SEPT. 23 2013 (The Conway Bulletin) — A court in Yerevan sentenced Vardan Sedrakian, a candidate in a presidential election in February, to jail for trying to assassinate a rival. Gunmen shot and injured Paruyr Hayrikian, also a presidential candidate, a few weeks before the election on Feb. 18. The attempted assassination nearly delayed the vote.
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(News report from Issue No. 153, published on Sept. 25 2013)
SEPT. 23 2013 (The Conway Bulletin) — Kim Kardashian, the 32-year-old Los Angeles-based ethnic Armenian, is best known across the globe for starring in a reality TV show. Now she’ll also be known, in some circles at least, for lending her name to Armenia’s inaugural sovereign debt issue.
Armenia’s $700m Eurobond issue on Sept. 23, unofficially dubbed the ‘Kardashian bond’, did rather well. This was Armenia’s first sovereign debt issue and a real test of investors’ confidence in the country and appetite for risk in the South Caucasus.
Armenia’s government had said it needed to raise the cash to pay back a $500m loan it borrowed from Russia in 2009 to weather the global financial crisis.
It’s been a busy, somewhat controversial, year for Armenia with a disputed presidential election in February and a surprise decision last month to eschew closer ties with the EU to instead join Russia’s Customs Union. The economy, too, has caused some concern with inflation hovering around 9%, far above the Central Bank’s target.
Regardless, investors warmed to Armenia’s Kardashian bond and the initial yield on the 7-year bond was shortened to 6.25% from 6.375%, according to Reuters.
Not a bad debut on the sovereign debt market for Armenia and Kim Kardashian.
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(News report from Issue No. 153, published on Sept. 25 2013)
SEPT. 13 2013 (The Conway Bulletin) — Overriding concerns from the EU, Armenia said it would extend the lifespan of its Metsamor nuclear power plant to 2026. The lifespan of the Soviet-era Metsamor, built 30km west of Yerevan in an area prone to earthquakes, had already been extended last year to 2020 from 2016. Metsamor provides 40% of Armenia’s power.
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(News report from Issue No. 152, published on Sept. 18 2013)
SEPT. 2 2013 (The Conway Bulletin) — Inflation in Armenia continues to rise, bucking the Central Bank’s prediction it would fall after a 0.5% interest rate rise last month, media reported. For the year to the end of August, inflation in Armenia measured 9.3%, up from 8.5% in July. Last month, the Central Bank raised interest rates to 8.5%.
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(News report from Issue No. 151, published on Sept. 11 2013)
SEPT. 11 2013 (The Conway Bulletin) — Serzh Sargsyan, the Armenian president, sent shock waves across the South Caucasus and Europe when he signed Armenia up for Russia’s Customs Union.
The Kremlin set up the Customs Union in 2011 to ease trade between its partners and to draw them in closer. Commentators have dubbed it a Eurasian Union to counter the European Union.
Until Armenia moved into the Customs Union, only Kazakhstan and Belarus had joined. Kyrgyzstan has said it will join and Tajikistan has also been eyeing up membership.
Few though predicted Armenia’s jump towards Russia.
Mr Sargsyan’s decision to move into the Customs Union was a snub for European diplomats.
It’s not, perhaps, that surprising though. Armenia has been casting around for friends to provide a bulwark against Azerbaijan and Turkey. Armenia is still officially at war with Azerbaijan over the disputed region of Nagorno-Karabakh. Turkey is a key Azerbaijan ally.
Russia has given financial and military support to Armenia and maintains a large army base in Armenia. Gazprom, the Russian gas monopoly, also owns 80% of Armenia’s gas distributor and has been trying to buy the outstanding 20%.
Even so, Armenia’s move into the Customs Union will be felt across the region for years.
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(News report from Issue No. 151, published on Sept. 11 2013)
AUG. 29 2013 (The Conway Bulletin) — A diplomatic scandal centred on the status of the disputed region of Nagorno-Karabakh is likely to lead to the sacking of Lithuania’s envoy in Baku.
Lithuania’s media is reporting that Dalia Grybauskaite, the Lithuanian President, is likely to fire her envoys to Hungary and Azerbaijan after they were recorded describing Nagorno-Karabakh as part of Armenia.
The diplomatic spat not only embarrasses Lithuania but also acts as a wider reminder of Nagorno-Karabakh’s ultra-sensitive status. Azerbaijan and Armenia are still at war over Nagorno-Karabakh and only a 1994 UN negotiated ceasefire holds a shaky peace.
There are still almost weekly shoot-outs between the opposing armies and Azerbaijan has pledged to re-take the enclave from Armenia-backed forces.
Ms Grybauskaite has, apparently, acted after a recording of a private conversation between Arturas Zurauskas, Lithuania’ ambassador in Baku, and Renatas Juska, Lithuania’s ambassador in Budapest, surfaced on YouTube in July.
In the recording the men agree that Nagorno-Karabakh should be considered Armenian. They also refer to the enclave by its Armenian name, Artsakh. Azerbaijan stakes its own historical claim to the province.
The incident also serves as a reminder of the increased diplomatic clout that Azerbaijan’s burgeoning energy wealth has now given it.
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(News report from Issue No. 150, published on Sept. 2 2013)
AUG. 9 2013 (The Conway Bulletin) — Armenia’s Central Bank appointed Deutsche Bank, HSBC and JP Morgan to lead the issue of its inaugural $500m Eurobond, media reported. In May, Armenia said it wanted to issue the debt to pay off a $500m loan from Russia it had borrowed during the 2009 global financial crisis.
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(News report from Issue No. 147, published on Aug. 12 2013)
AUG. 1 2013 (The Conway Bulletin) — In the year to end-July food prices in Armenia increased by around 10%, media quoted official statistics as saying. Food price increases are an important statistic to monitor as fast rises can trigger discontent. Spending on food makes up a large proportion of ordinary people’s income.
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(News report from Issue No. 146, published on Aug. 5 2013)
JULY 24 2013 (The Conway Bulletin) — Armenia and Georgia separately concluded trade talks with the EU that will free up markets. The talks will lead to the expansion of a so-called Deep and Comprehensive Free Trade Area (DCFTA) and will allow Armenian and Georgian goods easier access to the EU. EU companies will also have easier access to Armenia and Georgia.
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(News report from Issue No. 145, published on July 29 2013)
JULY 17 2013 (The Conway Bulletin) — The Armenian and Iranian chambers of commerce have signed a deal designed to increase business between the countries, media reported. Armenia has been slowly building ties with Iran. Earlier this month, reportedly under pressure from the US, Georgia scrapped visa-free travel for Iranians.
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(News report from Issue No. 144, published on July 22 2013)
