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RFE/RL Armenia Report - 02/27/2009

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  • RFE/RL Armenia Report - 02/27/2009

    Friday, 27 February, 2009

    Armenian Police To Allow March 1 Rally

    By Karine Kalantarian and Ruzanna Stepanian

    The Armenian police indicated on Friday that they will not try to
    disperse thousands of people who are expected to rally on Sunday to mark
    the first anniversary of the 2008 post-election clashes in Yerevan.

    The main opposition Armenian National Congress (HAK) plans to rally
    supporters outside the Matenadaran institute of ancient manuscripts and
    then stage a march through the city despite the municipal authorities'
    refusal to authorize the protest.

    Major-General Alik Sargsian, chief of the national police, made clear
    that the police will not enforce the ban. `The police are very calm,' he
    said. `Nothing [bad] is expected on March 1. Our people understand
    everything.'

    `We too will act like victims. We too suffered casualties, our people
    also died on that day,' Sargsian told a news conference, referring to
    the deaths of two police servicemen in the March 1, 2008 clashes with
    opposition supporters that barricaded themselves outside the Yerevan
    mayor's office. The violence also left eight civilians dead.

    Sargsian said the police will use force only in the event of `any
    violation of public order.' `But we are convinced that people will
    calmly gather, pay their respects [to the March 1 victims] and go home,'
    he said.

    As the police chief spoke to journalists, the HAK issued a statement
    urging law-enforcement bodies to work together with the opposition
    alliance in making sure that the upcoming rally is peaceful. Levon
    Zurabian, a senior HAK representative, said the organizers will take
    `unprecedented measures to maintain order during rally' and warned the
    police against taking `provocative actions.' `We are urging the police
    to cooperate, not to create problems, not to provoke the people,' he
    said.

    Zurabian claimed that the police have so far avoided such cooperation
    and are planning to seriously restrict Yerevan's transport communication
    with the rest of the country to lower attendance at the rally. `The
    authorities are terrified that their lies will be exposed,' Zurabian
    told reporters. `They have tried to persuade the public and the
    international community in that the [opposition] movement has died out,
    that internal stability is restored, and that there is no political
    crisis in Armenia.'

    The HAK, which is led by former President Levon Ter-Petrosian, holds the
    authorities solely responsible for the unprecedented post-election
    unrest, saying that they deliberately used lethal force to crush street
    protests against alleged vote rigging. The police actions on that day
    were also criticized by New York-based Human Rights Watch in an
    extensive report issued on Wednesday.

    Sargsian, who was appointed as police chief in June 2008, dismissed the
    criticism, saying that the police can only be faulted for being too slow
    in reacting to the opposition actions on March 1. `I don't defend police
    actions on March 1,' he said. ` `They may have been inactive at one
    point. But the police found themselves in an unpredictable situation and
    lost their orientation at that moment, as a result of which we too
    became victims. I feel very sorry for that.'

    `We will wait until this investigation is over and then have our say as
    victims,' added Sargsian.

    (Photolur photo)



    Armenian Strife Still An Open Wound One Year On

    By Emil Danielyan

    The sudden calm in a vast square outside the Yerevan mayor's office
    could hardly be more deceptive on the sunny afternoon of March 1, 2008.
    Riot police had just left and thousands of people stood there in silent
    anticipation of the unknown. The most bullish of them were busy arming
    themselves with whatever they could find and blocking all the approaches
    to the area with public transportation and police buses. Hundreds of
    other men sat or lay on a nearby lawn dotted with iron bars stuck in the
    ground.

    The scene, surreal for a traditionally non-violent country like Armenia,
    summed up the extent of their fury with the forcible break-up early in
    the morning of non-stop demonstrations staged by opposition leader Levon
    Ter-Petrosian and his supporters in another major Yerevan square in
    protest against the alleged rigging of the February 19 presidential
    election. One young man having a rest outside the high-rise municipality
    building compared the pre-dawn police operation to the 1988 Armenian
    pogrom in Sumgayit, Azerbaijan. `We are all ready to stand here until
    the end, until the situation is sorted out according to law,' he said.

    Just hours later, ten people were killed and more than 200 others
    injured in vicious clashes between security forces and opposition
    protesters. The Armenian political discourse is still dominated by
    differing theories of the worst street violence in the country's
    history. The Armenian authorities insist that it was the result of an
    opposition conspiracy to illegally seize power in the wake of the
    disputed election. Ter-Petrosian and his associates dismiss the coup
    allegations and say the government deliberately used lethal force to
    crush what they call a popular revolt against vote rigging. Both rival
    camps continue to deny any responsibility for the bloodshed. The only
    encouraging development in the past year was the formation last November
    of a bipartisan fact-finding group tasked with conducting an independent
    inquiry into the unrest. The group has since been working behind the
    closed doors and has yet to issue any reports.

    The events of March 1 marked the bloody end of massive demonstrations
    staged by the Armenian opposition following the presidential ballot.
    Official election results showed Serzh Sarkisian, the then prime
    minister and outgoing President Robert Kocharian's favored successor,
    cruising to a landslide victory with almost 53 percent of the vote.
    According to the government-controlled Central Election Commission,
    Ter-Petrosian came in in a distant second with 21.5 percent, followed by
    two other candidates, Artur Baghdasarian and Vahan Hovannisian.

    In their preliminary report, Western vote monitors mostly deployed by
    the Organization for Security and Cooperation in Europe (OSCE) concluded
    that despite serious problems observed during the counting of ballots,
    the election was `administered mostly in line' with democratic
    standards. The report gave a serious boost to the legitimacy of
    Sarkisian's victory, even if the OSCE mission's final assessment
    released in May was more critical of the Armenian authorities' handling
    of the election.

    Ter-Petrosian and his broad-based opposition coalition refused to
    concede defeat, alleging a plethora of vote irregularities demanding a
    re-run of the ballot. The opposition stepped up its pressure on the
    authorities on February 21 as it set up a tent camp in Yerevan's Liberty
    Square. Up to 2,000 people led by Ter-Petrosian spent nine consecutive
    nights there in freezing temperatures, dancing in circles, setting off
    fireworks and warming themselves in tents and around bonfires. Tens of
    thousands of other Armenians joined them in daytime to listen to rousing
    speeches by opposition leaders and take part in daily marches through
    the city center.

    Cracks within the ruling regime emerged already on February 22, with
    Deputy Prosecutor-General Gagik Jahangirian addressing the rally and
    declaring Ter-Petrosian the rightful election winner. This was followed
    by the defections to the opposition camp of seven parliament deputies
    affiliated with the governing Republican and Prosperous Armenia parties.
    Among them was a nephew of General Manvel Grigorian, one of the two
    deputy ministers of defense who reportedly pledged allegiance to
    Ter-Petrosian. The latter assured the Liberty Square crowd on February
    22 that the generals will make sure that the Armenian military is not
    used for suppressing the ongoing street protests in the capital. He also
    claimed to have secured the backing of the `middle and lower echelons'
    of the country's security apparatus.

    Kocharian's response was not long in coming. Meeting with the top army
    brass and other high-ranking security officials the next morning, the
    departing president accused Ter-Petrosian of seeking to `seize power by
    illegal means' and ordered them to take `all necessary measures to
    maintain law and order in the country.' In a clear reference to General
    Grigorian, who was conspicuously absent from the meeting, Kocharian said
    he `will not allow anyone to play a shadowy role' in the deepening
    standoff. The seven defecting lawmakers promptly withdrew support from
    the opposition. Jahangirian was ambushed and arrested by a special
    police squad later in the day. Several other prominent opposition
    figures were detained in the following days.

    Despite the wave of arrests, the opposition demonstrations continued
    unabated and reached their peak on February 26, the day when Sarkisian
    held his own rally in Yerevan's main Republic Square in an effort to
    show that he enjoys greater public support. It proved to be a public
    relations disaster as thousands of people bused there from across the
    country walked over to Liberty Square and joined the opposition crowd
    even before Sarkisian's rally was over. What the opposition plans to do
    next was not clear, with Ter-Petrosian and his associates only telling
    supporters to remain camped in the square. The authorities, for their
    part, warned that their patience is wearing thin and that they can break
    up the unsanctioned protests at any moment.

    The United States and the European Union warned both sides not to resort
    to force. `This peaceful exercise of the freedom of assembly, coupled
    with effective, non-violent crowd management, is a notable achievement
    and a sign of democratic progress,' the U.S. mission at the OSCE
    headquarters in Vienna said in a February 28 statement. `We call on all
    sides to ensure that this peaceful situation continues.' Kocharian said
    the next day that the authorities are ready to `patiently wait until
    that theatrical show dies out,' implying that they will clear Liberty
    Square only if the opposition attempts to seize government buildings.

    At around 6:30 a.m. on March 1, the square was surrounded by hundreds
    and possibly thousands of riot police, interior troops and other
    security units. Within 10-15 minutes it was cleared of protesters, who
    put up fierce resistance before chaotically fleeing the scene. Dozens of
    them were detained on the spot, while others were chased hundreds of
    meters away from the square. Some protesters are known to have been
    caught by the police near the Yerevan State Circus, about two kilometers
    away from Liberty Square and just a few hundred meters from the
    epicenter of opposition protests that would erupt later in the day.

    The only protester allowed to stay in the square was Ter-Petrosian.
    Wrapped in a blanket, Armenia's first president chain-smoked and watched
    the police dismantle the remnants of the tent camp, the symbol of his
    dramatic political comeback. `They want me to go but I told them that I
    won't leave this square unless they handcuff me and show an arrest
    warrant,' he told two RFE/RL correspondents that were allowed to
    interview him there at around 8 a.m. Shortly afterwards he was forced
    into his limousine and driven to his house overlooking the city center.

    The Armenian government and police have said all along that security
    forces dispersed the small crowd only after it refused to allow them to
    search the square for weapons allegedly stashed there. The police claim,
    in particular, that they received on February 29 `reliable information'
    that the protesters will be handed firearms, explosives, iron bars and
    other weapons to provoke `mass riots' in the capital on March 1. A
    handful of such weapons, which the police claimed to have found in the
    square, were shown by government-controlled TV channels.

    Ter-Petrosian and other opposition leaders contend that the police
    planted the weapons to justify the break-up of the peaceful sit-in. Like
    many ordinary campers, they say that they did not receive any demands or
    prior warnings from law-enforcement officials before being attacked. The
    police, which filmed the Liberty Square clash, have not released any
    video evidence to the contrary.

    The official rationale for the pre-dawn operation has also been
    challenged by Armen Harutiunian, the state human rights ombudsman. `If ¦
    fleeing demonstrators left guns behind them, then why is it that during
    their dispersal, which was accompanied by beatings and resistance, not a
    single gunshot was fired?' he asked in an April report. The report said
    that the purported search also violated Armenia's Code of Procedural
    Justice that requires court warrants and the presence of witnesses in
    such cases.

    Despite being placed under de facto house arrest on March 1,
    Ter-Petrosian was able to hold a news conference in his residence that
    started at around 11:30 a.m. Exuding trademark calm, he gave a detailed
    account of the previous night's events but was rather vague on what the
    opposition plans to do next. `I don't know what further developments
    there will be,' he said. `It is possible that a [rally] will erupt
    spontaneously, and we are obliged to lead, to manage it. If I am allowed
    to leave this house, I will naturally be with the people.'

    `I think that Robert Kocharian and Serzh Sarkisian are finished,' added
    Ter-Petrosian. `I have a feeling that they won't last even for 10 days
    in Armenia.'

    The charismatic ex-president was already informed that thousands of his
    supporters, infuriated by the police actions, are converging on a
    section of Grigor Lusavorich Street just outside the French Embassy in
    Yerevan. Police units rushed to the area clashed with the rapidly
    growing crowd but failed to disperse it. They could only cordon off area
    for a while to keep the crowd from moving to Liberty Square and key
    government buildings. None of the nine members of Ter-Petrosian's
    election campaign board were spotted there at that time.

    It was Vartan Khachatrian and Zaruhi Postanjian, parliament deputies
    from the opposition Zharangutyun (Heritage) party not directly involved
    in the Ter-Petrosian campaign, that held first negotiations with
    high-ranking police officials at the scene at around 1 p.m. It was
    agreed that the crowd will be allowed to march through the city center
    and rally outside the Matenadaran institute of ancient manuscripts,
    another traditional venue for public gatherings in Armenia.

    The protesters rejected the agreement. `The people were extremely
    agitated and did not listen to anyone at that point,' recalls
    Khachatrian. `Many of them feared that the police would ambush and
    attack them on their way to the Matenadaran.'

    Major-General Sasha Afian, deputy chief of the national police,
    reaffirmed the Matenadaran option during ensuing negotiations with David
    Shahnazarian and Levon Zurabian, two close Ter-Petrosian associates who
    arrived at the scene later in the afternoon. The crowd again refused to
    budge. `The people felt that the police are trying to trap them,' says
    Zurabian.

    But Vahagn Harutiunian, a senior official at Armenia's Special
    Investigative Service (SIS) leading the criminal investigation into the
    March 1 events, dismisses this explanation, saying that the `organizers'
    of the protest themselves did not let their supporters unblock Grigor
    Lusavorich street in breach of an `explicit agreement' reached with
    Afian. Harutiunian says police forces left the blocked street section,
    as well as the adjacent square outside the Yerevan municipality, at
    about 2 p.m. because of that agreement.

    Shortly after the police pullout, groups of mainly young men blocked all
    three streets crossing the square with buses and other vehicles mostly
    seized from the police. Adding to their anger were rumors (that turned
    out to be false) that the police killed protesters in Liberty Square.
    Standing near the French Embassy, one middle-aged woman infamously held
    up a shoe that she claimed belonged to a 12-year-old girl allegedly
    killed in the police assault.

    Later in the afternoon, the crowd was joined by other opposition leaders
    that had gone into hiding following the Liberty Square clash. One of
    them, Nikol Pashinian, took the center stage in the escalating standoff,
    inspecting the barricades and urging activists to fortify them. `The
    authorities attacked peaceful protesters, and we have grounds to assert
    that their hostile actions will be repeated,' Pashinian declared at an
    ensuing rally. `Our task now is to think about our defense.'

    Many male protesters were already armed with metal and wooden sticks and
    rocks. Some were busy preparing Molotov cocktails with petrol sucked out
    of the seized police vehicles. Others began stopping public
    transportation buses and using them for completing the blocking of all
    streets, including Grigor Lusavorich, leading to the barricaded area.

    In the meantime, Ter-Petrosian began negotiating with Kocharian through
    the chief of the presidential security detail, Grigori Sarkisian, and
    Western embassies in Yerevan. Ter-Petrosian would say afterwards that he
    offered the authorities to calm his protesting supporters by addressing
    them in person, leading them to the Matenadaran square and then telling
    them to disperse until the next rally. Kocharian was only willing to let
    the protesters move on to two locations outside the city center because,
    as he would say at a March 5 news conference, the crowd would have gone
    on a rampage had it been allowed to march through downtown Yerevan.
    Speaking to foreign journalists on March 3, Ter-Petrosian said he
    rejected Kocharian's offer because he believed the authorities are
    trying to lure the crowd away from the center and attack it `far from
    foreigners' eyes.'

    The negotiations were apparently still going on when Foreign Minister
    Vartan Oskanian and a senior police official held a news conference at
    the presidential palace at 6:30-7 p.m. `The president is in serious
    negotiations, but if these illegal actions continue the president will
    have to declare a state of emergency to ensure public security,' warned
    Oskanian.

    As he spoke, hundreds of interior troops, other police forces and,
    according to some eyewitness accounts, army units massed in and around
    Yerevan. By 8 p.m. security forces took up positions on two of the five
    approaches to the barricaded area. They never moved further forward from
    one of those `frontlines,' only blocking two parallel streets and a park
    leading to the Armenian prime minister's office in Republic Square.
    Other police units were deployed at the junction of Mashtots Avenue and
    Grigor Lusavorich Street, more than 300 meters from the nearest
    opposition barricade. They mostly consisted of interior troops
    (officially called Police Troops) wearing heavy riot gear. Regular and
    special police units, some of them armed with AK-47 automatic rifles,
    were positioned behind them.

    The eerie silence there was broken at 9-9:15 p.m. by deafening
    explosions of stun grenades thrown by the police and stones and Molotov
    cocktails coming from the barricade. The rows of interior troops then
    began slowly advancing towards the barricade, backed up by tracer
    bullets fired in the air by the special police moments later. The
    continuing hail of rocks and petrol bombs forced them to move back. In
    the meantime, opposition leaders delivered fiery speeches to thousands
    of people who rallied less than 200 meters down Grigor Lusavorich
    Street. All that the demonstrators could see from there were tracer
    bullets flying overhead and lighting up the night sky for about an hour.
    They responded to the gunfire with `Struggle to the end!' and `Levon!
    Levon!' chants.

    `We will not retreat from this square,' Pashinian told the crowd. `But
    we will not attack anyone either. If they attack us, they will get an
    adequate response.'

    `Dear people, they are simply trying to spread panic,' said Miasnik
    Malkhasian, an opposition parliament who was subsequently arrested and
    accused of organizing the `mass disorders.' `Please do not panic, stand
    firm like men, and we will win.'

    As the violence intensified, Pashinian issued orders to barricade
    fighters and urged the security forces (both through loudspeakers and a
    police radio seized by protesters) to switch sides. `Take up your arms
    and redirect them against Kocharian's and Serzh's criminal clan. We will
    stand to the end, even if all of us die in this square,' said the young
    editor of Armenia's best-selling daily newspaper, `Haykakan Zhamanak.'
    `People, we must finish the job tonight, enough is enough,' Pashinian
    told the thinning crowd later on.

    According to Vahagn Harutiunian, the chief unrest investigator, the
    authorities never attempted to disperse the peaceful demonstrators and
    that the police forces charged towards the barricade only after
    stick-wielding protesters `came out of the barricades and pushed
    forward.' `The law-enforcement forces tried to advance in order to stop
    that movement and immediately came under attack,' he tells RFE/RL.

    Opposition leaders deny this, saying that the first clash, which
    occurred on a Grigor Lusavorich Street section next to the Russian
    Embassy, was provoked by the police. Whatever the truth, Captain Hamlet
    Tadevosian, commander of an interior troop company, appears to have been
    its sole casualty and the first person killed in the unrest. The
    investigators say he was killed by a hand grenade or another explosive
    device thrown by a protester. They also claim that some of the
    protesters had firearms, pointing to, among other things, to police
    footage of the first street battle that shows what looks like a trail of
    automatic gunfire coming from the opposition side. The opposition denies
    that any of its supporters used guns or grenades and blames the police
    for Tadevosian's death.

    After the unsuccessful pitched battles the security forces retreated to
    the Lusavorich-Mashtots intersection and then further back to Paronian
    Street, leaving behind vehicles burned by the protesters. It was at that
    crossroads that the protesters apparently suffered their first
    fatalities. Three of them were shot dead there in still unclear
    circumstances. Another protester was fatally wounded at the beginning of
    Mashtots Avenue. Several shops in that area were looted by rioters after
    10 p.m.

    Not all speakers at the opposition rally condemned the looting and the
    burning of cars parked nearby and blamed that on government `agents
    provocateurs.' `Even if they are looting oligarchs' shop, they are
    probably not committing a theft, they just found a way of punishing [the
    authorities,]' declared Shant Harutiunian, an obscure extreme
    nationalist who played no part in the Liberty Square protests but was
    one of the main opposition orators late on March 1.

    The investigators believe the four other civilian deaths occurred on
    Paronian Street and at its intersection with Leo Street where the police
    forces retreated later in the evening, unable to contain the advancing
    protesters despite using water cannons and continuing to fire tracer
    bullets. They suffered their second casualty on Leo Street when an
    interior troop serviceman, Tigran Abgarian, was shot in the neck and
    died without regaining consciousness a month later. Law-enforcement
    authorities say Abgarian was killed by one of the protesters, a claim
    denied by the opposition. None of more than 100 oppositionists arrested
    in the following weeks was charged in connection with the deaths of the
    19-year-old conscript and Captain Tadevosian.

    The investigators have also shed little light on the circumstances in
    which the eight civilians lost their lives, saying only that three of
    them were hit by tear gas capsules fired by the police. Vahagn
    Harutiunian asserts that the police forces involved in the March 1
    clashes did not receive prior orders to shoot at the demonstrators,
    dismissing opposition claims to the contrary. `They were only ordered to
    fire tracer and blank rounds in the air,' he says.

    Armenia's law on police service allows police officers to use lethal
    force for `repelling an attack that threatens their life or health'
    without their superiors' permission. The police believe the March 1
    events posed such a risk but have so far stopped short of stating that
    the deadly gunfire was necessary for neutralizing the danger. They have
    stressed that more than 180 police officers and interior troop soldiers
    received various injuries during the clashes. Forty-two of them were
    injured by grenade explosions and required hospitalization, according to
    law-enforcement authorities.

    President Kocharian cited police casualties as he went on national
    television at 10:30 p.m. to declare a three-week state of emergency and
    order the Armenian military to restore `public order.' Army units backed
    up by armored vehicles began rolling into the capital shortly after
    midnight. About one square kilometer of the city center was under full
    or partial opposition control at that point. At around 4 a.m. on March 2
    Ter-Petrosian made a phone appeal to the demonstrators remaining outside
    the municipality and urged them to go home. "I do not want any victims
    and clashes between police and innocent people. That is why I am asking
    you to leave," he said.

    The Armenian government continues to stand by its claim that the clashes
    were pre-planned by the opposition with the aim of `usurping state power
    by force.' Seven of the arrested opposition members, among them
    Ter-Petrosian's election campaign chief, three opposition
    parliamentarians and Shant Harutiunian (no relation to Vahagn), are
    currently on trial on corresponding charges. Why Ter-Petrosian himself
    has not been prosecuted for the alleged coup bid remains unclear.

    The SIS's Harutiunian says the criminal case against the seven
    defendants contains `testimony by numerous people who clearly state that
    they were told to go to the French Embassy.' He says the official theory
    is also supported by wiretapped phone conversations of opposition
    leaders and police video of the March 1 events. Late last, year
    Prosecutor-General Aghvan Hovsepian shared these and other details of
    the case with John Prescott and Georges Colombier, the two Armenia
    rapporteurs of the Council of Europe Parliamentary Assembly (PACE).
    Prescott and Colombier described the purported evidence as unconvincing
    in a January report to the Strasbourg-based assembly.

    Opposition leaders insist that the street protests that followed the
    police assault on Liberty Square were spontaneous. `After the dispersal
    of the Liberty Square demonstration we lost control over the course of
    events,' Zurabian tells RFE/RL, adding that Ter-Petrosian's campaign
    team was too scattered and paralyzed to make decisions. `We didn't even
    know what's going on,' he says.

    Zurabian, widely considered as the ex-president's right-hand man, also
    claims that the opposition had no contingency plans for a possible
    break-up for its sit-in. Ter-Petrosian repeatedly assured supporters
    camped in Liberty Square that Kocharian and Serzh Sarkisian are `not
    crazy' to disperse them by force. `You can now say that I was mistaken,'
    he would tell journalists on March 11. `Our country is probably too
    savage to be judged with rational categories.'

    Zurabian believes that the opposition committed no `strategic blunders'
    in the post-election period. `The only alternative was not to engage in
    any political struggle in the first place,' he says.

    Khachatrian, the Zharangutyun parliamentarian, is more self-critical.
    `At the end of the day, we are all responsible for the fact that people
    got killed in the streets of Yerevan,' he reckons. `One party more so,
    the other less.'

    There have been suggestions that Ter-Petrosian might have prevented
    bloodshed had he been able to join the protesting crowd. The authorities
    say that he was free to leave his house on March 1, but only without his
    state-funded armed bodyguards. For Ter-Petrosian and his entourage, this
    condition was illegal and amounted to a death threat.

    `If he feared for his own security, then he should have also worried
    about the security of the crowd,' Kocharian scoffed at the March 5 news
    conference. `He should have had the courage ¦ to go there and
    participate in that rally.'

    (Photo courtesy of http://ditord.com)



    U.S. Dollar In Short Supply In Armenia

    By Anush Martirosian

    Buying U.S. dollars was all but impossible in Yerevan on Friday in a
    further sign that the exchange rate of Armenia's national currency, the
    dram, is no longer market-based.

    Unlike many other currencies, the dram has not depreciated against the
    dollar since the onset of the global financial crisis late last year.
    The government and the Central Bank of Armenia (CBA) have since been
    facing allegations by critics that they are using the country's hard
    currency reserves to artificially bolster the dram.

    The authorities deny any heavy intervention in the currency market. Many
    Armenians seem unconvinced by these assurances and anxious to convert
    their dram savings into dollars. Lines of dollar buyers could be seen
    outside some Armenian banks and currency exchange shops on Friday.
    `Dollars are not for sale in any currency shop,' one woman told RFE/RL.

    `Everyone wants dollars, but we don't sell them,' complained one
    currency trader at a food supermarket in downtown Yerevan. `It's a
    panic. I have only $125 in cash right now. I used to have $20,000 at
    this time of the day.'

    `People would buy even as little as $20,' said another deal. `They are
    panicking. The banks have not sold dollars in the last two days.'

    `People are panicking,' confirmed a branch manager at the Ardshininvest
    bank, one of the largest in Armenia. He claimed that people can buy
    dollars at the bank unless they want large sums.

    But bank clients interviewed by RFE/RL claimed the opposite. `They say
    they don't have dollars,' one of them said.

    A spokesman for the CBA, Zaruhi Barseghian, denied that the greenback is
    in short supply in Armenia these days. She said there might only be
    temporary shortages caused by currency retailers `catering for the
    shadow economy' and engaged in `speculative games.'

    `There are no problems,' Barseghian told RFE/RL. `The banking system is
    functioning well.'

    (Photolur photo)



    Armenian Premier Visits Russia

    By Aza Babayan in Moscow

    Prime Minister Tigran Sarkisian paid a one-day working visit to Moscow
    on Friday that was expected to focus on economic issues and, in
    particular, Russia's promised anti-crisis assistance to Armenia.

    Sarkisian was meeting with Russian Prime Minister Vladimir Putin late in
    the evening after holding talks with the governor of the Russian Central
    Bank, Sergey Ignatiev, and Igor Levitin, the Russian co-chairman of an
    inter-governmental commission on bilateral economic cooperation. He was
    due to discuss with them, among other issues, the terms of a $500
    million loan that Moscow has pledged to provide to Yerevan with the aim
    of helping it cope with the global economic crisis, which is hitting the
    Armenian economy increasingly hard.

    Meeting with Moscow-based Armenian businessmen earlier in the day,
    Sarkisian said the loan will be disbursed in March but did not specify
    how his government plans to spend it. He also outlined the government's
    broader strategy of mitigating the effects of the global downturn. The
    government will not only seek to stimulate the economy with external
    loans but also strengthen the rule of law, he said, describing
    government corruption as a serious hurdle to Armenia's economic
    development.

    The prime minister also urged the entrepreneurs, may of them born in
    Armenia, to invest more heavily in his country. `Welcome back to
    Armenia,' he said, claiming that many Armenians are already returning
    home because of worsened economic conditions in Russia.

    (Photolur photo)



    PRESS REVIEW

    `Chorrord Ishkhanutyun' regards the economic situation in Armenia as
    `disastrous.' The opposition paper claims that in the past few months
    the Armenian government has borrowed more from foreign sources in the
    previous 17 years taken together. `There is no guarantee that that will
    rescue the situation,' it says.

    `Haykakan Zhamanak' reports that the Central Bank of Armenia (CBA)
    sharply cut back on sales of U.S. dollars to commercial banks at the
    Yerevan stock exchange on Thursday in order to keep up the value of the
    national currency, the dram, without using up more of its hard currency
    reserves. `With blackmail and threats, the Central Bank banned the banks
    from trying to purchase foreign currency at the stock exchange,' says
    the paper.

    `Zhamanak' editorializes that the idea of political dialogue in Armenia
    has been `devaluated' because each of the rival political factions is
    `pursuing maximalist goals.' The paper argues that the authorities say
    such a dialogue can start only after the opposition stops holding
    demonstrations, whereas the opposition says dialogue must definitely
    lead to fresh parliamentary and presidential elections. It says both
    approaches are wrong because `dialogue presupposes mutual concessions,
    agreement, respect for the opposite side's view.' `In today's Armenia
    the authorities are primarily unprepared for such tolerance,' it says,
    adding that the opposition can not accept the government conditions.

    Samvel Nikoyan, head of the parliamentary commission investigating the
    March 1 clashes in Yerevan, notes in a `Hayots Ashkhar' interview that
    Armenia's Criminal Code currently sets punishment only for completed
    `usurpation of state power,' rather than attempts to expedite it. `A
    question arises: if you have successfully seized power, who is going to
    prosecute you?' argues Nikoyan.

    `Yerkir' criticizes the way in which the Central Election Commission
    (CEC) is preparing to hold the May 31 municipal elections in Yerevan. In
    particular, the paper is skeptical about the effectiveness of training
    courses for members of precinct election commissions which are planned
    by the CEC.

    (Aghasi Yenokian)
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