|
|
|
| January 4 |
Armenian President Robert Kocharian
and senior Yerevan officials met with high-level representatives from
the U.S. Government last month to discuss the country's role in combating
international terrorism. U.S. Department of Defense Secretary Donald
Rumsfeld called his talks with Armenian officials, "very good
discussions." Rumsfeld's visit was part of a rapid tour of the
Caucasus to review military action in Afghanistan.
While in Yerevan, Secretary Rumsfeld
discussed the $4.3 million recently earmarked by Congress to assist
Armenia's military. Armenian Defense Minister Serge Sarkisian said
the Armenian military "would like to use the aid for training
its personnel, modernizing its communication facilities and completing
construction of a de-mining center."
Secretary Rumsfeld also noted that a
special delegation of the staff of the U.S. Department of Defense
would arrive in Armenia in early 2002 to discuss bilateral military
cooperation. He assured Armenian leaders that any suspension of restrictions
mandated by Section 907 of the Freedom Support Act would make way
for a broadening of U.S. military cooperation with Armenia. In recent
weeks, U.S. military planes have utilized Armenia's airspace and refueled
in Armenia on their way to the war front in Central Asia.
Also last month, U.S. Defense Attach頌t.
Col. Eric Von Tersch and U.S. Department of Agriculture (USDA) Marketing
Assistance Project Director Craig Infanger participated in the opening
of two deep wells in rural areas of Armenia. The wells were constructed
with funds provided by the Pentagon to Armenia's Department of Emergency
Management as part of a drought-prevention program. In all, some 60
wells critical to Armenia's water supply will be available by the
end of 2002.
In his New Year's message, U.S. Ambassador to Armenia John Ordway
highlighted U.S.-Armenia cooperation noting that "we have accomplished
a lot together but there is much to be done." He added that the
main priorities of the new year will be strengthening Armenia's democracy,
promotion of economic growth and the reduction of poverty. The Ambassador
also noted that the Minsk Group Co-Chairs will continue their efforts
to resolve the ongoing Nagorno Karabagh conflict in the coming year. |
| January 4 |
Armenia's President Robert Kocharian
visited three countries during the last week of 2001. Meeting with
Russia's President Vladimir Putin, Kocharian tried once again to finalize
an agreement on debt repayment. The two countries have been negotiating
for months, trying to agree on the list of enterprises that Armenia
would wholly or partially transfer to Russian ownership in exchange
for most of the $94 million debt. Russia's Deputy Prime Minister Ilya
Klebanov returned to Yerevan in the last days of December and together
with Armenia's Defense Minister Serge Sargsian finalized what appears
to be a partial list. According to the now concluded agreement, Armenia
will transfer to Russia its largest thermal power station, an electronics
plant and three research institutions that in the past worked for
the Soviet defense industry. However, prices of these assets have
yet to be finalized.
Kocharian also made a first-ever official visit by an Armenian president
to Japan. Meeting with Prime Minister Junichiro Koizumi, Kocharian
backed Japan's bid to become a permanent member of the United Nations
(UN) Security Council. (Currently, only China, France, Russia, the
United Kingdom and the United States are permanent members of the
UN's highest decision-making body.) In talks with top Japanese trade
and banking officials, Kocharian urged new investment in Armenia.
One Japanese company is currently studying options for investing in
Armenia's mining sector. Japan's Emperor Akihito also received President
Kocharian in what was described as an "elaborate ceremony."
While in Tehran, Kocharian met with President Mohammad Khatami to
discuss ways to expedite several joint economic projects. The two
presidents reportedly made progress on long-delayed plans to construct
a natural gas pipeline from Iran to Armenia and agreed on other specific
projects in energy and transportation spheres. |
| January
4 |
Speaker of the Georgian Parliament
Nino Burjanadze told a Baku daily newspaper that Azerbaijan's blockade
of Armenia has not helped the settlement of the Karabagh conflict.
Azerbaijan introduced the blockade as early as 1989, shortly after
a devastating earthquake hit Armenia in December 1988 and prior to
launching a military offensive against Nagorno Karabagh. Azerbaijan
has since refused to resume any economic links with Armenia, dismissing
suggestions of Western leaders that such ties would help confidence-building
between the conflicting parties.
Bourjanadze said Georgia would not join a blockade of Armenia if urged
to do so by Azerbaijan, adding that such measures are not conducive
for finding mutual compromises. Burjanadze also said that Georgia
will use its good relations with both Armenia and Azerbaijan to facilitate
the Karabagh peace process, since "stability and peace in the
Caucasus cannot be achieved without any of the three countries." |
| January
4 |
The Armenian Armed Forces' Chief of
Staff General Mikael Harutiunian has expressed concern over reports
that Turkish military aircraft may be deployed at bases in either
Azerbaijan or Georgia. General Harutiunian, who is also Armenia's
First Deputy Defense Minister, said that such a move would pose a
threat to Armenia's security.
The comments came following media reports that Turkey was planning
to deploy military aircraft at Georgia's Marneuli air base, close
to Armenia's northern border. The reports cited high-ranking sources
in the Russian military as saying that the deployment would proceed
in accordance with a bilateral military agreement between Georgia
and Turkey. Earlier this year Turkey financed the renovation of the
Marneuli base, and it is now capable of receiving a variety of foreign
military aircraft.
Turkey's Ambassador to Azerbaijan Unal Cevikoz in effect confirmed
that Turkey has already used the base in the framework of bilateral
cooperation with Georgia, but claimed that the cooperation was "not
directed against third parties" and should not concern Armenia.
Cevikoz also added that experts from Azerbaijan and Georgia will arrive
in Turkey next week to begin work on a trilateral security agreement.
Meanwhile, an official spokesman for the Russian military forces deployed
in Georgia was quoted as saying that a possible Turkish presence would
be considered "Georgia's internal affair." Georgia's Foreign
Minister Irakly Menagharishvili called the reports "absurd"
and renewed his government's pledge that Georgia will never be involved
in activities that would threaten Armenia.
An Armenian news agency quoted an Armenian government source as saying
that a Turkish military deployment in Georgia would directly contradict
the aforementioned pledge, as well as the agreement on "Friendship,
cooperation and mutual security" signed during President Eduard
Shevardnadze's visit to Yerevan last October. |
| January 4 |
In his New Year's address, President
Robert Kocharian urged the nation to be confident that the continuing
economic difficulties can be overcome. "I realize and I am distressed
that many of you still have numerous concerns and difficulties,"
but he pointed to economic progress achieved in 2001 as evidence that
the country was firmly on the road to recovery from post-Soviet crises.
Armenia's economy is estimated to have grown by over 9 percent in
2001 and tens of thousands of people are reported to have found new
jobs. Kocharian highlighted Armenia's accession to the Council of
Europe and development of 'Paris principles' as the main foreign policy
achievements of the past year. Kocharian concluded with a call to
"brothers and sisters from Armenia, Artsakh and the Diaspora"
to combine individual efforts to achieve pan-Armenian successes in
the new year.
Most Armenians are on a two-week vacation stretching from New Year's
eve to what is known as the Old New Year marked on January 13, which
includes Christmas celebrated in Armenia on January 6. Main public
festivities took place around a large Christmas tree installed in
downtown Yerevan and featured fireworks and Santas in horse-drawn
coaches. There will be more fireworks and concerts on January 13.
In addition, that celebration will feature reenactment of an old Armenian
tradition of breaking of the "bread of the year." A huge
loaf, similar to Armenian gata, will be baked specifically for the
occasion and divided among guests in Yerevan's main Republic Square. |
| January 7 |
Defense Ministry officials issue a
statement refuting allegations made last month by the chief of the
Turkish Army General Staff, General Huseyin Kivrikoglu, that Armenia
should be
subject to a global boycott and sanctions for its "possession
and development of nuclear weapons." The Armenian response
dismisses the Turkish allegations as "absurd" and repeats
that Armenia has conformed to all international policies prohibiting
the development and possession of nuclear weapons. The Turkish allegations,
forwarded to the U.S. government, call for the sanctions currently
imposed on Iraq to be extended to Armenia |
| January 7 |
The trial of presidential
bodyguard Aghamal Harutiunian on charges of murdering Poghos Poghosian
in a Yerevan nightclub last September opens in Yerevan. Testimony
by witness Stepan Nalbandian, charges that Harutiunian led a group
of several bodyguards in an assault on Poghosian after the victim
informally addressed the president. State investigators contend
that Poghosian died as a result of a fall after a fight with the
presidential guards resulting from a series of "obscene and
insulting remarks" to President Robert Kocharian. The
death of Poghosian, a well-known community leader from the Armenian-
populated region of Javakhk in southern Georgia, is publicly seen
as a test of the authorities' ability to ensure the rule of law.
|
| January 8 |
Foreign Minister Vardan Oskanian convenes
a press conference to review developments in Armenian foreign policy
over the past year, stressing that the continued strained relations
between Armenia and Turkey is one of his most important concerns.
The foreign minister explains that despite several attempts by Armenia
to forge diplomatic relations with Turkey with no preconditions, Turkey
remains unwilling to establish diplomatic ties, a development he notes
as having a negative effect on the region. Defining the region
as stable overall, Oskanian adds that the important state of Armenian-Georgian
relations are sound. |
| January 9 |
According to the terms of a renewed
1998 bilateral agreement, Russia is to provide Armenia with annual
supplies of 400,000 carats of uncut diamonds through 2005. Armenia
was the main center for diamond cutting during the Soviet era, but
saw its leadership in this field erode significantly over the past
decade. |
| January 10 |
The government issues a decree mandating
that all households must pay for the installation of water meters
by the end of 2003. Customers will then be billed for actual
water usage instead of the current system of charging a flat monthly
fee. |
| January 4 - 11 |
Azerbaijani media this week renewed
speculations that Turkey was getting ready to base troops in Azerbaijan
as part of an expanded security role in the region. Claiming Turkish
government sources, the Azeri reports allege that Ankara has prepared
"a new blueprint for cooperation in the Caucasus" that would
include "creation of a military base in Azerbaijan or modernization
of one of the old bases in the country." Mehmet Ali Bayar, the
official spokesman for the Turkish Embassy in Washington, said he
had "no information to that effect."
The reports further allege that Turkish Prime Minister Bulent Ecevit
will present "the blueprint" to U.S. officials during his
upcoming visit to Washington. (Ecevit is expected to arrive in the
U.S. on Monday, January 14.) In a bid for greater regional influence,
Turkey has already announced plans for deploying a military contingent
in Afghanistan and may succeed the United Kingdom in leading the peace-keeping
operation there.
Area specialist Aram Nigogosian said that Azeris may in fact wish
for Turkish military, but doubted that for Turkey its "political
and practical military benefits outweigh their costs." Late last
month, a senior Armenian military official expressed apprehension
about similar developments. Armed Forces' Chief of Staff Mikael Harutiunian
said moves by Turkey to base troops in Georgia or Azerbaijan would
pose a security threat to Armenia.
Meanwhile, the Turkish Embassy in Washington confirmed reports that
Ankara has lifted visa restrictions on the Armenian citizens as of
January 10. Turkey introduced the restrictions in the fall of 2000
as an additional punitive measure after the Armenian government backed
efforts by the U.S. Congress to affirm the U.S. record on the Armenian
Genocide. |
| January 4 - 11 |
A Saudi newspaper quoted an unnamed
UNESCO representative as telling Turkish officials that "if you
embrace the Ottoman legacy then also accept responsibility for the
Armenian Genocide." The report came following Turkish complaints
to UNESCO that the Saudis were dismantling 18th century fortifications
around Mecca as part of an expanding development project to accommodate
Muslim pilgrims. The fortifications were constructed when Mecca and
the rest of Hijaz were part of the Ottoman Empire.
Turkish Foreign Minister Ismail Cem this week referred to Saudi actions
as "cultural genocide." Other Turkish officials compared
them to the Taliban's destruction of statues of Buddha in Afghanistan.
A Saudi government minister denied they were demolishing the fortifications,
saying instead they were being moved to a different location. |
| January 4 - 11 |
Armenia's economy is on track to achieve
a double-digit growth this decade, Armenian President's Chief Economic
Advisor Vahram Nercissiantz said this week. Nercissiantz spoke at
the Center for Strategic and International Studies (CSIS), a leading
think-tank in Washington, DC. He also said that Armenia would like
to establish economic relations with both Turkey and Azerbaijan and
was ready to begin cooperation on issues like electricity swaps and
management of water resources. Both countries have refused to cooperate
and have jointly blockaded Armenia in an effort to force concessions
in the Karabagh conflict. Figures released by the National Statistics
Service last month showed Armenia's economy growing by 9.1 percent
in the eleven months of 2001. Nercissiantz said Armenia was the most
open economy in the region with the highest degree of private ownership.
There are limited price controls in sectors like the utilities and
transportation and no export tariff. Armenian manufacturers continued
to take advantage of this pro-business regime, which along with other
incentives helped boost exports by over 14 percent in January-November
of last year.
Nercissiantz said that the Armenian government hopes that many of
those who recently emigrated from Armenia will take advantage of Armenia's
liberal economic environment and will start returning, bringing back
new skills and capital earned abroad. He said that this process is
already noticeable in the information technology sector, which doubled
last year and now employs eight thousand people.
However, Nercissiantz admitted that economic inequality remains one
of Armenia's major challenges and that the recent economic growth
has not yet had a substantial trickle down effect to benefit Armenia's
poor. He said that the government will strive to do a better job of
collecting taxes this year in order to fund targeted social assistance
programs and also increase the extremely low investment in education
and healthcare. |
| January 4 - 11 |
Armenian Deputy Minister of Industry
and Trade Tigran Davtian said this week that Armenia is likely to
be admitted into the World Trade Organization (WTO) in a "matter
of months." Armenian Government officials see membership as a
way of opening Armenia to foreign markets and investors. In preparation
of the country's acceptance into the organization, the Armenian National
Assembly has begun to draft legislative reforms to comply with WTO
member regulations.
Armenia will also gain access to new trade routes and trade partners,
including a lift on U.S. trade restrictions placed on non-WTO countries.
In addition to enjoying trading privileges with countries around the
world, membership in WTO should lead to lifting of economic blockades
and restrictions placed upon Armenia, such as those by Turkey. A senior
consultant at the WTO said that the organization's rules prohibit
member states from imposing economic blockades on one another and
require them to guarantee free transit of cargoes through their territory.
This would require Turkey to lift its nearly decade-long blockade
of Armenia when the latter is admitted to the WTO.
Despite some apprehensions by the Armenian business community to WTO
membership, most feel it will benefit the country's economic development
and will open the world to Armenian-made products and services. There
are currently 144 member countries of the World Trade Organization,
including the former Soviet republics of Moldova, Georgia and Kyrgyzstan.
Armenia is one of some 28 countries awaiting admission. |
| January 4 - 11 |
Armenia's Ministry of Foreign Affairs
announced this week that plans are underway for the second Armenia-Diaspora
Conference to be held May 27-28 in Yerevan. The meeting agenda this
year will focus on key issues affecting all Armenians.
The Ministry believes the upcoming conference will "play a significant
role in deepening concentration and bringing together our national
potential for the purpose of resolving the national issues which confront
us in order to achieve Armenians' security, progress and prosperity."
In the coming months leading up to the conference, Armenian embassies
will conduct a series of consultations and meetings with Armenian
organizations and individuals throughout the Diaspora.
The conference was originally scheduled for September, but was postponed
following the terrorist attacks. The new meeting date corresponds
with the anniversary of the first Republic of Armenia, established
in 1918. |
| January 4 - 11 |
Medieval Armenia was host to a thriving
Jewish colony, Jerusalem's Hebrew University Professor Michael E.
Stone told a crowd of over two hundred guests this week at the Embassy
of Israel in Washington. Dr. Stone discussed recent studies that focused
on a Jewish cemetery discovered several years ago by Bishop Abraham
Mkrtchyan of Sunik near the village of Eghegis in Armenia's Vayotsdzor
province. Since then, supported by the Israel Antiquities Authority
and private donors, Stone along with colleagues from Israel and Armenia,
have conducted several expeditions to Eghegis to study the cemetery.
Up to one hundred inscribed tombstones at the site date back to the
13th and 14th centuries, when much of Armenia was overrun by Mongol
invaders. At the time, Eghegis was a prosperous center of the Armenian
principality of Sunik, which was ruled by the Orbelian dynasty and
included such centers of scholarship as Gladzor and Tatev monasteries.
Stone, a leading Israeli authority on Armenian history, said that
for a long time there were no known Jewish settlements on the historical
territory of Armenia. With this unprecedented discovery "we are
writing a new page in the history of Jews and Armenians," he
said. The style of the inscriptions appear to have been influenced
by the Armenian stone-crosses, or khachkars, pointing to close relations
between Armenians and Jews in the area.
Moshe Fox, Minister for Public Affairs with the Israeli Embassy, called
Stone's research "fascinating." "The history of the
Jewish community is still largely a mystery and I hope further studies
will bring other interesting discoveries to light."
Bishop Mkrtchyan plans to build a museum at the site to serve as a
national center for the Jewish community of Armenia. Numbering a few
thousand, much of the community has arrived in Armenia since the 1920s
for economic reasons and to escape anti-Semitism in other former Soviet
republics. |
| January 11 - 18 |
Following last month's decision to
place Credit Yerevan, a leading Armenian bank, under the supervision
of the Armenian Central Bank (HKB) to prevent its collapse, owners
and investors held a private meeting Monday to discuss its future.
Credit Yerevan's management came under fire after it began defaulting
on its liabilities. The HKB also announced this week that it has launched
the first phase of the bank's rehabilitation.
As part of the bank's rehabilitation, restrictions have been placed
on withdrawals. Credit Yerevan, a subsidiary of Markos Group Armenia,
currently has 8,000 customers, many of whom blame the bank's former
owner, Parliament Deputy Martin Hovanesian, for the debacle. However,
Markos Group's Vice President Valentina Litvienko blamed Credit Yerevan's
managers for the absence of a business strategy. Despite the setbacks,
Markos Group Armenia's Chief Executive Ivan Semyonov says he remains
optimistic regarding the bank's rehabilitation.
Meanwhile, Armenian President Robert Kocharian met with representatives
from 20 major Armenian banks to discuss key issues for the banking
sector in 2002. During the meeting, President Kocharian called on
the banks to secure their own financial resources and to invest, particularly
in Shirak and Lori provinces where the government is working to complete
post-earthquake relief this year. |
| January 11 - 18 |
Armenia received mixed signals from
the World Bank (WB) and International Monetary Fund (IMF) this week
regarding the release of promised loans, delayed by the international
banking organizations' concerns over Armenia's failure to secure high
tax collections rates. The Yerevan daily Aravot this week quoted World
Bank Armenia country representative Oweisse Saadat as criticizing
the Armenian Government, saying that the "World Bank is not a
taxpayer for Armenia." Nevertheless, the World Bank indicated
earlier this week that it is prepared to resume loan allocations,
etc.
Earlier this week, the WB said it was prepared to resume loan allocations
to Armenia from its 2001 Structural Adjustment Credit. The organization
has so far released only $15 million of $50 million provided under
the program. The second and third tranches, valued at $15 million
and $20 million respectively, were delayed for months, due to worse-than-expected
tax collections and the failure to privatize Armenia's debt-ridden
electric utilities. Armenia needs the loans to cover a major portion
of its budget deficit. The delay has already resulted in wage arrears
for public sector employees.
The Bank officials now say they are ready to begin disbursing the
money, but are facing objections from Armenia's other major creditor,
the International Monetary Fund (IMF). The IMF said it wants to see
more progress in revenue collection before releasing funds. A high-level
IMF delegation is set to visit Yerevan later in the month.
Meanwhile, the government has also begun to restructure the electricity
distribution networks for their expected lease to private managers.
The failure to collect electricity payments has resulted in mounting
debts to Russian fuel suppliers.
At the same time, a statement released by the WB's representation
in Armenia noted that, "overall, the World Bank is satisfied
with its close and fruitful partnership with the government of Armenia
as evidenced by...progress in key structural reforms, lending operations
and the collaborative interactions on key economic policies and programs." |
| January 11 - 18 |
Armenian President Robert Kocharian
announced appointments to the newly-created Civil Service Council
this week. Manvel Badalian, a non-party member of the Parliament's
largest Unity Bloc, will chair the six-member Council, while Deputy
Justice Minister Arevik Petrosian will serve as vice-chair.
The members of the council are appointed for six-, five-, four-, three-,
two- and one-year terms respectively. The terms are similar to those
for the Council on Public Television and Radio established last year.
Following several delays, the National Assembly passed the Civil Service
law last December, overcoming opposition from some deputies who argued
that the council members should be selected jointly by the president
and parliament. The Council of Europe, however, endorsed the law as
part of an anti-corruption effort to oversee appointments and protect
government staff from arbitrary dismissal. |
| January 11 - 18 |
A commission set up by the National
Assembly to study amendments to the Constitution this week rejected
a joint proposal by several opposition parties to turn Armenia into
a parliamentary republic. Communist MP Frunze Kharatian and Shavarsh
Kocharian, who heads a splinter group of the National Democratic Union,
joined forces last year in an effort to present their draft as an
alternative to the constitutional reforms package prepared by the
government experts under Justice Minister David Harutiunian.
The parliamentary commission voted seven to four with one abstention
to shelve the draft on the grounds that its demands for an overhaul
of Armenia's system of governance were too radical. The commission
is composed of delegates of twelve parties and groups represented
in parliament.
Observers viewed the move as implicit support for the government's
version that better reflects President Robert Kocharian's 1998 election
pledge to give more power to the judiciary and legislature. The proposal
must be approved by a majority of MP's before it can be submitted
to a popular referendum. |
| January 11 - 18 |
Next week marks the first anniversary
of Armenia's and Azerbaijan's accession to the Council of Europe (CE),
a regional organization that promotes human rights and democracy.
Armenia's membership was repeatedly delayed due to the CE's leadership's
insistence that the two countries be admitted simultaneously. Azerbaijan,
meanwhile, failed to meet basic standards for membership, most notably
by conducting what was reported to be a fraudulent parliamentary poll.
Azerbaijan was eventually admitted on condition that Heydar Aliyev's
Government release several key political prisoners from among hundreds
still jailed.
One year later, Azerbaijani Government officials insist that release
of political prisoners is "out of the question" and have
accused the CE of "blackmail" and playing a "political
game," initiated by "people and some CE members who do not
like Azerbaijan." The accusations follow a decision by the CE's
Parliamentary Assembly to hold hearings on the issue.
A leading functionary in Aliyev's ruling party claimed that the CE's
belated effort to hold Azerbaijan to a minimum standard for membership
is in fact an attempt to "divert attention from the Karabagh
issue." Indeed, so far, Azerbaijan has used its CE membership
and the international forum it provides to accuse Armenia of crimes
ranging from "drug-trafficking" to "genocide."
Azerbaijani delegates initiated these accusations in the form of statements
or inquiries. Azeri human rights activists contend that the situation
in Azerbaijan deteriorated further since membership.
Azerbaijan is now facing the real prospect that it may be deprived
of voting rights and, hence, the ability to use the CE forum for anti-Armenian
purposes. Following Foreign Minister Vilayat Guliyev's emergency trip
to Strasbourg, Azerbaijan agreed to retry some of its political prisoners,
but the CE, so far, continues to insist on their immediate release. |
| January 11 - 18 |
Diplomatic envoys from France, Russia
and the United States, the countries leading the mediation effort
in the Karabagh conflict, will tour the region in February or March.
U.S. Envoy Ambassador Rudolf Perina said he sees a new urgency in
the post-September 11 climate to settle the Karabagh conflict and
he warned that the existing "window of opportunity" may
soon close.
Ambassador Perina suggested this week that they will probably present
new ideas based on proposals that had been formulated last year by
Presidents of Armenia and Azerbaijan, Robert Kocharian and Heydar
Aliyev. The two Presidents held a series of meetings in early 2001
and were said to be close to a deal, when Aliyev backtracked on agreements
reached in Paris and Key West, Florida. Since then, no headway in
the peace process has been reported.
Presidential elections in Nagorno Karabagh will take place later this
year, and both Armenia and Azerbaijan are expected to hold presidential
polls in 2003. Both events will add to leaders' reluctance to compromise
and will re-focus their attention on internal political issues. Perina
vowed to "maintain momentum" in negotiations, lest the Armenian-Azerbaijani
conflict becomes "frozen," like the Cyprus conflict.
Speaking with visiting Turkish journalists, the President of Nagorno
Karabagh Arkady Ghoukasian, reiterated NKR's long-standing position
that for the internationally-mediated negotiations to be effective
they must directly involve Karabagh representatives. Azerbaijan has
refused to hold direct negotiations with Karabagh since 1996, claiming
this would imply recognition of Karabagh's de-facto independence.
The delegation of journalists, representing Turkey's leading daily
newspapers, visited Armenia and Nagorno Karabagh with the support
of the Open Society Institute, which has recently sponsored several
such exchanges. |
| January 16 |
President Kocharian appoints the new
seven-member Civil Service Council and names Manvel Badalian as the
body's chairman.The Civil Service Council is empowered to oversee
and police the functions of the country's civil service, but its independence
has been questioned since the president appoints all of its members. |
| January 17 |
In a telephone conversation with Turkmen
President Saparmurat Niyazov, President Robert Kocharian discusses
the $12 million Armenian debt for prior supplies of natural gas.
The
presidents agree to resolve the outstanding debt issue with the dispatch
of an Armenian delegation to Ashgabat in the coming months and also
review plans for Armenia to import Turkmen natural gas through Iran.
The Turkmen president is scheduled to visit Armenia
later in the year. |
| January 21 |
French President Jacques Chirac expresses
his hope that the coming year will feature the resolution of the Nagorno
Karabagh conflict with the signing of a negotiated peace treaty based
on the "Paris Principles" forged during the March 2001 summit
meeting of the Armenian and Azerbaijani presidents in Paris.
Chirac's statement, contained in a letter to President Robert Kocharian,
is made to mark the arrival of newly appointed French Ambassador to
Armenia, Henri Cuny. |
| January 23 |
Officials representing six opposition
political parties conclude a meeting in Yerevan by announcing the
creation of a new "constitutional movement" aimed at utilizing
"all legitimate means" to force the Kocharian government
to present the proposed constitutional amendments formulated by the
presidentially- appointed ad hoc commission together with those offered
by the opposition. President Kocharian has previously rejected
the opposition's draft constitutional amendments, which would transform
Armenia's government structure into a parliamentary republic.
The president favors the proposals of his ad hoc commission that recommends
a presidential system of government with some measures restricting
the powers of the president. All proposed constitutional amendments
must receive the votes of one-third of registered voters and one-half
of participants in a national referendum in order to be adopted. |
| January 23 |
The trial of presidential bodyguard
Aghamal Harutiunian on charges of manslaughter in the September 2001
death of Poghos Poghosian continues with testimony from two forensic
specialists reporting on their conclusion after their independent
inspection of the corpse. The experts testify that their findings
indicate that the victim died from having struck the back of his head
in a fall, but add that they also found traumatic injuries to the
victim's face, arms, legs and chest, findings consistent with a severe
assault or beating. |
| January 24 |
The trial of Edik Grigorian, one of
the five gunmen involved in the September 1999 attack on the Armenian
parliament that resulted in the deaths of several senior government
officials, never planned on murdering any of the victims. Grigorian
contends that the original plan called for the seizure of late Prime
Minister Vazgen Sarkisian and other senior ministers by gunmen leader
Nairi Hunanian in an effort to force them to resign. The same day's
edition of a major Armenian newspaper publishes an open letter to
President Kocharian by Nairi Hunanian calling on him to dismiss Military
Prosecutor Gagik Jahangirian for reportedly attempting to coerce the
defendants to falsely implicate the president in the initial stage
of the investigation. |
| January 24 |
Justice Minister David Harutiunian
announces the conclusion of a specially mediated agreement between
the government and the Greek owners of the ArmenTel monopoly telecommunications
firm. According to the new agreement brokered by Harutiunian, ArmenTel
will ease its new per-minute telephone charges to a level of 4 drams
(less than $0.01) for each minute of private residence telephone usage
above a monthly allowance of six hours per month costing a flat rate
of 900 drams (roughly $2). Commercial rate are higher, with a flat
rate of 2700 drams per month. |
| January 18 - 25 |
The U.S.-Armenia Task Force met this
week in Yerevan to discuss a number of issues including the adoption
of a treaty on bilateral taxation, promotion of economic and financial
sector reforms in Armenia, cooperation with the Armenian Government
in combating international terrorist financing and Armenia's accession
into the World Trade Organization. Senior government officials from
the two countries were expected to sign a treaty on the avoidance
of double taxation of the American businesses operating in Armenia
and Armenian businesses operating in the U.S. U.S. Congressional Caucus
on Armenian Issues Co-Chairmen Joe Knollenberg (R-MI) and Frank Pallone,
Jr. (D-NJ) have strongly supported this measure and earlier this week
asked U.S. Secretary of the Treasury Paul O'Neill to expedite negotiations
for an agreement.
In a joint statement the Congressmen noted, "the elimination
of double-taxation between countries is a major step in the establishment
of better trade [between the U.S. and Armenia]...Other governments
and multi-national organizations have found an excellent partner in
Armenia."
Coordinator of U.S. Assistance to Europe and Eurasia Ambassador Bill
Taylor and Armenian Finance and Economy Minister Vardan Khachatrian
led the American and Armenian delegations, respectively. Representatives
from the U.S. Departments of Commerce, Treasury and Agriculture as
well as from the Office of U.S. Trade and the U.S. Agency for International
Development (USAID) were included in the U.S. delegation.
The Task Force drafted a plan of actions, in which the U.S. Trade
Representative and the government of Armenia will seek to complete
the exchange of all information on WTO accession by March 1, 2002.
Formed in 2000 to assist with the promotion of U.S.-Armenia economic
cooperation and help Armenia's transition to a market economy, the
U.S.-Armenia Task Force coordinates with the U.S. Departments of State,
Commerce, Treasury, the Trade Development Agency, USAID and the National
Security Council. The Task Force meets twice each calendar year, alternating
meeting locations between Yerevan and Washington, DC.
During the meetings, U.S. and Armenian officials agreed to allot a
major portion of the $90 million in assistance approved by the U.S.
Congress late last year for poverty reduction programs.
"What we did over the last two days was to focus on that $90
million of cooperative work and assistance and successfully came to
an agreement on how to use those funds most beneficially for the people
of Armenia," Ambassador Taylor said. He added that, "To
a very large extent, we have agreed with the priorities presented
to us by the various ministries of the Armenian Government."
Overall assistance from U.S. government agencies in 2001 totaled $110
million. Of that number, most of the funds were spent on development
programs and private sector assistance with remaining funds going
to humanitarian efforts. USAID's implementing partner Save the Children
has used the funds to restore an athletic center in Gyumri, implement
irrigation and drinking water systems and repair social and health
establishments in several Armenian cities. |
| January 18 - 25 |
U.S. Ambassador to the Republic of
Armenia John Ordway earlier this week thanked the Armenian Government
and citizens for their support of the United States following the
September 11 terrorist attacks. "Since the moment the world media
started reporting the tragedy in New York and Washington, ordinary
Armenian citizens have been standing side-by-side with us to share
our pain and grief."
Armenian Finance and Economy Minister Vardan Khachatrian pledged his
and other Armenian officials' support in cooperating with the U.S.
Government in preventing international financing activities of anti-Western
terror groups. "The Armenian side assured that if it discovers
any of its banks has accounts that could possibly be used for terrorist
acts they will be immediately frozen," he said during a press
conference. |
| January 18 - 25 |
A key European Parliament committee
this week reiterated its affirmation of the Armenian Genocide and
called on Turkey to lift its blockade of Armenia. The Committee on
Foreign Affairs, Human Rights, Common Security and Defense Policy
adopted a report on the European Union's relations with the South
Caucasus which "calls upon Turkey to take appropriate steps in
accordance with its European ambitions, especially concerning the
termination of the blockade against Armenia." The same report
also reaffirms the European Parliament's 1987 resolution, which recognized
the Armenian Genocide, and "calls upon Turkey to create a basis
for reconciliation." The European Parliament is expected to endorse
the report in March.
Also this week, Torben Holtze, head of the European Union (EU)'s Delegation
to Georgia and Armenia, repeated EU's commitment to urge Turkey to
normalize its relations with Armenia. He praised the Armenian government's
reasonable approach to the issue, and said that the Armenian Genocide,
being a historical fact, should be recognized. In addition Holtze
announced plans for release of a 100 million Euros ($86.4 mln.) assistance
package to help Armenia improve its energy security prior to de-commissioning
of the Metsamor Nuclear Plant. |
| January 18 - 25 |
Armenia's natural gas monopoly, HaiRusGazArd,
remained the sole supplier of electricity to Georgia this week due
to a breakdown in Georgia's regular energy supply. The company, which
is a joint venture between Russia's GazProm and the Armenian government,
began delivering electricity in December, following an explosion at
Georgia's main thermal power station. That accident was recently followed
by a disconnect on the Russian-Georgian high-voltage electricity line,
high in the Caucasus mountains, and Azerbaijan's inability to export
electricity due to its own energy crisis. Armenia's electrical utility,
HayEnergo, allowed HaiRusGazArd to sell electricity in exchange for
debt relief relative to natural gas supplies.
Meanwhile, Armenia's Minister of Transport and Communications Andranik
Manukian said this week that Georgia has agreed to substantially reduce
transit tariffs on goods destined for Armenia. Last week, Deputy Speaker
of Georgia's Parliament Vakhtang Kolbaya called on the country's customs,
border guards and police to stop creating obstacles for and demanding
bribes from Armenian citizens traveling through Georgia. Parliament
Speaker Nino Burjanadze made similar pledges during her visit to Armenia
last month. |
| January 18 - 25 |
The Armenian government announced
this week that it had reached a "successful" compromise
deal with the country's communications monopoly. The deal ends a long-standing
dispute, which began in September of last year, when Armentel introduced
per-minute charges for local phone calls. The government has since
insisted that the new policy cannot take effect without its approval.
Justice Minister David Harutiunian, who represented the government
at the talks, said Armentel has been allowed to introduce a 4 Dram
tariff for one minute of local phone conversation and 1 Dram for internet
connection in excess of a six-hour limit per month (covered by the
existing flat fees of about $1.60 for individuals and $5 for companies).
Armentel had previously set the limit at two hours. Individual subscribers
will also have an opportunity to pay $4.30 up front for unlimited
local calls. This fixed fee would gradually double by 2004. Corporate
pre-payment fee is set at $9.10, increasing to $13.20 over two years.
The new tariff policy may negatively impact Armenia's internet users.
Their numbers have grown from four to thirty thousand in the last
three years. Harutiunian said that negotiations with Armentel will
continue on ways to reduce its 15-year monopoly on telecom services,
particularly over the internet. Armenia's former Prime Minister Vazgen
Manukian, who heads an ad-hoc parliamentary commission that has investigated
the communications sector, called for abolition of the monopoly this
week. Greece's Hellenic Telecommunications Organization (OTE) paid
$142.5 million for 90 percent of Armentel's shares in 1998. The government
holds the remaining shares. |
| January 18 - 25 |
Armenia's Gross Domestic Product (GDP)
increased by nearly 10 percent in 2001 compared to the previous year
and now stands at over $2 billion, the National Statistics Service
reported this week. Strong growth in agriculture, construction, industry
and tourism all contributed to the largest expansion of the economy
since independence. Armenian companies exported 13 percent more goods
than in the previous year, while imports dropped slightly. The year
also saw an 11 percent drop in unemployment and approximately 10 percent
growth in incomes. Economists predict that should the current level
of growth continue, Armenia can achieve a full economic recovery by
2005.
However, with an average monthly salary at only $43 ($57 in the private
sector), few Armenians enjoy immediate benefits from the growth and
the gap between rich and poor is widening. In an interview this week,
Vahram Nercissiantz, who is the Chief Economic Advisor to President
Robert Kocharian, identified three major reasons for the strong economic
polarization in Armenia: the government's failure to secure adequate
levels of tax revenue, shortfalls in bill collections, and corruption.
Nercissiantz urged strong steps to combat corruption, as well as additional
legislative and administrative measure to increase state revenue. |
| January 26 |
Armenian officials arrest three Georgian
citizens, including one ethnic Armenian, in Yerevan found to be in
possession of over $19,000 in counterfeit U.S. currency. Later that
day, National Security Ministry forces also arrest Armenian citizen
Murad Bojolian on charges of spying for Turkey. Born in Turkey and
later emigrating to Armenia, Bojolian, a certified Turkish-Armenian
translator and former official of the Armenian Foreign Ministry during
the Ter Petrosian government, is arrested as he attempts to enter
Turkey and is accused of compiling sensitive "military, economic,
and political information" for Turkish intelligence. |
| January 26 |
Officials of the Finance and Economy
Ministry confirm reports that the World Bank has just released a second
$15 million installment of the previously suspended loan package.
The World Bank loan will be used to cover part of the $73 million
state budget deficit projected for 2002. This installment was initially
suspended in November due to the government's failure to meet required
tax collection targets. |
| January 29 |
The Russian natural gas monopoly ITERA
issues a warning to the Armenian government threatening to impose
a 70 percent cut in its shipments of natural gas on February 1st unless
Armenia pays its mounting debt for past supplies. Armenia owes
ITERA $6 million for natural gas shipments for 2001 and has another
$3.85 million in outstanding debt for natural gas for this month alone.
Armenia is currently importing more than 5.2 million cubic meters
of Russian natural gas daily. |
| January 30 |
Armenian Communist Party leader Vladimir
Darbinian announces that the party will not join the recently formed
"Socialist Armenia Union," citing "inherent contradictions in ideology."
The Socialist Armenia bloc, formed in December 2001, consists of six
small leftist parties with no representation in the parliament and
is planning to release its platform at an inaugural party congress
in the coming weeks. Among the more prominent of the grouping's member
parties are the Democratic Party of Armenia, the "Homeland and Honor"
group, the Hunchak Social Democratic Party, and the Union of Socialist
Forces and Intellectuals. |
|
|
|
|
|