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  • Armenian paper displeased Russian-owned plants still not operating

    Armenian paper displeased Russian-owned plants still not operating

    Haykakan Zhamanak, Yerevan
    13 Jul 04 p 2


    Text of Hayk Gevorkyan's report by Armenian newspaper Haykakan
    Zhamanak on 13 July headlined "We are not demanding, we are simply
    asking"

    "By taking over these enterprises, Russia hopes that the industrial
    capacities and the scientific and technical potential of these
    enterprises will operate in full. They will operate within the
    framework of programmes that exist in Russia: electronic industry, the
    development of the production of armament systems, etc," the former
    prime minister of Russia, Mikhail Kasyanov, made this statement in
    Yerevan in November 2002, when he was signing the so-called "property
    for debt" agreement together with Armenian Prime Minister Andranik
    Markaryan. According to this agreement, five Armenian enterprises
    became the Russian government's property, for which the latter
    "forgave" 98m dollars of Armenia's debt to Russia. Kasyanov's hopes
    did not come true. Nothing has changed in the life of the biggest
    enterprises which were handed over to Russia: the Razdan power plant
    and Mars. The Razdan power plant is operating as before, Mars is
    almost non-operating (it operates even less than before).

    In the remaining scientific-research institutes, the volume of orders
    from customers has grown slightly, but nobody dares to say that this
    growth is due to the fact that the institutes were handed over to
    Russia. That is, the orders would have probably grown even if they had
    not been handed over to Russia. In a word, the economic results, which
    were spoken about so much while handing over the enterprises to
    Russia, have not been achieved. They said that as a result of the
    property for debt agreement, Russian investments will flow into
    Armenia, new technologies will be brought, new jobs will be created,
    etc.

    Within the framework of Armenian Prime Minister Andranik Markaryan's
    visit to Russia, the further fate of the Armenian enterprises that
    have become Russian property will be discussed. "We shall try to
    clarify the schedule and the approaches of the Russian party. This
    concerns mainly Mars," Andranik Markaryan told journalists at
    Zvartnots airport before his departure to Moscow. His careful answers
    are not accidental. From a legal point of view, the Russians did not
    undertake to put other enterprises into operation or provide them with
    equipment. On the contrary, they were given numerous privileges. For
    instance, the Razdan power plant received a tax privilege of more than
    6m dollars that it could not even dream of when it was Armenia's
    property.

    In a word, we have nothing to demand from the Russians. "We are not
    demanding, we are simply asking," Trade and Economic Development
    Minister Karen Chshmarityan said. There are also problems concerning
    the fifth block of the Razdan power plant. The point is that within
    the framework of the property for debt agreement, the fifth block was
    put to a so-called "option", i.e., the Armenian party promised not to
    sell it to a third party until the end of the current year and gave
    the Russians a privileged right to buy it. Our delegation will try to
    clarify in Moscow if the Russians will buy the fifth block or we can
    sell it to somebody else.

    On the whole, we have the impression that we, as well as the Russians,
    are searching for excuses to explain why nothing has changed in the
    enterprises that were handed over to Russia within the framework of
    the property for debt agreement. Elections were being held in Russia,
    a government was being formed, etc. [Russian MP] Nikolay Ryzhkov
    expressed his displeasure in Yerevan that the enterprises belong to
    Russia, but the Armenian laws are operating there, as if in Russia the
    French laws are operating in enterprises that belong to France. It is
    evident that it is only a justification so as to deny in some way that
    the property for debt agreement was only a political decision which
    helps Russia ensure its presence in the region, and the Armenian
    authorities support this by all means. And in this case, we can only
    ask and never demand.
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