As international sanctions pile up against Russia, Armenia, a country literally powered by the Russian economy, expects to get hit, too.
Armenian officials and economy-wonks are not certain about the size and scope of the impact, but they are positive there is going to be one. Russia is Armenia’s single largest investor, export-outlet and energy supplier, so the lateral effects of the sanctions could be potentially felt in all those directions. “At this stage it is hard to make expert conclusions. Even the Russian experts do not yet have precise calculations,” Economy Minister Karen Chshmatirian was quoted as saying by Regnum news agency.
The latest round of US sanctions targeted, among others, Russia’s VTB Bank, which happens to be the largest private lender in Armenia. “The measures taken by the US Government to restrict VTB’s access to the capital market do not impact the bank’s operational performance and creditworthiness,” asserted VTB, which is majority-owned by the Russian government. Bloomberg, however, reported that major international lenders to the VTB Group already have put on hold a $1.5-billion loan to the bank.
Another target of the sanctions, Gazprombank, also has a presence in Armenia. It is owned by Russia’s state energy giant Gazprom, which essentially is the sole supplier of natural gas to Armenia.
A cement company owned by Russian oligarch Filaret Galchev appears to have become the latest target of an assets grab by Uzbekistan’s government, sparking speculation that this is part of a re-division of economic spoils following the fall from grace of Gulnara Karimova, the daughter of President Islam Karimov.
A Tashkent court has ruled that the post-Soviet privatization of the Akhangarantsement company – owned by Galchev’s Russia-based Eurocement – way back in 1994 was illegal, and froze assets worth 414 billion sums (nearly $180 million), the company said in a July 29 statement.
The claims of illegal privatization “are of an unfounded and illegal nature, as was convincingly demonstrated in the court hearing,” it quoted Mikhail Skorokhod, Eurocement’s president, as saying.
The assault on the firm was quite sudden, he said: The company found out about the lawsuit brought by the government’s antimonopoly committee on July 16. Hearings started two days later, and on July 21 the court deemed the privatization illegal.
The ruling effectively places the firm – Uzbekistan’s second largest cement producer – back in the hands of the state, a full two decades after it was put into private hands in the post-Soviet privatization rush.
Eurocement – whose owner, Galchev, is Russia’s 24th richest man with a fortune of $6.1 billion, according to Forbes – acquired a 75-percent stake in Akhangarantsement in 2006 and now owns an 84-percent share, with the rest in the hands of minority shareholders.
Georgia is now chasing its former president, Mikheil Saakashvili, with criminal charges of abuse of authority. But the leader of the 2003 Rose Revolution has no intention of turning himself in to prosecutors whom some see as fixated on crushing the ex-president and his allies.
The United States Department of State has added Turkmenistan to its shortlist of especially worrying religious freedom offenders, calling the reclusive Central Asian nation a “Country of Particular Concern” for the first time.
Turkmenistan has never been regarded as shining example of religious tolerance. Some of the country’s heavily monitored mosques are even inscribed with folk wisdom from the “book of the soul,” which was written by the country’s eccentric first president, Saparmurat Niyazov—a pertinent metaphor for the ever-watchful eye the state casts over worshippers.
But according to Secretary of State John Kerry, speaking on July 28 at the rollout of the latest annual International Religious Freedom Report, last year Ashgabat plumbed new depths in its persecution of the faithful:
When countries undermine or attack religious freedom, they not only unjustly threaten the people that they target; they also threaten their country’s own stability. That’s why we, today, add Turkmenistan to the list of Countries of Particular Concern. We have seen reports that people in Turkmenistan are detained, beaten, and tortured because of their religious beliefs. The Government of Turkmenistan has passed religious laws that prohibit people from wearing religious attire in public places or that impose fines for distributing religious literature. And the authorities continue to arrest and imprison Jehovah’s Witnesses who are conscientious objectors to military service.
The last few years have seen Ankara's regional role in the Middle East become severly diminished as its relations with one neighbor after another went downhill. But could the current war in Gaza between Hamas and Israel offer Turkey a chance to reassert its regional relevance?
The promise of that happening is certainly there, especially after Turkish Foreign Minister Ahmet Davutoglu was included in a mini-summit this past Saturday in Paris that brought him together with Secretary of State John Kerry and the foreign ministers of Qatar, France, Germany, Italy and the U.K. in a failed effort to create a ceasefire in Gaza.
The inclusion of Turkey made certain sense, since -- like Qatar -- it is has been a strong supporter of Hamas in recent years and is considered to have an open line to the organization's leadership. Ankara has also been showing its support for Gaza in material terms, recently sending some 17 tons of medicine to the besieged area and also providing funding for fuel for Gaza's only power plant.
In a previous post, this blog wrote about the grill masters of Gaziantep, considered by many to be Turkey's culinary capital. Along with kebabs, the city is also famous for its baklava, sold from countless little shops throughout Gaziantep.
In an article in yesterday's New York Times, writer Elizabeth Field, who recently made a baklava pilgrimage to Gaziantep, provides an excellent take on what make the city such a inviting culinary destination. From her piece:
The first thing you notice among passengers departing from Oguzeli Airport in Gaziantep, Turkey, is the profusion of shopping bags containing baklava, the intensely sweet Middle Eastern phyllo pastry and nut confection that is a staple of every Turkish celebration. This city of about a million people, in the province of the same name and situated on the Silk Road about 530 miles southeast of Istanbul, claims some 100 baklava shops, which supply 90 percent of the baklava consumed in Turkey. Last December, Gaziantep baklava, which is made with locally grown pistachio nuts, was awarded “protected status” by the European Union, a designation that recognizes a specific local food, protects it from imitators and potentially helps boost tourism to the area.
I had never heard of Gaziantep (often called Antep), until I attended the Gastro Istanbul culinary festival in May 2013. Countless Turkish chefs extolled it as not only the baklava capital of Turkey but also the home of Turkey’s richest regional cuisine. “It’s got a great climate that produces outstanding local produce, an ancient history that reflects Anatolian, Middle Eastern and Mediterranean influences, and a traditional food culture,” the Turkish food writer Aylin Oney Tan told me.
They may be a small group, but they are tough mountain men, seasoned in war and guerrilla-living. They are part of the Vostok (The East) battalion and, according to testimonies by local insurgents, they are making all the difference in the rebellion against the central authorities in Kyiv. They are, of course, the South Ossetians.
Their tiny South-Caucasus region has yet to convince the world — bar Russia and a handful of other countries — to accept its independence from Georgia, but South Ossetia itself is not shy about recognizing the legitimacy of fellow separatists in need. It was the first and only place to recognize Ukraine’s twin breakaway, self-declared republics of Donetsk and Luhansk as independent states, and is expecting credentialed ambassadors to show up in South Ossetia’s main city, Tskhnivali, any day now.
But the separatist camaraderie has gone beyond just recognition. South Ossetia is now busy sending money, clothing and fighters to eastern Ukraine, Russian media report. And this last despite the widespread international belief that the amateur rebel warfare there caused the July 17 Malaysian Airlines tragedy.
Kazakhstan's flagship Astana cycling team claimed victory in this year's Tour de France as the team’s Italian leader Vincenzo Nibali lead the turquoise and yellow charge into Paris on July 27.
Nibali bested his nearest rival by over seven minutes to record a third Tour de France success for the Astana team. He won his kisses, too: Earlier, after Nibali had won the second stage of the race, he was awkwardly rebuffed. This time there were no uncomfortable scenes on the winner's rostrum.
The Astana Pro Team for this year's Tour included three Italians, two riders from Kazakhstan and one rider each from Denmark, Ukraine, The Netherlands and Estonia. Spaniard Alberto Contador previously led Astana to wins in 2009 and again in 2010. But the 2010 victory was soured as Contador was stripped of the title over doping allegations.
Following the retirement of Kazakhstan's most famous rider Alexander Vinokourov in 2012, the Astana team was overhauled for the 2013 season with the arrival of an Italian contingent headed by Nibali and two of his teammates from the Liquigas-Cannondale team. Astana scored an immediate success with Nibali, nicknamed “the Shark,” winning the 2013 Giro d'Italia.
The Astana Pro Team was formed in 2006 and has garnered heaps of international PR for Kazakhstan's glitzy new capital, Astana. Its main sponsor is the state asset holding company Samruk-Kazyna, which pumps in more than $20 million a year to keep the wheels turning and buff up Kazakhstan’s international image.
Georgian soldiers take part in American training in Germany to prepare them for deployment to Afghanistan, 2012. (photo: Spc. Robert Sheets, U.S. Army Europe)
The United States is preparing a military aid package of about $35 million to help Georgia, Moldova, and Ukraine defend themselves against Russia.
The money would be part of a much larger, $1 billion European Reassurance Initiative that the White House announced about two months ago. Part of the plan, as announced originally, would be to: "Build the partner capacity of close friends such as Georgia, Moldova, and Ukraine so they can better work alongside the United States and NATO, as well as provide for their own defense."
At a recent Congressional hearing on the Initiative and other Pentagon funding programs, U.S. officials gave a little more detail about how that $1 billion would be apportioned. And they revealed that the largest amount of money would go to bolstering the presence of U.S. troops in Eastern Europe. From the testimony (pdf) of Deputy Secretary of Defense Robert Work:
Approximately $440 million will go to increase the U.S. military presence in Europe by:
• Enabling rotation of elements of an Army armored brigade combat team into Europe;
• Providing additional funds for expanded naval deployments in the Black and Baltic Seas;
• Augmenting NATO’s Air Policing mission; and
• Either temporarily delaying withdrawal of Air Force F-15C aircraft from Europe or increasing aircraft rotations to Europe.
And most of the rest would go to NATO allies in Eastern Europe:
Armenia’s planned participation in this second Union has experienced repeated delays; according to some observers, because of the lack of consensus among the bloc’s members (Belarus, Kazakhstan and Russia) about Yerevan’s political and economic requests.
The official line is that this merger still will happen. Nonetheless, Armenia clearly doesn’t want to miss out on all the easier access to Paris, Rome and beyond that three more EU-enthusiastic members of the Eastern Partnership Program are having (Moldova) or soon could be having (Georgia, Ukraine) .
The EU’s thoughts about Nalbandian’s petition do not appear to have been released yet. To enhance Yerevan’s chances on this front, the foreign minister also spoke about the possibility for stronger ties with Brussels and stressed the EU’s role in Armenia’s democratization reforms.