2021 November 2

Daily news wrap-up

Headlines - Nov/2/2021: High-Tech & infrastructure budget to rise sharply __ Vetting in judicial __ Competition Commission takes off gloves __ Minister on Amulsar; investments; Turkish border __ Salaries & benefits __ Onik loses another battle __ Air defense training __ What's causing inflation? __
by ar_david_hh

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Your 13-minute Tuesday briefing in 3200 words.

a vetting process has started in the judicial system: Justice Minister

A meeting was organized between members of the government, judicial branch, NGOs, and guests to discuss judicial reforms.

Justice Minister Andreasyan: the vetting process in the judicial started thanks to the objective work done by the Supreme Court. We [Justice Ministry], as the body tasked with submitting complaints against judges, have studied Supreme Court's recent verdicts and concluded that even at times when the Court rejected our petition to sanction a judge, it was done with reason, and was understandable.

That doesn't mean we made an error by filing a complaint against a judge, it just means we had interpreted the law differently but the Court helped us understand what's correct. //

Context: lately, Justice Ministry has been filing complaints against judges for various reasons. Some of them were confirmed (corruption or conflict of interest related) and the judges were terminated, while in other cases "anti-government" judges were acquitted.

The head of "Helsinki" human rights NGO complained about Armenia's post-2015 constitution, saying it doesn't protect human rights.

He also doesn't find the current vetting processes sufficient because the system still has judges who have a record of giving politically-motivated verdicts.

Helsinki branch chief: No one is talking about the prosecutors who worked before 2018 and what orders they were given. Lack of sufficient vetting results in more abuses, such as during the Fizgorodok protests.

The negative opinion around vetting in Albania was formed by the former corrupt regime of Albania. The former president, former Premier, people who are under U.S. sanctions, took steps to discredit vetting. The source of information that discredits vetting is important. Just like in Armenia. Who criticized the democracy roadmap presented by civil society? They knew it would have dismantled the entire system that had usurped power. //

https://armenpress.am/arm/news/1067071.html https://youtu.be/-KXCZmtVnEE https://youtu.be/cKa75GpRWDc https://factor.am/436206.html

Tags: #judicial

Supreme Court chief proposed reforms to speed up the judicial vetting process

Supreme Court acting chief Gagik Jhangiryan: the Constitution allows us to expedite the vetting process. It's up to Parliament.

Discussions about judicial reforms began in 2011, during which I suggested cleaning up our judicial/investigative/intelligence bodies. After the 2008 March 1st events, hundreds of innocent people found themselves in jail, and thousands were faced with administrative terror.

Despite many deep flaws in the Constitutional amendment of 2015, it has one very important provision. The last sentence of Article 164 Part 6 states "Սահմանադրական դատարանի մասին օրենքով և Դատական օրենսգրքով կարող են սահմանվել անհամատեղելիության լրացուցիչ պահանջներ".

This allows for Judicial Code to set additional "incompatibility" requirements for judges. This is the constitutional lever that allows us to expedite the vetting process. It's up to the Executive and Legislative branches. Unfortunately, they haven't taken advantage of this article yet. Hopefully, the government will take clear steps to amend the judicial code.

The process of cleaning and purification should be done in the ranks of lawyers, too. //

https://armenpress.am/arm/news/1067078.html https://youtu.be/Cq-8eeuShHg

authorities meet European experts to discuss reforms

There is an EU group tasked with helping Armenia to implement institutional reforms. They held a meeting today.

The representatives presented the directions of the anti-corruption assistance program and expressed willingness to help improve the judicial system that handles corruption cases.

https://armenpress.am/arm/news/1067061.html

2x salary raise is proposed for top prosecutors and those in the new Anti-Corruption Committee

Justice Ministry proposed giving a bonus size of the salary to the agents serving in the newly established Anti-Corruption Committee. The reason is "positions are risky and require specialization".

https://armenpress.am/arm/news/1067085.html

Constitutional Court upholds the law that was used to fire former army chief Onik Gasparyan

The court ruled that Article 40.3 is Constitutional, in a major blow to Onik's efforts to restore his position. He was fired earlier this year after a letter calling for Pashinyan's resignation, amid fears of a coup.

Pashinyan signed a decree to fire him but Sarkissian didn't sign it. Pashinyan did it again. Sarkissian chose to send the case to Constitutional Court. He asked the court to review the law that was being used to fire Gasparyan. It turned out to be constitutional.

https://factor.am/436538.html

Kocharyan & Co's $4 million bribery trial is postponed amid health concerns

Kocharyan was a no-show today. The lawyer said one of Kocharyan's relatives, who had active contact with him, recently tested positive with COVID. Kocharyan himself developed symptoms.

He submitted a test and was waiting for the results. Prosecutors agreed to postpone the trial for another week.

https://armenpress.am/arm/news/1067084.html

10th time wasn't the charm: Kocharyan-ARF's candidate for Deputy Security Commission chief fails again

HD MP Ghazinyan was not elected as Parliamentary Security Commission chief's deputy again. The ruling party had earlier complained about his "lack of skills and attitude". Ghazinyan says he is qualified and is hellbent on getting the position (which doesn't give wide powers).

Opposition members again did not show up for the Security Commission session during the vote.

Sec. Comm. chief QP MP Andranik K.: if they were present today I would like to ask whether Mr. Ghazinyan is Seyran Ohanyan's choice, or Kocharyan's. This cycle of renomination is already illogical. We must amend the law to address this. //

https://armenpress.am/arm/news/1067070.html

politics & borders

US State Department representative Erika Olson visited Armenia where she met MFA Mirzoyan. They discussed topics relating to the regional conflict, humanitarian missions, and institutional reforms.

Artsakh Army reported irregular fire opened by Azeri soldiers near Karmir Shuka settlement. No injuries. Peacekeepers have been informed.

MFAs of Russia and Azerbaijan discussed the implementation of November 9 and January 11 statements.

https://armenpress.am/arm/news/1067126.html https://armenpress.am/arm/news/1067124.html https://armenpress.am/arm/news/1067122.html

polls: Erdogan's popularity continues to take a hit

Inflation was 20% in September. Men's unemployment at 11%, women's at 15%.

2/3rd believe Erdogan is not managing the economy properly. Only 21% said he is managing it efficiently.

67% believe Turkey is going through a very serious economic crisis, while 30% believe this is a temporary decline.

48% believe that changing the government will improve the economy, while 32% said it would make it worse.

62% want snap elections.

Survey by Avrasya Araştırma.

https://factor.am/435992.html https://ahvalnews.com/turkey-economy/nearly-two-thirds-turks-say-erdogan-doing-bad-job-economy-poll

Armenian army conducted exercises involving air defense units

The units were trained on how to handle "modern warfare" conditions.

https://factor.am/436398.html

Russian army says they have learned how to repel drone attacks effectively

Putin: Russia has 2,000 drones at the moment. Our experts have learned how to prevent drone attacks. There have been such attacks in Syria. We need to continue to work on this. Artificial intelligence should be used.

https://factor.am/436318.html

Azerbaijanology classes open in Artsakh

Artsakh students will study their opponent, its language, economy, etc. The education center is financed by Genesis Armenia. The language classes for about a dozen students will be free.

https://factor.am/436541.html

2022: High-Tech Ministry budget will increase by 90%, Economy Ministry 27%, Infrastructure Ministry 32%

The High-Tech Ministry's budget will increase to ֏21.3B, from which ֏5B will be spent on scientific and technical research in the defense field. ֏12B will be spent on developing an ecosystem to improve high-tech education, involve diasporans, issue grants to startups, and attract investments.

Economy Ministry budget to rise from ֏32.2B to ֏41B. There will be 58 projects.

Infrastructure Ministry will go from ֏211.7B to ֏278.6B. There will be 129 projects. The 2022 budget is particularly notable for its significant increase in infrastructure investments, said the Finance Minister.

https://factor.am/436233.html https://armenpress.am/arm/news/1067052.html

Economy Minister Kerobyan: we plan to transition to investment-based economic growth

Minister: the state plans to change the structure of the economy to transition from consumption-based to investment-based growth.

Our goal is to achieve 5-7% annual economic growth within the next five years. For that to happen, one of the most important things we need to do is to change the structure of the economy. We need to service and support investments until the moment the investor starts working.

https://armenpress.am/arm/news/1067073.html

Economy Minister about GDP, investments, Amulsar, and Turkey border

Minister Kerobyan: private investments make up about 15% of GDP. According to gov't plan, the goal is to increase the share of investments to 25%, within the next 5 years.

Not everything is going smoothly. We still have to address the problems that investments face. It's part of our daily task to investigate problems and draft legislative reforms.

One of the most important factors that should lead to the desired economic growth is an unprecedented volume of capital expenditures. //

HD MP Khachatryan: if you expect 7% growth, does that mean you expect the Amulsar gold mine to become operational?

Minister Kerobyan: even if all problems are resolved and Amulsar resumes its works, it would take at least one year for it to begin operations. We are currently waiting for the criminal investigation around Amulsar to see the results. Future discussions around Amulsar will depend on that. //

HD MP Khachatryan: do you expect Turkish borders to open next year which could lead to economic growth?

Minister Kerobyan: in our 2022 budget, we do not assume that borders with Turkey will open because we still have to take measures to protect the interests of Armenian businesses and the state. //

https://armenpress.am/arm/news/1067077.html https://youtu.be/mEBryZHufuo

government allocated another ֏420M for the construction of a new residential district in Shurnukh (Syunik)

Part of the village went on the other side of the border after the war. The 13 families will receive new homes in the new district. The roads will be renovated as well.

https://factor.am/436351.html

COVID stats

10.3k tested. 1.2k infected. 1.6k healed. 62 deaths. 30.5k active.

https://armenpress.am/arm/news/1067057.html

vaccination stats

466k first dose, ~~310k~~ 210k second dose. 97% are Armenian citizens.

https://factor.am/436254.html

20% of adults in Aragatsotn province have received a vaccine shot

That includes 95% of the medical staff.

https://factor.am/436016.html

which show business stars are vaccinated?

DJ Vaccine (Դիջեյ Վակցինա) has not yet been vaccinated because she contracted the virus recently. She definitely plans to get it when the protection wanes.

Showman Grisha Aghakhanyan has been vaccinated. "It's necessary."

Singer Juice took the shot a few days ago so she could travel. She had a fever for a few days as a side effect. "Some people don't have any side effects."

Hovhannes Davtyan has been vaccinated.

Lilith Hovhannisyan and Vahram Petrosyan are about the take the second shot so they can travel to the U.S.

Singer Astghik Safaryan received it a few months ago while in Spain. "I think if it's required then we should do it."

https://www.armtimes.com/hy/article/224450

VIDEO: Artsakh president demands an "explanation" from unvaccinated officials

954 infections and 10 deaths in October. Artsakh has Moderna, AstraZeneca, Sinopharm and Sputnik vaccines. They are administered in two locations.

President Arayik wants to ramp up the vaccine information campaign and to have the names of ranking officials who aren't vaccinated yet.

https://factor.am/436030.html

overworked ambulance drivers demanded a raise

15 drivers at one of the emergency substations in Yerevan demanded a raise because they've been overloaded due to COVID and other patients. "There are so many calls we don't have time to serve properly." One driver said they are responding to 5x as many calls nowadays.

Drivers want to receive "13th" salary as a bonus, as it's done in the case of other public sector workers. The government gave ambulance workers a 10% raise in 2020. After taxes and fees, they take home approximately 11k/day. [Update: this number is likely inaccurate]

The administrator met the drivers and urged them to return to work, citing laws that prohibit emergency crews from holding such strikes. The drivers returned to work.

The administrator said half of the striking drivers have less than 1-2 years of experience. The drivers will submit their complaints in written form.

More: https://armenpress.am/arm/news/1067079.html https://youtu.be/b6pb6g94KjI https://youtu.be/tXArHOZQnRk https://factor.am/436283.html

700,000 people will be covered after "social package" reforms / pregnancy & dental benefits

On October 28 we learned that the government wants to amend the law about social packages to expand benefits for public sector workers. New dental services, more family members to be covered, etc.

Labor Ministry: the number of recipients will reach about 700,000. The government has reviewed who qualifies. It will include the worker's parents, adopter, adoptee, a person under guardianship, grandparents, grandchildren, siblings.

In the end, the non-medical ֏72K portion of the package can be spent on family members. The funds made available by the package can be spent on more types of activities/services such as dentistry, therapy, and surgery.

It can be used to pay off a state-subsidized student loan, preschool fees, mortgage payments or funds borrowed to build a house.

Another important addition is for those on maternity leave during and after pregnancy. If you're on a 140-day maternity vacation, your benefits will continue to accumulate, and the right to use the package will be preserved.

If you quit and find a new job within a month, the money in your package will transfer to the new workplace starting next month. Otherwise, if it takes over a month to find a job, you'll need to work 6 months to qualify for the social package again. //

More: https://youtu.be/mvRrv2d4Mso https://armenpress.am/arm/news/1067109.html

Tags: #SocialPackageReform

banks are cautious about lending, but portfolio growth is above Central Bank expectations

CB member: the number of real estate transactions in September was one of the highest of all times. The mortgage portfolio is growing rapidly.

As for lending growth in other sectors, we've been expecting banks to be cautious after last year's shock, but analysis shows they are doing better than we anticipated.

https://armenpress.am/arm/news/1067106.html

Central Bank keeps refinancing rate unchanged

It's 7.25%. Lombard repo rate is 8.75%. Rate of funds attracted from banks by the Central Bank is 5.75%.

Central Bank chief Martin about the 8.9% inflation:

There are three main factors behind the recent price increase: rising prices in the global market, logistics problems with cargo deliveries, higher demand in Armenia.

In most commodity groups, the exchange rate has no significant effect. We have a free-floating exchange. It's around ֏480 right now.

Global sugar prices are +50% compared to 2019. This has a much bigger impact than the exchange rate. The same about global fuel prices.

Central Bank expects inflation to return to target 4% in 2022

CB chief Martin: there was a 0.1% de-flation in September. It's at 8.9% for the 12-month period. The new COVID wave and decline in the agricultural sector will likely lead to weaker activity than forecasted.

The inflation is partly fueled by rising internal consumption demand, which in turn is driven by remittances and savings accounts.

Economy Minister Kerobyan about the inflation:

90% of it is due to the high price of imported goods, so in this case, Central Bank doesn't have the tools to fully address this issue. This isn't about the refinancing rate of the foreign exchange rate. This is an "imported" inflation.

In some cases, we import products for much higher prices, while in other situations our local product prices increase because they increase globally.

Although Economy Ministry isn't directly responsible for addressing inflation, we are helping in any way possible to address logistics problems. Sometimes it's our Ministry that negotiates product purchases, by using the state's leverage, to allow our companies to import products for lower prices. //

https://armenpress.am/arm/news/1067065.html https://armenpress.am/arm/news/1067096.html https://armenpress.am/arm/news/1067083.html https://armenpress.am/arm/news/1067101.html

EAEU trade bloc wants to suspend tariffs on sugar imported from non-member states in order to tackle deficit that led to a price spike

Competition Commission chief Gevorgyan: our studies show that Armenia imported cheap sugar 2-3 months ago, which lead to price reduction, but the prices went up later.

Our EAEU partners drafted a resolution to set a 0% tariff on sugar imports from non-member states until December. The deficit is mostly due to pandemic-related problems in Russia's sugar production. //

Large sugar seller Samvel Aleksanyan was summoned by the regulator for questioning. He is one of three large importers. The sugar price investigation continues.

regulator is investigating egg, fuel, and butter industries

Competition Commission chief Gevorgyan: Our agency recently uncovered unfair business practices by a large company in the egg industry.

We are currently examining the fuel industry, followed by butter (prices went up in New Zealand). Results are published quarterly.

regulator will investigate app-based taxi industry

Competition Commission chief Gevorgyan: the key part here isn't the taxi itself but the platform that's used to reserve the taxi. We're looking into it. We have received many complaints about taxi industry. The investigation will begin soon.

regulator will investigate hotel booking industry

We received numerous complaints about hotel booking services, said the head of the regulatory body.

regulator about the price of PCR test kits:

There are reports about PCR costing only ֏2.5K, yet citizens are being charged ֏15K. In reality, a PCR test cannot cost ֏2.5K. It's likely the price paid for obtaining a single kit. On top of that, you have to pay salaries, lab equipment, administrative expenses, profit, etc.

The PCR market does not have any player with dominant market power so we can't take action. However, we are investigating the services provided by the airport because the PCR market is dynamic. I can't reveal more details right now. You will soon learn how and why PCR prices went up and down.

https://youtu.be/7YzhIaou9Mw https://armenpress.am/arm/news/1067060.html https://armenpress.am/arm/news/1067066.html https://youtu.be/aIgszdZ20jk?t=299

President Sarkissian met world leaders during COP26 global climate summit in Glasgow

Yesterday he met Biden, Macron, Merkel, king of Monaco, and a dozen other leaders. Think differently, he urged attendees during the speech on Tuesday.

what is Armenia doing against climate change?

Sarkissian: in 2021, Armenia reaffirmed its commitment to combat climate change through nationally defined investments and announced plans to reduce greenhouse emissions by 40% in 2030 compared to 1990.

Our long-term goal is to achieve climate neutrality in the second half of this century. [he called for rich countries to share resources with developing countries to improve the efforts]

https://armenpress.am/arm/news/1067059.html https://armenpress.am/arm/news/1067116.html

VIDEO: map showing the countries that will see a change in corn and wheat production as the climate changes

https://youtu.be/-NZIvvhGlR0

https://www.nasa.gov/feature/esnt/2021/global-climate-change-impact-on-crops-expected-within-10-years-nasa-study-finds

Hrachya Poghosyan wins bronze medal in U23 world Greco-Roman wrestling championship

https://armenpress.am/arm/news/1067137.html

capital Stepanakert will have new apartments by the end of this year

President Arayik Harutyunyan visited the construction site on Tumanyan Street, where a new residential district is being built with apartment complex buildings.

Urban Development officials said about 300 new apartments will be ready by the end of this year.

https://armenpress.am/arm/news/1067100.html

Electric Networks of Armenia wants to purchase 100% of Russian Rostelecom ISP in Armenia

GNC-ALPHA telecom is operating under the brand "Rostelecom" in Armenia. It's a subsidiary of Russian giant Rostelecom.

GNC-ALPHA has contacted Armenia's regulator for permission to sell 100% of its shares. The regulator has confirmed that the prospective buyer is Electric Networks of Armenia (ՀԷՑ, HETS). The authorities will review the petition before a verdict.

GNC-ALPHA (aka Rostelecom) was founded in 2007. Since 2012, Rostelecom has been providing internet, phone, IP TV, and various cloud services.

Electric Networks of Armenia belongs to businessman/benefactor Samvel Karapetyan.

https://armenpress.am/arm/news/1067120.html

new Ukrainian airline "Bees Airline" launches regular AM-UA cargo flights

They launched low-cost passenger flights in May.

https://armenpress.am/arm/news/1067134.html https://armenpress.am/eng/news/1050918.html

today in history

1829: Mikael Nalbandyan is born, the author of the poem that turned into Armenia's anthem

https://armenpress.am/arm/news/1067036.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/qldbwc/headlines_nov22021_hightech_infrastructure_budget/