| July 5 |
Municipal
police and security forces are placed on alert for several hours throughout
the Karabagh capital Stepanakert, reflecting the growing political
tension following a reported power struggle between Karabagh President
Arkady Gukasyan and defense Minister Samvel Babayan in the wake of
the dismissal of Prime Minister Jirair Poghosyan and his cabinet on
June 24th. Newly installed Prime Minister Anushvan Danielian meets
with Babayan to discuss the possible appointment of the defense minister
to a position within the new cabinet. |
| July 6 |
In an attempt
to diffuse the internal political tension in Nagorno Karabagh, President
Gukasyan meets with senior Karabagh military officials. A group of
leading officers have recently denounced the president and pledged
their loyalty to Defense Minister Babayan. |
| July 7 |
Finance
Minister Levon Barkhudarian announces that the International Monetary
Fund (IMF) has postponed the release of its $32 million final installment
of a $154 million three-year loan package for Armenia. This announcement
follows the recent decision by the World Bank to freeze their $15
million loan which was part of the $65 million loan program begun
in December 1998 to cover the projected 1999 Armenian budget deficit.
The finance minister blames the previous Armenian government for greatly
overestimating and exaggerating their figures projecting budget revenue
and overall growth, which led to the IMF and the World Bank to reconsider
their loans after Armenia failed to meet the forecasted goals. The
loans are expected to be released later this month following negotiations
and a possible restructuring of the loan packages by IMF and World
Bank officials.
Armenian President Kocharian's press secretary Vahe Gabrielian issues
a statement affirming Kocharian's support for the democratic process
in Karabagh, adding that "Armenia will not act as an indifferent
observer with regard to Nagorno Karabagh if any illegal attempts are
made against its legitimate authorities."
Austrian Foreign Minister Wolfgang Schuessel meets with Armenian officials
to discuss the Nagorno Karabagh conflict. The Austrian government
is to assume the rotating chair of the Organization for Security and
Cooperation in Europe (OSCE) next year and is also slated to convene
a special meeting of the parliamentary leaders of Armenia, Azerbaijan
and Georgia in Vienna next year to explore new avenues for resolving
regional conflicts. |
| July 8 |
The late
Armenian religious leader Catholicos Karekin I is buried in the main
courtyard of the primary Armenian cathedral in Echmiadzin, outside
of Yerevan. A multitude of government leaders, foreign dignitaries
and religious leaders attend the ceremony. Archbishop Nerses Pozapalian
was named as acting head of the Armenian Apostolic Church four days
earlier to replace the late Catholicos who succumbed to cancer late
last month.
President Robert Kocharian meets with visiting Georgian Parliamentary
Speaker Zurab Zhvania and discusses issues related to the planned
expansion of bilateral cooperation, including the establishment of
a joint economic and commercial forum to foster greater bilateral
trade and investment. |
| July 9 |
Following
visits to Armenia and Georgia, Austrian Foreign Minister Wolfgang
Schuessel meets with President Aliyev and Azerbaijani Foreign Minister
Tofik Zulfugarov to brief them on Austria's plans to increase its
involvement in the peace process underway seeking a negotiated solution
to the Nagorno Karabagh conflict. President Aliyev reiterates his
refusal to the current draft peace plan of the Organization for Security
and Cooperation in Europe (OSCE), stating that he "will never
agree" to the concept of a "common state" comprising
Azerbaijan and Nagorno Karabagh.
Recently dismissed Prime Minister Jirair Poghosyan is arrested by
Nagorno Karabagh security personnel on charges of illegal weapons
possession and the "loss of documents containing state secrets."
Press reports also suggest that a large amount of money is seized
by security police during the arrest. |
| July 10 |
Foreign Minister
Vardan Oskanian states that Armenia sees its full membership in the
European Union as an integral long-term element of its foreign policy,
echoing similar aspirations of Georgia. The foreign minister's comments
are made during a ceremony marking the partnership and cooperation
agreement between Armenia and the European Union.
An Armenian government delegation led by President Robert Kocharian
and accompanied by Defense Minister Vagharshak Harutiunian and Interior
Minister Suren Abrahamian arrive in the Nagorno Karabagh capital Stepanakert
for talks with Karabagh President Arkady Gukasyan. The Armenian officials
end their meetings with an optimistic pronouncement stating that the
political differences between President Gukasyan and his former Defense
Minister Babayan have been resolved. |
| July 11 |
Central Electoral
Commission officials announce that local elections for councilmen
from three districts in Yerevan were completed without incident. However,
voting in the Ajapniak district was marred by intimidation, violence,
and gunfire, which left 8 people injured. Police quickly initiate
an investigation that focuses on campaign staff and supporters of
candidate Ashot Aghababian. The voting results in this district are
invalidated. |
| July 13 |
Archbishop
Garegin Nersisian announces that the Armenian Apostolic Church will
convene a pan-Armenian National Ecclesiastical Assembly in late October
to formally elect a successor to Catholicos Karekin I, who recently
died of cancer. The assembly will consist of hundreds of elected clerical
and secular representatives from Armenia and throughout the diasporan
communities. The next Catholicos will be responsible for overseeing
celebrations of the 1700th anniversary of Armenia's adoption of Christianity
as a state religion in 2001.
Former Prime Minister Jirair Poghosyan is released from custody following
his recent arrest in Stepanakert. Nagorno Karabagh Prosecutor-General
Mavrik Ghukasian states that Poghosyan has agreed to remain in Karabagh
and will face a criminal trial within the next few months. |
| July 14-15 |
The Armenian
government secures a court order allowing for the seizure of $140
million in shares of the ArmTelecom monopoly, of which the Greek OTE
telecommunications firm holds ninety percent ownership. The Armenian
government launched a lawsuit against OTE late last month for its
failure to pay $18 million in profit tax. In what has become a very
controversial issue for the Kocharian government, the OTE firm had
acquired its controlling shares in ArmTelecom from the U.S. based
TransWorld Telecom firm and Armenian state ownership in the 1997 privatization
of the country's telecommunications industry by the Ter Petrosian
government. Recent allegations by a former executive suggesting large
bribes and corruption by some in the last Armenian government during
the privatization deal has fueled controversy over the sale.
Armenian President Kocharian, in comments following a meeting in Warsaw
with Polish President Aleksandr Kwasniewski, states that he is optimistic
of the prospects for reviving the stalled mediation effort focusing
on reaching a negotiated solution to the Nagorno Karabagh conflict.
Kocharian adds that Armenia is committed to pursuing bilateral direct
talks with Azerbaijan and looks forward to meeting Azerbaijani President
Aliyev the next day. |
| July 15 |
The Armenian
and Azerbaijani presidents holds direct talks during a meeting in
Geneva to discuss the Nagorno Karabagh conflict and to review the
ongoing peace initiative of the Organization for Security and Cooperation
in Europe (OSCE). The convening of the meeting is attributed to the
personal intervention of U.S. Secretary of State Madeleine Albright
in accordance with the initial meeting of regional leaders during
the summit of the North Atlantic Treaty Organization (NATO) in Washington
this past April. According to Azerbaijani presidential administrator
Novruz Mamedov, the meeting was originally scheduled for last month,
but was postponed due to President Aliyev's health problems. Mamedov
also states that the U.S. has urged the OSCE to add new provisions
to its latest draft peace plan, including elements for "the repatriation
of refugees and other displaced peoples." Azerbaijan continues
to reject the current OSCE draft plan which calls for the creation
of a "common state" comprising Nagorno Karabagh and Azerbaijan
proper. |
| July 20-21 |
Armenian
Prime Minister Vazgen Sarkisian and Russian Prime Minister Stepashin
conclude a meeting in Moscow and agree to convene a regular monthly
session to "settle issues in a working environment." The
meeting covers a range of topics including security and economic cooperation,
the conflict in Nagorno Karabagh, and the recent political changes
in both Armenia and Nagorno Karabagh. Prime Minister Sarkisian also
attends a "closed" meeting with the head of the Russian
Military general Staff, Anatolii Kvashin, to discuss military cooperation
between Moscow and Yerevan. |
| July 22 |
The Nagorno
Karabagh Interior Ministry issues a strongly worded statement announcing
the removal of twenty-seven ministry officials for their part in a
coordinated protest strike in the capital Stepanakert and in the districts
of Askeran and Shushi from July 7th to July 12th. Although the ministry
does not release further details, an internal investigation is launched
by a commission formed by the interior minister. |
| July 26-29 |
A delegation
of senior Armenian Defense Ministry officials participates in the
summit of military general staffs of the Commonwealth of Independent
States (CIS) in Moscow to prepare for the holding of military exercises
this coming August. The CIS exercises, called the "Combat Commonwealth-99"
exercises, is designed to test the common air defense systems of the
CIS military coordinating body and to improve the overall readiness
of the CIS to repel air and missile attacks. |
| July 28 |
The newly-formed
presidential commission for local government affairs holds its first
meeting chaired by commission chairman and presidential adviser Felix
Pirumian. The commission adopts plans to conduct studies of coordinating
and developing a coherent state policy concerning local government
and improving the work of local and regional administrations.
In a televised address to the nation, Prime Minister Vazgen Sarkisian
explains his government's new austerity measures aimed at overcoming
the state budget deficit and seeking to improve socio-economic conditions
in the country. Sarkisian reveals plans to introduce stringent measures
to improve tax collection and combat tax evasion, and to raise excise
taxes on cigarettes and gasoline in order to alleviate the burden
on the lower class of the population. Sarkisian states that the budget
deficit is his most significant challenge as the budget revenues for
the first half of 1999 were 33 billion drams ($61 million) lower than
originally expected, a level representing approximately ten percent
of government spending for this year. Recent talks with officials
of the International Monetary Fund (IMF) led to a new deadline of
late August whereby the Armenian government must overcome the budget
shortfall in order to meet IMF conditions for the disbursement of
$55 million in loan tranches from the IMF and the World Bank. The
prime minister specifically calls attention to the 93 billion dram
debt owed to the government by the energy sector and the outstanding
pension and salary arrears which have been accumulating. |
| July 29 |
Russian Colonel
General Vitaliy Gritsan arrives in Yerevan for a meeting with Major
General Levon Stepanian, the head of the Armenian border troops under
the jurisdiction of the Ministry of National Security. The officials
review the coordination of Armenian and Russian border control and
security operations. Colonel General Gritsan is the head of the Commonwealth
of Independent States (CIS) Council of Border Troops Commanders. |
| July 30 |
Former Prime
Minister Hrant Bagratian refutes allegations that he personally profited
from the controversial privatization of ArmenTel, the state-owned
telecommunications firm which was sold to the Greek OTE company. Bagratian,
who served as premier from 1993-1996, suggests that President Kocharian
may have been more involved in the deal since Kocharian was prime
minister at the time of the July 1997 sale of ArmenTel.
The Armenian government releases new statistics revealing that for
the first half of the year, Armenian Gross Domestic Product (GDP)
rose by 4.6 percent over the same period last year, reaching 284 billion
drams. Imports and exports for the first six months of 1999 declined
by 9.9 percent and 5.5 percent respectively and industrial production
grew by 2.8 percent. Some 18 billion drams in revenue were reported
from the country's privatization efforts for the first half of the
year as 33 state enterprises and 151 smaller firms were fully privatized.
According to government statistics, nearly 6800 small enterprises
have been privatized since 1994.
President Kocharian chairs the first formal session of the commission
on constitutional reform, headed by Justice Minister David Harutiunian
and empowered to study and recommend various proposed constitutional
amendments. This commission replaces a similar, but much larger, commission
established in the spring of last year that was disbanded last month.
The commission is to issue its final report to the parliament by the
end of the year with a specific focus on the separation of governmental
powers and the possible recommendations for modifying the currently
dominant executive branch and granting more powers to the legislature.
|
| July 31 |
Commenting
on recent talks with Russian officials, Armenian Foreign Minister
Vardan Oskanian states that he foresees a strengthening of relations
with Moscow and Defense Minister Vagarshak Arutiunian reports that
bilateral military and security cooperation will continue at the "highest
levels," stressing that the cooperation is not aimed at any third
party in particular.
Nagorno Karabagh Prime Minister Anushvan Danielian announces that
the new Karabagh government will adopt immediate measures to improve
the conditions of the population and will focus on the reconstruction
of the infrastructure, including rebuilding and modernizing the irrigation
and drinking water systems, housing reconstruction and the repairs
of roads and highways. The prime minister notes his concern over the
falling levels of native Karabagh Armenians returning to Karabagh
and states that attracting investment in Karabagh and the economic
reconstruction effort will help in restoring adequate population growth. |