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    ARMENIANOW.COM
    Administration Address: 26 Parpetsi St., No 9
    Phone: +(374 1) 532422
    Email: [email protected]
    Internet: www.armenianow.com
    Technical Assistance: (For technical assistance please contact Babken
    Juharyan)
    Email: [email protected]

    *************************** **************************************************
    January 23, 2009,

    1. Countdown to Crucial Vote: Tuesday's PACE session could spell
    problems for Armenia

    2. Truth or Ploy?: Are "political prisoners" being tortured?

    3. Alternative Production: Vanadzor plant changes production line
    to fight crisis

    4. Geopolitical "Opera": What does Turkey's withdrawal from
    "anti-Russian" gas pipeline project Nabucco forebode for Europe?

    5. Paper Money: State introduces raffle as way to encourage
    proper tax documentation

    6. Snow Job?: Municipalities struggle to meet citizen needs
    against dangerous ice

    7. Lack of Interest: NKR "alternative" newspaper shuts down;
    editor blames public apathy
    8. Cure and Challenge: A composer reaches out to help children
    with leukaemia
    9. TV Ombudsman: Popular TV Company in Cyumri goes for another challenge


    ************************************** **************************************
    1. COUNTDOWN TO CRUCIAL VOTE: TUESDAY'S PACE SESSION COULD SPELL
    PROBLEMS FOR ARMENIA

    Gayane Abrahamyan
    ArmeniaNow reporter

    In the lingering aftermath of March 1's deadly post-election violence
    Armenia is facing a possible isolation from the European family it
    joined in 2001. At the forthcoming January 27 Parliamentary Assembly
    of Council of Europe (PACE) full session that body's resolution draft
    adopted on December 18 will be put to a vote stating for the first
    time that "there are political prisoners in Armenia" and that "the
    Congress... decides to suspend Armenia's parliamentary delegation
    members' right to vote".
    The Armenian delegation at PACE is hopeful that at Tuesday's session
    that paragraph of the resolution draft will be changed and Armenia
    will be able to escape penalty once more.
    "The imposed penalty can take the country off its course of
    improvements, we are expecting definite suggestions of reforms with
    defined timelines of their implementation," said Artur Baghdasaryan,
    Secretary of Armenia's National Security Council, during his meeting
    with co-rapporteurs of PACE Monitoring Commission John Prescott and
    George Columbier.
    The new draft of the resolution was adopted after EC Commissioner for
    Human Rights Thomas Hammerberg's visit in November when he stated that
    this time the report will not highlight Armenia's acquiescence to PACE
    requirements, but rather a serious lack of the same.
    Political analyst Yervand Bozoyan thinks that if Armenia is penalized
    it can be a serious threat and a strong blow against the country's
    domestic and foreign policies, however, he emphasizes that "a lot
    depends on behind-the-stage negotiations".
    Some non-official sources claim such negotiations have already taken
    place, namely on January 14-16 with co-rapporteurs of PACE Monitoring
    Commission Prescott and Columbier during their visit to Armenia.
    The same highly-placed sources tell ArmeniaNow the co-rapporteurs
    demanded to change Article 300 of RA Criminal Code on "Usurpation of
    State Power", which is an accusation of calls for power turnover and
    usurpation of state power and maintaining power with force. They also
    demanded to give a written promise to release the political prisoners
    before March 1 of this year.
    Political prisoners, including the so-called "Famous 7" political
    figures, are charged mainly with Article 300.
    Both in April and June resolutions PACE admonished Armenia to suspend
    the cases of people charged with articles 300 and 225 of RA Criminal
    Code, on the grounds that the Congress considers those articles to be
    vague and containing political charges.
    According to independent National Assembly Deputy Viktor Dallakyan, if
    the demanded changes were made earlier many issues could have been
    solved by now.
    "Of course the solution is to proclaim amnesty, but changing the
    charges can ensure some progress and influence on the case of 7,"
    Dallakyan told ArmeniaNow.
    Before this new hope of escaping punishment emerged, opinions on the
    issue voiced by the authorities were extreme and, in the minds of
    critics, suggested that authorities are panicked on what to do.
    Recently one such opinion has been voiced by Vice-President of the
    ruling Republican party Galust Sahakyan, saying that PACE has to
    change its approaches on Armenia's Council of Europe membership
    because "they are unacceptable for us".
    "If they debar us from voting, Armenia won't collapse because of that;
    after all, there are other countries- Asian, Muslim, and we can become
    a member of their family," says Sahakyan, head of parliament faction
    of the (ruling) Republican Party.
    Another Republican deputy, Rafik Petrosyan, came forth with a similar
    assessment voicing his concerns on whether it wasn't predetermined
    that "our relationships with PACE would become more enslaving than
    that of equal partners".
    "I can't exclude that a moment will come when we see that our
    sovereignty is completely stepped on and so we will withdraw from EC,"
    makes predictions Petrosyan, vice-president of the Standing Committee
    on Protection of Human Rights and Public Affairs.
    According to him, the members of Armenia's delegation are the ones to
    be blamed for PACE's decision to deprive them of their vote, because
    if "The members of the Armenian delegation at PACE approached
    delegation members of other countries, had a cup of coffee or even,
    why not, a shot of brandy and that way carry out some explanatory
    works- explain and increase the number of Armenia's friends, things
    might have not come to debarring from voting."
    While many representatives of Armenian authorities are looking for who
    to blame for, and at the same time insisting on having fulfilled 90
    percent of the requirements of 1609 and 1620 resolutions, political
    analysts are trying to make predictions on real consequences in case
    Armenia is penalised.
    Artur Ghazinyan, head of the Centre for European Law and Integration,
    says if sanctions are imposed the consequences will be disastrous for
    Armenia.
    "The European Council is an important indicator and being its member
    shows that to some degree Armenia is meeting the criteria of
    predominance of democratic rights; that opens many international
    doors," Ghazinyan told ArmeniaNow.
    "The moment the Armenian delegation is deprived of its vote, Armenia
    will become a risk zone, not a stable country, deprived of many
    investments and international projects and loan possibilities.
    Belarus's experience shows that the country is literally getting
    isolated from the rest of the world, but if Belarus can survive it due
    to its natural resources, for us it will become a total disaster. "
    Hovik Abrahamyan, RA Parliament Speaker, wrote about economic
    consequences of the potential penalty in his December 30 letter to
    parliament speakers of PACE member countries, publicised last week.
    On the one hand, in his interviews to different mass media, Abrahamyan
    expressed his certainty that Armenia will not be deprived of its vote,
    as it has fulfilled the main demands of the PACE resolution, on the
    other hand, however, he writes a heart-breaking letter asking not to
    deprive Armenia of its vote.
    "I would like to draw your attention to the extremely damaging essence
    of the draft, and if adopted it will seriously endanger Armenia's
    internal stability and interfere with March 1 related lawsuits... It
    will put an additional and serious pressure on the country's economy
    decreasing foreign investors' trust, which is especially unfair to a
    country in a blockade and especially under the current circumstance of
    the world economic crisis," the letter says in part.
    Political analyst Bozoyan says that the letter by the second most
    powerful person in the country makes it obvious there are serious
    concerns, however its deplorable that they [the authorities] do not
    realize a simple fact- the requirements of the resolution have not
    been fulfilled.
    In a related development, some here speculate that Armenia/PACE
    relations may influence discussions between President Serzh Sargsyan
    and Azerbaijan's President Ilham Aliyev. The two warring presidents
    are to meet - also on Tuesday - on the sidelines of the annual
    European Economic Forum in Davos, Switzerland.

    ************************************ ****************************************
    2. TRUTH OR PLOY?: ARE "POLITICAL PRISONERS" BEING TORTURED?

    Gayane Lazarian
    ArmeniaNow reporter

    A statement made as a result of a disciplinary proceeding implemented
    by the Ministry of Justice became a subject of heated political
    discussions this week. The statement says that Armen Khurshudyan and
    Levon Ter-Pterosyan's trustee Gevorg Manukyan imprisoned after March
    1 events deny the fact of being subjected to beatings and violence as
    they previously claimed.

    As a result of the proceeding Khurshudyan in his explanations denies
    there were any beatings or mistreatment. Manukyan is asking not to
    consider his attorney's alleging violence against Manukyan addressed
    to the Minister of Justice and other officials. Manukyan is also
    asking to give him time to consult with his attorney.

    Following the statement spread by the Ministry of Justice, Heritage
    party deputies Anahit Bakhshyan and Armen Martirosyan visited the
    prisoners.

    "We were seriously concerned about the information that two political
    prisoners allegedly denied their previous statement which claimed that
    they had been subjected to violence," Martirosyan told ArmeniaNow.
    "During our conversation Khurshudyan confirmed once more that he had
    been subjected to violence but that at the moment he does not want to
    file a complaint, grounding that with a fact that he doesn't want to
    further disturb other prisoners sharing the same cell with him, as a
    result of which his cell-mates are constantly called for
    interrogation."

    Manukyan told the deputies that he would not make another statement
    until his attorney returns from abroad, and that his current statement
    remains in force. (Manukyan himself had sent letters telling what had
    happened to him to RA Ombudsman Armen Harutyunyan, RA Minister of
    Justice Gevorg Daniyelyan and RA Criminal Court of Appeal.)

    The deputies imply that the prisoners are officially recanting
    previous claims in an effort to avoid potential future abuse toward
    themselves or others.

    "Summarizing our visit I must say they did not deny the act of
    violence towards them: one of them doesn't want to complain, the other
    is waiting for his attorney. We also visited political prisoner
    Vardges Gasparyan, who keeps insisting he has been beaten," says
    Martirosyan.

    According to Armen Khachatryan, coordinator of the Service of Legal
    Assistance to Political Prisoners, there are two reasons for violence.
    "They either say 'you have to sign a petition for mercy', or they
    create conditions when people eventually end up filing that petition.
    According to the European Convention for Human Rights, the cases when
    a person is forced or physical pressure is put on him/her to appeal
    for mercy are considered torture," he says.

    Yet in December at Nubarashen prison three other political prisoners
    claim they were subjected to beatings: member of Armenian National
    Movement (ANM) Grigor Voskerchyan, member of "Alternative" social-
    political initiative Vardges Gasparyan, and head of ANM Vanadzor
    branch Ashot Manukyan.

    Voskerchyan, through his attorney Stepan Voskanyan, circulated his
    statement: "On December 23, in my cell at Nubarashen prison during an
    interrogation without any incitement, simply after learning which
    articles of the Criminal Code I am charged with, special division
    officer of Penitentiary Service participating in the interrogation has
    carried out an act of violence towards me."

    RA Ombudsman Armen Harutyunyan in an interview with Radio Liberty
    stated that people at prisons are routinely subjected to violence.
    "We can divide them into 3 groups: cases when people officially
    complained, and we are now studying their cases, such as
    Voskerchyan's, Gasparuyan's and others. There are other cases when our
    guys saw apparent traces of torture, but [prisoners] denied saying
    they simply had a fall: out of fear people do not confess they were
    tortured. And the third group consists of cases when people are
    beaten, but if they file an official complaint they would have
    problems with their cell-mates not connected to March 1 event."

    According to the Ombudsman, an atmosphere of fear has formed, because
    of which people are scared to tell what's happening to them. He sent a
    letter to Andranik Mirzoyan, head of RA Special Investigation Service
    asking to take measures and identify the guilty and make them
    accountable for their deeds.

    Armen Khachatryan explains why prisoner Khurshudyan is not making a
    statement at the moment.

    "He told us that the disciplinary proceeding had one purpose: to
    torture, and cover everything up. We do not trust the disciplinary
    proceeding held at the prison. We demand criminal cases to be filed
    immediately and the guilty to be punished," he says.
    So far 6 political prisoners (a term used by the Council of Europe,
    but denied by Armenian authorities) have filed petitions for mercy and
    they have been pardoned by President Serzh Sargsyan. Khachatryan says
    that those people had serious health problems and that is why they
    pled for pardon.
    "The authorities are doing the meanest possible thing: terrorize
    people and then ask for a ransom in exchange for their freedom,"
    Khachatryan says - alleging that prisoners are tortured into admitting
    guilt and signing a plea for mercy.
    After filing petitions for mercy Levon Ter-Petrosyan's supporters,
    former prisoners Artur Nazaryan and Karen Tarkhanyan have been set
    free. They will soon make a public statement and present the
    conditions under which the petitions were filed.
    According to the statement circulated by Arsen Babayan, press
    secretary of the Ministry of Justice's Penitentiary Service, no
    law-enforcement officer demanded or asked any defendant to file a
    petition of mercy to the RA President.
    "Spreading of such information is one of the tricks used by certain
    political forces, by which they are attempting to involve the
    Penitentiary Service into a political intrigue," says the statement.
    *************************************** *************************************
    3. ALTERNATIVE PRODUCTION: VANADZOR PLANT CHANGES PRODUCTION LINE TO
    FIGHT CRISIS

    Naira Bulghadaryan
    ArmeniaNow Vanadzor reporter

    To avoid the effects of the world economic crisis, one of Vanadzor's
    manufacturing giants, Prometey-Chimprom LLC chemical plant, is
    planning to change its production line.

    The company (Lori province) having suspended its operations 2 months
    ago, instead of locking the doors and releasing its employees,
    suggested an anti-crisis plan to the RA government. The plan promises
    to put the factory back on track by producing inorganic and organic
    fertilizers instead of carbide.

    "I think it's a realistic plan which would allow us to survive the
    crisis," says company director Alexander Snegiryov.

    Despite his optimism, carbide and artificial stone production stopped
    as a result of the crisis, nullifying the company's $5 million
    investment.

    According to Snegiryov, the prices for carbide have seen a 50 percent
    decrease: 1 ton has dropped from $800 (244,000 drams) to $400.
    (Carbide is used in the chemical industry for producing various kinds
    of products, rubber for example.)

    Under the given circumstances it is more profitable to produce
    fertilizers than sell carbide for low prices.

    During the past 2 years the chemical factory exported 30,000 tons of
    carbide and about 10 tons of artificial "rubies" to southeastern
    countries, namely, India, Thailand, and Hong Kong.

    Because of the crisis the exporting company will now turn to the local
    market. Snegiryov is planning to produce 60,000 tons per year of
    fertilizers to meet the country's agricultural demand. (During Soviet
    times there was fertilizer production department at the plant which
    the management is planning to restore.)

    "One production line will be producing potassium and phosphorus
    fertilizers, the other nitrogen," he says, adding that both the raw
    materials and the market will be local. The machinery and equipment
    required for producing fertilizers will be ready soon.

    A preliminary refinement workshop has been built in Petrovka village
    in the Tashir region of Lori province, and Chimprom is finishing
    assembling the technological circuits.

    The company doesn't promise but reassures that in 2 months they will
    be employed again.

    The company management released 30 percent of its employees in
    November without annulling their contracts and kept paying about 65
    percent of their salaries. The other 70 percent of employees received
    their full salaries.

    It is even possible to employ 1,000 people in fertilizer production
    instead of the current 800, the director says.

    Jemma Manukyan, 59, with 29 years of working experience as artificial
    stone production operator at the chemical plant is among those given a
    compulsory leave. Her last working month was November. Since the
    production was suspended she has been on a compulsory "holiday" with
    partial payment. She lives alone with 60,000 drams ($198) salary and
    17,000 drams ($56) medical benefit.

    "I have no idea how I can live on the benefit only," she says. Like
    Snegiryov, the factory employees are hopeful that their forced holiday
    won't last long.

    Her contract expires at the end of January. If the anti-crisis plan
    developed by the management is not implemented Manukyan and half of
    the factory employees will become unemployed sharing the same fate as
    the employees of Vanadzor's other major enterprise.

    Avtogen-M LLC ceased its operations in November, 2008, being unable to
    realize their product- gas welders. The company did not offer its
    employees an alternative production plan instead asked its 350
    employees to submit resignation letters. It promised to pay them their
    4-month salaries when the Russian partner has money and can pay back
    its 100 million dram ($330,000) debt to the company.

    "We hope, that after March the money will be transferred," says
    company director Artak Ghazaryan.

    Within the same time period 161 employees of Alaverdi-based Armenian
    Copper Program (ACP) LLC copper smelting plant lost their jobs: their
    contracts were not extended.

    The company's press service says that the company's production volume
    hasn't been seriously affected by the world crisis. The plant has to
    inevitably suspend its operations for a number of other reasons. Some
    of which are: the ore mining volumes in Armenia, which cannot ensure
    profitable production, the expected increase in the prices of
    energy-carriers as well as other internal factors.

    They are 700 people currently employed at the factory. In case of
    suspending the operations, contracts of the majority of employees will
    not be extended.

    "My only hope is my son, who can help me, but he has lost his job
    too," says Manukyan, from Prometey plant. Her son is one of the ACP
    employees now out of work.

    ******************************************* *********************************
    4. GEOPOLITICAL "OPERA": WHAT DOES TURKEY'S WITHDRAWAL FROM
    "ANTI-RUSSIAN" GAS PIPELINE PROJECT NABUCCO FOREBODE FOR EUROPE?

    Marina Grigoryan
    ArmeniaNow reporter

    During Turkish Prime-Minister Regep Tayip Erdogan's Brussels visit
    with the purpose of giving a new impulse to the negotiations on Turkey
    becoming a member of the European Union, the premier expressed doubts
    on how economically reasonable it is for Turkey to build Nabucco
    gas-line which would supply European countries with Central Asian and
    Caspian gas bypassing Russia.

    (It is believed, that the gas-line has been called Nabucco after
    Verdi's famous opera of the same name, telling about liberation from
    captivity: implying Europe's strife for independence from Russian gas
    by means of Nabucco.)

    Erdogan declared his country's plans to reconsider its participation
    in the project. He says Turkey will not support the project if the
    European Union does not unblock the part of negotiations on entering
    EU concerning energy issues. (Cyprus is blocking the launch of
    negotiations on Turkey becoming a member of EU on energy
    interdependence issues.)

    Many experts say that the Nubucco project is the main "anti-Russian"
    gas-line and is called to decrease Europe's dependence on Russian gas.
    They also say that due to lack of raw material Iran might later be
    drawn into the project. The construction of the pipeline bypassing
    Russia and Ukraine through Azerbaijan, Georgia, Turkey, Bulgaria,
    Romania, Hungary, Austria and possibly Germany, is planned to be
    launched in late 2010 and be completed in 2013. The estimated project
    cost is 7.9 billion Euros; the pipeline would stretch for 3.3 thousand
    kilometers, its potential capacity is 31 billion cubic meters of gas
    per year.

    The United States also expressed its concerns over European countries'
    dependence on Russian gas growing into Europe's political dependence
    on Russia.

    US Secretary of State Hillary Clinton stated that US President Barack
    Obama's administration will be trying to have US allies sign political
    agreements on Nabucco pipeline.

    "Russia's shutting down gas supply to Ukraine and consequently to a
    significant part of Europe in early 2009 became a sharp reminder on
    how much Europe is dependent on imported energy from Russia. This
    energy dependence can create a degree of political dependence we have
    to help Europeans to avoid," Clinton stated.

    As European newspapers write, Erdogan is playing the energy card in
    Turkey's relations with EU for the first time. Experts explain it by
    the fact that due to the Russia-Ukraine gas scandal Europe is more
    than ever worried about its energy dependence.
    "Erdogan's demarche is a thoroughly thought-over step," says Armenian
    political analyst Levon Melik-Shakhnazaryan. "There is no room for
    doubt that if Nabucco is launched Turkey would become one of the
    project's most active participants. The project, one way or another,
    is in Ankara's interests, because it would become a source of
    long-term and stable income. Moreover, owning the valve to the gas
    pipes going to Europe will significantly raise Ankara's importance to
    Europe."

    Turkey announcing its possible withdrawal from Nabucco project is not
    the first case when that country is threatening to stop its
    participation in a regional project. In autumn of 2008 a statement
    came forth that Turkey might leave the construction project of
    Baku-Tbilisi-Kars railroad. Many observers back then thought it was a
    possible development, given the newly-formed geopolitical situation in
    the region following the August war in South Ossetia.

    Baku-Tbilisi-Kars railroad project was initiated by Azerbaijan and
    supported by Turkey and Georgia. Azerbaijan also gave Georgia a loan
    on unprecedented favorable terms to build the Georgian sector of the
    railroad. The project did not receive the support of the United States
    and many European financial organizations because of Armenia's
    economic isolation.

    However, last autumn, experts started talking about the possible shift
    of the geopolitical layout in the region, based on closer relations
    between Russia and Turkey, including their positions in the energy
    sphere. Moreover, slight indications of thawing relations between
    Turkey and Armenia gave rise to talks that, by leaving the project of
    a railroad bypassing Armenia, Turkey wanted to demonstrate its good
    will in taking Armenia out of economic isolation.

    Political analyst, deputy director of Caucasus Media Institute in
    Yerevan, Sergey Minasyan says the future of the project greatly
    depends on further development of events between Turkey and Armenia.

    "Turkey wasn't very eager to build Baku-Tbilisi-Kars railroad. If
    certain bilateral agreements are reached, in particular, on opening
    the border, the construction of a railroad bypassing Armenia would
    become pointless. We should also take into account that the dropped
    oil prices have caused serious problems in Azerbaijan," Minasyan says.

    Baku energy expert Ilkham Shaban shares the same opinion: "The fact
    that for several years now three countries cannot lay some 29-meter
    railroad makes me think that not only Turkey and Georgia but
    Azerbaijan as well doesn't know what to do with that project."

    Expert opinions and Turkey's behavior leave little room for doubt
    whether the project was initiated for exceptionally political reasons.

    Erdogan's recent comments suggests, too, that Turkey may in fact be
    using the energy issue as a leverage (some might say blackmail) for
    the political purposes of its desired EU membership.

    ************************************* ***************************************
    5. PAPER MONEY: STATE INTRODUCES RAFFLE AS WAY TO ENCOURAGE PROPER
    TAX DOCUMENTATION

    Sara Khojoyan
    ArmeniaNow reporter

    In an attempt to encourage shop owners to document cash flow for tax
    purposes, the Armenian Government has initiated a state lottery using
    winning numbers from the backs of cash register receipts.

    Since the beginning of this month, cash receipts have an 8-digit
    encryption on the backside that customers may keep in hopes the
    numbers will match those that will come up on February 6 when the
    first lottery is drawn. Subsequent contests will be held the fifth
    working day of each month.

    The Armenian Government has allotted 1.4 billion drams (about $4.5
    million) in the 2009 budget to cover the winning tickets. Winnings
    will range from 5,000 drams (about $16) for the first four matching
    numbers, to $ 5 million drams ($16,350) should all 8 match. If there
    is not a winner the amount will roll over to the next month's lottery.

    Cash receipts became a novelty in Armenia 10 years ago when a law was
    passed requiring that they replace the age-old practice of cash box
    exchange. Still, thousands of businesses - especially "mom and pop"
    storefronts - skirt the law by conducting transactions for which there
    is no record. In so doing, businesses can create their own version of
    income, independent of verification, making it easy to pay minimum
    taxes.

    The lottery scheme - approved by Government last October - is an
    arguably creative approach by the Government aimed at causing the
    customer to demand receipts, in hopes of being handed lucky numbers.

    Armenia learned the lottery scheme from Taiwan, and a similar
    experiment was tried in China and Singapore.

    According to State Income Commission deputy director Artashes
    Beybutyan the launching of the raffle will help solve rampant abuse.
    He says the public will respond as hoped to a chance to win money even
    if the side-effect is for enforcement purposes.

    "Today the public is very actively participating in this idea. People
    are personally interested as by demanding the check they have an
    opportunity to win some money too", says Beybutyan calling out people
    to participate in the supervising process more actively.

    However, not all the people are interested in the process and not
    everybody demands checks. Some people don't believe that the raffle,
    which has been advertised since December, will take place.

    Consumer Ella Gabrielyan says she never demands a receipt. "It's all
    the same for me, I'm indifferent because I don't believe that I'll win
    as I've never won anything. Of course, in some shops they give me
    these checks but they become rubbish."

    Every day Armen Margaryan buys a pack of cigarette, which costs 400
    drams (about $1.30) at one of the shops near his block of flats but
    never demands a receipt of sales.

    "I know that there's going be a raffle, but from the other side I know
    those people and if they don't offer me a receipt, I'm not going to
    harm their welfare by asking for it," says Margaryan. "It's obvious
    that they are earning some (unaccounted) money. Why should I hinder
    them?"

    As a rule, receipts are not given in shops where only minor business
    takes place and where clerks, shop owners and customers all know each
    other - especially in sparsely populated districts or villages.

    Shopkeepers in such places say they don't give receipts because if
    they followed the letter of the law they'd have to pay more taxes than
    their income could sustain.

    "I will go bankrupt, taxes are unbearable," said one shopkeeper in an
    Ararat province village. "Now if we see a stranger we give the check
    but if he or she is a villager we don't give it, except to those who
    asks".

    "If I feel that the customer doesn't leave the shop after having done
    the shopping, lingers for a while or demands the check I give it,
    otherwise I don't", says a saleswoman in one of the CD/DVD shops of
    Yerevan. "I understand my boss. He says by paying so much money to the
    tax inspectorate small business will disappear."

    Starting January 2009 there are two groups of tax payers - one group
    is a small business whose annual turnover should be less than about
    58.5 million drams (about $191,000) and they have to pay some 10-13
    percent taxes. The second group representatives annual turnover should
    be above the mentioned number and they have to pay 30-35 percent from
    their revenue in taxes.

    While kiosks and small shops may yet keep their receipts to
    themselves, some shoppers in supermarkets are intrigued by the chance
    to gamble on their shopping.

    Everyday during her work break Anahit Stepanyan buys food at one of
    the supermarkets in Yerevan. " I take checks every day and have big
    hope that I'll win. My co-worker and have even decided what we will do
    if we win".

    With the introduction of the lottery is also coming closer monitoring
    by tax authorities.

    First time violators of the law (whose prices included Value Added
    Tax) are fined 150,000 drams ((about $490); second time the fine is
    doubled, with an additional 5-day suspension of business. A third
    violation would result in a 600,000 dram fine (about $1,960) and 10
    days suspension.

    Since the program came into effect January 1 at least two
    supermarkets, Nor Zovq and Yerevan City, have been cited and fined.

    According to the State Income Commission, by mid-January at least 16
    shops had been found in violation, including five that received
    suspensions.

    *************************** *************************************************
    6. SNOW JOB?: MUNICIPALITIES STRUGGLE TO MEET CITIZEN NEEDS AGAINST
    DANGEROUS ICE

    Gayane Lazarian
    ArmeniaNow reporter

    When before the New Year the first snow fell, most Yerevan residents
    knew that in a few days the city would turn to a skating-rink. Fears
    were realized, when the downy snow soon became black ice, especially
    in residential building yards and on sidewalks outside the reach of
    limited public-service cleanup.

    For the first time in Yerevan, this season of ice was met by efforts
    by the municipality sending out ice clearing machines - like Zambonies
    at an ice-hockey game - scrapping away a mostly-dry path for
    pedestrians on major thoroughfare sidewalks.

    But: On minor streets, in school yards, in private entry ways and on
    steps leading to shopping and commuting, ice sometimes inches thick
    and potentially deadly stand in the way of safe journey.

    Though local administration bodies of all 12 communities of the city
    are eager to demonstrate their diligence, efforts fail to decrease the
    number of people who fall on ice on supposedly clean streets.

    Nvard Melkonyan carefully shows the wounds on her legs and her bruised
    arms. Like a doctor she masterfully changes her bandages and tells how
    she fell outside her building on her way back from shopping.

    "Every day passing there I told myself 'God forbid somebody falls on
    this ice, there won't be an unbroken place left on them.' The day I
    fell the ice reflected back the bright sunshine blinding the eye, and
    although I was watching my step I suddenly felt that my feet were
    slipping away and so I fell. "

    Nvard, 45, doesn't know who to blame: the weather or the
    administration of Erebuni community where she lives. The municipality,
    though, should have cleaned the community of snow and ice, at least
    the sidewalks.

    Edik Yenokyan, head of Erebuni community's local administration body's
    department of public utilities, says that they are cleaning the
    central and secondary streets and sidewalks in the community but
    cleaning yards is the responsibility of each building administration
    locally.

    "Since December 29, when it snowed for the first time, we have been
    carrying out cleaning activities. Our four salt-spreading machines
    have been working every day. The square next to Sasuntsi David metro
    station and Sasuntsi David street have been cleaned of ice. I can say
    that our community is 80 percent clean," says Yenokyan.

    Like Yenokyan, heads of utility departments of almost all communities
    in Yerevan tell about the works carried out by their departments.
    However, the citizens who got injuries don't know from whom to demand
    compensation for their accidents, and they pay themselves for medical
    treatment.

    Lusine Ghazaryan, 27, a lecturer at a linguistic university, fell on
    ice and as a result received 5 stitches above her eyebrow.

    "I fell near the Visa and Passport Department of Malatia-Sebastia
    community. It was glaze ice, and when I fell I hit my head pretty
    badly. There was a policlinic in the neighborhood, so I was taken
    there, and then I went to Nairi medical center where the wound was
    stitched," tells Lusine.

    Her stitches have been taken off but she says she is afraid to walk
    outside and that if they had cleaned the ice in its proper time she
    wouldn't have fallen.
    Employees of the public utilities department of Malatia-Sebastia
    community did not return ArmeniaNow's phone calls.

    Head of Arabkir community utility department Haykaz Dashyan says their
    8 cars are tirelessly cleaning the community of snow and ice.

    "All our work force (approximately 50 people) is directed to
    implementing that task. We have good equipment: graders- ice-breaking
    machines with special blades," he says.

    Artyom Petrosyan, head of field service of Yerevan ambulance service,
    says the number of calls from people falling on ice does not comprise
    the majority of cases. He says that out of 520 calls only 2-3 can be
    related to accidents on the ice.

    "Plus, not everybody who falls ends up with a fracture. We learn more
    about the consequences only after we take them to hospital for an
    x-ray and medical examination," says Petrosyan. "So sometimes only
    soft tissues are damaged, but nothing is broken."

    He also adds that the number of calls, however, has increased as
    compared to 1 or 2 months ago. If before it was 420, now the number is
    520, 30-40 percent of which are cases of cardiovascular diseases.

    "The number of acute respiratory diseases has gone up too. And of
    course that has to do with the fact that policlinics did not work for
    a few days following the New Year holiday and nothing to do with
    fractures."

    Director of Kentron municipality's Clean Center LLC Artur Hovhannisyan
    says they have done everything and will keep doing their best to keep
    the residents of the city center safe.

    "We spent even the New Year night out in the streets cleaning snow,
    because we did not want our residents to have problems with moving
    around during the holiday. As of today, the center is 80 percent
    clean."

    According to him, in comparison with last year this year the works of
    cleaning are well done and in time, which is mostly connected with new
    equipment, including a fleet of small "Belarus-320" tractors.

    However many secondary streets and yards continue to be covered with
    thick layers of ice. Hovhannisyan says that they are responsible only
    for the central streets, the rest is the work of the communities.

    When ArmeniaNow alarmed to Surik Nersisyan, the head of community in
    "Kentron 1" (Center) and informed him that Parpetsi street is fully
    covered with ice, he was surprised and said that the street and the
    adjacent yards had been cleaned.

    "We'll send our working group and they will clean it all, only tell us
    the address" he replied to ArmeniaNow.

    Half an hour later Parpetsi Street was cleaned from both sides.
    Nersisyan says that 35 workers of the community are involved in the
    works of cleaning; they spray salt, break and collect the ice into a
    corner.

    But even the community head admits that it might not be feasible to
    clean all the ice away.

    Hovhannisyan complains that media is unfair when it accuses the
    municipality of not performing its public service regarding street
    cleaning.

    "Why don't they ever wonder how come the streets in Kentron community
    are so clean? Why, they think the sun shines stronger in the center,
    that it's not the result of our hard work?" he says.

    By January 18 Kentron community had poured 200 tons of salt for
    cleaning snow and ice. (One salt-spreading machine contains only 5
    tons of salt mixed with red sand to spread on sidewalks and streets.)
    Another 150 tons of salt has been purchased for future cleaning.

    "We are making preparations, weather forecast says it will snow soon,"
    Hovhannisyan.

    *********************** ************************************************** ***
    7. LACK OF INTEREST: NKR "ALTERNATIVE" NEWSPAPER SHUTS DOWN; EDITOR
    BLAMES PUBLIC APATHY

    Naira Hyrumyan
    ArmeniaNow Karabakh reporter


    The last issue of 5 year-old newspaper Demo was published in Karabakh
    on December 30, 2008. The editor-in-chief says the paper is shutting
    down not because of financial or other problems, but because of lack
    of motivation.

    "Nobody has told us to shut down. Our problems-including financial
    ones- were solvable given there was a will. And that's where our main
    problem was- in the will to keep going," Gegham Baghdasaryan says.

    According to him, under the circumstances of lacking political
    opposition or alternative media in Karabakh, Demo, took up the role of
    an oppositional mouthpiece. There are about 2 dozen newspapers
    published in NKR (with a population of only about 135,000), but all of
    them are produced either on state money, or are funded by
    municipalities and political parties- members of the ruling coalition.

    "Given the monopolized information field in NKR, sometimes we had to
    break the balance and give preference to negative-critical articles,
    because the other newspapers wrote only about "the positive". Most
    importantly, we managed to provide people with an alternative source
    of information," says Baghdasaryan.

    Nonetheless, as the editor says, society showed apathy towards
    alternative information sources. People unconditionally trust the
    authorities, and any opinion different from the official viewpoint was
    perceived as a threat to unity.

    Demo was published twice a month with a circulation of 800-1000, sold
    for 100 drams (about 30 cents) per copy.

    During the 2007 presidential elections, the main political forces-
    both parliamentary and extra-parliamentary supported Bako Sahakyan's
    candidature, who got elected as president. Former Minister of Foreign
    Affairs Masis Mayilyan, involuntarily, found himself representing
    radical opposition, when his standpoint was far from being radical.
    Ever since then, any opinion other than the official line has been
    perceived in Karabakh as sedition. Against this background Demo was
    the only newspaper presenting an alternative opinion to Karabakh
    readers, in other words, presenting the news not in favor of the
    president.

    "We have been called so many names- opposition, pro-western . . . .
    But we- reporters- had no need to try to justify ourselves, because we
    knew we were working in the best interests of the society," says Demo
    reporter Karine Ohanyan.

    The authorities couldn't close the newspaper since financially it
    wasn't dependant on them. But, at the same time, the paper never saw
    state support. According to NKR legislation, approximately 50 million
    AMD ($162,000) is put into the state budget for the purposes of
    supporting non-governmental mass media. In the first year the
    corresponding law was adopted (2006), Demo received its share of
    support; however, in 2007 and 2008 it was refused the support under
    this or that pretext. The paper was published for 5 years with
    financial support of British organization Reconciliation Resources.

    Internet newspaper Karabakh-Open.com never received state support
    either and had to shut down in June of 2008 for the same reason- lack
    of motivation.

    The more or less "periodical" newspaper in Karabakh is Azat Artshakh
    gazette. The rest are published once a week. The majority of them are
    financed by state institutions (for example, Lusarar paper is financed
    by the Ministry of Education, and Martik is financed by the Ministry
    of Defense) or political parties. Consequently, alternative opinion
    can hardly be found in any of then.

    "In these circumstances different ideas and opinions we offered were
    condemned to criticism only because we offered them. There comes a
    question: is our work useful or harmful? It's terrible even to say out
    loud, but Karabakh having survived war, countless misfortunes,
    declaration of independence, doesn't have public opinion," says
    Baghdasaryan.

    A state employee Suren Mirzoyan says that Demo sometimes was too
    critical. "But only that paper offered real information, healthy
    commentaries, good enough analytical pieces. It's not accidental that
    the paper sold out."

    Demo editorial staff is planning to publish a magazine on political
    science. The pilot edition is on its way now, offering analytical
    pieces of noted experts and political scientists. However, staff
    reporters of Demo hope that Karabakh will have not only a public
    newspaper, but also a public movement of those who will have their own
    viewpoint concerning the interests of Karabakh and ways of achieving
    them.

    ********************************* *******************************************
    8. CURE AND CHALLENGE: A COMPOSER REACHES OUT TO HELP CHILDREN WITH LEUKAEMIA
    Siranuysh Gevorgyan
    ArmeniaNow reporter
    The eyes of two young mothers who entered the doctor's office are
    sparkling with happiness and excitement. They impatiently show the
    doctor their children's last blood test results, which are negative.
    After the long months of treatment Anna's and Nelly's children have
    recovered from leukaemia.
    Last May, Artyom, 12, and Gohar, 14, were sent to Yolyan's
    Haemateological Center. Both of them know everything about their
    disease and want to go home as soon as possible.
    Echmiadzin resident Artyom's mother Anna tells that her son got the
    blood disease after and electric shock that left him "clinically"
    dead.
    When the boy recovered he had other problems with health related to
    glandules which eventually lead to leukaemia. Gohar's family from
    Akhlkalak, Georgia, began to worry, when they discovered bruises on
    their child's body.
    According to statistical data, every year from 35 to 40 children get
    blood disease in Armenia. About 70 percent get cured, a good result
    for leukaemia taking into consideration the heavy treatment with
    chemotherapy. The average duration of intensive chemotherapy is 8
    months. Doctors point out that despite their success in curing acute
    leukemia; in many cases the treatment is not effective enough.
    A popular Armenian composer Edgar Gyanjumyan founded Ognem (it means
    "I Will Help" www.ognem.am) foundation in 2008 in an attempt to find
    solutions to key issues in this field. A few years ago he discovered
    he had leukemia. He underwent major treatment in Germany, and returned
    to Armenia for the last 2 months of required treatment.
    "I really did not want to go to Germany, because it's more difficult
    to go through such a trial in a foreign country, no matter how great
    the conditions might be," says Gyanjumyan.
    However, in Gyanjumyan's opinion, hospital conditions abroad and in
    Armenia cannot be even compared, "starting with issues like gloves and
    surgical masks, ending up with walls and equipment of the hospital."
    "I want so much Armenian children suffering from blood diseases to
    undergo their treatment in Armenia in appropriate conditions," says
    Gyanjumyan.
    For that very purpose the Armenian composer held a fund-raising
    concert in December 2008 with participation of popular singers with
    live broadcast on H1 public TV. Donations made during the concert were
    worth $30,000.
    Now the composer consults with doctors specializing in the field on
    what's the most efficient way of using that money.
    In Armenia blood diseases are cured at two institutions:
    Haemateological Center after Professor Yolyan and Muratsan clinic of
    Yerevan State Medical University. The hospitals have 30 beds each. The
    first hospital currently has 14 and the second one 10 children Ás
    in-patients.

    Since 1991 acute leukemia has been treated through intensive
    chemotherapy called BFM (Berlin-Frankfurt-Munster). In Armenia, just
    as elsewhere in the world, this treatment is rather expensive. The
    state pays only 165.000 dram ($540) per each patient diagnosed with
    blood cancer.

    "That amount is enough only to pay for the room at hospital" says
    Nelly, Gohar's mother. Parents have to cover all other expenses. By
    Anna's rough calculations they have spent about $10.000 since the
    treatment started.

    The school where Artyom studies collected money; the Armenian
    Apostolic church helped. Artyom's sister's school also collected
    money, and the family also borrowed money.

    "When something like this happens to your child, you don't worry about
    shame and ask for help from everybody" says Anna, 33.

    The medication required to treat the disease is very expensive and not
    always available in Armenia. Particularly the drug called
    Asparaginaza, used in intensive chemotherapy, has been registered in
    RA by the Ministry of Healthcare only since last year. The other drug
    Rubomitsin hasn't been registered yet. Lala Vagharshakyan, head of
    Children's Haemateology Department at Yolyan's Center, says Rubomitsin
    is not registered in Armenia because it is not among the well sold
    drugs.

    "It's not profitable for drug importing companies to bring that
    medicine to Armenia," says Vagharshakyan.

    Artyom's and Gohar's parents obtained the required medication from
    their relatives living abroad.

    "It may sound strange, but I am thankful to God that Armenians are
    spread all over the world, otherwise it would be too difficult for us
    to get the medicine we need" says Anna, Artyom's mother.
    Head of Muratsan clinic, haemateologist Samvel Danielyan also pointed
    out, that he, too, acquires the required medication with the help of
    his colleagues in Europe.
    ****************************************** **********************************
    9. TV OMBUDSMAN: POPULAR TV COMPANY IN CYUMRI GOES FOR ANOTHER CHALLENGE

    By Yeranuhi Soghoyan
    ArmeniaNow reporter

    GALA TV of Gyumri, known for its anti-government position as a media
    outlet, has announced an innovation unique to Armenia.

    Beginning earlier this month the tv station - broadcast in Shirak
    province (covering almost 70 percent of province area) with an
    estimated viewership of about 200,000 - introduced the position of
    ombudsman into its management.

    The position, GALA management says, is intended to make the station
    "more public" - meaning that viewers will now have a forum for
    commenting on programming that the controversial station produces.

    Vahan Tumasyan, president of Political Culture and Agreement
    Development (NGO) of the Shirak province has taken the position of
    ombudsman.

    "As you know, we already have a public TV, (state-controlled H1) but
    does what they produce always meet our people, our taxpayers'
    demands," asks Tumasyan. "From now on the local ombudsman will control
    the company's operations. I, as TV ombudsman, will periodically
    present reports based on the opinions of our audience on programs
    aired by GALA TV and results of internal monitoring."

    The newly appointed ombudsman believes that the ombudsman position
    makes GALA more competitive in mass media and closer to its audience.

    "The management of GALA wants to reach for a broader audience and make
    it a really public TV," Tumasyan says. "And I am interested in the
    society- in this case our audience- being intelligent, active,
    well-informed, and capable of standing up for their rights."

    In the last two years GALA was often the center of public attention.
    In October 2007 the company became a target of tax check-ups, fines,
    court trials and persecutions after it broadcast a speech delivered by
    the first president of Armenia Levon Ter-Petrosyan and later on was
    broadcasting news related to opposition rallies, March 1 clashes and
    other news. As a result of the tax check-ups the TV Company was fined
    25,665,100 drams ($85,550).

    GALA succeeded to avoid closure due to public fundraising. Gyumri
    residents, as well as Yerevan based organization and international
    organization responded instantly to the fundraising and GALA collected
    the required amount and paid off fines..

    The ombudsman says he will do his best to make GALA's production team
    lend an attentive ear to public opinion, to their viewers, and try to
    change the program policy taking into account all opinions, whether
    positive or negative.

    "We wanted Gala's ombudsman be a well known and respected person in
    Gyumri, a person whom we can trust," says GALA's chief editor Hamlet
    Mosinyan. "We chose Tumasyan and have signed a three month contract
    with him after which, he will either continue work, or be replaced by
    another person."

    GALA's ombudsman will not be paid by the station but, rather, from an
    undetermined source the management says.

    In the first 10 days since the position was announced, Tumasyan says
    he received more than 30 phone calls. About a third concerned current
    broadcasting, while the rest were suggestions for future coverage.

    About 20 calls came in from viewers complaining that their civil
    rights had been violated in one way or another. A couple were
    complaints of how GALA covered recent local elections.

    Tumasyan, has worked in media sphere for a few years, but has not
    studied any relevant international experiences of TV ombudsmen. His
    consultant has been the head of Gyumri's Asparez press club Levon
    Barseghyan.

    While championing independence, Tumasyan himself comes to the position
    from a background in politics, having served in leadership of the
    National Democratic Union (led by former presidential candidate Vazgen
    Manukyan). GALA management says Tumasyan's party membership will not
    affect his judgment.

    "We consider Tumasyan to be a sane person, who proved many times his
    devotion to the freedom of speech; he was with GALA all the time when
    TV was in trouble, and I am sure his unbiased and independent thought
    will be demonstrated during his ombudsman activity," says GALA editor
    Mosinyan.
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