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Myrtle Beach Sun News, SC
Nov 26 2006
Armenians see Russian economic takeover
NAIRA MELKUMIAN
YEREVAN, Armenia - The recent acquisition of Armenia's dominant
telephone company by a Russian company is raising concerns here that
Moscow is attempting to exert economic control over the republic it
once controlled politically.
The purchase of a 90 percent stake in ArmenTel, which holds a
monopoly on telephone and Internet service in Armenia, by the Russian
company Vympelkom only serves to strengthen Russia's economic hold on
major economic assets in the republic.
The sale was announced shortly after the return of Armenian President
Robert Kocharian to Moscow.
It was during that trip that Russian President Vladimir Putin
announced that he considered Russia's position as only the
third-largest investor in Armenia, behind Germany and Greece, as
"shameful."
The purchase, the latest in a series of Russian takeovers in key
areas of the Armenian economy, comes as public attitudes toward
Moscow are cooling because of the effect Moscow's economic blockade
of neighboring Georgia is having on the Armenian economy.
Many here are also becoming increasingly worried by signs of rising
xenophobia in Russia toward Caucasians in general and Armenians in
particular.
Already, Russian companies own the major producers of electricity and
natural gas, as well as the country's rail system.
"Just take a look," said Aram Manukian, a leading opposition
politician. "The energy sector, communications, and the railway
system have all been given to Russia. All this essentially weakens
Armenia's independence."
But Defense Minister Serzh Sarkisian, considered by most to be the
second most powerful figure in the government, has rejected such
charges.
"You won't find to this day any examples of how Russian capital in
Armenia has been used as a tool for political pressure," he said at a
recent news conference.
Since the collapse of the Soviet Union in 1991, Russian companies
have poured billions of dollars of investments into Armenia. Some
contend it just makes good business sense.
"Russia's desire to become established in Armenia as the most stable
country in the South Caucasus is understandable, as the attitude
toward Russian business is better here than in Georgia," said
political analyst Anna Harutyunian.
But Aram Sarkisian, head of the opposition Democratic Party, said the
government should not have ceded control of a key industry so easily.
"All power-generating operations are effectively in Russia's hands,"
he said.
"There are no problems with Russia. That country is our ally and I am
in favor of deepening cooperation with it. But the government should
control our strategic facilities."
By and large, the average telephone user, who has long complained of
poor service, doesn't seem to care who owns the company as long as
service improves.
"It doesn't matter to me who the operator will be," said Suren
Minasian. "Ordinary consumers just need easy, high-quality
communications."
Nov 26 2006
Armenians see Russian economic takeover
NAIRA MELKUMIAN
YEREVAN, Armenia - The recent acquisition of Armenia's dominant
telephone company by a Russian company is raising concerns here that
Moscow is attempting to exert economic control over the republic it
once controlled politically.
The purchase of a 90 percent stake in ArmenTel, which holds a
monopoly on telephone and Internet service in Armenia, by the Russian
company Vympelkom only serves to strengthen Russia's economic hold on
major economic assets in the republic.
The sale was announced shortly after the return of Armenian President
Robert Kocharian to Moscow.
It was during that trip that Russian President Vladimir Putin
announced that he considered Russia's position as only the
third-largest investor in Armenia, behind Germany and Greece, as
"shameful."
The purchase, the latest in a series of Russian takeovers in key
areas of the Armenian economy, comes as public attitudes toward
Moscow are cooling because of the effect Moscow's economic blockade
of neighboring Georgia is having on the Armenian economy.
Many here are also becoming increasingly worried by signs of rising
xenophobia in Russia toward Caucasians in general and Armenians in
particular.
Already, Russian companies own the major producers of electricity and
natural gas, as well as the country's rail system.
"Just take a look," said Aram Manukian, a leading opposition
politician. "The energy sector, communications, and the railway
system have all been given to Russia. All this essentially weakens
Armenia's independence."
But Defense Minister Serzh Sarkisian, considered by most to be the
second most powerful figure in the government, has rejected such
charges.
"You won't find to this day any examples of how Russian capital in
Armenia has been used as a tool for political pressure," he said at a
recent news conference.
Since the collapse of the Soviet Union in 1991, Russian companies
have poured billions of dollars of investments into Armenia. Some
contend it just makes good business sense.
"Russia's desire to become established in Armenia as the most stable
country in the South Caucasus is understandable, as the attitude
toward Russian business is better here than in Georgia," said
political analyst Anna Harutyunian.
But Aram Sarkisian, head of the opposition Democratic Party, said the
government should not have ceded control of a key industry so easily.
"All power-generating operations are effectively in Russia's hands,"
he said.
"There are no problems with Russia. That country is our ally and I am
in favor of deepening cooperation with it. But the government should
control our strategic facilities."
By and large, the average telephone user, who has long complained of
poor service, doesn't seem to care who owns the company as long as
service improves.
"It doesn't matter to me who the operator will be," said Suren
Minasian. "Ordinary consumers just need easy, high-quality
communications."