IT IS UNTIMELY FOR ARMENIA TO JOIN EURASEC, WHEREAS THE GAS PROBLEM WITH RUSSIA WILL BE SETTLED THROUGH TALKS

An interview of Ambassador Extraordinary and Plenipotentiary of Armenia Mr. Armen Smbatyan with ARMINFO News Agency.

Mr. Ambassador. You speak of Russia's interest in deepening the economic cooperation with Armenia, however, the Armenian enterprises transferred to Russia in return of the state debt have not been activated so far. Is there any progress in this issue?

I think this issue will be settled already in the current year. However, it should be noted that the exploitation of the enterprises is connected with many difficulties, even experts say the same. As Vice Premier of Russia Sergey Ivanov stated earlier, the Intergovernmental Commission will make proposals on exploitation of these enterprises already in March 2006. Nevertheless, there are many enterprises like "Mars" in Russia and all them are idling. Despite this, the Russian Government exerts much efforts to reanimate them.

Mr. Smbatyan, do You think that the expected rise in the price of the Russian gas will affect the Armenian-Russian relations?

The rise in prices for Russian gas is natural and should be expected sooner or later. It is not caused by any particular approach of official Moscow to Armenia, or to any other country. On the other hand, Russia may compensate the rise in the price, otherwise the country may occur on the verge of an economic collapse. Representatives of both the sides are now working to find suitable ways of compensation.

What is Your attitude to the statements by "Gazprom" representatives that the gas price for Armenia could be different if the 5th power unit of Hrazdan TPPs and/or 45% of Iran-Armenia gas pipeline shares were transferred to Russia?

A few years ago Armenia suggested Russia to participate in the construction of the gas pipeline, but Russia didn't accept the suggestion probably not believing in the reality of the project's implementation. Now, "Gazprom" has probably changed its position on the issue. However, the given suggestion of "Gazprom" should not be considered as an ultimatum or an attempt to exert pressure on Armenia. It is not a political issue, especially in the case of Armenia. Armenia is too small a country and utilizes too little gas. Thus no special gas policy for Armenia is conducted.

Nevertheless, don't You think that the rise in the gas price may lead to anti-Russian sentiments in Armenia given the recently activated statements in the country's political circles on fixing rent for the Russian military base in Armenia or other counter-measures?

I think the proposal for rise in the rental payment for the military bases in Armenia as a compensation for the rise in the Russian gas price is quite sensible. And, trust me, Russia is also interested in that proposition. One should not forget that Russia has its own interests and it is not obliged to give up them for the sake of Armenia. It is necessary to get rid of the psychology that Russia must do favors to us. At the same time, I think that Russia's decision about rise in gas price was spontaneous, and that is surely a negative fact. Russia should have warned the importers so as to allow them to get ready for it. Moreover, Russia should have been more delicate with respect to its strategic partners and allies to avoid such problems and aggravation of the situation. These spontaneous decision by Russia caused anti-Russian sentiments in some of post-Soviet states, and certain political forces try to get political dividends. We must be extremely cautious to prevent such developments and not to pour oil on the flames as it is not within the interests of Armenia. Armenia has been linked with Russia for centuries and over 2 million Armenians live in the territory of the Russian Federation. I repeat, the rise in the gas price is not aimed against Armenia though the country suffers from it, indeed. We must understand that friendship is friendship, but the interests are above all.

Mr. Smbatyan, could the rise of the gas price aim Armenia's integration into a union with Russia? Russian political circles often say that many disputable issues will be solved if Armenia joins any alliance with Russia.

I admit that such an opinion is frequently expressed in the political circles of Russia, as Russia considers Armenia its closest ally. Such attitude to Armenia is not accidental. Armenia has always perfectly fulfilled its partner commitments. And Russia appreciates it. However, it does not mean that Russia tries to exert pressure on Armenia to involve it into a union.

We speak of the strategic partnership of Armenia and Russia, however, the citizens of Armenia have no right to stay in the territory of Russia more than three days without official registration. Are there any measures on prolongation of the term to 90 days like in the case with the Ukrainian citizens?

Yeas, such work is currently in process on the initiative of Armenia, and the issue will be settled already in 2006. The citizens of Armenia and several other states of the Commonwealth will get a right to stay in Russia for 90 days without official registration. And not only Armenia but also Russia is interested in the settlement of this issue. Russia tries to remove all the bans for RA citizens' stay in its territory. All these issues will be settled as soon as the double citizenship institution is established between the two countries. I think a relevant legislation and normative-legal base will be elaborated in 2-3 years and the double citizenship institution will be applied. It's worth mentioning that over 60% of the Armenians, dwelling in Russia, have passports of both the states and this violates the laws of both the countries. In fact, they need to renounce RA citizenship in order to get Russian citizenship. But after removing the double citizenship ban in Armenia, RA citizens will have the opportunity to receive Russian citizenship without losing the Armenian one. At present, Russia has considerably facilitated the mechanisms of naturalization in the RF for the countries of the post-Soviet states residing in the territory of Russia till 2002. However, these citizens have to renounce their citizenship to get the new one. Whereas, taking advantage of the removed ban on dual citizenship in Armenia, we do not deprive the persons who get naturalized in Russia of their Armenian citizenship.

Mr. Smbatyan, EurAsEC is displaying a tendency of extension at present. Uzbekistan has recently joined this organization. EurAsEC is said to replace CIS within the nearest future. Hasn't Armenia an intention to change its status in this organizations?

It should be noted that CIS is not longer actual. It is quite possible that another organization replaces it, and it may be EurAsEC. However, Armenia's full membership in EurAsEC is fraught with million-strong losses as it has no border with Russia. Armenia still may enter the EurAsEC in case its structure is reformed. The CIS is not actual any longer and other organization will come to replace it. Probably it will be EurAsEC and in that case Armenia will certainly join it. Such an integration is favorable for Armenia from both the economic and political point of view.

Speaking of economy, one cannot but touch upon the exploitation of Sochi-Sukhumi-Tbilisi railway and the current talks for it. Would You make any forecasts in this connection?

I think this issue will be settled already in the current year. Under a preliminary agreement, the railroad will be guarded by peacemaking forces. Starting the exploitation requires $200 million for reconstruction. I think the restoration works will be carried out mainly on the funds of Russia. The major investor of the project evidently will be Russia.

Thank You.

ARMINFO, 7 February, 2006