2021 November 17

Daily news wrap-up

News recap - Nov/17/2021: Pashinyan's speech in parliament: Karabakh negotiations & OSCE, borders & delimitation; roads __ What's in the new Armenia-EU aviation agreement? __ Foreign affairs & statements about borders __ Diaspora commissioner institute __ Bills approved __ Budget 2022 __ other news
by ar_david_hh

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This is your 14-minute Wednesday briefing in 3714 words.

casualty report from Tuesday's clashes

Read Tuesday news for context about border clashes.

MOD: Armenian side has 1 confirmed killed [his body was transferred today], 13 confirmed POWs, and 24 are missing after losing the two positions. [14 of the missing are believed to be dead, according to report from Armenian media and a QP MP.]

The Azerbaijani side has up to 70 dead and wounded. They also lost 4 BTR armored vehicles, 1 Sandcat armored vehicle, and 5 automobiles including Kamaz, URAL, and UAZ. [At least 18 are believed to be dead according to Azeri and Armenian sources yesterday.] //

During today's Parliamentary meeting, QP MP Armen Khachatryan said that Azeris had captured other positions as well, but Armenians took them back, leaving two under enemy control.

https://armenpress.am/arm/news/1068381.html https://armenpress.am/arm/news/1068439.html https://armenpress.am/arm/news/1068489.html

QP MP Andranik K.: we need to create Engineering Troops in a new format

Parl. Security Council chief Andranik K.: our army must have new engineering forces. This should be part of the 2022 budget. Our current structure is different. [The soldiers should focus on borders while separate engineers dig trenches and build fortifications.]

https://armenpress.am/arm/news/1068413.html

Pashinyan about Azerbaijan's border encroachment since May

QP MP Aleksanyan: tell us about how much land is currently being illegally occupied.

Pashinyan: 41 km^2 has been occupied since the May 12 encroachment. This isn't all from yesterday's event, to be clear. Yesterday's clashes did not have a major impact on the balance.

And those 41 km^2 are not fully under Azerbaijani control, because in multiple areas the two sides have positions that push into each other in a chess-like arrangement, often in illogical shape.

Positions change often. We often go and install new positions elsewhere and make it pointless for Azeris to have specific positions, which prompts them to move their positions. There is a constant movement.

Before the May encroachment, another >40 km^2 were illegally occupied by Azerbaijan during or after the 1990s war. We know exactly where these areas are. Similarly, some Soviet-Azeri lands went under Armenian control after the first war.

This is why we need the border delimitation and demarcation process. This is why the international community wants us to launch the delimitation process. Right now their average reaction is "both sides control lands that de jure do not belong to them".

Pashinyan about border delimitation:

The delimitation process has not started because of a lack of response from Azerbaijan. Russia has made three delimitation offers since May. We agreed each time. One of them was [when Mishik leaked the redacted document]. The process was disrupted because of the internal political noise created in Armenia.

Russia has since offered to resume the process twice. We're ready to sign to launch the process, but Azerbaijan is delaying and not giving answers. Our offer [mirrored withdrawal ahead of delimitation] is still on the table.

https://armenpress.am/arm/news/1068454.html https://armenpress.am/arm/news/1068445.html https://youtu.be/LKQRjPYMiBE https://factor.am/442832.html

Pashinyan about a peace agreement:

The whole point of the OSCE Minsk Group negotiation process was/is to eventually reach a peace agreement with Azerbaijan. We've said this a dozen times. This is nothing new. So it's strange that Azerbaijan today accuses Armenia of refusing to sign a peace agreement. We need to fully resume the negotiations process.

Pashinyan about the Artsakh negotiation process:

QP MP Ghazaryan: tell us about the negotiation process and the international community's role.

Pashinyan: our goal is to open an era of peace, but it won't be easy. We need strong nerves. There will be deliberate actions by external forces that will try to "prove" Armenian people that peace is impossible. But it is in Armenia's best interest to open an era of peace.

Throughout the entire Karabakh negotiation process, we formulated our stance. We called the international community's stance "unfair", while outright refusing to listen to Azerbaijan's stance.

As a result, our opinion was ignored from X point onward. [The "X" is sometime in the past decade when OSCE and Russia shifted towards a more pro-Azeri stance, as he said in one of his interviews months ago]. As I've said in 2018 and 2019, Armenia had lost its say in the international platforms.

We have to decide whether we want solutions or not. Our position is that we must find solutions. That doesn't mean every solution will be acceptable to us, but that also doesn't mean that every solution imagined by us will be acceptable to the other side or the international community.

Without counting Azerbaijan's role, Armenia did not succeed in the Karabakh negotiation process because our perceptions were not perceptible to the international community, and vice versa.

We had a pro-Armenia solution to the issue and we were committed to it. But we ignored the fact that the international community doesn't care about a pro-Armenian resolution, they only care about the issue being resolved. The same is true about border delimitation today.

I apologize for being so straightforward, but the international community is sick and tired of hearing Azerbaijan and Armenia about ceasefire violations, especially now that they are dealing with COVID and climate change. What makes you think we should set aside our problems and deal with yours, they say.

We were in the same situation 5 years ago, 10 years ago. So we must seek solutions while understanding that there won't be any "pro-Armenian" or "pro-Azerbaijan" solution. Either there is a solution, or there is none. This is our choice. //

https://armenpress.am/arm/news/1068461.html https://armenpress.am/arm/news/1068462.html https://factor.am/442856.html

Tags: #KarabakhNengotiations #negotiations #PashinyanSpeech

Pashinyan about regional communication routes & Azerbaijan's failed attempt to use Goris-Kapan road as leverage to get a "corridor" to Nakhijevan:

As a result of the communication unblocking, Azerbaijan will receive a railway/road connection to Nakhjevan, while Armenia will receive a railway link/road to Russia and a railway to Iran.

Azerbaijan's railway link to Nakhijevan could also connect them to Turkey so there is no disruption of balance here [balance = Armenia connects to Russia, Azerbaijan connects to Turkey].

It seemed we were very close to a solution at one point, but we did not achieve results. It turned out that by opening communication channels, Azerbaijan meant, for example, communication between Goris and Kapan through the territory of Azerbaijan.

The thing is Armenia doesn't have that problem, it's a technical issue for us. We built a new road. We're building other roads to connect to border villages. In the coming months, we will have alternative roads to Chakaten, Vorotan, Bardzravan, and Shurnunkh villages. Later we will have the North-South road.

So Azerbaijan was hoping to gain Azerbaijan-Azerbaijan (Nakhijevan) connection in exchange for Armenia (Goris)-Armenia (Kapan) connection. This has nothing in common with the November 9 statement.

The tripartite group is still working on the unblocking of communication routes on daily basis. The process has not stopped. Although the Karabakh conflict, AM-AZ border delimitation, and unblocking of communication routes have the same context, they are separate processes.

We've studied the Soviet maps with de jure power. We accept that parts of the Goris-Kapan [old] road is not within Armenian territory. Similarly, by studying the same maps, we know that Azerbaijan illegally encroached on Armenian territories in other parts of the border since May.

The Republic of Armenia has declared independence in the territory of Soviet Armenia, and the international community has recognized Armenia as such. Therefore, the border, which had de jure significance during the Soviet Union, now has de jure significance internationally. //

https://armenpress.am/arm/news/1068469.html https://factor.am/442870.html

Tags: #GorisKapan #NakhijevanRoad #CommunicationRoutes

Kremlin about stabilizing the border situation:

The only solution is the implementation of the tripartite statements. Each party should follow through with their obligations, which will serve as a guarantee that such incidents won't happen again. //

Russian Deputy Premier Dutenko and EU's regional representative Toivo Klaar discussed the borders.

Russian MFA about 1997 AM-RU military agreement: Russia takes its bilateral and multilateral obligations seriously. Consultations are being held. CSTO is also carefully monitoring the situation. //

Russian MFA about OSCE: the co-chairs are currently in Vienna to discuss the current situation. They recently organized a meeting in Paris. Once again, we urge the Co-Chairs to arrange a visit to the region as soon as possible. //

https://armenpress.am/arm/news/1068421.html https://armenpress.am/arm/news/1068476.html https://armenpress.am/arm/news/1068475.html

foreign officials and states responded to yesterday's border attack

US and Canada: we're concerned about the border situation. End the hostilities and return to OSCE negotiating table to address the unresolved issues connected to the Karabakh conflict. //

Iran: the tensions on the AM-AZ border is dangerous for the whole region. Exercise restraint and avoid escalation. Respect each other's internationally-recognized borders. //

Armenia's ambassador to the U.S. spoke with Senator Chris Van Hollen. The latter said he will bring the issue to the attention of other Senators.

U.S. Congressmen Adam Schiff, David Cicilline, and Frank Pallone condemned Azerbaijan for the aggression and called for the U.S. and the international community to take decisive political steps. The Rep. criticized the "both sites" rhetoric and called for a targeted response aimed at Azerbaijan.

European Parliament rapporteurs: We condemn any attempts at “borderisation”, as observed since the incursion of Azerbaijani troops into Armenian territory on 12 May

European Parliament’s Rapporteurs on Armenia and Azerbaijan: We urge the rapid de-escalation of the situation and welcome the engagement of the European Council President and the reported Russian-mediated ceasefire. Any possible disagreements about the border must be addressed through negotiations in a border delimitation and demarcation process.

We condemn any attempts at “borderisation”, as observed since the incursion of Azerbaijani troops into Armenian territory on 12 May.

We support and call for the opening of economic and transport connections as foreseen in the 9 November ceasefire agreement. This includes a connection to Nakhijevan. We are concerned about reports of hindered traffic in some Armenian border villages.

As the European Parliament's May 20 resolution says, Azerbaijan should release all Armenian detainees. Armenia should also give all up-to-date landmine maps to allow civilians to return to former conflict areas. //

https://armenpress.am/arm/news/1068358.html https://armenpress.am/arm/news/1068366.html https://armenpress.am/arm/news/1068370.html https://armenpress.am/arm/news/1068373.html https://armenpress.am/arm/news/1068374.html https://armenpress.am/arm/news/1068377.html https://armenpress.am/arm/news/1068389.html https://armenpress.am/eng/news/1068449.html

Armenian envoy draws UN Security Council’s attention to the border incident

Armenia's UN rep. Mher Margaryan delivered a statement at the UN Security Council's open debate session. He urged the international actors to take steps to prevent further escalation.

MFA: we informed UN Security Council President about Azerbaijani aggression. The use of all tools of international law and diplomatic practice is being considered for protecting Armenia’s territorial integrity and sovereignty. We are also in direct and multi-level contact with our ally Russia. Putin and Pashinyan spoke yesterday. //

https://armenpress.am/arm/news/1068379.html https://armenpress.am/arm/news/1068386.html

Azeri troll campaign made an attempt to disrupt traffic in Yerevan by placing fake ride-sharing reservations

Yandex Taxi said it stopped a coordinated campaign by Azeris who organized on Telegram. They attempted to book lots of fake rides to Zvartnots airport but were stopped. A similar attempt was made against food delivery service two weeks ago.

https://www.armtimes.com/hy/article/225538

COVID stats

10.9k tested. 1.0k infected. 1.1k healed. 46 deaths.

Healthcare Minister: infections are declining

... but the death toll is still high. The recent decline in cases has allowed us to hospitalize every patient that needs hospital care. //

Healthcare Minister: Kapan and Goris will receive new SUV ambulance vehicles

Some border villages that are part of Kapan and Goris enlarged municipalities have to use difficult gravel roads to connect to the new main Tatev road in Syunik. Work is being done to improve the roads before the asphalt can be laid next year, according to one construction driver who was working on the Bardzravan gravel road yesterday.

Healthcare Minister: some vehicles were already supplied to Kapan and Goris. More SUVs will be supplied soon.

https://armenpress.am/arm/news/1068387.html https://armenpress.am/arm/news/1068405.html https://armenpress.am/arm/news/1068404.html

update on the deadly incident between ex-HHK MP and a member of the criminal subculture

Four people were killed and two wounded in Yerevan's Kanaker district last week. The house belongs to the ex-MP, who is among the dead. Three of his sons have been arrested as suspects in the altercation. One of them is the former director of Yerevan Zoo.

Opposition outlet ArmLur (Joghovurd), citing its sources, claimed that QP MP Hayk Sargsyan was involved with the deadly incident and that he was waiting in a gateway car near the scene.

The QP MP Sargsyan said he might sue the outlet for defamation. I don't know any of the participants of the fight and I was in Russia between November 10-16 to take part in the CSTO training as Armenian Parliament's representative, said the MP, and shared passport screenshots to back it up. The shooting incident occurred on November 11.

https://www.armtimes.com/hy/article/225508 https://www.aysor.am/am/news/2021/11/17/ժողովուրդ/1894923

hazelnut is the new oil?

Georgia made $60M by exporting 13,000 tons of hazelnut since August, according to their agriculture ministry. They have enough harvest to bring $150M.

The top markets are Italy (5.5k tons), Germany (2.2k), Armenia (0.8k), etc.

Georgia had a major crop infestation problem that led to very low production until 2018. The harvest dramatically improved last year.

https://armenpress.am/arm/news/1068444.html

update: Parliament approves Government's bill to create the institute of commissioners to develop partnership with Diaspora

Diaspora Commission chief Zareh: "the purpose of creating an institute of the commissioner for Diaspora affairs is to develop the Armenia-Diaspora partnership, raise the efficiency, ensure stable relations between the Armenian communities, as well as to contribute to the preservation of the Armenian identity, repatriation, and organization of events aimed at integrating Diaspora-Armenians in Armenia."

Commission chief Zareh last week: the Premier will appoint commissioners abroad, on a voluntary basis. They will serve as advisors and provide professional consulting on the Armenia-Diaspora cooperation directions.

The commissioners will be appointed in a country where they will be in that moment, they will not be sent from Armenia, they will be people familiar with the local community. //

https://armenpress.am/eng/news/1068257/ https://armenpress.am/arm/news/1068380.html https://armenpress.am/eng/news/1067794.html

update: Parliament approves the bill to reduce the number of non-working holidays to boost the economy

The amended version will keep January 2 as a non-working day. That'll be December 31, January 1, 2, and 6.

The church was trying to keep January 5 and 7 as well (eve and following day of Christmas), but the Economy Ministry objected.

Read October 26 post for context and details.

https://armenpress.am/arm/news/1068376.html

update: Parliament approves bill to gradually phase out income tax refund for new mortgage borrowers in Yerevan, and prioritize provinces

Read the context and explanation in August 12 news post.

Finance Minister in August: in order to encourage a balanced territorial distribution of new housing construction, and therefore more balanced territorial development, we propose changes that will redirect the construction from Yerevan Center and Yerevan as a whole, towards provinces.

The housing sector outside Yerevan is seeing only a fraction of the benefits from this mortgage program. 93% of recipients are in Yerevan. This program should be amended to address the disbalance and emphasize its social nature.

Within the next 3 years, the privileges will gradually reduce in Yerevan Center and surrounding neighborhoods. For example, by mid-2022, new apartments built in Yerevan's First Zone will no longer qualify for it. The Second Zone will be in 2023, and so on until it includes the entire city by 2025.

When this program with economic significance was adopted, it had no limitations. It was reformed in 2018 to give it a social aid orientation. We added that one person can take advantage of this program only once, and for the house to be worth under $110,000.

This year will end with 20,000 recipients and ֏21 billion in budget expenditures. Most of the beneficiaries are from Yerevan, especially from the Center.

Pashinyan in August: we have many provincial settlements that haven't witnessed the construction of a new house in the past 30 years. When this program was adopted, it became apparent that most recipients are from Yerevan.

Some provincial residents who live and work in provinces did not want to "lose the opportunity" and began purchasing apartments in Yerevan. In the end, the program did not have the decentralization effect. Quite the opposite. //

The Parliament approved the amendment to the bill.

https://armenpress.am/arm/news/1068378.html

Parliament is discussing Government's 2022 budget

Details of the budget here, here, here, here.

Double-digit growth for some sectors. Infrastructure expenditures will significantly increase. FinMin expects annual 7-9% GDP growth in the following years.

...about capital expenditures

QP MP Bagratyan: not all capital expenditures were implemented this year. For the next year, you dedicated ֏357B, a whopping ֏130B increase. Can you guarantee that you can actually invest all that money?

FinMin: the implementation of programs is a key topic. It depends on two things: the government's actions and the private sector's actions.

Often when capital expenditures are not implemented on time or in full, it's due to the responsible department not organizing tenders on time. But sometimes the private companies that win tenders do not keep their promise regarding completion deadlines.

In both cases, there are objective and subjective reasons. We're working on it. For example, right now, before the arrival of 2022, we have already launched preparatory works in all areas of expected capital expenditures. We're preparing auctions.

The construction companies that intend to participate in the auction are currently upgrading their equipment and hiring experts to prepare for the high volume of construction work next year. //

... about investments & debt-to-GDP ratio

Central Bank chief Martin: the 2022 budget bill is quite ambitious. The debt burden is expected to reduce. 7% economic growth is expected, largely due to the planned large-scale state investments in the infrastructure, human capital, and export-oriented sector.

The gross demand will continue to grow due to domestic and foreign growth. Unlike this year, in 2022 the domestic demand growth will be due to growth in public and private investments within the framework of the government's investment promotion policy.

The Taxes-to-GDP ratio will see a significant 0.9% increase. The Debt-to-GDP ratio will be 60.2%, a reduction of 0.7%.

To achieve the results and avoid risks, it's necessary to implement the planned capital expenditure program. //

... about inflation

Central Bank chief Martin: 2021 cannot end with the inflation being within the preferred 4% margin, but if new problems do not arise next year, we expect it to reduce to the 4% mark.

We have a mandate to make sure that the living standards of citizens do not decline due to inflation. This was an odd year because of COVID's impact on international markets, and the supplies being unable to keep up with the demand. Poor global harvest and logistics issues contributed to the rise in global food prices.

In Armenia, we saw that people accumulated large savings in 2020 and began spending it in 2021. This also had an impact on the demand. The inflation is 9.1% today. //

... about economic growth in 2021

QP MP Tunyan: the economic growth slowed in recent months, so what's your prediction for 2021?

FinMin: we were expecting 6.5% growth earlier this year but it won't cross the 6%. We'll give a new estimate when we conclude October numbers.

The recent months' decline was due to the mining industry producing and exporting less than expected, and some slowdown in agriculture.

We believe the mining industry will restore the volumes within the next few months because there is a cap on how much they can extract and process.

The agriculture sector's recent decline is a bit different. It's partly because 2020 was particularly high in terms of certain indicators. We won't be able to restore this by the end of the year. The government's long-term solution is to expand the use of technologies in agriculture.

... about education investments

Education Minister Dumanyan: the 2022 budget envisages an unprecedented ֏44B ($92M) increase in education expenditures. It'll mainly focus on content reform, education/cultural/sports infrastructure, science, and aid recipients.

109 education facilities will be built or renovated next year. 88 will be ready by the end of next year.

480 teachers will receive a 30-50% salary raise for 5 years thanks to the recent voluntary certification exams. 260 teachers will receive additional benefits to move and teach in rural/border communities.

... about healthcare investments

Minister Avanesyan: the 2022 healthcare budget will increase by 5%. There has been a 35% increase in the past three years. We need to keep increasing the share in GDP to provide sufficient care to all our citizens.

Part of the 2022 increase will go towards free cancer/urology treatment. Many more people decided to seek medical care when the treatment was made free. We recalculated the expected expenditures for next year.

Soldiers and their family members can continue to seek care. For this group, hospitals are not capped with an annual subsidy budget. They get govt subsidies when the patient seeks care. Patients can choose their hospitals and avoid long lines.

More funding for medicine for specific groups. We recently lowered the requirements to qualify for aid, by reducing the poverty threshold from 30 to 28 points.

50 medical centers will be renovated and modernized within the next 5 years. This is already being done in provinces. 7 of them will be rebuilt/renovated next year. //

https://armenpress.am/arm/news/1068384.html https://youtu.be/AKMznFJ8U-I https://youtu.be/azzr4MCiZCI https://youtu.be/GJk9sPEwPds https://armenpress.am/arm/news/1068391.html https://armenpress.am/arm/news/1068412.html https://armenpress.am/arm/news/1068398.html https://armenpress.am/arm/news/1068407.html https://armenpress.am/arm/news/1068429.html https://factor.am/442745.html

what does the Armenia-Europe common aviation agreement entail?

Context in Monday post.

Civil Aviation Committee: AM and EU signed an agreement aimed at aviation safety and common standards for air traffic control. New opportunities will be created for consumers in Armenia and the EU, airlines and airports.

1) All European airlines will be able to fly to any Armenian airport from any European airport. The same about Armenian airlines.

2) All flight restrictions and bans will be removed. Equal competition conditions will be guaranteed in accordance with the requirements of open and fair competition provisions.

This will boost trade and tourism. CAA assumes a gradual liberalization of the aviation market between the EU and its neighbors. New opportunities for operators and passengers. New environmental and safety standards. Armenia will amend its law to meet the EU aviation standards. //

https://armenpresas.am/arm/news/1068465.html

European Team Chess Championship 2021

The men's team defeated France and now shares the 1-6 positions with several other countries. The next round is tomorrow.

https://armenpress.am/arm/news/1068418.html

end of report

The accused are innocent unless proven guilty in the court of law, even if they "appear" guilty.

News archive: http://www.armeniapedia.org/wiki/Daily_Anti-Corruption_Reports

Donations: soldiers' families, humanitarian aid, US tax-deductible donation.

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Link to original report and comments: https://www.reddit.com/r/armenia/comments/qw9arz/news_recap_nov172021_pashinyans_speech_in/