Armenian News... A Topalian - SEVERAL THOUSANDS OF SMALL AND MID-SCALE BUSINESSES COMPANIES CLOSED

arka.am 

SEVERAL THOUSANDS OF SMALL AND MID-SCALE 

BUSINESSES COMPANIES CLOSED IN ARMENIA OVER 

ONE YEAR - ECONOMIST21 July 2015

YEREVAN, . Several thousands of small and mid-scale businesses 

companies have been closed in Armenia over one year, Gagik
Makaryan, the head of the National Union of Employers, said on 

Monday.

He finds it necessary to change the understanding of the role of SMEs
in social context, since such companies can contribute to removal of
many adverse phenomena in Armenia's economy, such as unemployment,
a high poverty rate and migration, and also can lessen inequality
among provinces' development degrees.

The economist also pointed out the necessity of providing the SMEs
with access to international markets to narrow the gap between export
and import.

He said conformity with international quality standards is needed
for that, and only new, modernized and properly equipped companies
can ensure that.

Makaryan said Armenia has close ties with the European Union
and Russia, and now it should develop its relations with all the
countries of the Eurasian Economic Union, particularly with Belarus
and Kazakhstan, as well as with the United States and Iran.

Presenting the results of the survey that ran from May to July 2015
and embraced 107 small and medium-sized companies, he said 53% of
respondents said decline in SME activity was seen mostly in trade
businesses.

Referring to the results of the same survey, the economist said
development of small and medium businesses is also hobbled by the
lack of new technologies - 45% of respondents pointed out this factor.

In his words, 69% of the surveyed business people complained about
constraint in availability of financial resources.

Â"Unequal conditions in competition, corruption, finance unavailability
hobbles small and medium-size companies' development. Only 12%
of the surveyed companies rated their condition as satisfactory,Â"
Makaryan said.

There are about 70,000 SMEs in Armenia, including 58,000 micro and
small businesses. Although they account for 43% of Armenia's GDP,
their contribution to overall tax revenues is about 5-6%. ---0----


arka.am
WB SAYS ARMENIA'S ECONOMY IS IN UNFAVORABLE CONDITION
22 July 2015

YEREVAN, July 22. Recent economic developments in Armenia
show a weak growth environment, the World Bank said in its monthly
review of Armenia's economy. According to the review, Armenia's
economic growth in the first quarter of 2015 slowed down to 2.2%.

At the same time, since February Armenia's economic activity index
fluctuated in the range of 2.5-2.7%, despite the traditional growth
trend observed at the beginning of the year.

WB analysts say that demand continues to be limited due to the
reduction of trade and money transfers from Russia, which is
manifested in a protracted recession in retail trade, which was 8.6%
in January-May.

According to the review, the agricultural abundance this year has not
yet translated into lower food prices, which were the main inflation
factor in May.

The review says also that in May the inflation was 5.1%, approaching
the upper limit of the inflation target range of 4% (± 1.5%).

The World Bank also believes that inflation-associated pressures
may increase in the second half of the year, if the electricity
tariffs grow.

The review notes also that the monetary policy remains tight. In
particular, the refinancing rate is preserved at the level of 10.5%,
resulting in high costs of borrowed funds.

The government GDP growth projection for this year is 4.1%. The World
Bank has lately revised down its forecast for 2015 to 0.8%

In its latest report the Central Bank said it expects a 2.1-2.5%
growth of Armenia's GDP. The first quarter growth was 2.2%. -0-


panorama.am
TURKISH ORGANIZATION ASIMDER INTENDS TO DISRUPT

ANNUAL LITURGY IN SURB KHACH ARMENIAN CHURCH 

ON LAKE VAN

21/07/2015

ASIMDER, a Turkish organization notorious for its anti-Armenian
activities, intends to disrupt the liturgy celebrated once a year in
Surb Khach Armenian Church on Akhtamar Island on Lake Van (in Western
Armenia, present-day Turkey). A representative of the organization,
Irfan Ermis, was reported as announcing such plans by Turkish newspaper
Milliyet, according to Ermenihaber.am.

Surb Khach Church was built in 915-921 AD by order of Armenian King
Gagik Artsruni. The church was destroyed after the Armenian Genocide
in the Ottoman Empire in 1915. In Turkey the church was turned into
a museum. It was only on September 19, 2010 - 95 years later that an
annual liturgy was celebrated in the newly reconstructed church for
the first time. 

armradio.am 

TURKEY TO RESTORE ST. GEVORG ARMENIAN CHURCH
22 Jul 2015
Siranush Ghazanchyan

The Turkish authorities have made a decision to renovate the 

St. Gevorg Church in Canakci village in Kigi district of Bingöl 

Province, Akunq.net reports, quoting Turkish sources.

A written statement by the Governor's Office in Bingöl says the
Church will be restored in a short time, according to the decision
of the Erzurum Regional Council for Conservation of Cultural and
Natural Heritage.

The 250-year-old St. Gevorg Armenian Church is nearly ruined. The
head of Canakci village had earlier informed the governor that the
church could cause damage to the neighboring buildings if not restored.


RFE/RL Report
Western Media Watchdog `Outraged' By Armenian Criminal Case
Elen Chilingaryan
21.07.2015

Reporters Without Borders (RSF), a Paris-based international media
watchdog, condemned Armenian law-enforcement authorities on Tuesday
for prosecuting the editor of a media outlet critical of them.

"Reporters Without Borders is outraged that Kristine Khanumian, the
editor of the news website Ilur.am, has been charged with refusing to
comply with a court order to reveal her source for a report about a
case of police abuse in June 2014," RSF said in a statement. "This is
the first time in Armenia that a journalist has been prosecuted for
refusing to name a source."

The statement quoted Johann Bihr, the head of RSF's Eastern Europe
desk, as saying that the criminal case is setting a "dangerous
precedent for media freedom in Armenia."

"The confidentiality of sources is an essential condition for
journalistic freedom," Bihr said. "As such, it is protected both by
Armenian law and European Court of Human Rights case law. We urge the
Special Investigation Service (SIS) to withdraw this charge
immediately."

The report in question implicated the then police chief of Armenia's
Shirak province in a violent attack on two young men. The SIS ordered
Ilur.am as well as the Yerevan newspaper "Hraparak" to disclose their
anonymous sources, saying that is necessary for solving the case.

Both publications refused to comply with the order backed by Armenian
courts. Khanumian was formally charged last week under an article of
the Armenian Criminal Code carrying heavy fines and up to two years in
prison.

The young editor remained defiant Tuesday. "Naturally, our position
remains the same," she told RFE/RL's Armenian service
(Azatutyun.am)."It's a position that befits a responsible media
outlet."

"We cannot put at risk not only our source but also freedom of speech
in general and set a precedent that would leave other media outlets
facing the same problem in the future," added Khanumian.

The criminal charges levelled against her have also been criticized by
the editors of leading Armenian newspapers as well as Dunja Mijatovic,
the Vienna-based representative on press freedom of the Organization
for Security and Cooperation in Europe.


panorama.am
HAYKAKAN ZHAMANAK: GOVERNMENT TO USE MONEY FROM 

VOROTAN HYDROPOWER PLANT SALE TO PAY ENA
21/07/2015 

'Haykakan Zhamanak' daily writes that the government decided to use
funds to be received from the sale of Vorotan Complex of hydropower
plants to compensate for the 'financial gap' caused by a delay in
the electricity tariff rise.

Until the completion of an audit in Electric Networks of Armenia
(ENA) Company, the government will pay ENA 7 drams per KWh, which
amounts to 2.5-3 billion drams a month.

It is noteworthy that Armenian Prime Minister Hovik Abrahamyan said
this money will not be paid from the state budget. 

[sale was to USA company] 


a1plus.am
NOW SOLAR ENERGY CAN ALREADY BE SOLD
July 21, 2015
EcoLur
For the first time in Armenia a fee will be set for the energy produced
by solar power plant. So far solar energy hasn't been sold.

On July 16, 2015 the executive body made a decision suggesting The
Public Services Regulatory Commission of the RA to give a license
to "Hanni-Armine" LTD for the production of electricity of up to
2 MW capacity in a solar thermal turbine power plant designed by
the company. According to the Government's decision the fee for the
electricity produced in the solar thermal turbine power plant mustn't
be more than that produced in wind power plants and a guarantee of
20 years must be given for the electricity purchase.

According to The Public Services Regulatory Commission of the RA by No
598 N decision made on November 30, 2007 the fee for the electricity
supplied by the wind power plants is 31,343 dram/kWh without value
added tax. 

RFE/RL Report
Armenia Unveils U.S.-Backed Energy Security Plan
Emil Danielyan
22.07.2015

The Armenian government officially unveiled on Wednesday a long-term
energy security strategy for Armenia that has been drawn up with
financial and technical assistance provided by the United States.

The 20-year plan envisages the country's continued heavy reliance on
nuclear energy and major reforms of the Armenian energy sector whose
grave financial troubles were instrumental in recent dramatic street
protests in Yerevan.

Prime Minister Hovik Abrahamian, Energy Minister Yervand Zakharian and
one of his deputies, Areg Galstian, presented the document at a
meeting with government officials, lawmakers, civil society members
and Yerevan-based foreign diplomats. According to Zakharian, it is
based on a "deep and comprehensive analysis" of the sector that was
launched by Armenian and U.S. energy experts in May 2014. The study
has been financed by the U.S. Agency for International Development.

"Through the implementation of this program we will have a safe,
reliable and stable energy system, sufficient electricity production
for the domestic market and exports, a stable financial situation,
predictable tariffs, and a decrease in losses," the minister told the
audience.

In Galstian's words, all "scenarios" for energy sector development
outlined in the program support the Armenian government's plans to
extend the operations of the Metsamor nuclear power station by 10
years and replace it by a new nuclear facility in 2027. Metsamor's
sole functioning reactor accounts for around 40 percent of Armenian
electricity output.

Both the U.S. and the European Union have long considered Metsamor's
sole functioning reactor inherently unsafe, pressing the authorities
in Yerevan to decommission it as early as possible. They have at the
same time financed major safety upgrades that have been carried out at
Metsamor for the past two decades.

"In order to maintain the current level of the country's energy
security, the Republic of Armenia will continue to develop atomic
energy," stated Abrahamian.

Galstian said the government will also assist in the construction of
new thermal-power plants starting in 2018. He said they are needed for
replacing the country's largest and most outdated thermal power plant
located in the central town of Hrazdan.

The World Bank warned earlier this year that Armenia could face power
shortages unless it builds at least one such gas-fired facility in the
coming years. Its energy experts said that the combined capacity of
all Armenian power plants would otherwise fall short of nationwide
demand by 2026.

In his speech, Abrahamian said his government will also embark on "new
reforms" to try to address the "difficult financial situation" of the
domestic power generating and distributing facilities. He clearly
referred to more than $225 million in debts accumulated by the
Electric Networks of Armenia (ENA), the Russian-owned national power
utility.

The ENA has posted growing losses in the last few years despite
repeated increases in electricity prices approved by state
regulators. The most recent price hike, which was supposed to take
effect on August 1, sparked last month two-week nonstop demonstrations
in Yerevan. Their mostly young participants believe that the ENA's
troubles are the result of corruption and mismanagement, rather than
low energy tariffs.

The government responded to the protests by effectively suspending the
more than 17 percent price rise for consumers. It said it will
subsidize the tariffs until an upcoming special international audit of
the ENA meant to determine whether the utility has indeed been
mismanaged by its Russian parent company, Inter RAO.

The source of that subsidy is still unclear, with government officials
saying only that it will be financed from "extrabudgetary" funds.


arminfo.am
ORANGE IS LEAVING ARMENIA
by Emmanuil Mkrtchyan
Tuesday, July 21, 21:05
The sale of Orange Armenia telecommunication operator as a separate
legal entity to Ucom will officially be announced on July 22. The
French company's representatives will officially announce it at
tomorrow's press conference.

According to ArmInfo, Ucom, which indirectly belongs to Finance
Minister Gagik Khachatryan, one of the biggest oligarchs of Armenia,
will temporarily gain ownership of the Orange Armenia brand.

To recall, founded in 2007, Ucom has dominant positions on the
Armenian market of IP television. About a year ago, the company was
granted a license for providing mobile communication services (011
code registered).

Independent market observers think that the French company's withdrawal
from Armenia will deliver a strong blow to the country's investment
position, because by the specialists' data Orange Armenia was not in
favorable competitive conditions and its profitability left much to
be desired.

According to the Ranking of Retail and Service Outlets of Armenia by
the Agency of Rating Marketing Information (ArmInfo), at the yearend
of 2013 the loss of Orange Armenia totaled 3.8 billion AMD, and the
accumulated loss - 12.4 billion AMD. At the yearend of 2013, the ROI
and ROE of Orange Armenia amounted to negative 8% and negative 10%,
respectively. As regards Ucom, its net profit at the yearend of 2013
amounted to 884.2 million AMD (almost 7-fold year- over-year growth
(from the negative level). At the same time, Ucom's ROI and ROE made up
3.4% and 5.4%, respectively. Orange Armenia has been operating on the
Armenian market since 5 November 2005, and Ucom was founded in 2007. 

armenpress.am
95,000 TONS OF APRICOTS PRODUCED IN ARMENIA IN 2015
22 July, 2015

YEREVAN, JULY 22, ARMENPRESS: Harvesting works of nearly all
agricultural products are being carried out in the Republic. The press
service of the Ministry of Agriculture of the Republic of Armenia
informed Armenpress that according to the operative information,
by July 22, 140,000 tons of gross harvest of fruit and berries were
produced in Armenia, including about 95,000 tons of apricots, which
exceeds the indicator of 2013 (88,8 thousand tons) by more than
6,000 tons. 

arka.am
OVER 46,456 TONS OF ARMENIAN FRUITS AND VEGETABLES 

EXPORTED THIS YEAR

YEREVAN, July 22. / ARKA /. Exports of fresh Armenian fruits
and vegetables have grown to 46,456 metric tons this year, deputy
agriculture minister Robert Makaryan said today adding also that the
figure was by 68 tons more than all exports of fruits and vegetables
in 2014.

He specified that 19,330 tons of apricots, 1,909 tons of sweet cherry,
1,198 tons of grapes, as well as 4,870 tons of potatoes and 16,836
tons of other vegetables were exported to Russia (38,000 tons),
Georgia (8,100 tons), Kazakhstan (113 tons), Belarus (239 tons.),
Poland (43 tons) and the UAE (19. 5 tons).

Makaryan said the growth is due to high yield of agricultural products
this year, in particular, of apricots, as well as to simplification
of shipment of goods to Russia and other member states of the Eurasian
Economic Union.

"Armenia's accession to the Eurasian Economic Union has greatly
simplified export procedures. This year, for the first time, many
farmers exported in small amounts (1-2 tons) their products to Russia,'
he said.-0-


ALIYEV: AZERBAIJAN'S MAIN ENEMY IS THE ARMENIAN LOBBY
by MassisPost 

July 22, 2015, 2:27 pm
BAKU -- Azerbaijani President Ilham Aliyev has stated that his
countries main enemy is the Armenian lobby. "The Armenian lobby is
trying to prove that there is no democracy in Azerbaijan and that
human rights are allegedly violated regularly, thus Armenian minority
can't live here in the future. It's complete nonsense." Aliyev made
the remarks on Tuesday during a meeting with board members of the
Press Council, APA reports.

"Azerbaijan is a multinational and multi-confessional country. People
of all nationalities and religions coexist in a state of brotherhood
in Azerbaijan. Unique conditions were created in our country and it
can be an example for many countries. However, the Nagorno-Karabakh
conflict is the main thesis behind this propaganda and anti-Azerbaijani
campaign. Therefore, we should promote Azerbaijan as modern,
progressive, open, tolerant country in the world's media. We should
also highlight both the historical realities and Azerbaijan's position
on the Armenian-Azerbaijani Nagorno-Karabakh conflict," Aliyev stated.

"It was Armenian separatists in Nagorno Karabakh, backed by Armenia,
who launched the aggression against Azerbaijan," he said. "The first
victims of that conflict were Azerbaijanis. This aggression resulted
in ethnic cleansing and genocide in Khodjaly, and occupation of almost
20 percent of our territory. And there can be no justification of
this occupation."

According to him the Armenian people suffer from a criminal regime of
dictatorship. "This regime has put the Armenian people in a terrible
situation, that in order to overcome it, you may need 100 years.

However, the Armenian lobby day and night are trying to slander
Azerbaijan, to undermine it's authority. They have broad financial
resources. They are closely connected with the authorities of their
countries where they donate to the legislators under the name of
"lobbying." But, in fact, it is - a bribe. Thus, the Armenian lobby
is at the forefront of an organized campaign against us."

Aliyev also claimed that not only Nagorno-Karabakh but also Armenia is
native Azerbaijani land, according to him, "the names of the absolute
majority of towns and villages in the territory of present-day Armenia
are of Azerbaijani origin, the Azerbaijani people for centuries lived
in these lands."