October 2002 Events
October 1  An Armenian governmental delegation led by Foreign Minister Vardan Oskanian participates in the latest session of the Armenia-European Union (EU) Coordinating Council. The Brussels meeting ends with a series of new agreements for the creation of new mechanisms for broader EU engagement and political consultation. Foreign Minister Oskanian briefs EU officials on the current status of Armenia's dialogue with Azerbaijan and the state of the mediation effort over the Nagorno Karabagh conflict. Oskanian also meets with EU foreign policy chief Javier Solana and EU External Relations Commissioner Chris Patton.
October 1  The International Monetary Fund (IMF) releases the second and thirds tranches of a $26 million poverty  reduction loan package. Although the loan package was initially suspended in late 2001 after the Kocharian government failed to meet a promised level of tax collection, IMF officials explain that the Armenian economy has posted rapid growth and low inflation, and adding that tax revenues have increased by 14 percent in the first six months of the year, over the same level for 2001. 
October
 1 - 4
According to news reports this week, Karabakh peace process mediators from France, Russia and the United States are still unaware of the content of the four-hour negotiations between Presidents Heydar Aliyev and Robert Kocharian in the town of Sadarak last August. In a verbatim transcript published by an official Azerbaijani newspaper this week, Russia's Deputy Foreign Minister Viacheslav Trubnikov was quoted as telling Aliyev that "Sadarak talks remain a mystery for us." He asked Aliyev to "lift the curtain of secrecy." But Aliyev said that both he and Kocharian had agreed to keep the conversation secret, apparently even from the mediators. 
Aliyev also told the mediators that "if they wanted his continued cooperation" they should no longer refer to the Paris Principles, "leaving them to history." The principles were reportedly developed during high-level talks last year which included French President Jacques Chirac and Secretary of State Colin Powell. Armenia's former National Security Director (1993-94) and member of the opposition Socialist Armenia Union Eduard Simoniants this week blasted the Kocharian government's acceptance of the Principles. Citing "confidential sources," he claimed that the agreements, from which Azerbaijan had backed away, did not provide Karabakh with sufficient security guarantees and endangered the strategically important Armenian district of Meghri. Faced with continued opposition speculation on the latter issue, Armenian leaders have repeatedly insisted that Armenian control over Meghri is not negotiable.
Referring to the Sadarak talks, Aliyev mentioned that Kocharian again dismissed out-of-hand the long-standing Azerbaijani proposal to open a railroad to Armenia in exchange for withdrawal of the Karabakh forces from the four districts south of NKR. Responding to Aliyev's remarks, the Armenian President's spokesman Vahe Gabrielian said the proposal was not on the agenda in Sadarak, although Aliyev had alluded to it. He reaffirmed the Armenian position that "the conflict has to be settled in a packaged manner," with a withdrawal possible only after NKR's status and security guarantees are settled. 
In another indication of the Armenian side's commitment to an eventual withdrawal, Kocharian said last week that Armenian forces would pull back from an Azerbaijani section of the road in Armenia's northeast, following construction of a bypass route. Similarly, NKR authorities with the help of the Hayastan All-Armenian Fund, are now building a North-South highway as an alternative to the roads passing via the Aghdam district. Azerbaijan, on the other hand, has indicated its willingness to withdraw from the Armenian enclave of Artsvashen and the areas of northern Karabakh it now occupies. 
The Parliamentary Assembly of the Council of Europe (PACE) issued a resolution last week praising Armenia for the "undeniable efforts" its government directs towards achieving a peace settlement between Nagorno Karabakh and Azerbaijan. Azerbaijani delegation lead Ilham Aliyev's efforts to insert language in the resolution condemning Armenia were rejected.
October 
1 - 4
American officials have promised not to insist on the simultaneous accession of Armenia and Azerbaijan to the World Trade Organization (WTO), Armenia's Finance Minister Vardan Khachatrian said this week. Khachatrian, who led a government delegation to last week's session of the U.S.-Armenia Task Force meeting, expressed hope that Armenia will finally join the organization in December. Armenia's accession talks with the WTO have gone on for six years, with the anticipated admission repeatedly postponed. On the other hand, Azerbaijan has only just begun preliminary talks with WTO. Armenia's accession to another international body, the Council of Europe, was reportedly delayed due to American insistence that the two countries join at the same time.
The Task Force also discussed bilateral trade and continued U.S. assistance to Armenia. The Armenian officials suggested that aid should continue to be channeled to housing and education programs. Although, some funds will support irrigation and environmental projects, as well as the Commission for Economic Competition and the Civil Service Council. In addition, the sides discussed problems in the communications sector related to the Armentel monopoly and the recent privatization of Armenia's electricity grid. 
While in Washington, members of the Armenian delegation met with senior officials at the National Security Council and the State Department to discuss bilateral issues and the situation in the Middle East. They also met with the World Bank and the International Monetary Fund representatives to discuss continued assistance for Armenia's economic recovery. Trade and Economic Development Minister Karen Chshmaritian participated in the Made in Armenia Expo, organized by Armenian-American Chamber of Commerce and the Armenian Development Agency in Glendale, CA. The event featured numerous Armenian companies looking to export their products to the United States. 
October
 1 - 4
Armenia will receive $26 million in loans to cover a portion of its budget deficit this year, thanks to improvements in revenue collection, officials at the International Monetary Fund (IMF) said this week. The loans, part of the IMF's $91 million three-year Poverty Reduction and Growth Facility, were released with the international organization noting "positive developments" in the Armenian economy. IMF's deputy managing director Eduardo Aninat praised the government for the ongoing reform of the bureaucracy, taxation and public utilities and welcomed Armenia's strong macroeconomic indices and "sound monetary and exchange rate policies." During the first three quarters of 2002, the government's revenue collection grew by 14 percent over last year and another 13 percent increase is envisaged in 2003. 
The improved tax performance has already helped reduce Armenia's reliance on external borrowing. Delay in the World Bank's disbursal of $40 million in loans will not lead to significant cuts in expenditure this year, according to Finance Minister Vardan Khachatrian. He also said that the government has already repaid about $16 million in earlier budgetary arrears. 
October
 1 - 4
Georgian President Eduard Shevardnadze announced this week the end of the "active phase of the anti-criminal and anti-terrorist operation" in the country's remote Pankisi Gorge. In the last few years the area bordering on Chechnya has emerged as a base for anti-Russian Chechen guerillas and some of their militant Islamic backers. The area also became known as a hideout for criminal groups engaged in kidnapping and trafficking. Two weeks ago Russia's President Vladimir Putin threatened unilateral military action against the rebels should the Georgian government take measures of its own. 
Georgian officials now claim they have cleared all Chechen forces out of Pankisi following a month-long deployment of security forces to the area. In fact, even Russian sources confirm that most Chechens have left the area. Some of them engaged Russian forces as they tried to cross back into Chechnya. It is not clear, however, where most of the Chechen forces, estimated to be in the thousands, went. 
Georgian officials denied reports that the Chechen commander Ruslan Gelayev has arrived in the province of Javakheti to negotiate safe passage for his troops into Turkey. Just as these reports surfaced, Georgia's State Security Minister Valery Khaburdzania arrived in Yerevan this week for what appeared to be urgent talks with his Armenian colleagues. Following the visit, Georgian authorities detained one of Javakheti's Armenian leaders. 
Speaking this week in Yerevan, Foreign Minister Vartan Oskanian said that the Armenian government was watching developments in Georgia closely. He accused unnamed "external forces" of trying to further destabilize the situation in Georgia and to sow discord between Armenians and Georgians. He said that while Armenia would prefer that the Russian military base remain in the Javakheti province to deter Turkey, it will continue to refrain from interfering in the issue. 
The European Union (EU) warned that it would suspend assistance to Georgia if its government does not take measures to stop recurring kidnappings of EU citizens. Kidnapping of a British banker in the presence of Georgian police four months ago has been linked to "criminal elements" who have used the Pankisi Gorge, as their base of operations. Meanwhile, unknown assailants robbed twenty Armenian citizens as they traveled through Georgian territory last weekend.
October 
1 - 4
The United States government initiated a policy review on Ukraine and its President Leonid Kuchma, ordering a suspension of $54 million in aid, after determining that Kuchma authorized a sale of Kolchuga radars to Iraq more than two years ago. A radar transfer, which the Ukrainian government vehemently denies, could improve Iraqi defenses against U.S. aircraft. Meanwhile, the Azerbaijani Defense Ministry denied last week that it was in possession of the system and hence could have transferred it to Iraq as was suggested by Ukraine's National Security Advisor Yevhen Marchuk. 
October 
3 - 4
In a meeting with officials of the Council of Europe, President Robert Kocharian pledges that Armenia will uphold its obligation to abolish the death penalty unconditionally and completely by June 2003. A large number of Parliamentarians, including Deputy Parliamentary Chairman Tigran Torosian, reject this promise, however, adding that they will fight to maintain a legal exception to the ban on capital punishment in order to execute the five gunmen standing trial for the murder of several senior leaders during the October 1999 attack on Parliament.
October 
3 - 4
Speaking at a Yerevan press conference, former National Security department chief Eduard Simoniants offers a detailed overview of the so-called Paris Principles which serves as the basis of negotiations directed by the Organization for Security and Cooperation in Europe (OSCE). According to Simoniants, the Paris principles were agreed upon by both the Armenian and Azerbaijani Presidents during their March 2001 meeting brokered by French President Jacques Chirac. Foreign Minister Vardan Oskanian strongly refutes Simoniants' version, stating that the details are wildly inaccurate.
October 
4 - 11
Incumbent President Robert Kocharian, who is facing re-election early next year, this week received a long-anticipiated endorsement from Prime Minister Andranik Margarian, who also leads the influential Republican Party (HHK). Meanwhile, Kocharian's main challenger, parliament member Artashes Geghamian pledged at his National Accord Party (AMK) congress that he will not "back down" from the election process and will "go to the end," making an alliance with other opposition parties even more unlikely. A rival opposition leader, People's Party chairman Stepan Demirchian and his allies left the AMK event before Geghamian finished his speech.
A recent survey conducted by the Logos polling firm among 600 Yerevan residents showed that up to a third of them have decided not to vote in the elections at all or vote "against all." The poll results show that out of those who will participate over 39 percent would vote for Kocharian. The four leading opposition politicians are ranked as follows: Geghamian - 13 percent, Demirchian - 12 percent, former Foreign Minister (1991-2) Raffi Hovannisian - 9 percent and National Democratic Union (AZhM) leader and former Prime Minister (1990-1) Vazgen Manoukian - 5 percent. Ex-President Levon Ter-Petrossian (1991-8) ranks seventh with 2.5 percent. 
The survey also shows the composition of Kocharian's backing among the supporters of various political parties. Thus, even if the following party's leaders run along with Kocharian, the incumbent would receive 70 percent from the Decent Future Party (formed in 1999 and led by Professor Ludmila Harutiunian), 44 percent from the Country of Law Party, 40 percent from the Armenian Revolutionary Federation, 25 percent from the Self-Determination Union, 20 percent from the Communist Party and 17 percent among non-party voters.
Meanwhile, the opposition parties decided this week to postpone a joint public rally until after the October 20 local elections. Only a small number of their representatives will contest the elections, however. In Yerevan's Kentron community the opposition groups will back the incumbent Ararat Zurabian, who is a senior member of the former ruling Armenian Pan-National Movement (HHSh) challenged by a pro-government businessman Gagik Beglarian. Another incumbent backed by the opposition is the non-partisan mayor of Kapan Gagik Atajanian. In Armenia's second largest city, Gyumri, former Interior Minister and senior member of the Socialist Armenia Union Levon Galstian will challenge the incumbent pro-presidential mayor Vardan Ghoukasian. Most other local government positions are contested by different pro-presidential parties and non-partisan candidates.
October 
4 - 11
Nagorno Karabakh President Arkady Ghoukasian restructured his government this week, reappointing Prime Minister Anushavan Danielian and most of his cabinet, while replacing a key minister and merging two government agencies. Former Foreign Minister Naira Melkumian (1997-2002) is now replaced by Ashot Ghoulian. She will continue to work as Advisor to the NKR President. Ghoulian is a veteran of the Karabakh Foreign Ministry, serving as Deputy Foreign Minister between 1998 and 2001 and then as a senior official in the pro-presidential Democratic Artsakh Union. The President also merged the Ministry of Economic Development with the Ministry of Construction, and the Ministry of Education and Science with the Ministry of Culture, while elevating two cabinet members to Deputy Prime Minister rank. Composition of the restructured government is below:
Prime Minister Anushavan Danielian 
Government Chief of Staff Suren Grigorian 
Deputy Premier, Infrastructure Development Minister Vacant 
Deputy Premier, Agriculture Minister Beniamin Bakhshian 
Defense Minister Seyran Ohanian 
Education and Culture Minister Armen Sargsian 
Finance Minister Spartak Tevosian 
Foreign Minister Ashot Ghoulian 
Health Minister Zoya Lazarian 
Interior Minister Armen Isagoulov 
Social Affairs Minister Lenston Ghoulian 
Justice Director Robert Hairapetian 
National Security Director Bakur Sahakian 
Taxation Director Hakob Ghahramanian 
October 
4 - 11
A former Armenian government official and senior member of the Armenian Pan-National Movement (HHSh) argued this week that introduction of dual citizenship would lead to increased "interference" on the part of foreign states and harm Armenia's national security. David Shahnazarian, who held several senior position in the administration of Levon Ter-Petrossian, also claimed that "the international practice has no precedent of naturalization on ethnic basis." Dual citizenship is expressly banned under the current Constitution adopted in 1995. President Robert Kocharian has pledged to attempt to remove the ban as part of his 1998 election platform. But plans for a popular referendum on this and other proposed constitutional changes have been delayed due to disagreements between the government and parliamentary opposition. 
Chairman of the National Democratic Party (AZhK) Shavarsh Kocharian, who earlier this year led opposition efforts to delay the referendum, said this week that he supports introduction of dual citizenship. A proposal that AZhK's Kocharian plans to submit for discussion in parliament would give every ethnic Armenian a right to acquire Armenian citizenship as soon he or she arrives in the country. However, persons holding dual citizenship without permanently residing in Armenia would not have the right to vote or be elected. Another opposition politician Arshak Sadoyan argued that Armenia should finally become a state for all Armenians, but HHSh's Shahnazarian insisted that creation of a legal base for dual citizenship would be impossible.
October 
4 - 11
Two recently-established private Armenian airlines announced plans to begin new flights to European capitals after leasing several Airbus A-320 aircraft. The Armenian International Airways (AIA), jointly established by local businessmen Gagik Tsarukian, Hrair Hakobian and Levon Baghdasarian, intends to lease three Airbus aircraft by 2003 for flights to Paris, Amsterdam and Frankfurt. Another A-320 was leased by ArmAvia, a private company owned by Mikhail Baghdasarov, which has operated flights to Russia and Turkey since last year. ArmAvia will add a flight to Europe after acquiring another Airbus plane later this year. 
Meanwhile, a newly appointed director of the state-owned Armenian Airlines (AAL) Arsen Avetisian denied earlier reports that the company, which has run up debts between $19 and $24 million, plans to file for bankruptcy. AAL was forced to suspend flights to most European cities earlier this year, after technical problems with its sole Western-made aircraft. (Noise restrictions in Europe ban most of the Soviet-made aircraft from flying there). He said the state carrier will cooperate with private Armenian airlines to try to overcome its current troubles.
October 
4 - 11
The Azerbaijani mass media are once again inundated with reports aiming to stir militaristic emotions among the mostly apathetic population to take "revenge" on Armenians and claiming that another war was imminent. The country's President Heydar Aliyev dismissed the reports as "propaganda," adding that "war is not something you can start today." Aliyev even questioned who may have initiated the campaign, while also ordering the creation of a special public fund to support the Armed Forces. Pro-Aliyev parliament members were first to contribute their own money to the fund, which is held by the International Bank of Azerbaijan, said to be indirectly controlled by the President's son, Ilham. According to independent opinion polls, the overwhelming majority of Azerbaijanis remain opposed to a new war.
Analyzing earlier similar campaigns, experts from the Turan news agencies concluded that "most likely, it is [Aliyev] who has ordered the manipulation of mass media, public organizations and political forces to launch another campaign of militaristic psychosis and speculations on patriotism." They claim that this campaign aims to divert domestic and international attention from the recently falsified constitutional referendum and prevent the consolidation of opposition forces. Last weekend, all major Azerbaijani opposition groups rallied tens of thousands of people calling on Aliyev to resign.
Meanwhile, the Azerbaijani government cracked down on purported organizers of a massive walk-out from the country's military academy. Press reports said that over sixty cadets have reportedly been expelled and sent to frontline units as privates. The walk-out, which involved nearly all of the 2,500 cadets at the academy, was staged in protest of mistreatment and humiliation they suffered at the hands of officers. 
October 4 On the final visit of a regional tour that included meetings in Azerbaijan and Georgia, French Foreign Ministry Secretary Renaud Muselier meets in Yerevan with senior Armenian government officials. Discussions were mainly on bilateral relations and the French role in the mediation effort seeking a negotiated resolution to the Nagorno Karabagh conflict.
October 6 President Kocharian holds a ninety-minute meeting with Azerbaijani President Geidar Aliyev during the summit meeting of the Commonwealth of Independent States in Moldova.  President Kocharian notes that the talks were  useful  and states that  there is a sincere desire to find a solution  to the Nagorno Karabagh conflict.  The meeting is the latest in a series of private sessions between the two leaders.  The next meeting is set to coincide for the November meeting of the North Atlantic Treaty Organization (NATO) in Prague.
October 
8 - 10
Prime Minister Andranik Markarian announces that the Republican Party of Armenia, which he leads, will officially support incumbent President Kocharian in his reelection bid in the February 2003 contest. The Armenian Revolutionary Federation (ARF) is also holding talks with several leading political parties in an effort to ensure that the approaching local, Parliamentary and Presidential elections are open and democratic.
October  10 President Kocharian meets with visiting Ukrainian President Leonid Kuchma in Yerevan and discusses plans to expand bilateral economic, political, and military relations. The two leaders sign four new agreements on bilateral cooperation, including one protocol allowing Armenian military officers to attend Ukrainian military academies. The level of Armenian trade with Ukraine rose to $38.5 million last year, and is estimated to increase by almost 30 percent for this year.
October 
12 - 15
Accompanied by his wife, former Russian President Boris Yeltsin arrives in Yerevan for a six-day visit to Armenia. On October 15th, Yeltsin meets with former President Levon Ter Petrosian after touring a Russian border guard post along the Armenian border with Turkey. Although the meeting with Ter Petrosian fuels speculation over the former President's intentions to return to politics, the former Russian President adds that the meeting should not be misconstrued as an endorsement of Ter Petrosian. Seeking to end the issue, Yeltsin officially endorses incumbent President Kocharian two days later.
October  15 President Kocharian meets with senior government Ministers and regional officials to instruct them to refrain from any assistance to political candidates or parties prior to the October 20th local elections. The President is seeking to ensure that the local elections are free and fair and conducted in an open manner without any negative reflection on his government.
October  15 Representatives of sixteen political opposition parties reach agreement on a common platform to guide the sole candidate that they are hoping to put forth to run against the President in the February 2003 elections. The 22-point document promises to introduce rapid and serious economic improvement and issues a general foreign policy recommendation calling for the deepening of the allied relationship with Russia while maintaining Armenia's integration into the European structures.
October  16 President Kocharian and senior officials meet with visiting Russian Parliamentarian Nikolai Ryzhkov, the co-chairman of the Russian Parliament's committee overseeing cooperation with the Armenian Parliament. Armenian Trade and Economic Development Minister Karen Chshmaritian expresses appreciation for the close relationship with the Russian government and reports that Russia is Armenia's largest trading partner, with an increase in bilateral trade to $56.6 million so far this year.
 October 
 11 - 18
Armenia's economic expansion continues at a record pace, with Gross Domestic Product (GDP) up 11 percent in the first three quarters of the year, the National Statistics Service reports. Increased production and export of manufactured goods accounts for much of the growth. Compared to last year, from January-September 2002 Armenia exported 46 percent more products, with jewelry and apparel comprising much of the exports. The official statistics also show income up 12.5 percent and unemployment down 8 percent.
The annual review of the Armenian economy, issued by the International Monetary Fund (IMF) last week called Armenia's economic prospects "favorable." The report noted a significant decline in unemployment and poverty between 1998 and 2002. One of Armenia's leading lenders also welcomed "the authorities' success in keeping inflation low and the exchange rate stable, improving the external current account balance, and creating environment conducive to an increase in real incomes and rapid output growth." But the IMF remained concerned over lower than expected growth in revenue collection, budgetary arrears and a fragile banking system.
October
  11 - 18
A senior Georgian official promised this week to prevent illegal border crossings by Chechen rebels from Georgia into Russia. He also denied that Chechens have relocated towards the Turkish border. Commander of the Georgian border guards Valery Chkheidze and his Russian counterpart Konstantin Totsky signed an agreement on border security during a Commonwealth of Independent States' (CIS) meeting this week in Yerevan. 
The agreement comes after a month of tension, when Russian leaders threatened to take unilateral action in Georgia unless it clears Chechen forces from its remote Pankisi Gorge. Georgians claim they have done just that, but only about a dozen wounded Chechen rebels were actually captured, with five of them extradited to Russia. An agreement became possible after a meeting between Presidents Vladimir Putin and Eduard Shevardnadze last week and amid United States' calls on both sides to conduct joint operations in Pankisi.
U.S. officials have recognized that Chechen forces based in Georgia are tied to radical Islamist groups such as Al Qaida and initiated a $64 million program to build up the Georgian military. During talks earlier this month with U.S. and Turkish military officials, Georgians requested additional funding to purchase air defense equipment from Ukraine. According to reports, which have been denied by Russia, Russian aircraft have repeatedly bombed parts of Georgia, Pankisi in particular, which it suspected of having Chechen bases.
Meanwhile, efforts to rid Pankisi of Chechen forces have resulted in increased tension in the breakaway Republic of South Ossetia and the Armenian-populated province of Javakheti. Comments by Shevardnadze that the current "anti-criminal operation" in Pankisi should be extended to Ossetia led to partial mobilization of reservists and suspension of Georgian-Ossetian law-enforcement contacts and much of bilateral trade. Reports from Javakheti insisted that some of the Chechens from Pankisi were in the province and that the Russian forces in the provincial capital of Akhalkalaki have been put on high alert in anticipation of a possible attack.
October
11 - 18
Azerbaijani President Heydar Aliyev expressed dissatisfaction this week with the amount of American assistance to his country. Speaking with General Joseph Ralston, chief of the U.S. European Command and NATO Allied Forces in Europe, Aliyev said that Azerbaijan felt few changes since last year's waiver of Section 907 of the Freedom Support Act. Introduced in 1992 the measure limited U.S. assistance to the government of Azerbaijan until it lifts its blockade against Armenia and Nagorno Karabakh. A high-ranking Azerbaijani military source claimed that Ralston's visit was related to developments in Iraq.
Ralston's daylong trip followed a longer visit by the U.S.-Turkish military delegation led by Deputy Assistant Secretary of Defense Mira Ricardel and Turkish General Staff's Chief of Planning Nusret Tasdeler. The U.S. and Turkish officials pledged to jointly boost Azerbaijan's security, holding consultations with Azerbaijani officials responsible for military education and equipment procurement and maintenance. The U.S. has already allocated $4.4 million to strengthen Azerbaijan's maritime and air defenses. Last week, U.S. officials reported that an additional $1 million will fund an Azerbaijani platoon that is expected to join Turkish peacekeeping forces in Afghanistan (which are also funded by the United States). 
Meanwhile, President Aliyev's son and reported would-be successor Ilham will pay an unofficial visit to Washington next week. Azerbaijani press reports suggest that Ilham Aliyev will try to mend ties with U.S. officials amid growing criticism of Aliyev's authoritarian record. 
October
18 - 25
Close to one million Armenian citizens went to the polls last Sunday to elect their mayors, community heads and members of local councils in more than 650 constituencies throughout the country, the Central Election Commission (CEC) reported this week. The 46 percent turnout at this election is a significant improvement over the 28 percent participation in the last local elections in October 1999. Campaign and voting proceeded without any serious incidents. There were only five official complaints made to the CEC. Elections in two rural communities will be re-run. 
Over 1,000 representatives from ten Armenian NGOs and dozens of foreign observers, including a team from the Council of Europe's Congress of Local and Regional Authorities of Europe (CLRAE) observed the election. Head of the European monitoring group, British parliamentarian Christopher Newbury expressed "complete satisfaction" at the handling of the elections, finding them to be well-organized and noting the improved accuracy of voters' lists. The CLRAE will issue a final report on elections in mid-November. The organization deemed the last local elections in Armenia "free and fair."
Preliminary election results show a strong performance by the ruling Republican Party (HHK), which fielded by far the largest number of candidates on all levels. Out of some 120 other political parties registered in Armenia, only 18 participated in the poll. None of them, however, could rival HHK's victory in 30 municipal and 170 rural communities. The pro-presidential Orinats Yerkir (Country of Law) Party and the Armenian Revolutionary Federation came in a distant second and third, each with victories in several dozen communities. The largely pro-government People's Deputy parliamentary group led by businessman Karen Karapetian said its candidates won in two communities, and over a hundred of them were elected to councils.
The People's Party topped all of Armenia's opposition parties, winning in five communities and placing some one hundred of its members on local councils. Several opposition representatives alleged that HHK and other pro-government parties engaged in "vote buying" and other fraud. But other opposition politicians believed the vote testified to the weakness of the opposition parties, most of whom decided to preserve their "war chests" until next year's presidential and parliamentary elections.
Most political observers noted that the outcome of local elections testifies to the growing influence of Prime Minister Andranik Margarian who heads the HHK. Margarian has now emerged as President Robert Kocharian's most important political ally. Kocharian is expected to run for reelection in less than four months.
A brief description of some of the key local government electoral contests follows:
In Gyumri, the incumbent non-partisan Mayor Vardan Ghoukasian won handily collecting 72 percent (nearly 30,000 votes) against two challengers: Socialist Armenia Union's Levon Galstian and a former member of the Republican Party Martin Zulfumian, who received under 12 percent each. Candidates from the pro-government Armenian Revolutionary Federation and opposition National Accord Party withdrew from the race. Turnout was estimated at about one-third of all voters.
In Vanadzor, Armenia's third largest town, incumbent Republican Samvel Darbinian defeated Andranik Ghoukasian of the Communist Party by a comfortable margin of 23,000 to 8,000 votes. Turnout was at 40 percent.
In Yerevan's central Kentron community pro-government non-partisan businessman Gagik Beglarian with close to 22,000 votes defeated the two-term incumbent Ararat Zurabian of the former ruling Armenian Pan-National Movement with over 10,000 supporters. Turnout was at over 42 percent.
In another large Yerevan community, Arabkir, non-partisan former city official Levon Harutiunian (over 10,000 votes) prevailed over businessman Hovhannes Shahinian (over 8,000 votes) and incumbent, former People's Party member Feliks Yailoyan (over 7,000 votes). 
With over 7,000 votes in Kapan, Republican Armen Karapetian overcame incumbent Gagik Atajanian (nearly 5,500 votes), who was backed by several opposition parties. Turnout was at about 57 percent.
In another important victory for the Republicans, Hrachia Abgarian defeated the incumbent Mayor of Echmiadzin Yervand Aghvanian by over 1,000 votes with a 63 percent turnout. Aghvanian, himself a former Republican, has in recent months emerged as a strong critic of Prime Minister Margarian. 
October
18 - 25
A group of an estimated 50 Islamic radicals from Chechnya took over a Moscow theater Wednesday evening, taking some 700 spectators hostage. The standoff at the theater continues at press time and at least two hostages are said to have already been killed by the terrorists, who are threatening to kill the rest, unless Russian forces begin withdrawing from Chechnya. President Robert Kocharian sent a message to his Russian counterpart Vladimir Putin roundly condemning the act of terrorism and offering support. 
Several Armenian parliamentarians, who also condemned the attack, and an Armenian organization in Moscow expressed concern that the act of terrorism may result in Armenians being targeted along with other ethnic groups from the Caucasus. Over the past year, Armenians living in Russia have faced a growing number of incidents, including discrimination, beatings and acts of vandalism. The Governor of Russia's southern Krasnodar province Aleksandr Tkachev was in Yerevan this week to reassure Armenian leaders of his intentions to put an end to recurrent anti-Armenian outbursts. Krasnodar's Armenian community is estimated to be in the hundreds of thousands, many of whom are refugees from Azerbaijan and immigrants from Armenia.
October
22
Independent journalist Mark Grigorian is wounded in a grenade attack by an unknown assailant on a Yerevan street. The attack on Grigorian is under investigation by the Interior Ministry, but police are hindered by a lack of witnesses and limited evidence.  Grigorian, a popular journalist, is the co- director of the Caucasus Media Institute. 
October
20 -22
With overall voter turnout only estimated at 46 percent, the Republican Party of Armenia wins a landslide victory in the country's local elections, securing 30 of the 37 mayors of larger towns and cities. The pro-government Law-Based State party won in four towns and 48 villages. The three Armenian Revolutionary Federation (ARF) candidates for town mayors lose their races, but the party wins a number of smaller towns and villages. The former ruling Armenian National Movement (ANM) joins the National Democratic Union and the Communist Party in denouncing the authorities for influencing and disrupting the local election.
October 25 Thousands of Yerevan residents attend a special ceremony marking the third anniversary of the attack on the Parliament and the subsequent assassination of several senior political figures.
October 
30 - 31
The Armenian Parliament votes to approve the 2003 state budget, although the implementation of the budget is contingent on meeting a 13 percent increase in tax collection.  The 2003 budget comprises expenditures of 334 billion drams ($580 million) and projects revenues at only 287 billion drams.  The budget deficit would be 2.6 percent of Gross Domestic Product (GDP), but only if the government meets its target for tax revenue. 
The budget forecasts a 7.2 percent rate of growth in GDP and an annual inflation rate of below 3%.
Reprinted, by permission, from Armenian Assembly of AmericaArmenian International Magazine , Armenian National Committee of America , Armenian National Institute ,Groong. Armenian News Network  
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