Category: News

Associated Press
March 10 2004

One person killed, hundreds flooded as snow melts in Armenia

Melting snows and strong winds in Armenia flooded hundreds of homes
and caused one death, officials said Wednesday.

One man was killed in the city of Idzhevan because of a tree felled
by the strong winds that buffeted the Caucasus nation, the Emergency
Situations Ministry said. Hundreds of homes were flooded across the
country, and the harsh weather also affected the capital Yerevan.

Winds blew roofs off houses, downing power lines and starting forest
fires. Exact damage figures weren’t known.

The weather calmed by later Wednesday.

ITAR-TASS News Agency
TASS
March 10, 2004 Wednesday

Zhukov to report on government structural reform

By Oksana Polishchuk, Natalya Slavina

MOSCOW

Russian Vice-Premier Alexander Zhukov will report on structural
changes in the federal bodies of executive power at the first cabinet
meeting on Thursday, March 11, the government information department
reports.

Russian Deputy Interior Minister Alexander Chekalin will report on
the possibility of extending the Russian-Armenian inter-governmental
agreement on regulation of voluntary resettlement.

Russian First Deputy Foreign Minister Valery Loshchinin will submit
his proposals on ratification by the State Duma of an agreement
signed by the Russian and Ukrainian governments that provides for
settling all claims concerning an air crash that occurred over the
Black Sea on October 4, 2001.

The cabinet will also discuss the presentation of state housing
certificates to the Ingush government. Ruslan Tsalikov, the deputy
head of the Russian Emergency Situations Ministry, will report on
this subject.

However, Russia’s new Prime Minister Mikhail Fradkov said that the
cabinet would focus on implementation of the presidential decree on
forming a new government line-up at its meeting on Thursday.

“This will actually be the sole issue that we intend to discuss with
the new government at tomorrow’s cabinet meeting,” Russian Prime
Minister Mikhail Fradkov told a news conference on Wednesday.

The Prime-Tass economic and financial news agency cited the prime
minister as saying that he was continuously studying the issue and
discussed the matter with Russian President Vladimir Putin every day.

Fradkov emphasized that the process of forming a new government
marked the beginning of an administrative reform. He called for the
earliest solution of all organizational issues in order to preserve a
workable government and not to disrupt the budget process.

Fradkov reiterated once again that the idea of an administrative
reform should be regarded as part of efforts to make Russia more
competitive and ensure that prompt and needed decisions are passed.
Bureaucrats should model their actions according to a single concept
so as to avoid the duplication of functions and to single out
responsible bosses.

At the same time, Fradkov warned about the possibility of
inaccuracies in carrying out the government reform. “We are going to
remove these inaccuracies. The logic of this reform allows for
clarification as we proceed with the process,” Fradkov stressed.

The prime minister also promised to be open with the press.

Fradkov admitted at a news conference held at the Russian government
building on Wednesday that he never did that because he hadn’t faced
such a task before.

At the same time, Fradkov emphasized that the process of creating a
new government structure was, among many other things, aimed at
making it more open and transparent.

“It will make it possible to define the responsibilities of each
leader and to enable them to develop creative approach to their work.
We favour an open approach,” the Russian prime minister stressed.

Fradkov believes that society needed such actions for tracking down
the efficiency of government bureaucrats.

ITAR-TASS News Agency
TASS
March 10, 2004 Wednesday

Russia cutting supplies of natural gas to Tbilisi by half

By Dmitry Zlodorev

MOSCOW

Russian foreign trade company Gazexport, a subsidiary of the natural
gas producer Gazprom, is expected to cut by a half the supplies of
natural gas to the Georgian capital city of Tbilisi as of March 15,
Gazexport sources said Wednesday.

The upcoming slash results from non-payments for gas over the past
few months, with the total debt reaching 7.4 million U.S. dollars.

Itar-Tass Tbilisi-based correspondent Ia Barateli said earlier
Gazexport supplies 1.7 million cubic meters of gas to the city a day,
and if the local operator of gas distribution lines, Tbilgazi Co.,
manages to pay 2.5 million U.S. dollars in the next few days, there
will be no slash.

In the meantime, Georgian experts say the problem of back payments
comes partly from irregular financing of Tbilgazi by the local
authorities. This finance should cover the cost of gas consumed by
low-income people, public health institutions and social facilities.

Alexander Ryazanov, a deputy CEO at Gazprom, gave assurances earlier
this month the company would continue deliveries of gas to Georgia.

He said at the same time Gazprom was concerned by the technical
condition of the trunk pipelines by which Russia was pumping gas to
Armenia.

“We’re worried by the lack of repair works at the gas pipelines in
Georgia,” he said.

ITAR-TASS News Agency
TASS
March 10, 2004 Wednesday

OSCE chairman-in-office to arrive in Yerevan for talks on Karabakh

By Tigran Liloyan
YEREVAN

OSCE Chairman-in-Office, Bulgarian Foreign Minister Solomon Passy
will arrive in Yerevan on a two-day official visit for talks on the
settlement of the conflict in Nagorno-Karabakh and OSCE-Armenia
relations, sources in the Armenian Foreign Ministry press and
information department told Itar-Tass on Wednesday.

The OSCE chairman-in-office will meet Armenian President Robert
Kocharyan and Nagorno-Karabakh leader Arkady Gukasyan, the sources
said.

In 1992 it was decided to convene a session of the Minsk Conference
for Nagorno-Karabakh under the OSCE aegis, but its resolutions were
not implemented. In June 1992 the participants in the Minsk
Conference set up the OSCE Minsk Group for Nagorno-Karabakh that
became a consultative body. The Minsk Group co-chaired by Russia,
France and the U.S. is working on a draft peace agreement that will
determine Nagorno-Karabakh’s juridical status. Over the last years
the Minsk Group failed to yield certain results and bring the warring
sides’ positions closer.

ITAR-TASS News Agency
TASS
March 10, 2004 Wednesday

Work of intergvt committees on CIS integration not to be disrupted

By Lyudmila Yermakova, Dmitry Zlodorev

MOSCOW

The meetings of five intergovernmental committees on economic
integration of the CIS states will be held not in March as planned,
but a little bit later, Russian Deputy Minister for Economic
Development and Trade Dmitry Sukhoparov said at the governmental
question-and-answer session during the Federation Council session on
Wednesday. “There will be no disruptions in this process due to the
formation of a new Russian government,” he emphasised.

Sukhoparov also noted that Viktor Khristenko who was appointed
Industry and Energy Minister on Tuesday is still in charge of the
Russian policy on integration with Azerbaijan and Kazakhstan.

The governmental question-and-answer session was devoted to the
development of CIS interstate cooperation. The ambassadors of
Ukraine, Belarus, Tajikistan and Armenia to Russia and staffers of
the embassies of Azerbaijan, Uzbekistan, Kyrgyzstan, Kazakhstan,
Moldova, Georgia and Turkmenistan participated in the session. “We
want to provide Federation Council members with the materials on the
real situation in the CIS states,” chairman of the Federation Council
Committee on CIS Affairs Vadim Gustov told Itar-Tass.

“The position of the leadership of new ministries on the creation of
a single economic space is very important for us,” he remarked.
Gustov noted that several CIS parliamentary delegations headed by
their speakers would meet in St. Petersburg on April 15 in order to
discuss how “to ratify simultaneously the documents on the single
economic space that the presidents will sign.”

ArmenPress
March 10 2004

NATO SECRETARY GENERAL RESPONDS TO LETTER OF ARMENIAN FOREIGN
MINISTER

YEREVAN, MARCH 10, ARMENPRESS: NATO secretary general Jaap de Hoop
Scheffer responded to a letter by Armenian Foreign Minister Vardan
Oskanian on the killing of an Armenian military officer in Budapest.
In his February 20 letter, the minister expressed indignation over
the brutal act which took place during the context of a NATO Language
training program.
According to the press office of the foreign ministry of Armenia,
the NATO Secretary General expressed his profound shock at the brutal
murder of Lieutenant Gurgen Margaryan of the Armenian Armed Forces
and expressed his wish to convey his grief and sympathy to the family
of the victim.
“As you know, the appropriate Hungarian authorities are conducting
a thorough investigation and I am confident that they will spare no
effort to explain all the circumstances of this murder and to make
sure that justice prevails. I will closely follow the results of this
investigation and the due legal process which will follow,” Mr. Jaap
de Hoop Scheffer said.
NATO Secretary General expressed his hope that this criminal
incident will not prevent Armenia from further developing cooperation
with NATO. He stated that the Alliance appreciates greatly Armenia’s
approach, and contribution to Partnership for Peace. “Helping build
confidence and encouraging regional cooperation in the Caucasus
remains an essential part of NATO’s policy of Partnership and
Cooperation,” he continued.
“Allies remain determined to work with your country towards this
end,” concluded the Secretary General of the North Atlantic Treaty
Organization.

ARKA News Agency
March 9 2004

President of Georgia to visit Armenia on March 12

NKR President and RA Minister of Science and Education discuss
problems in the sphere of Nagorno Karabakh education

Hungarian Ambassador to Armenia hands copies of credentials to RA MFA

Hungarian Ambassador to Armenia hands credentials to RA President

International chess competition starts in Nagorno Karabakh

Additional protocol of agreement on application of MAGATE guarantees
corresponds to RA Constitution

The agreement on settlement of voluntary emigration processes
prolonged between Armenia and Russia

Banknotes with nominal value of AMD 10, 20, 50, 100, 200 to be
withdrawn from circulation since 1 April

`Open doors day’ to be held in American University of Armenia on 20
March

Yerevan Mayor instructed inventory of unfinished erections in
capital’s communities

*********************************************************************

PRESIDENT OF GEORGIA TO VISIT ARMENIA ON MARCH 12

YEREVAN, March 9. /ARKA/. President of Georgia Mihail Sahakashvili
will visit Armenia on March 12 on the invitation of RA President
Robert Kocharian. On March 12, the presidents will hold confidential
conversation, after which will conduct Armenian-Georgian negotiations
in expanded format.
In the frames of the visit Sahakashvili will meet with RA NA
Chairman, Prime Minsiter, Catholicos of All Armenian and
representatives of Georgian community of Armenia. Delegation headed
with Georgian President will visit memorial of Genocide victims.
The delegations includes ministers of foreign affairs, energy,
infrastructures and development; parliament members. L.D. –0–

*********************************************************************

NKR PRESIDENT AND RA MINISTER OF SCIENCE AND EDUCATION DISCUSS
PROBLEMS IN THE SPHERE OF NAGORNO KARABAKH EDUCATION

STEPANAKERT, March 9. /ARKA/. NKR President Arkady Gukasian and RA
mInister of Science and Education Sergo Yeritsian discussed problems
in the sphere of Nagorno Karabakh education, NKR President’s press
office told ARKA. Gukasian expressed confidence that only every-day
cooperation between profile ministries of Armenian and NKR and
realization of joint programs can positively affect the improvement
of education sphere in Artsakh.
Yeritsian said that his visit in Nagorno Karabakh follows the goal to
get familiar with the problems existing in the sphere. The parties
discussed some aspects of the program on implementation of new system
of education in NKR that envisages use of computer technologies,
re-training of teachers. The Minister promised to provide educational
institutions of Karabakh with 600 computers. The parties noted with
satisfaction that joint efforts of the ministries of the republics
helped opening of representation of National Institute of Education
of Armenia. L.D. –0 –

*********************************************************************

HUNGARIAN AMBASSADOR TO ARMENIA HANDS CREDENTIALS TO RA PRESIDENT

YEREVAN, March 9. /ARKA/. Hungarian Ambassador Extraordinary and
Plenipotentiary to Armenia Ferents Contra (residence in Moscow)
handed credentials RA President Robert Kocharian. The parties noted
that the countries have no political problems and emphasized the
importance of activation of economic cooperation.
Contra in his turn stated that Hungary will become a full member of
EU in May 2004 and noted readiness of his country to assist to the
strengthening of cooperation between EU and Armenia. He also
presented Hungarian Government and his condolences considering murder
of Armenian officer Gurgen Margarian in Budapest. L.D. –0–

*********************************************************************

HUNGARIAN AMBASSADOR TO ARMENIA HANDS COPIES OF CREDENTIALS TO RA MFA

YEREVAN, March 9. /ARKA/. Hungarian Ambassador Extraordinary and
Plenipotentiary to Armenia Ferents Contra (residence in Moscow)
handed copies of credentials to RA Foreign Minister Vardan Oskanian,
RA MFA told ARKA. The parties discussed perspectives of deepening of
bilateral cooperation and emphasized the importance of mutual visits.
It was noted that activation of political contacts and strengthening
of legal-agreement field will create conditions for development of
business, economic and cultural cooperation between the countries.
According to Oskanian, entry of Hungary in EU will give new impulse
to Armenian-Hungarian economic cooperation, because the states will
be able to use opportunities of the agreement on partnership and
cooperation of Armenian and EU.
Contra presented Hungarian Government and his condolences considering
murder of Armenian officer Gurgen Margarian in Budapest. L.D. –0–

*********************************************************************

INTERNATIONAL CHESS COMPETITION STARTS IN NAGORNO KARABAKH

STEPANAKERT, March 9. /ARKA/. International chess competition started
in Nagorno Karabakh. The competition is dedicated to 75th anniversary
of birthday of 9th World Champion Tigran Petrosian. The tournament
will include 10 grand masters from Armenia, Switzerland, Georgia,
Latvia and Iran. The honorary guest of the tournament is 10th World
Champion Boris Spasski. L.D. –0–

*********************************************************************

ADDITIONAL PROTOCOL OF AGREEMENT ON APPLICATION OF MAGATE GUARANTEES
CORRESPONDS TO RA CONSTITUTION

YEREVAN, March 9. /ARKA/. Additional protocol of agreement on
application of MAGATE guarantees corresponds to RA Constitution, the
decision was made by RA Constitutional Court.
The agreement was signed on Sep. 29, 1997 in Vienna. According to
Deputy Foreign Minister Tatoul Margarian, on Aug. 15, 1993 Armenia
joined the non-proliferation treaty as of 1968. The treaty allows
MAGATE to conduct inspections in the countries that joined the
agreement. According to the agreements Armenia is obliged not to
create and receive nuclear weapons and not to assist to other
countries in creation of nuclear weapons. L.D. –0

*********************************************************************

THE AGREEMENT ON SETTLEMENT OF VOLUNTARY EMIGRATION PROCESSES
PROLONGED BETWEEN ARMENIA AND RUSSIA

YEREVAN, March 9. /ARKA/. The agreement on settlement of voluntary
emigration processes was prolonged between Armenia and Russia. The
agreement was signed in 1997. According to the RA President’s Press
Service and Public Relations Department, the protocol on the
agreement prolongation as signed by the RA Minister of the regional
control and industrial infrastructures coordination Hovik Abarahamyan
and the RF Ambassador Extraordinary and Plenipotentiary in Armenia
Anatoliy Drukov. According to the protocol, the expire date of the
agreement is in 5 years.
In the course of the agreement signing ceremony the RF Ambassador in
Armenia noted that settlement of voluntary emigration processes
proved to be important. In his turn the Head of the Migration and
Refugees Department at the RA Government Gagik Eghanyan added that
the agreement is aimed at creation of favorable conditions for
voluntary emigration of citizens of Armenia and Russia. According to
him, it’s especially important now, when many people return to
Armenia, and the agreement may become stimulus for returning the
citizens of Armenia and settling in the Republic. Eghanyan stated
that at the assignment of the RA Prime Minister, an Armenian
delegation will go to Russia next week to introduce to the Armenians
staying in Russia the favorable conditions provided for them by the
agreement. A.H. – 0–

*********************************************************************

BANKNOTES WITH NOMINAL VALUE OF AMD 10, 20, 50, 100, 200 TO BE
WITHDRAWN FROM CIRCULATION SINCE 1 APRIL

YEREVAN. March 9. /ARKA/. Since 1 April banknotes with nominal value
of AMD 10, 25, 200 issued in 1993, as well as banknotes of AMD 50 and
100 issued in 1998 will be withdrawn from circulation, as stated by
the CBA Head of Emissions and Monetary Reserves Gevorg Tumanyan. In
his words, these banknotes are still in circulation and will be
accepted for payments in relevant service points. As reminded by
Tumanyan, banknotes with nominal value of AMD 500 and 100 issued in
1993 have been withdrawn from circulation from 1 January 2004, while
the banknote with nominal value of AMD 1000 issued in 1994 were
withdrawn since 1 March 2004. `All banknotes that to be withdrawn
from circulation by the CBA will be circulating for a while, however,
they must be exchanged that can be made in any Armenian bank or their
affiliates in their nominal values without any limitation in number
of banknotes or terms of exchange’, said Tumanyan. The head of the
departments also stated that the main portion of these banknotes has
been already withdrawn from circulation, while the other was replaced
by coins.
At the same time, as mentioned by Tumanyan, the CBA is to withdraw
from circulation banknotes of AMD 5000 issued in 1995 in July 2005,
while banknotes of AMD 500 issued in 1993 in September 2005. T.M. -0 –

*********************************************************************

`OPEN DOORS DAY’ TO BE HELD IN AMERICAN UNIVERSITY OF ARMENIA ON 20
MARCH

YEREVAN. March 9. /ARKA/. The American University of Armenia (AUA)
starts admission of students for education year of 2004-2005 and
`Open doors day’ to be held in the University on 20 March. As
mentioned in the AUA press-release provided to ARKA News Agency
today, the administration, lecturers, students and graduates of the
University will take participation in the action. The participants
and those invited will be familiarized with the AUA admission
requirements, its education programs, library, computer and research
centers, as well as other structures of the University.
The American University of Armenia is functioning since 1991 and
awards Master of Arts degrees in six fields such as Industrial
Engineering and Systems Management, Computer and IT Sciences,
Comparative Legal Studies, Business & Management, Political Science,
Teaching of English as a Foreign Language and Certificate in Teaching
of English as a Foreign Language. High education and good knowledge
of English are obligatory requirements for admission to the
University. T.M. -0–

*********************************************************************

YEREVAN MAYOR INSTRUCTED INVENTORY OF UNFINISHED ERECTIONS IN
CAPITAL’S COMMUNITIES

YEREVAN. March 9. /ARKA/. Inventory of unfinished erections in
Yerevan’s communities was the subject of today’s sitting in Yerevan
Municipality. As reported by the Vice Mayor of Yerevan Vano
Vardanyan, the Head of Landscaping Department presented the list of
these types of erections, while the Mayor instructed to hold
discussions on this problem with the leaders of the communities
within a week. According to the Vice Mayor, there will be offered
concrete programs for solutions of the problem in the course of the
discussions held, adding that the problem of unfinished erections is
timeliest for 6 Yerevan communities and each community to held
separate meeting with the Mayor. T.M. -0–

ARKA News Agency
March 10 2004

RA Foreign Minister to take part in 60th session of UN Commission on
Human Rights in Geneva on March 15-16

Armenian Agency of Tourism Development to take part in the exhibition
`International Tourist Bourse’ in Berlin on March 12-16

The Azerbaijani chess federation expresses its anxiety about holding
the International Chess Tournament in Nagorno-Karabakh

The RA President receives the Georgian Ambassador Extraordinary and
Plenipotentiary in Armenia

Online weekly `Parliament’ to be placed on web since 9 March

*********************************************************************

RA FOREIGN MINISTER TO TAKE PART IN 60TH SESSION OF UN COMMISSION ON
HUMAN RIGHTS IN GENEVA ON MARCH 15-16

YEREVAN, March 10. /ARKA/. RA Foreign Minister Vardan Oskanian will
take part in 60th session of UN Commission on Human Rights in Geneva
on March 15-16, RA MFA told ARKA. The session includes bilateral
meetings with Foreign Ministers of Switzerland, Italy, Luxembourg,
and Estonia. L.D. –0–

*********************************************************************

ARMENIAN AGENCY OF TOURISM DEVELOPMENT TO TAKE PART IN THE EXHIBITION
`INTERNATIONAL TOURIST BOURSE’ IN BERLIN ON MARCH 12-16

YEREVAN, March 10. /ARKA/. Armenian Agency of Tourism Development
will take part in the exhibition `International Tourist Bourse’ in
Berlin on March 12-16, 2004, AATD told ARKA. AATD will represent the
program and marketing strategy of tourism development to represent
Armenia as an attractive center of year-round tourism at
international arena. `Participation of Armenia in similar activities
has fundamental importance for maximal protection and economic
efficiency of developing tourism industry’, press release notes.
ITB exhibition will include 10 thousand participants from 180
countries and regions that will represent tourism services of all
levels. The participants are all structures of world tourism
industry. L.D. –0–

*********************************************************************

THE AZERBAIJANI CHESS FEDERATION EXPRESSES ITS ANXIETY ABOUT HOLDING
THE INTERNATIONAL CHESS TOURNAMENT IN NAGORNO-KARABAKH

YEREVAN, March 10. /ARKA/. The Azerbaijani chess federation expressed
its anxiety about holding the International Chess Tournament in
Nagorno-Karabakh, as the President of the Armenian Chess Association,
Grand Master Smbat Lputyan stated in Stepanakert. `It is very pity
that the Azerbaijani party so badly reacted at holding the
International Chess Tournament in Nagorno-Karabakh. It shouldn’t’ be
so, since such arrangement is the basis for chess development’, he
said.
According to the Academy’s President, `there is a great basis for
chess developing in Nagorno-Karabakh, and it would be good if such
competitions became traditional’.
The idea of holding the International Chess Tournament in
Nagorno-Karabakh occurred to the Armenian Chess Academy and the NKR
Government five months ago.
The International Chess Tournament is devoted to the 75th anniversary
since the birth of the 9th World Chess Champion Tigran Petrosyan.
A.H. -0–

*********************************************************************

THE RA PRESIDENT RECEIVES THE GEORGIAN AMBASSADOR EXTRAORDINARY AND
PLENIPOTENTIARY IN ARMENIA

YEREVAN, March 10. /ARKA/. The RA President Robert Kocharian received
the Georgian Ambassador Extraordinary and Plenipotentiary in Armenia
Nikoloz Nikolozishvili , whose term of office expires. According to
the RA President’s Press Service, Nikoloz Nikolozishvili is assigned
as plenipotentiary of the Georgian President in Samtskhe-Dzhavakhetii
region. The RA President highly estimated the 6-year work of the
Georgian Ambassador in Armenia and noted that significant progress in
the relations between two countries is observed.
In the course of the meeting the parties attached great importance to
the coming visit of the Georgian President Michael Saakashvili to
Armenia. At their estimates, it will be an additional push for
developing Armenia-Georgian relations. During the meeting the parties
discussed the situation in Dzhavakhq. The Ambassador noted that he
happened to be in Samtskhe-Dzhavakhetii , and his primary duty he
considers settling social and economic problems in the region. The RA
President attached great importance to improving the road connecting
Dzhavakhq with Armenia. A.H.–0–

*********************************************************************

ONLINE WEEKLY `PARLIAMENT’ TO BE PLACED ON WEB SINCE 9 MARCH

YEREVAN. March 10. /ARKA/. Online weekly `Parliament’ will be placed
on the Armenian Parliament’s web (), as
ARKA News Agency was told in the Armenian Parliament Public Relations
Department. The weekly will include the following headings: main
topic, official reference, legislation, politics, and international
activity of the Armenian Parliament for the next week.
It should be reminded that the first number of print monthly
reference `National Assembly’ was printed on 16 December 2003. As
reported by the Head of Public Relations Department of the Armenian
Parliament Anahit Adamyan, the reference is not for sale and will be
distributed free of charge as inside of the Parliament as well as for
outer use. The circulation of the first number of the reference is
500 copies. T.M. -0–

ARKA News Agency – Interview
March 10 2004

ARMENIAN IT SECTOR DEVELOPS AT SLOWER PACES THAN EXPECTED

Exclusive interview with Andranik Aleksanian, Director General of
Arminco Global Telecommunications to ARKA News Agency.

ARKA- What can you say about the Armenian IT market of the previous
year? What is the position of Armenia in the region?

A. Aleksanian- In 2003, the IT sector could have grown by 20%, though
the actual growth was within 5-10%. This testifies to the fact that
the IT-sector develops parallel to the economy, but at slower paces
than may be. We are behind the world tendencies. In the regions, the
problem of the IT development is even more urgent, because of poor
transport and electronic communications, plus lack of specialists and
high cost of installation of communication lines. For example, the
cost of a 2 Mbit line from Yerevan to Gyumri is some $1600 per month.
This impedes business development in the regions, though there is
some growth, and `the frozen state’ has been overcome.

As to the state of the IT in the South Caucasian region, then the our
neighbors are doing principally better than we are . We are behind
Georgia and Azerbaijan as to the infrastructure and communications,
though we are in a better position, as regards the professional
level. That is, we have a good potential to occupy a solid place in
the IT sector of the region. But, we need a model of development,
especially since the IT industry has been declared a priority by the
RA Government.

ARKA- What is your evaluation of the IT-sector strategy (as to the
development model), recently submitted to the Armenian President?

A. Aleksanian- I am aware of the strategy. On the whole, it is
comprised of good and correct provisions. To develop the sector, the
President has set the task to integrate it into the global system.
There are rules of the game, and respective infrastructure and
specialists are needed to ensure the integration. All this brings to
the necessity of a law that will determine the tasks and goals, as
well as legislatively-fixed guarantees for an investor. The IT is not
just an Internet or software development . It assumes an entire
industry with specialists, developed infrastructures and
communications. In particular, the availability of the normal
infrastructure will resolve a lot of problems and will prevent
emigration. At least 5 years are required to attain the goal, and the
generation should change, I think. The technological process we have
now will be out-of-date the next year. In this respect, a `polygon’
should be created for specialists to introduce new technologies. The
period of 5 years is a normal term for training specialists. This is
the period, when the potential will be created. I think that any
problem may be resolved, if the task is set correctly. And in the
long run, nothing can prevent us from developing software in Armenia,
the way India does.

ARKA- What expectation do you have from the law on e-communications?

A. Aleksanian- We need a law that will serve the interests of both
investors, consumers and the country, as a whole. We need not `invent
a wheel’ in this regard. If Singapore and Taiwan managed to grow with
certain arrangements, we may make use of them and achieve success if
not at 100% level, then at least for 50%.. I think it is not that
important to draft a new law, it will be more significant to adopt
someone’s experience and put it into practice correctly. I am for the
above-mentioned, as I am not aware of positive or negative sides of
the law on e-communications.
I do not think it is correct to provide the IT-sector with greater
privileges, as compared to other economic branches. Once we decided
to make the sector a priority, we should organize the process in such
a way, as to enable specialists of other professions to make use of
IT-technologies. Provision of benefits or privileges to the Armenian
IT industry is an incorrect policy, which will ruin the economy.
ARKA- What are the financial results, reported by your company for
2003. Is there any growth as compared to the previous year? What new
services do you plan to provide in 2004?

A. Aleksanian- Theoretically, we have had some growth, though this
growth has been achieved at a high cost. Outside Armenia, it is very
easy to make the business and gain profits. In Armenia, this is not
the growth we could have achieved. We had planned to create 50 new
jobs, cut expenses, expand the infrastructure and introduce new
technologies, though we failed because of the problems with ArmenTel.
We did not manage to expand our clientele in the regions of Armenia.
I will not specify the turnover, though I can state that we report a
10% growth annually. We could have had a better growth, though 10% is
a good index under the conditions of stagnation. In other countries,
the growth index reaches 50-60%.

In 2003, we had to reduce our tariffs, because of ArmenTel’s policy.
We acquire a certain services from the ArmenTel, though we get fewer
discounts than smaller clients. Some of the ArmenTel’s employees have
no idea of the business they are in, and the shortcomings in our work
are on their conscience.
As to the new services, then we plan to introduce some of those in
2004. The first service is the radio-modem communications (enabling
to work from any place). This year, we are going to resolve the
problem in Yerevan. We are going to install the first 5,000
radio-modems in various parts of Yerevan in summer and get rid of
ArmenTel, in this regard. The second service will enable our clients
to access Internet and check mail through a cellular phone. We also
plan to expand our services in the regions of Armenia and we are
negotiating with ArCa and some commercial banks to launch the payment
for our services with plastic cards in ATMs.

ARKA- What about the development e-trade, as a form of
Internet-business?

A. Aleksanian- E-commerce may not develop here because of the lack of
the corresponding law and infrastructure. The system may work,
provided that there is one of the attributes present. There is no
bank-shop-client relationship. We need a law on e-trade, which would
enable to make trade transactions through ArCa plastic cards. In
other countries, the problem is resolved easily. Soon, the Armenian
Chamber of Commerce and Industry plans to make a legislative
initiative, to prevent further complication of the problem. I think
that the e-trade will develop only after the adoption of the law.

ARKA- Was there any progress in the Internet advertisement in 2003?

A. Aleksanian- The advertisement business in the Internet is designed
for regular Internet users. However, this type of advertisement is
not in demand in Armenia, because of the restricted number of the
users. On the whole, Internet advertisement has its own place – it
neither grows nor decreases. The Internet advertisement’s share is
1-3% of the Armenian advertisement market.

ARKA- You mentioned above that there were some problems due to
ArmenTel Company’s activities. What is your policy in respect to
ArmenTel and what do you think on possible appearance of the second
cellular communications operator in Armenia?

A. Aleksanian – I have been in this business for 10 years and have
invested all my funds and health. The thing is that the business
generally results in profit in the world, unlike Armenia where it
brings in losses. We have to struggle for our share all the time –
and not just seek investment, but demand definite services from
ArmenTel. This is not an organization, this is a `mistake’. Here are
two examples. Two years ago I applied in writing to ArmenTel with a
request to provide me with a communication line in the regions. I
even allocated the funds immediately, and they (ArmenTel) provided
that line to others. But, this is not the point, the point is that
you have to wait for 2 years to get the long expected line.
It is impossible to collaborate with the organization. I used to try
to settle the issue peacefully, and now I have decided to go to court
directly, with all the problems relating to the ArmenTel. Any small
issue, impeding my activities will be settled in the Court from now
on. I shall apply to the Court, in case if they fail to reply my
inquiry in the set terms. At the moment, I have got two replies to
100 letters, sent to ArmenTel. I see no other technology of dealing
with this Company. On the whole, I am going to sue ArmenTel at a few
million dollars. In February, I plan to bring the first sue.
The organization with all its officials (no matter who they are
-Armenians or Greeks) is destroying the country premeditatedly. I can
state that they do not want Armenia to develop.
I think that the arrival of the second operator will not resolve the
problems, as the organization will be entitled to provide cellular
communications’ services only, and the cable network will remain at
the disposal of the ArmenTel Company.

Mediamax news agency, Yerevan, in Russian
10 Mar 04

Armenian leader decisive to solve Karabakh problem

YEREVAN

Armenian President Robert Kocharyan said in Yerevan today that “we
shall bring the settlement of the Nagornyy Karabakh problem to an
end”, the Armenian president said at a meeting with Yerevan students,
Mediamax reports.

Kocharyan said that “at least the last 15 years of my life” have been
devoted to solving the Karabakh problem.

According to the president, at least the fact that “during my term in
office, the mediator countries put forward proposals on a solution to
the conflict, which were accepted as a basis for the talks by Armenia
and rejected by Azerbaijan” could serve as an appraisal of the
current Armenian authorities’ policy on the Karabakh issue.

“I think only this fact speaks for itself,” Robert Kocharyan said.