Armenia Highlights

Armenian, Kuwaiti governments sign agree- Armenia recorded ment on encouragement ECONOMIC growth in and mutual protection January-May 2010 of invests Page 2 PAGE 3 ARMENIA HIGHLIGHTS

Weekly Digest of the Government of Armenia

June 22 - 28, 2010 THEMA

“Quote of the week”

“If previously there was intention that the dynamics of growth will be of irregular nature today we witness an opposite phenomena. Speaking in formal respect the 8,8% is real growth, the nominal growth is higher. ” Armenian President Serzh Sargsyan meets with German Chancellor Angela Merkel Tigran Davtyan Finance Minister of RA rmenian President Serzh Sargsyan President Serzh Sargsyan, on June 21, met in Awho is in Germany on an official the evening of the same day with representa- visit met on June 22 with the German tives of the Armenian community. RA Pres- Chancellor Angela Merkel. Presidential ident Serzh Sargsyan, who is on an official press office told Armenpress that issues visit to Berlin, on June 22 met with Chan- on development of bilateral relations cellor of Germany Angela Merkel, as well as Upcoming Events as well as using of the opportunities of with President of the Bundesrat and acting the multi-sided format cooperation have Head of State of Germany Jens Buhrnsen June 26 - July 6: International been discussed at the meeting. Armenian 22 June, 2010, www.armenpress.am Open Chess Tournament in Jermuk Serzh Sargsyan: Baku jeopardizes not only Armenian-Az- erbaijani talks, but also region’s stability July 11-18: The seventh annual uring his visit to Germany, Armenian Pres- that the efforts of Armenia and international com- Golden Apricot Yerevan Dident Serzh Sargsyan met with Germany’s munity aimed at normalization of the two countries’ Chancellor Angela Merkel on June 21. Referring relations have not yielded results. According to Mr. to the Karabakh conflict settlement, the Arme- Sargsyan, Turkey wanted to exploit this process for USEFUL LINKS nian President voiced concern over the fact that other purposes and was rejecting the agreed princi- • www.president.am Azerbaijan does not contribute to the process set- ples of negotiations. The parties attached importance • www.gov.am tlement, raising the issue of the conflict military to continuation of the Armenian-Turkish normaliza- • www.parliament.am resolution. According to Mr. Sargsyan, Baku tion without preconditions.Meanwhile, they noted • www.mfa.am jeopardizes not only the Armenian-Azerbaijani that the Karabakh conflict should be solved peace- • www.armenpress.am talks, but also the region’s stability. Referring fully within the framework of the OSCE Minsk • www.panarmenian.net to the Armenian-Turkish normalization, the Group, the RA President’s press service reported. . • www.matenadaran.am Armenian President voiced regret over the fact 22 June, 2010, www.panarmenian.net ARMENIA HIGHLIGHTS CHRONICA Serzh Sargsyan: Azerbaijan’s knows that Azerbaijanis attacked, while the Headlines of actions are challenge OSCE Minsk Group Co-Chairs, EU Special the week addressed to Minsk Group Representative for the South Caucasus give a and Russia • JUNE 21: Arman Kirako- general estimation to the incident and call on syan, Peter Semneby discuss the sides not to make provocations. Who are Armenian-Turkish relations these sides? Who is responsible for the certain AH incident? We (Armenia, Nagorno Karabakh • JUNE 21: Monthly salary in Ar- and Azerbaijan) signed a trilateral ceasefire menia comprises AMD 103 agreement in 1994 and we did it as per Baku’s 549 in January-May 2010 offer, through Russia’s mediation. Thus, we AH have a legal obligation to follow the ceasefire • JUNE 22: Armenian government regime. The incident, which took place im- hosts meeting of commission regu- mediately after my meeting with Azerbaijani lating Armenia-EU cooperation Armenian President Serzh Sargsyan said President Ilham Aliyev, is unacceptable and AH that the resolution of the Karabakh conflict is a challenge addressed to the Minsk Group, • JUNE 22: Armenia hosts confer- is hampered by unclear approach of many Russia and, of course, Armenia.” ence on Scenarios for Prevention of structures, including European ones. An Azeri recon element attempted to penetrate Illegal Storage and Circulation of These structures have concerns that they may into Arstakh territory in the environs of Chaylu Nuclear and Radioactive Substances hamper the conflict settlement, if they point settlement, Mardakert region, on June 18, at AH to certain perpetrators of certain incidents, 11.30 pm. As a result of retaliatory measures, • JUNE 23: Albanian For- Sargsyan said at Konrad AdenauerFounda- the armed group was neutralized, leaving one eign Minister to visit Armenia tion, Germany.Referring to the recent inci- dead and armament on the spot. The Armenian AH dent in the environs of Chaylu settlement, the side lost 4 killed. 4 were injured. • JUNE 23: Armenia-Argenti- Armenian President said: “The entire world June 23, 2010 www.panarmenian.net na collaboration to be intensified AH Armenian, Kuwaiti governments sign agreement • JUNE 23: NATO follows with great at- on encouragement and mutual protection of intention the development of the situation vestments on Karabakh-Azerbaijan contact line AH delegation’s visit will contribute to it, the • JUNE 23: Italy welcomes Ar- RA government’s press service reported. menia’s consistent policy in Outlooks of implementation of mutually Karabakh conflict settlement beneficial investment programs, as well AH as creation of favorable conditions in the • JUNE 27: Holy Echmiadzin mining, tourism and air communication hosts service for commemora- fields were in the focus of the meeting. tion of Azeri diversion victims Besides, the parties emphasized the neces- AH sity of establishment of an intergovern- Armenia briefed CSTO meeting mental commission to develop economic on Chaylu incident Armenian Prime Minister Tigran Sarg- ties. syan received a Kuwaiti delegation led by In completion, Armenian Minister of Fi- On June 24, Secretariat of the Collective Minister of Finance Mustafa Jassem Al- nance and his Kuwaiti counterpart signed Security Treaty Organization hosted a Shamali. Armenian Minister of Finance an agreement on encouragement and mu- meeting of the CSTO Permanent Coun- Tigran Davtyan was also attending the tual protection of investments between the cil with participation of Secretary Gen- meeting. The Armenian PM attached im- Armenian and Kuwaiti governments. eral Nikolay Bordyuzha, his deputies and portance to the development of relations June 25, 2010 www.panarmenian.net permanent representatives of the CSTO with Kuwait and expressed hope that the member countries. During the meeting, Mr. Bordyuzha pro- EADB adopts program to support SMEs vided information on the visit CSTO he Eurasian Development Bank capacities, creating job opportunities, in- Temporary Task Group will pay to Kyr- T(EADB) adopted the Program on creasing tax payments to budgets, contrib- gyzstan on June 25 and 26. Support and Development of Small and uting to growth in internal trade and mutu- A draft statement of the CSTO member Medium Enterprises through Provision al investments, as well as at increasing the countries on Afghanistan drug threat was of Targeted Credit Lines to Financial In- mutual trade turnovers among the bank’s also considered. stitutions. The program aims to create fa- member countries. Armenia’s Representative to the CSTO vorable conditions for the development of If all requirements are met, the EADB will delivered a report on Azerbaijan’s sub- small and medium enterprises (SMEs) of open a credit line for each financial institu- versive attack on June 18, 2010, in the bank’s member countries and increase tion with a maturity period from three to Mardakert region of Nagorno Karabakh, their competitiveness in internal and ex- five years for targeted financing of SME the press office of CSTO office in Yer- ternal markets, the EADB press service projects. evan reported. reported. The program addresses problems June 24, 2010, June 24, 2010 www.panarmenian.net of the development of SME production full story www.panarmenian.net

2 AH ARMENIA HIGHLIGHTS RES PUBLICA European People’s Party opens doors for Armenian Armenia, Austria to boost coalition forces economic cooperation tunity to Armenian coalition forces to join the European People’s Party. Accession talks will soon start between the European People’s Party and the Republican Party of Ar- menia, the Prosperous Party of Ar- menia and Orinats Yerkir Party. A high-level mission of the European he European People’s Party is People’s Party will arrive in Arme- Topening its doors for he coali- nia by the end of 2010 to see to what rmenian Prime Minister Tigran tion parties of Armenia. The sitting extent the Armenian coalition parties ASargsyan met with Austrian For- of the task fore on issues membership correspond to European standards. eign Minister Michael Spindelegger, the too place in Brussels on June 24. The 25 June, 2010, RA government’s press service reported. task force decided to give an oppor- full story www.armradio.am The Prime Minister hailed the cur- rent level of the Armenian-Austrian po- Armenia recorded ECONOMIC growth in January- litical relations, attaching importance May 2010 to boosting of bilateral economic ties. For his part, Mr. Spindelegger noted that ccording to updated statistical data, uary-May 2010. However, 7.9% drop Austria is interested in developing coop- Armenia’s industrial production in- was recorded in the produced electric- A eration with the South Caucasian countries. creased by 12.1%, amounting to AMD ity in May as compared with April 2010. Referring to Armenia-EU coopera- 305.1bln. Meanwhile, 6.3% drop was Specifically, 12.5% growth was recorded tion, PM Sargsyan stressed the impor- recorded in the industrial production in in the construction industry, the Arme- tance of Eastern Partnership initiative as May as compared with April 2010. 34.9% nian National Statistical Service reported. a part of European Neighborhood Policy. growth was recorded in the prices for in- Besides, 0.9% growth was recorded The two men also attached importance to sign- dustrial products during the reporting in agriculture during the reporting pe- ing of association and free trade agreements. period, the Armenian National Statisti- riod, while the increase in the fields In addition, they noted the necessity to create cal Service reported. Besides, the vol- of retail trade and services amount- favorable conditions for investment industry.. ume of produced electricity increased ed to 1.3% and 6.8% respectively. 25June, 2010, www.panarmenian.net by 14.6, totaling 2657.6kW/hour in Jan- June 22, 2010 www.panarmenian.net Tigran Davtyan: Arme- FIDE President: Jermuk is one of chess development nia has returned to the centers new economic developing the memory of Genrikh Kasparian. ment phase uring the first months of 2010 Ar- Vice-President of the Chess Federa- menia’s GDP increased by 8,8%. tion of Armenia Smbat Lputyan said that D Finance Minister Tigran Davtyan said Grand Prix is among the strongest wom- on June 23 at the meeting with the re- en’s tournaments. It is difficult to pre- porters in the Armenian government that dict the winner, Lputyan told journalists. Armenia returned to the new economic “Three world champions will partici- development phase. Growth has been reg- pate in Grand Prix. The participants will istered in all the branches of the economy. be gaining points, what will allow them “If previously there was intention that the to participate in the tournament for the dynamics of growth will be of irregular na- he opening ceremony of the 4th world champion’s title,” said Lputyan. ture on June 23 we witness an opposite TFIDE Women’s Grand Prix took Armenian President Serzh Sarg- phenomena. Speaking in formal respect the place in Jermuk, Armenia, on June 23. syan and FIDE President Kir- 8,8% is real growth, the nominal growth is Welcoming the participants and guests, san Ilyumzhinov arrived in Jermuk. higher. Taking all this into consideration FIDE President Ilyumzhinov said, “Some The tournament will bring together grand- we may say that we have reached 2008 two years ago chess lovers had no idea masters Lilit Mkrtchyan, Elina Daniyelyan state growth results,” Tigran Davtyan said. about Jermuk. Now, this wonderful re- (Armenia), Hou Yifan (China), Antoan- He particularly singled out the growth of in- sort is one of chess development centers.” eta Stefanova (Bulgaria), Pia Cramling dustrial, construction and export spheres. Dur- As a PanARMENIAN.Net reported from (Sweden), Tatiana Kosintseva, Baira ing the recent years the minister said such in- the scene, sixth world champion Nona Kovanova (Russia), Maia Chiburda- dex of export volume has not been registered Gaprindashvili was an honorable guest of nidze, Nana Dzagnidze (Georgia), Xu yet. Tigran Davtyan also noted the role of the FIDE Women’s Grand Prix. From June Yuhua, Shen Yang (China) and Martha developments taking place in the global econ- 24 to July 5, Jermuk resort will be host- Fierro (Ecuador), armchess.am reported. omy, highlighting the measures undertaken by ing FIDE Women’s Grand Prix honor- 23 June, 2010, www.panarmenian.net the Armenian government as a result of which Armenia’s economy is growing day by day. June 23, 2010 www.armenpress.am

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G8 Summit: Joint Statement On The Nagorno-Karabakh US, Russia, France back Conflict by Dmitry Medvedev, President Of The Rus- Nagorno-Karabakh peace sian Federation, Barack Obama, President Of The United moves States Of America, and Nicolas Sarkozy, President Of he United States, France and Russia The French Republic nection with our statement at the L’Aquila Ton Saturday pledged to support Arme- Summit of the Eight on July 10, 2009, nia and Azerbaijan as they try to agree basic relating to: the return of the occupied ter- principles for settling a dispute over Azerbai- ritories surrounding Nagorno-Karabakh, jan’s breakaway Nagorno-Karabakh region. interim status for Nagorno-Karabakh guar- U.S. President Barack Obama, joined by anteeing security and self-governance, a French President Nicolas Sarkozy and Rus- corridor linking Armenia to Nagorno-Ka- sian President Dmitry Medvedev, said rabakh; final status of Nagorno-Karabakh both sides had made a significant step to be determined in the future by a legally- in accepting the overall framework of a binding expression of will, the right of all deal and now needed to work on details. internally-displaced persons and refugees “Now the presidents of Armenia and Azerba- e, the Presidents of the OSCE to return, and international security guaran- ijan need to take the next step and complete Minsk Group’s Co-Chair coun- tees, including a peacekeeping operation. the work on the basic principles to enable the W Now the Presidents of Armenia and Azerbai- tries, France, the Russian Federation, and drafting of a peace agreement to begin,” the jan need to take the next step and complete the United States of America, reaffirm our three leaders said in a joint statement issued commitment to support the leaders of Ar- the work on the Basic Principles to enable the drafting of a peace agreement to begin. during a Group of Eight meeting in Canada. menia and Azerbaijan as they finalize the U.S. Secretary of State Hillary Clinton plans to Basic Principles for the peaceful settle- We instruct our Ministers and Co-Chairs to work intensively to assist the two sides visit both Armenia and Azerbaijan early next ment of the Nagorno-Karabakh conflict. month during a trip to the South Caucasus. We welcome as a significant step the recog- to overcome their differences in prepara- The dispute between mostly Muslim Az- nition by both sides that a lasting settlement tion for a joint meeting in Almaty on the erbaijan and mostly Christian Armenia re- must be based upon the Helsinki Principles margins of OSCE Informal Ministerial. mains a threat to stability in the South Cau- and the elements that we proposed in con- June 26, 2010 www.whitehouse.gov casus, an important route for oil and gas Armenia’s GDP growth supplies from the Caspian region to Europe. Skirmishes, sometimes fatal, erupt frequently n the first five months of 2010 Armenia’s managed to slow down its economic de- along front lines near Nagorno-Karabakh, a GDP grew by 8.8% compared with the cline even by the middle of 2009. In April I small mountainous region under the control of same period of last year. Its foreign trade 2010 more than 50% of the budgetary tax ethnic Armenians who fought a six-year separa- turnover for this period was USD 1.776 revenues in Armenia were paid by 344 big tist war with support from neighboring Armenia. billion, 34% more than in the same period taxpaying organisations. The number of last year. Head of the Armenian Parlia- people employed in the country has not An estimated 30,000 people were killed and ment Committee responsible for economic increased since April 2009, but their av- one million displaced before a cease-fire in 1994 issues Gagik Minasian has stated that this erage incomes have increased by almost but a peace accord has never been agreed and growth is determined by world market 16%. On this basis we can conclude that the ethnic Armenian leadership’s independence conditions. These have created economic the economic development of Armenia is claim has not been recognized by any country. growth in almost every country but in Ar- increasing, though the proportion of large The three powers’ joint statement on Sat- menia much was done by the Government taxpayers is quite high compared to those urday said the so-called “Helsinki princi- in 2009 through the implementation of from small and medium-sized businesses. ples” now recognized by both sides relate the anti crisis programmes. Armenia had 23-24 June, 2010, www.messenger.com.ge to the return of the occupied territories surrounding Nagorno-Karabakh, interim sta- Clinton to Visit South Caucasus tus for Nagorno-Karabakh guaranteeing .S. Secretary of State Hillary Clinton Armenia and Azerbaijan, long at odds over security and self-governance and a corri- Uwill visit Ukraine, Poland, Armenia, Azerbaijan's breakaway Nagorno-Karabakh dor linking Armenia to Nagorno-Karabakh. Azerbaijan and Georgia from July 1 to 5, region. Tension has increased since Armenia and its the State Department said, seeking to pro- Announcing Clinton's trip, State Department traditional foe Turkey, which has close ties to mote stability in the volatile South Caucasus spokesman P.J. Crowley said Friday that Azerbaijan, reached a rapprochement last year. region.In Kiev, Clinton will meet Ukrain- the United States had "invested a great deal The accord crumbled this year when Arme- ian President Viktor Yanukovych, who has of energy" to try to improve relations with nia suspended ratification after Turkish de- reached out to Russia since taking office on Armenia and Azerbaijan and said the visit mands that it first reach terms over Nagorno- Feb. 25, and then attend a meeting of the showed U.S. commitment to try to resolve Karabakh, a condition set by Turkey to Community of Democracies in Krakow, an their disputes. Clinton ends her trip in Geor- appease Azerbaijan, an oil and gas producer. intergovernmental group that promotes dem- gia in a gesture of support for the country. June 26, 2010, www.reuters.com ocratic norms. After that, Clinton will visit June 28, 2010, www.themoscowtimes.com "Armenia Highlights" is compiled in association with & DISCLAIMER: Views expressed in "Armenia Highlights" do not necessarily reflect the views of the Government of Armenia.

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