourhood rally round: Sufi musicians,
wrestling champions, gypsies, all do their utmost to help their
Jewish neighbours.

Farhi evokes the idealism and erotic energy of male adolescence.
There are strong women here too, as driven by desire and ambition as
their male counterparts. Havva the orphan circus girl is quietly
relentless in her pursuit of Adem the trapeze artist. Handan is
determined to be a great musician. Madame Ruj the matchmaker is a
fiercely independent career woman.

Farhi’s novel emphasises the solidarity and warmth of Turkish culture
as well as its political shortcomings. The contradiction at its heart
is that “the Turks’ innate nobility tempered with the best of Islamic
teaching makes them the most tolerant people in the world, while the
plethora of complexes instilled by the worst of Islamic teaching
could – and sometimes did – turn them into ogres”. Death and desire
are the two forces that forge the characters’ destinies. The novel
begins and ends with the spectre of death, for, as a Turkmen circus
storyteller recounts, death demands courage from even the most
ordinary individual. Ethical and erotic energy are inextricably
intertwined; political resilience is nourished by sexual intimacy.

Poetry, especially Nazim Hikmet’s verse, is a vital presence in the
novel. Hikmet, perhaps Turkey’s greatest 20th-century poet, was
labelled a “romantic communist”. Farhi has inherited that
romanticism; Young Turk is infused with a passionate humanism.

Both a novel of ideas and an entertaining adventure story, this is a
prodigiously researched and lyrical celebration of the multicultural
heritage of Turkish history. Young Turk recounts Turkey’s past, but
also provides a vision of the present and future potential of Turkish
national identity.

Agency WPS
DEFENSE and SECURITY (Russia)
March 19, 2004, Friday

NATO MONTHS IN THE CAUCASUS

SOURCE: Russky Kurier, March 15, 2004, p. 6

by Rada Guseinova, Marina Kalashnikova

VISITS OF AMERICAN DELEGATIONS TO BAKU: THE UNITED STATES HOPES TO
DRAW AZERBAIJAN INTO THE ORBIT OF INTERACTION WITH NATO AS SOON AS
POSSIBLE

American military and diplomatic delegation was met in Baku,
Azerbaijan, on March 12. The delegation includes a group of the
Supreme Consultative Council of the US Army European Command under
General Charles Wald. The delegation comprises Admiral Gregory
Johnson, US Navy Commander in Europe and NATO Commander in South
Europe, and numerous ambassadors.

President of Azerbaijan Ilham Aliyev met with the Americans on
Saturday. In his speech, Aliyev ascribed rapid rapprochement with
official Washington and NATO in general to the necessity of
“reinforcing regional stability and security.” General Wald in his
turn added that terrorist acts in Spain testifying to activeness of
international terrorism only served to made Western aid in security
matters all the more assured. Efforts of the international community
should be concentrated on settlement of the Nagorno-Karabakh
conflict, protection of Caspian energy resources, and elimination of
terrorist groups in the southern part of the Caucasus. That is why an
emphasis is made on military cooperation, not economy. Military
cooperation and interaction was the talk of the week in Baku. In
fact, the whole week became “American” for official Baku because of
the delegations from across the ocean coming one after another.

The capital of Azerbaijan was visited by a group of the US AF
College, Undersecretary Lynn Pasco, a delegation under Eric Schultz
of the US Department of State and Bruce Rogers, assistant political
adviser to the US mission to NATO. Washington’s plans are simple. It
is out to draw countries of the southern part of the Caucasus – first
and foremost Azerbaijan and Georgia – into the orbit of close
cooperation with NATO within the next two or three years. And to
bring their national armies closer to NATO standards. The latter
objective is inseparable from settlement of the Armenian-Azerbaijani
conflict. All these issues were discussed at length by Defense
Minister of Azerbaijan Safar Abiyev and Schultz and Rogers. A more
detailed discussion is to follow during Abiyev’s upcoming visit to
Washington in the near future.

For the time being, General Wald in Baku continues discussion of the
mobile groups, the idea he first came up with three months ago. A
well-informed and trustworthy source in military circles of
Azerbaijan says that the Americans came with specific suggestions.
Issues of the European ballistic missile defense are being discussed
among other things. An accord with Baku on the use of the Gabala
radar may be of particular interest from this point of view. For the
time being, the radar is a subject of the Russian-Azerbaijani
agreement in accordance with which the signatories share the
information obtained by the radar. Meanwhile, Baku signed several
information exchange accords with advanced countries including the
United States. According to the source, Wold is trying to convince
official Baku that “Azerbaijan should share the information obtained
by the radar with the United States as its military partner” since
“there are no legal obstacles to it, actually.” Details of military
cooperation will be discussed at the meetings with heads of the
Defense Ministry, State Border Service, and National Security
Ministry.

Inspired by the new stimuli of rapprochement with the European Union
and NATO, Aliyev with his Georgian counterpart is about to visit the
countries that have already been drafted into the NATO orbit. He will
meet with leaders of the Vilnius Ten in Bratislava within the
framework of an international conference on the “expanded Europe” and
“new neighbors” on March 18 and 19. Premiers of Ireland, Turkey,
Serbia and Montenegro, Bosnia and Herzegovine were invited to the
forum too. NATO General Secretary Jaan de Hoop Sheffer and European
Union Expansion Commissar Gunther Verheugen will also be present.

US State Undersecretary Richard Armitage will tour capitals of the
Caucasus in late March. This visit may speed up the sharp turn of
countries of the southern part of the Caucasus to the West. Armitage
is known as a prominent specialist in matters of security and war on
terrorism. He intends to discuss pressing problems of the war on
terrorism with three presidents of the Caucasus. It was Armitage who
said in his time that establishment of US military bases in
Azerbaijan was but a matter of time. Neither is Armitage exactly
ignorant of Azerbaijani affairs. It is Armitage who knows everything
there is to know about the Aliyevs and their affairs and explains
their interests to the US Administration – both in the spheres of
politics and oil. When in the Caucasus, he will apparently discuss
Caspian oil, security of the Baku – Tbilisi – Dzheikhan pipeline,
location of mobile groups, and roles of the three countries of the
Caucasus in the war on international terrorism.

Translated by A. Ignatkin

Agency WPS
DEFENSE and SECURITY (Russia)
March 19, 2004, Friday

KANT WANTS TO BE FRIENDS WITH MANAS

SOURCE: Russky Kurier, March 16, 2004, p. 2

by Vitaly Strugovets

Operational conference of the United Headquarters of the Organization
of the CIS Collective Security Treaty begins in Moscow. Lieutenant
General Vasily Zavgorodny, Senior Deputy Chief-of-Staff, says that
the conference will be attended by chiefs-of-staff of national
armies, General Secretary Nikolai Bordyuzha, and Major General Sergei
Chernomordin, Commander of the Central Asian Fast Response Collective
Forces.

The decision to establish the United Headquarters as “a permanent
working body of the Organization of the CIS Collective Security
Treaty and its Council of Defense Ministers” was made almost a year
ago, in April 2003. Fifty-five staff officers represent members of
the Organization of the CIS Collective Security Treaty in accordance
with their financial contributions. Russia accounts for 50% of the
budget and other countries (Armenia, Belarus, Kazakhstan, Kyrgyzstan,
and Tajikistan) 10% each.

Chief-of-staff always represents the country whose defense minister
is currently chairman of the Council of Defense Ministers. Nowadays,
it is Tajikistan. Needless to say, chief-of-staff is quartered in his
native country and not in Moscow. Daily activities of the United
Headquarters are supervised by senior deputy chief-of-staff. The
United Headquarters commands army groups – West, Caucasus, and
Central Asia.

Military experts call the Organization of the CIS Collective Security
Treaty a mini-NATO. There truly are some aspects similar to both
alliances. For example, whenever a country of one of the bloc finds
itself under attack, all of the alliance regards it as an attack on
all. This is a major difference between the Organization of the CIS
Collective Security Treaty and the 1992 Treaty. “There are but two
organizations in the world nowadays that view security matters as the
first priority. They are NATO and the Organization of the CIS
Collective Security Treaty,” General Secretary Nikolai Bordyuzha
(formerly Secretary of the Security Council of the Russian
Federation, head of the presidential administration, and Ambassador
to Denmark) said not long ago. He believes therefore that the two
alliances must interact. “The Organization of the CIS Collective
Security Treaty already has a plan of cooperation and interaction
with NATO,” he said. “Distance between military bases of the
Organization of the CIS Collective Security Treaty and forces of the
counter-terrorism operation in Afghanistan (that means NATO) is under
three dozen clicks.” Needless to say, Bordyuzha meant airfields in
Kyrgyzstan, Kant and Manas. According to what information this
newspaper has compiled, the Council of Foreign Ministers of the
Organization of the CIS Collective Security Treaty has already
drafted a document which will suggest military cooperation between
bases in Kant and Manas.

Unlike NATO, however, its CIS analog is financially unstable. That is
what generates friction among its members. It is clear nowadays that
the Organization of the CIS Collective Security Treaty owes its
existence mostly to the Russian budget. All its structures are
financed by Russia by at least 50%. Actually, Russian contribution is
even larger than that. Consider for example the Kremlin’s decision to
sell military hardware to countries of the Organization of the CIS
Collective Security Treaty at the prices demanded from Russian
buyers. Not even NATO has come up with that. This lenient terms
regime only applies to the units involved in international
contingents these days, but official Moscow contemplates its
application to all armed forces of all members of the Organization of
the CIS Collective Security Treaty. This assistance may even be made
mandatory.

Russia is also prepared to face the bill of training officers for CIS
national armies. 2,700 men from armies of the Organization of the CIS
Collective Security Treaty are being trained in Russia. Members of
the Organization of the CIS Collective Security Treaty pay $1,000 for
every trainee annually. The subject of training them without charge
is being considered now. Russia pays for maintenance of the forces
comprising the nucleus of all army groups of the Organization of the
CIS Collective Security Treaty. First and foremost, the matter
concerns AF bases in Kyrgyzstan and Armenia.

Aircraft based in Kant, for example, are officially recognized as a
part of the Fast Response Collective Forces. Still, Russia alone
finances the base. It will cost $10 million to outfit the base only,
and annual maintenance is estimated at $4 million more. It is not
exactly a “grant” as some politicians present it.

As a matter of fact, the anti-Taliban coalition pays Kyrgyzstan
$7,000 for every takeoff or landing in Manas. It is this easy money
that spoils the relations between Moscow and Dushanbe, Bishkek,
Astana. The United States alone intends to transact over $6 million
to Kyrgyzstan by way of military assistance (discounting what this
country is paid for the use of the Manas facility, that is). The sum
is double what Kyrgyzstan received in 2003. Kazakhstan is promised
helicopters, military transport planes, and ships under 1,000 tons
water displacement. Considerable technical aid is promised Tajikistan
too. Forget Central Asia for a minute. Even official Minsk in the
course of the recent “gas crisis” began talking of the necessity to
take money from Russia for “the military objects located on the
territory of Belarus.”

It does not take a genius to see that Russia cannot hope to satisfy
all of the demands its “allies” come up with. Financially, that is.
It follows that weapons and military hardware should be offered.
Sources in the United Headquarters say that these deliveries exactly
will be in the focus of attention of the operational conference of
the Organization of the CIS Collective Security Treaty in Moscow.
Defense ministers will even visit Granit, the foremost provider of
antiaircraft means for the Russian Armed Forces. It is common
knowledge that antiaircraft defense is our allies’ major headache.

Official commentary

Major General Sergei Chernomordin, Commander of the Fast Response
Collective Forces: The Taliban has never been abolished

Chernomordin: Headquarters of the Fast Response Collective Forces is
located in Bishkek. The operational group comprising officers from
all countries is quartered there too. National armies of participants
of the Organization of the CIS Collective Security Treaty are
represented in the Fast Response Collective Forces by a reinforced
battalion each. These are units of permanent combat readiness that do
not need a lot of time to up their readiness status. These units are
fully staffed and equipment. Whenever the order is received, the
units are ready for combat in the plains or in the mountains in
virtually no time. These are not ordinary units. I mean, infantry.
The Kazakh Armed Forces for example are represented by a battalion of
paratroops. Hence the weapons – light weapons and portable grenade
launchers. The battalion is quite mobile, up to missions in all
conditions. The national army of Tajikistan is represented by a
similar unit. Kyrgyzstan is represented by a battalion of
mountaineers. All Kyrgyz servicemen are seasoned fighters. The
nucleus of the Kyrgyz battalion is comprised of the veterans who
fought in the Batken region in 1999.

The battalion tactical group of the Russian 201st Motorized Infantry
Division is equipped and trained for mountainous warfare. It has
tanks, armored personnel carriers, mobile artillery systems. All
these units will be promptly airlifted to the endangered area and
deploy there. I do not doubt their efficiency.

Question: Do the Fast Response Collective Forces have an action plan?

Sergei Chernomordin: We have the deployment plan for potential
actions on the territory of any of the four countries. Usually, all
officers and units of the Fast Response Collective Forces remain at
their permanent quarters, working in line with their own curricula.
They come together only in the special period. they have to be
drilled constantly, taught to operate in the designated area. That is
why our units are deployed in Tajikistan today, and tomorrow
exercises may be run in Kazakhstan or Kyrgyzstan. This is how we
train our units the year round. Along with everything else, we remain
in close contact with the CIS Counter-Terrorism Center and national
armies. Whenever necessary, the Fast Response Collective Forces may
operate under the command of a national defense minister. Together
with armed forces and other security structures, of course. If the
appropriate decision is made, I will submit to the defense minister
of the country where our involvement is needed. Or else, I may
operate independently.

Question: What do you think of the situation in Central Asia?

Sergei Chernomordin: The counter-terrorism operation has hurt the
Taliban but never abolished it altogether. Moreover, Taliban
detachments mount more and more resolute attacks on forces of the
counter-terrorism coalition and the government of Khamid Karzai.
Tribal strife continues as well. Instability has not been routed out,
nor weapons have been laid down. Trafficking via Central Asia to
Europe and America increases in scope. This is what worries the
governments of Kazakhstan, Tajikistan, Russia, and Kyrgyzstan first
and foremost. Traffic means inevitable infiltration of the
territories of Central Asian countries by armed gangs.

Specialist’s opinion

The Fast Response Collective Forces is the Central Asian army group
of the Organization of the CIS Collective Security Treaty. It
comprises Kazbat paratroops battalion, battalion of Kyrgyz
mountaineers, Tajik paratroops battalion, Russian motorized infantry
battalion (of the 201st Motorized Infantry Division quartered in
Tajikistan), and communications units. Numerical strength approaches
1,500 men. Aviation of the Fast Response Collective Forces based in
Kant includes ten SU-25 and SU-27 aircraft, nine military transport
planes, four training planes, and two helicopters (all of them
Russian). Meeting of the Council of Defense Ministers in December
2003 found it necessary to up numerical strength of the Fast Response
Collective Forces 2.5 times this year. Kyrgyzstan, Kazakhstan, and
Russia are expected to provide another battalion each, Tajikistan two
battalions.

The Caucasus group comprises units of the Russian and Armenian
armies. Russia is represented by the 102nd Military Base in Gyumri.
There is also a considerable antiaircraft group – a wing of eighteen
MIG-29 aircraft and a battery of complexes with radars.

The West group was first mentioned during President Vladimir Putin’s
visit to Belarus in May 2002. A group 3,000 men strong was mentioned
then. The Defense Ministry of Russia explained afterwards that the
group would comprise some units of the Moscow and Leningrad military
districts, Baltic Fleet, and the Belarusian army. Whenever necessary,
they would follow common operational plans. United headquarters were
established for the duration of command exercises on two occasions.

Investment Opportunities in Armenia

BISNIS Armenia Report
March 18, 2004

You are receiving this update as a BISNIS client in order to share with
you the following trade leads and market information concerning Armenia.

1) Armenia Consular Information Sheet

2) TENDER FOR SUPPLY OF SERVICES VEHICLES
3) TENDER FOR SUPPLY OF VALVES, FITTINGS AND FLANGE ADAPTERS FOR POTABLE
WATER

***************************************************************
Armenia Consular Information Sheet
To read the full document, please go to:

Date: January 27, 2004
From: U.S. Department of State, Washington, DC

COUNTRY DESCRIPTION: Armenia, located in the southern Caucasus Mountains,
is the smallest of the former Soviet republics. Armenia’s borders with
Turkey and Azerbaijan are closed due to the dispute over the status of the
Nagorno-Karabakh region of Azerbaijan. Long transportation routes and
economic difficulties limit the availability of imported goods. Tourist
facilities, especially outside Yerevan, the capital, are not highly
developed, and many of the goods and services taken for granted in other
countries may be difficult to obtain. Travelers frequently experience
problems with local officials seeking bribes to perform basic duties.

*********************************************************************************
IMI (ARMENIA): TENDER FOR SUPPLY OF SERVICES VEHICLES ANNOUNCED

15 MAR 04
SOURCE: US EMBASSY YEREVAN

INTERNATIONAL COPYRIGHT, U.S. AND FOREIGN COMMERCIAL
SERVICE AND U.S. DEPARTMENT OF STATE, 2004. ALL RIGHTS
RESERVED OUTSIDE OF THE UNITED STATES.

1. THE MUNICIPAL DEVELOPMENT PROJECT MANAGEMENT UNIT
INVITES ARMENIAN AND FOREIGN COMPANIES TO SUBMIT BIDS
FOR THE DELIVERY OF SERVICES VEHICLES. THE DELIVERY
PERIOD IS 60 DAYS AFTER THE DATE OF ISSUING THE LETTER
OF CREDIT. BIDS MUST BE SUBMITTED BY APRIL 9, 2004, NO
LATER THAN 17:00 LOCAL TIME.

2. THE GOVERNMENT OF ARMENIA HAS RECEIVED A CREDIT
FROM THE INTERNATIONAL DEVELOPMENT ASSOCIATION TOWARDS
THE COST OF THE MUNICIPAL DEVELOPMENT PROJECT AND
INTENDS TO APPLY PART OF THIS CREDIT THE PROCUREMENT OF
SERVICES VEHICLES, CONTRACT NO.
IF5/JETTSUCT_BREAKVAN_CRANETRUCK/004:

LOT 1 SEWER SUCTION AND JETTING MACHINES
LOT 2 BREAKDOWN VAN
LOT 3 TRUCK WITH MANIPULATOR CRANE

3. BIDDING WILL BE CONDUCTED THROUGH THE INTERNATIONAL
COMPETITIVE BIDDING PROCEDURES SPECIFIED IN THE WORLD
BANK’S GUIDELINES: PROCUREMENT UNDER IBRD LOANS AND IDA
CREDITS, AND IS OPEN TO ALL BIDDERS FROM ELIGIBLE
SOURCE COUNTRIES AS DEFINED IN THE GUIDELINES.

4. THE BIDDING DOCUMENTS IN ENGLISH CAN BE OBTAINED
FROM THE MUNICIPAL DEVELOPMENT PROJECT MANAGEMENT UNIT
UPON SUBMISSION OF A WRITTEN APPLICATION AND PAYMENT OF
A NONREFUNDABLE FEE OF USD 100. FOREIGN CONTRACTORS
WILL BE CHARGED AN ADDITIONAL FEE OF USD 50 PER PACKAGE
TO COVER POSTAGE EXPENSES. THE PAYMENT CAN BE MADE
EITHER IN CASH OR VIA BANK TRANSFER. IN CASE OF
TRANSFER, FEES SHOULD BE TRANSFERRED TO THE FOLLOWING
ACCOUNT:

(SWIFT: MIDLAM22) OF HSBC ARMENIA BANK, YEREVAN,
ARMENIA
ACCOUNT NO. 001-155563-001

5. BIDS MUST BE SUBMITTED BY APRIL 9, 2004, NOT LATER
THAN 17:00 LOCAL TIME TO THE MUNICIPALITY DEVELOPMENT
PROJECT MANAGEMENT UNIT. ELIGIBLE BIDDERS CAN BID FOR
ONE LOT OR MORE/ALL LOTS AND THE EVALUATION OF BIDS
WILL BE ON A LOT-BY-LOT BASIS. ALL BIDS MUST BE
ACCOMPANIED BY BID SECURITIES PER THE FOLLOWING
SCHEDULE OR AN EQUIVALENT AMOUNT IN A FREELY
CONVERTIBLE CURRENCY:

LOT 1 SEWER SUCTION AND JETTING MACHINES – USD 3,300
LOT 2 BREAKDOWN VAN – USD 700
LOT 3 TRUCK WITH THE MANIPULATOR CRANE – USD 1,200

6. FOR ADDITIONAL INFORMATION PLEASE CONTACT:

MUNICIPAL DEVELOPMENT PROJECT MANAGEMENT UNIT
8 VARDANANTS STREET
YEREVAN 375010, ARMENIA
TEL: (374 1) 522-795
FAX: (374 1) 547-072
E-MAIL: [email protected]

******************************************************************
IMI (ARMENIA): TENDER FOR SUPPLY OF VALVES, FITTINGS AND FLANGE ADAPTERS
FOR POTABLE WATER ANNOUNCED

15 MAR 04
SOURCE: US EMBASSY YEREVAN

INTERNATIONAL COPYRIGHT, U.S. AND FOREIGN COMMERCIAL
SERVICE AND U.S. DEPARTMENT OF STATE, 2004. ALL RIGHTS
RESERVED OUTSIDE OF THE UNITED STATES.

1. THE MUNICIPAL DEVELOPMENT PROJECT MANAGEMENT UNIT
INVITES ARMENIAN AND FOREIGN COMPANIES TO SUBMIT BIDS
FOR THE DELIVERY OF VALVES, FITTINGS AND FLANGE
ADAPTERS FOR POTABLE WATER. THE DELIVERY PERIOD IS
WITHIN 120 DAYS AFTER THE DATE OF THE OPENING OF THE
LETTER OF CREDIT. BIDS MUST BE SUBMITTED BY APRIL 13,
2004, NOT LATER THAN 17:00 LOCAL TIME.

2. THE GOVERNMENT OF ARMENIA HAS RECEIVED A CREDIT FROM
THE INTERNATIONAL DEVELOPMENT ASSOCIATION TOWARDS THE
COST OF THE MUNICIPAL DEVELOPMENT PROJECT AND INTENDS
TO APPLY PART OF THIS CREDIT TO THE PROCUREMENT OF
VALVES, FITTINGS AND FLANGE ADAPTERS FOR POTABLE WATER,
CONTRACT NO IF5/VALVE/002.

3. BIDDING WILL BE CONDUCTED THROUGH THE INTERNATIONAL
COMPETITIVE BIDDING PROCEDURES SPECIFIED IN THE WORLD
BANK’S GUIDELINES: PROCUREMENT UNDER IBRD LOANS AND IDA
CREDITS, AND IS OPEN TO ALL BIDDERS FROM ELIGIBLE
SOURCE COUNTRIES AS DEFINED IN THE GUIDELINES.

4. THE BIDDING DOCUMENTS IN ENGLISH CAN BE OBTAINED
FROM THE MUNICIPAL DEVELOPMENT PROJECT MANAGEMENT UNIT
UPON SUBMISSION OF A WRITTEN APPLICATION AND PAYMENT OF
A NONREFUNDABLE FEE OF USD 100. FOREIGN CONTRACTORS
WILL BE CHARGED AN ADDITIONAL FEE OF USD 50 PER PACKAGE
TO COVER POSTAGE EXPENSES. THE PAYMENT CAN BE MADE
EITHER IN CASH OR VIA BANK TRANSFER. IN CASE OF
TRANSFER, FEES SHOULD BE TRANSFERRED TO THE FOLLOWING
ACCOUNT:

(SWIFT: MIDLAM22) OF HSBC ARMENIA BANK, YEREVAN,
REPUBLIC OF ARMENIA
ACCOUNT NO. 001-155563-001

5. BIDS MUST BE SUBMITTED BY APRIL 13, 2004, NOT LATER
THAN 17:00 LOCAL TIME TO THE MUNICIPALITY DEVELOPMENT
PROJECT MANAGEMENT UNIT AND MUST BE ACCOMPANIED BY A
BID SECURITY OF USD 6,500 OR AN EQUIVALENT AMOUNT IN A
FREELY CONVERTIBLE CURRENCY. LATE BIDS WILL BE
REJECTED.

6. FOR ADDITIONAL INFORMATION PLEASE CONTACT:

MUNICIPAL DEVELOPMENT PROJECT MANAGEMENT UNIT
8 VARDANANTS STREET
YEREVAN 375010, ARMENIA
TEL: (374 1) 522-795
FAX: (374 1) 547-072
E-MAIL: [email protected]

Additional information on Armenia is available via
BISNIS Online, at

BISNIS Programs available to you FREE OF CHARGE:
BISNIS ExpoLink Eurasia
BISNIS Trades & Tenders
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fm
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********** Provided by: ***************************
Joan M. Morgan, BISNIS Trade Specialist for Armenia
U.S. Department of Commerce
Tel: 202/482-2709, Fax: 202/482-2293
e-mail: [email protected]

***********************************************************************************
Investment Opportunities in Georgia

BISNIS Georgia Report
March 16, 2004

Dear BISNIS Clients:

In today’s message you will find:

1) International Bidding for Poti Port Terminals in Georgia (Deadline
extended to May 3, 2004) (3/04)

2) Commercial News Update for Georgia (3/04)
229GGcomnews.htm
3) List of Governmental Institutions in the Republic of Georgia (3/04)

4) Opening an Office in Tbilisi, Georgia (2/04)
130GGopenoffice.htm

***************************** ***************************
1) INTERNATIONAL BIDDING FOR POTI PORT TERMINALS (GEORGIA) (deadline
extended to May 3, 2004)

March 5, 2004
Source: US Embassy, Tbilisi, Georgia

Announcement

“The Sea Port of Poti”- Legal Entity of Public Law, pursuant to the
decision of the Tender Commission, created in compliance with the
Presidential Decree No 104 from March 12, 2002 on transferring certain
terminals (berths) of the Poti Sea Port for long term lease or with
management right through International Tenders, ensuring to carry out
the Presidential Decree, No 424 from 27 September 2000 on Adoption and
Realization of Restructuring and Modernization Strategy of Poti Sea
Port, informs all interested persons, willing to participate in
international tender on transferring Terminals No.9, 10 for long term
lease announced on 04.11.2003 (newspaper “Sakartvelos Respublika”
No.297, 04.11.2003) that the tender terms have been changed as follows:

**********************************************************
2) COMMERCIAL NEWS UPDATE GEORGIA
February 18-29, 2004
9GGcomnews.htm

AUTHOR: HELEN SARADOVA, BISNIS REPRESENTATIVE FOR GEORGIA

This report contains the following information:
§ Tariff increase for transportation of oil;
§ USAID renews support for microfinance stabilization in Georgia;
§ EBRD keeps a full plate in Georgia;
§ Government to regulate price of bread;
§ National Bank increases rate of discount;
§ Russian-Georgian trade-economic co-operation;
§ Oil pipeline construction from Novorossiisk to Turkey via Georgia;
§ New launch services.

************************************************************
3) List of Governmental Institutions in the Republic of Georgia
GListMinistries.htm

March 2004
Source: BISNIS Representative in US Embassy, Tbilisi, Georgia

Mr. Mikheil Saakashvili, President
Mr. Irakli Chubinishvili, Head of President’s Administration

Chancellery
Mr. Zurab Zhvania, Prime Minister
Tel: (995 32) 922243; Fax: (995 32) 921069

**************************************
4) Opening an Office in Tbilisi, Georgia (2/04)

January 2004
Source: Helen Saradova, BISNIS Representative, Georgia

GENERAL OVERVIEW

Georgia is a mountainous country bordered by the Russian Federation in
the north, Turkey in the southeast, Armenia in the south, Azerbaijan in
the east and by the Black Sea in the west. Georgia’s main economic
activities include the cultivation of agricultural products such as
citrus fruits, tea, hazelnuts, and grapes; mining of manganese and
copper; and output of a small industrial sector producing alcoholic and
nonalcoholic beverages, metals, machinery, and chemicals. The country
imports the bulk of its energy needs, including natural gas and oil
products. Even though Georgia’s sizable internal energy resource is
hydropower, during the last years it simultaneously suffers from an
energy crisis.

********************************************************************
BISNIS Programs available to you FREE OF CHARGE:
BISNIS ExpoLink Eurasia
BISNIS Trades & Tenders
BISNIS Search for Partners
fm
BISNIS FinanceLink fm

For country-specific information, please go to the Georgia page at

You are receiving this broadcast because you have elected to receive the
Georgia updates from BISNIS. To modify your personal selections or to
unsubscribe, please go to MyBISNIS at

********** Provided by: ***************************
Joan M. Morgan, BISNIS Trade Specialist for Georgia
U.S. Department of Commerce
Tel: 202/482-2709, Fax: 202/482-2293
e-mail: [email protected]