The Caucasus press review (November 25 – December 1)

The Caucasus press review (November 25 – December 1)

By Vestnik Kavkaz

The Voice of Armenia paper notes on the eve of Russian President Vladimir Putin’s visit to Armenia that Russian-Armenian relations progress but an average Armenian today is more interested in joint projects capable of boosting economic development of the republic and improving prosperity. After the September meeting of the Armenian and Russian presidents in Moscow, when Armenia announced a readiness to join the Customs Union and take part in the formation of the Eurasian Union, there appeared new hopes for real progress in plans to restore the Abkhaz section of the railway, new investments, rehabilitation of Nairit plant, construction of a new block at the Armenian nuclear power plant and many other positive developments. This is why Armenian citizens prioritize economic cooperation of the two states and, thus, the results of the new Armenian-Russian business forum and top-level negotiations of the said issues.

The Novoye Vremya paper says that authorities have the most positive expectations from the visit. According to Vice Speaker Eduard Sharmazanov, the arrival of the Russian president will stimulate the economic, military and political ties of the two states. The main benefits of closer economic cooperation of Armenia and Russia within the framework of the Customs Union are well-known. Prices for gas will fall by about 30% and the flow of Russian investments will rise. Russia doubtless expects no special economic effect but it wants to see geopolitical dividends merging from restoration of presence in the Near and Middle East. It is common knowledge that the vector of Eurasian integration triggers active public discussions, so not all the political authorities of the country have a unanimous approach to Vladimir Putin’s visit. The Heritage Party encourages protests against Putin. Armen Martirosyan, Deputy Head of the Party, explained that Putin “is arriving to enforce the loss of sovereignty of Armenia.’

The Yerkir paper says that opposition started protests against Armenia’s joining the Customs Union in Yerevan on Tuesday. Banners of the demonstrators said “No forced USSR”, “No to Customs Union”, “Vilnius or resignation” and “We do not want to be colonized by Russia.” Paruyr Ayrikyan, Leader of the Union for National Self-Determination and ex-candidate for President of Armenia, said at the protests: “The EU consists of 27 democratic states, only dictators of three republics can join the Customs Union. The people of Armenia are not a bunch of idiots to choose the path for degradation, not development of the country.” However, not everyone in Armenia has such opinion.

According to the paper, two thirds of the population approve membership in the Customs Union. Even opposition figures, says the Novoye Vremya paper, such as the Prosperous Armenia and the Armenian National Congress speak against protests, calling them ‘incorrect.’ Considering that the PA is a party of Robert Kocharyan, while Levon Ter-Petrosyan heads the ANC, it is worth recalling that both ex-presidents attempted clear steps for rapprochement with Russia. This is why they have no plans to protest against deeper bilateral relations.

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The Georgian Times paper says that Georgian ex-Prime Minister Bidzina Ivanishvili introduced Minister for Infrastructure and Regional Development David Narmania as the candidate for Tbilisi Mayor at the political council of the Georgian Dream coalition before resigning. As the majority of the Georgian Dream members, he came to the big politics in 2012, becoming a member of Ivanishvili’s government. An economist, Narmania was heading the Caucasus Institute for Economics and Social Studies. Georgian President Georgy Margvelashvili approved the candidate. “It is a very cool-headed, calm man, oriented on fulfillment of projects,” he said. Many supporters of the coalition expressed disappointment with the candidate, pointing out that a native resident should become the Tbilisi mayor. Narmania originates from Zugdidi. Zaza Papuashvili of the parliamentary majority believes that David Narmania is unacceptable as the Tbilisi mayor. “I have nothing to say about his personality. As a minister, he has done a lot excellently. But Tbilisi is a slightly different topic, different sensibility,” he clarified his position. Jondi Bagaturia, leader of the Kartuli Dasi Party urged Narmania to leave the ministerial post due to his new status. Narmania responded with a refusal, adding that his ministerial post will have no impact on his chances of becoming the mayor and he was not planning to use the administrative resource for extra votes during the elections.

According to expert Mamuki Areshidze, who said that the Georgian Dream coalition was the first to name the candidate and has advantage over other parties. He believes that candidates for mayor of Tbilisi introduced later will have little time to study and criticize weaknesses of Narmania. David Bakradze, a leader of the United National Movement, the second largest party, said that, unlike the ruling coalition, his party will name the candidate for mayor of Tbilisi via primaries. He noted that the elections were far and the party was not in a hurry to choose the candidate.

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Azerbaijan is actively cooperating with the European Union. Azerbaijani Minister for Economy and Industry Shakhin Mustafayev said at a business forum held within the framework of the Eastern Partnership summit in Vilnius that the EU had invested 36.5% of all foreign investments in the non-petroleum sector of Azerbaijan. The UK, Netherlands, Germany, France and Italy were named the most active European investments in Azerbaijan.

The Zerkalo paper quotes the minister saying that the European Union is the main trade partner of Azerbaijan, that the trade turnover with it totaled 43% of total trade turnover of the republic. Azerbaijan has 1122 European companies specialized in trade, agriculture, transportation, banking and other fields of economy registered in Azerbaijan. Azerbaijan has agreements lifting double taxation and promoting mutual protection of investments with some EU states. The paper says that Azerbaijani attendants of the Azerbaijani-French intergovernmental commission for economic government proposed that French companies take part in Azerbaijani industrial parks. It was noted at the session that trade turnover between the two states totaled $1.2 billion in the first 9 months of 2013. Azerbaijani Minister for Finances Samir Sharifov believes that this figure does not fully reflect the available potential and that they had all they needed to make trade grow. The minister emphasized that Azerbaijan was actively cooperating with France in the space and civil aviation industry. He pointed out that French companies Total and GDF Suez were taking part in energy projects of Azerbaijan. French companies and banks offer to finance railway projects, cooperate in modernization of the carriage park and technological equipment of the Baku Metro. French Minister for Foreign Trade Nicole Bricq said that France was interested in large Azerbaijani investments projects in the fields of petrochemistry, urban transportation, water systems, modernization of the Baku energy system, tram transportation in Ganja, expansion of cooperation in agricultural industry.

Concerning cooperation of Azerbaijan and Germany, the paper states that the two countries formed a strong legal basis consisting of 29 bilateral documents. A set of German organizations operate in Azerbaijan. They realize projects supporting reforms in the legal system, agricultural industry, banking and regional development. Moreover, an agreement was signed, according to which Germany will grant a beneficial loan worth 370 million euro to Azerbaijan for realization of the program for development of housing infrastructure, including modernization of plumbing in Ganja and Sheki, programs for renewable energy and energy efficiency, ecological programs to manage waste. Stephanie Spinner-Koenig, Vice President of the Trade Chambers of Munich and Upper Bavaria heading a Bavarian business delegation to Azerbaijan, noted that Azerbaijan, among CIS members, was the third biggest partner of Bavaria. The third of all German exports to Azerbaijan belong to this field and the businessmen are interested in further development of bilateral cooperation.

According to the paper, officials of about 20 companies from Austria will arrive for the Azerbaijani-Austrian business forum on December 5. A set of mutually beneficial agreements will be signed. According to the article, the trade turnover between the two states totaled about $333.46 million in January-October 2013. Azerbaijan imported Austrian products worth $79.58 million and exported products worth $253.88 million to Austria.

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The Kabardino-Balkarskaya Pravda paper informs that the government of the republic approved the state program entitled ‘Energy efficiency and development of energy in Kabardino-Balkaria for 2013-2020.’ It consists of subprograms “Energy-saving and improvement of energy efficiency in Kabardino-Balkaria’ and ‘Development of energy in Kabardino-Balkaria.’ Tahir Kuchmenov, Minister for Energy, Housing, Utilities and Tariff Policy of Kabardino-Balkaria, said that development of energy-saving improvement of energy usage, encouragement of small and medium business to implement energy-saving technologies in industry and sales were among the goals of the programs. The program includes construction of new energy facilities, development of renewable energy sources, improvement of ecological efficiency of energy, support of innovative development of the field and energy complex. 2.3 billion rubles will be invested in the program. The funds will be allocated for reconstruction and modernization of energy infrastructure of the region, installation of heat energy and water meters, financial supporting of low-income families to install the meters. 67 diesel generators will be set for social facilities. Reserve power sources will be installed in 58 social facilities. Realization of the state program should 458.2 million KW/h of electricity, 527,200 Gcal of heat, 8.2 million cubic meters of water. 2.9 billion rubles will be saved throughout the period of realization of the program, according to prices of 2013. The energy-saving initiatives will reduce the energy-output volume of the gross regional product by at least 40% in 2020, compared with the product in 2007.

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The Sovetskaya Adygeya paper says that apples grown in the sunny republic and Adygeya cheese could become a local brand. The republic is restoring its glory of a region with advanced gardening. It plans to collect the first harvest of ‘Italian’ apples grown in intensive-type gardens this autumn. They were grown using experience and new technologies of Italian farmers of the Bolzano Province (South Tyrol): using fruit-frames, drip irrigation and anti-hail nets. Adygeya and Bolzano have similar highland climate and landscape. The little region in the northern part of Italy has about 17,000 hectares of farmland, the most profitable industry. Adygeya farmers took the same path and expect success. They have investors, personal experience, climate and good water to achieve it. Scientist Nikolai Vavilov formed a practical station of the All-Russian Institute for Crop Research in Adygeya 60 years ago. The institute has 2270 types of apple trees and 950 types of pear trees.

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