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IRAN WARNS UNILATERAL AND PROVOCATION MEASURES ON THE CASPIAN PROBLEMS

BAKU.30.04.2004.MEDIA-PRESS: Iran continues to insist on using hydrocarbon resources of the Caspian Sea on a base of either condominium or sharing the sea by 20% for each country. The Ambassador of the Islamic Republic of Iran in Kazakhstan Mr. Morteza Safari has declared about this in Astana.
By his words, else recently the Caspian Sea has been considered as a source of fish and caviar and today the region is considered not only from the point of view of production of oil and gas, but also saving the regional safety. In connection with this, the Ambassador has underlined, Iran calls to "escape unilateral and provocation measures, which do not correspond to interests of good neighbor relations".
The Iranian side hopes that the Convention on the legal status of the Caspian status will correspond to interests of all Caspian states after its acceptance. Moreover, Mr. Morteza Safari has noted, the littoral countries should solve issues of the international standards in the Caspian Sea, as they present great threat for safety of states if they are not kept.


MR. VICTOR KALYUZNI: THE PRINCIPLE OF NON-DAMAGING SHOULD BE KEPT DURING OPERATIONS IN THE CASPIAN SEA

BAKU.30.04.2004.MEDIA-PRESS: The life and work in the Caspian Sea is continuing independently from a degree of progress of the Caspian states in the international legal adjustment. Especial responsibility of each subject operating in the Caspian Sea, either it is a state organ or private company, bases on this.
The Special Envoy of the President of the RF on the Caspian problems Mr. Victor Kalyuzni has declared about this. By his words, for the present common regulations and principles have not worked out, each subject should keep voluntarily behavior rules based on esteeming legal interests of the rest ones and the main thing, non-damaging to the common property - the Caspian sea and its environment.


RUSSIA OPPOSES TO ESTABLISHING FISHERY ZONES IN THE CASPIAN SEA

BAKU.30.04.2004.MEDIA-PRESS: Russia opposes to establishing fishery zones in the Caspian Sea.
Mr. Victor Kalyuzni has said about this on the first international forum "The Caspian Sea, Policy, Economy, Business".
By his opinion in a case of establishing of fishery zones "a serious blow" will be inflicted on biological resources of the sea.
Mr. Kalyuzni is not agreed with confirmations that it is easier to adjust work with illegal fishery. "Operating together we shall manage to get more than alone. In the end all caught fish is returned to shore". "And if we can not now win illegal fisher, then zones will not help us as well", - the special envoy of the President of Russia has declared.
By his opinion, "appearance of fishery zones will break efficiency of collective regulating of fishery economy activity and opportunities for constant reproduction of biological resources". Russia has corrected its position suggesting establishing 15 miles shore zones in the Caspian Sea, "where the states will have exclusive rights for fishery". "But we should not go further, - Mr. Kalyuzni has said. - Believe us, we save not water, we save fish".


THE ENERGETIC INSTALLATION ON EP-300 SATISFIES ELECTRIC POWER DEMANDS OF THE CHEMICAL COMPLEX OF SUMHAYIT IN ELECTRIC ENERGY BY 50%

BAKU.30.04.2004.MEDIA-PRESS: Owing to putting into operation of steaming gas installation on EP-300 (the production of ethylene-propylene in Sumgayit) the State Company "Azerkhimya" covers electric power demands of the chemical complex of Sumgayit by 50% and steam demands by 100%. The President of "Azerkhimia" Mr. Fikret Sadikhov has informed about this on the press conference.
A capacity of this energy installation makes 32 MWt, productivity of steam - 480 thou tons per hour. However for normal work of chemical enterprises of the city 50 MWt of electric energy are required and so "Azerkhimiya" is forced to purchase additional electric energy from the company Barmek Azerbaijan. Steaming generator consumes only 128 gr of conditional fuel at production of 1 kWt of electric energy and 1kWt costs up to 80 manats. And 150 manats (4919 manats/$1) would be paid at purchasing electric energy outside.
As well Mr. F. Sadikhov has informed that the installation EP-300 is accounted for issue of 300 thou tons of ethylene-propylene. However this year it is supposed to product only 80 thou tons of this production. Problems her are associated with the technological cycle. The technological line was accounted for the Siberian oil when EP-300 was constructed. Now the Azerbaijan oil is delivered to the enterprise and it differs from the Siberian one by its composition.


"AZERKHIMIYA" HAS SETTLED WITH THE JAPANESE BANK "NICHIMEN"

BAKU.30.04.2004.MEDIA-PRESS: The State Company "Azerkhimiya" has paid out entirely the credit received from the Japanese bank "Nichimen" for the constriction of steaming gas installation on production of EP-300 (ethylene-propylene) in Sumgayit. The President of the SC "Azerkhijiya" Mr. Fikret Sadikhov has informed about this on the press conference.
By his words, now "Azerkhimiya" should redeem the credit of the Japanese "Eximbank". The debt to this bank makes $66 now and on July $5.2 MM will be paid out. A term of redemption of the credit "Eximbank" is over in 2011. We shall note that a total of credit for the construction of EP-300 made $86 MM.


IN THE FIRST QUARTER OF THE CURRENT YEAR ENTERPRISES OF THE STATE COMPANY "AZERKHIMIA" MANUFACTURED PRODUCTION BY A TOTAL OF 122 BN MANATS

BAKU.30.04.2004.MEDIA-PRESS: The enterprises of the state company "Azerkhimiya" manufactured production by a total of 122 bn manats (4919 manats/$1) in the first quarter of the current year. The growth of production in comparison with the analogous period of the past year has made 12%, the President of "Azerkhimiya" Mr. Fikret Sadikhov has informed on the press conference.
By his words, today about 8 thou persons work on enterprises of the state company. This year it is planned to open additionally 500 job places. Profitability of the work of state company makes 5 - 6%.
Mr. F. Sadikhov has informed that the state has allocated above 155 MM manats as subsidies and they were spent for purchasing refined benzene. A price for 1 ton of benzene makes about 760 thou manats and the state company pays out totally 300 thou manats per a ton in account of subsidies.
As to enlarging of the production, Mr. F. Sadikhov has informed that it is planned to renew production of rubber and ethylbenzol. Besides, "Azerkhimiya" plans to open production departments in regions of Azerbaijan also. Particularly there, where polyethylene and plastic pipes and for irrigation are used vastly.
By the words of the President of the company, there is not unsold production in stocks excepting 3 thou tons of alkali. All production is of great demand. As to non-realized production, the reason is that production being imported from Russia costs less than local one. If added-cost tax is applied to alkali import from Russia, the local production may compete with it.


THE STATE COMPANY "AZERKHIMIYA" WILL BE TRANSFORMED TO THE JC

BAKU.30.04.2004.MEDIA-PRESS: This year the state company "Azerkhimiya" will be transformed to the JC. The President of the JC "Azerkhimiya" Mr. Fikret Sadikhov has informed about this on the press conference.
By his words, the foreign companies from France, Italy, Yapan and Israel show the great interest to chemical industry of Azerbaijan. However for the present there are not any investments. By opinion of Mr. Sadikhov, this is associated with that "Azerkhimiya" is the state company. However after it changes the status and becomes the JC, most likely the foreign companies will begin cooperation with the Azerbaijan chemical officials.
"It is profitable to invest to the chemical industry of Azerbaijan as we have good specialists and necessary resources", - Mr. F. Sadikhov has emphasized.


IN THE FIRST YEAR OF THE YEAR THE STATE BUDGET EARNINGS OF AZERBAIJAN FROM THE STATE PROPERTY RENT MADE 3.5 BN MANATS

BAKU.30.04.2004.MEDIA-PRESS: For the first quarter of 2004 3.5bn manats earned from the state property rent were transferred to the state budget of Azerbaijan.
As Media-Press has been informed in the MED, forecast on earnings by this article was executed by 295. For given period 146 new agreements were concluded and terms of force of 70 agreements were prolonged.
As well officials of the Ministry have noted that the Department of the State Property and Privatization conducts checking of execution of rent conditions and as well putting an end to illegal use of the state property. It has been revealed that 490 renters have debts to the state budget. All they have received official warnings. For the present some renters have redeemed their debts by a total of 304.6 MM.
Totally 28 thou agreements on the state property were concluded. The earnings to the state budget on this article made 85 bn manats (4919 manats/$1).


THE ISLAMIC DEVELOPMENT BANK WILL ALLOCATE $10 MM FOR THE REALIZATION OF THE IRRIGATION PROJECT

BAKU.30.04.2004.MEDIA-PRESS: The investments of the Islamic Development Bank (IDB) to the realization of the project of the construction of the section of the Samur-Absheron irrigation channel in Azerbaijan will make $10 MM. As Media-Press has been informed in the Ministry of Economic Development of Azerbaijan, the memorandum on this will be signed during the visit of the IBR mission to Baku.
A cost of this project makes $42.5 MM. Supposedly the Saudi Development Fund will allocate also credit by $18 MM and the OPEC Fund - $8 MM. A share of the government of Azerbaijan will make $6.5 in this project.
All credits are favorable; supposedly they have 1% of interest rate per annum and accounted for 30 - 35 years and 8 - 10 years from they are favorable period.


THE USA HAVE ALLOCATED $300 THOU FOR THE DEVELOPMENT OF TOURISM IN AZERBAIJAN

BAKU.30.04.2004.MEDIA-PRESS: The USA have allocated $300 thou for the development of tourism in Azerbaijan. The agreement on this signed in Baku provides the working out of plan of development of tourist industry in the republic, it has been informed in the Ministry of Youth, Sport and Tourism of Azerbaijan. The maker of this plan will be determined jointly with the Trade and Development Agency (a structure of the US State Department) on a base of tender, in which the American companies will take part.
The American experts who studied opportunities of the development of tourism in Azerbaijan estimate the large potential of the country in this sphere. In period of the USSR the republic, on the territory of which 9 of 11 climatic zones are presented was an area of health and resort of all-union significance.
A number of measures of the development of the tourist infrastructure have been taken for last 5 years. Particularly a number of high-class hotels have been built, the international resort zones have founded in regions of the country.
The development of tourism in Azerbaijan is considered as important within frameworks of foundation of new job places and this is a component of the state program of poverty reduction in the country.


PRESIDENT OF AZERBAIJAN MR. ILHAM ALIYEV HAS BEEN AWARDED BY MEDAL OF HONORED MEMBER OF THE EUROPE COUNCIL

BAKU.30.04.2004.MEDIA-PRESS: In Strasbourg, where the spring session of the Parliament Assembly of the Council of Europe is held, the President of the PAEC Mr. Peter Shider has awarded the President of Azerbaijan a medal of Honored Member of the EC.
Mr. Shider has noted at the awarding ceremonial that the Azerbaijan leader has become the second President in history who was awarded by this medal. By his words, Mr, Ilham Aliyev has been awarded by this medal for "active cooperation" with the EU.


THE PRESIDENTS OF THE SOUTH CAUCASUS COUNTRIES HAVE DISCUSSED PROBLEMS OF THE REGION ON THE EUROPEAN ECONOMIC FORUM

BAKU.30.04.2004.MEDIA-PRESS: The Chiefs of Azerbaijan, Georgia, Armenia are resolute in conduction of reforms in their own countries, which would bring to economies of these counties in correspondence with the EU standards. Mr. Ilham Aliyev, Mr. Mikhail Saakashvili and Robert Kocharyan have expressed such their intensions in seminar on the Caucasus region problems, which were held within European Forum in Warsaw.
The chiefs of three republics of the South Caucasus have told about reforms conducted in their countries and plans. In response to questions of participants, Mr. M. Saakashvili has said certainly enough that he hopes on joining of Georgia to the EU in future. "Just recently I was in Brussels and think that this may appear earlier than many expect", - he has emphasized.
In turn Aliyev has reminded the strategic decision on integration with the international structures and world economy accepted still in 1993 by Azerbaijan.
By the words Robert Kocharyan, he does not expect for soon consideration of joining of his country to the united Europe by the EU. He has added however, that if Armenia corresponds to standards of the EU, this may make Europe close to his country.
The issue of the Nagorni Karabakh conlfilict was considered on the seminar. Mr. I. Aliyev has said that the adjustment should be carried out on a base of the international law. He has emphasized that Azerbaijan "esteems territorial integrity wherever" and accounts on the same principle in respect to it.
In turn, Robert Kocharyan has noted that boundaries in the Soviet Union were established specially in such way in order to amplify local conflicts and strengthen central power. "I understand the position of Azerbaijan", - the President of Armenia has noted and added that from his point of view the way of adjustment is "peaceful lovely divorce".


THE PRESIDENT OF AZERBAIJAN HAS EXPRESSED FOR ADJUSTMENT OF THE CONFLICT WITH ARMENIA STAGE BY STAGE

BAKU.30.04.2004.MEDIA-PRESS: Azerbaijan will never agree with loosing of Nagorni Karabakh occupied by Armenia, the President of Azerbaijan Mr, Ilham Aliyev has declared on the spring session of the PAEC in Strasbourg.
The President has said that besides of Nagorni Karabakh, which "has been and remains part of Azerbaijan", Armenia occupies as well some other regions of the Azerbaijan territory.
He has supported the adjustment of the conflict stage by stage. "Withdrawal of the Armenian troops from seven regions of Azerbaijan occupied by them and which do not join to Nagorni Karabakh" would be the first step of such adjustment, he has declared.
"The situation when one of the countries of the EU occupies the territory of the other country of EU is intolerable", - the President of Azerbaijan has emphasized. - Armenia gains nothing from these territories: neither economically nor morally. This only damages to prestige of Armenia in the world. It is similar that the Armenian leaders begin to understand this".
At the same time Mr. Ilham Aliyev has declared with definitely enough that Azerbaijan will not agree with regional economic cooperation with Armenia while the issue of withdrawal of the Armenian troops from these regions is not adjusted. "Azerbaijan can not cooperate with the country, which occupies a part of its territory",- has he said.
After his speech on session of the PAEC Mr . I. Aliyev has emphasized on press conference concerning mediation activities of the Minsk Group on adjustment of the Nagorni Karabakh conflict that Russia, USA and France as co-chairmen of the MG OSCE call to play "their specific role". We hope that all they will activate their activities in this direction", - he has said.
Especial role within frameworks of Minsk Group belongs to Russia, Mr, Ilham Aliyev has noted and not only its geographical state determines this. Russia has good relations with both Azerbaijan and Armenia. And Moscow is good developed in mediation of conflict situations.
Moreover, Mr. I.Aliyev hopes at assistance of the PAEC and EU in adjustment of the conflict. He has informed that at the present time the Political Commission of the PAEC works on report about the Azerbaijan-Armenian conflict where the status of Armenia as the country occupying the part of the Azerbaijan territory will be registered. For occupation, which is the roughest breaking of international law, by the words of I. Aliyev, a number of refugees and migrants has made 1 MM in 8 MM populated Azerbaijan and this is a heavy load for the country.


THE ANALYTICAL CENTER "STRATFOR" ABOUT ARMENIA: "IF YOU WANT TO WIN THE USA'S PARTNER YOU SHOULD BE IT"

BAKU.30.04.2004.MEDIA-PRESS: The American analytical center STRATFOR (Strategic Forecast) has prepared materials under a heading "Battle for the FSU: Wooing Armenia).
The experts of the center conclude that the USA have kept a role of main player in the South Caucasus. By opinion of experts for being really such one, Washington should make Armenia its supporter as Azerbaijan and Georgia have already their adherence to the American vector.
Meanwhile Erivan is the strategic partner of Russia and supports close economic and political relations with Iran. By opinion of STRATFOR, one issue unites Iran and Armenia - complex mutual relations with the regional partner of the USA - Turkey. "The USA will make all possible for pressing on Armenia and then revising of priorities on behalf of the USA will become a single way", - the American experts believe.
"Armenia has occupied territory of the neighbor Azerbaijan and clearly explains that is not going to leave from them. However, for getting a victory over the USA's partner it is necessary to be a partner of the USA", - analysts consider. At the same time, in the next perspective STRATFOR does not expect sharp changing of foreign priorities from Armenia "as firm historical and cultural bounds connect it with Russia". "Nevertheless, an objective of "conquest" of Armenia is executable and the USA will adjust it in long-term perspective due to active and hard work of the diplomatic institutions", - the issue resumes.
It is remarkable, that Washington prepares just real background for this work. The construction of new huge building of the USA Embassy is continued. Washington will spend about $80 MM for the construction of largest embassy in the world (recently information about that the Embassy of Armenia will be less in sizes than the diplomatic mission of the USA in Iraq). The large construction being built on a bank of the Erivan reservoir will be equipped by complicated system of the underground communications and modern security systems.


THE EXPORT OF THE AZERBAIJAN OIL BY THE ROUTE BAKU - NOVOROSSIISK NEEDS IN OPTIMIZATION, THE PRESIDENT I. ALIYEV HAS DECLARED

BAKU.30.04.2004.MEDIA-PRESS: The export of the Azerbaijan oil by the route Baku - Novorossisk needs in optimization, the President of Azerbaijan Mr, Ilham Aliyev has declared speaking out on the press conference in Strasbourg, where he has come for participation in the session of the PAEC. He has reminded that to date the oil pipeline Baku - Novorossiisk exports annually 2.5 MM tons of Azerbaijan oil. Moreover, 6 MM tons of oil is pumped here through the oil pipeline Baku - Supsa.
The President has explained that the question is about oil produced by the SOCAR and he does not take into account deliveries carried out by the foreign companies operating on the territory of the country.
By the words of Mr I. Aliyev, after putting into operation of the oil pipeline Baku - Tbilisi - Ceyhan the exporting capacities of Azerbaijan will grow up to 50 MM tons annually. "This does not mean that we refuse of using the oil pipeline Baku - Novorossiisk", - Mr. I. Aliyev has said and added that the work in this trend needs in "optimization".
He has also informed that at the present time the group joint with Russia considers conditions of such optimization of the Azerbaijan oil export by the Novorossiisk route.


AZERBAIJAN HAS OFFERED TO WORK OUT THE PROJECT OF THE CASPIAN STATUS ON A BASE OF AGREEMENTS WITH RUSSIA AND KAZAKHSTAN

BAKU.30.04.2004.MEDIA-PRESS: The Vice-Minister of Foreign Minister of Azerbaijan Mr. Khalaf Khalafov considers necessary to take principles of agreements between Russia, Azerbaijan and Kazakhstan on sharing of the Caspian bottom as a base of the project of the legal status of the Caspian Sea being developed. He has offered this in Astana on the International forum "The Caspian Sea, Policy, Economy, Business".
Mr. Kh. Khalafov has called negotiations useful in both bilateral and multisided formats. At the same time he has confirmed again the adherence of Azerbaijan to continuation of negotiations with Turkmenistan and Iran.
He has expressed his satisfaction by similarity of approaches of all five Caspian states to solving of ecological problems and has signed that Azerbaijan supports only peaceful using of the Caspian Sea and prevention of its further militarizing.
As to forthcoming II Caspian summit meeting in Tehran, Mr, Khalafov has expressed the opinion that at first it should to work on unsolved principal problems.


KAZAKHSTAN HAS ATTRACTED $13.5 BN THE DEVELOPMENT OF OIL AND GAS FIELDS

BAKU.30.04.2004.MEDIA-PRESS: For years of independence of Kazakhstan $13.5 bn foreign investments have been allocated to the development of oil and gas fields. The Vice-Minister of Economy and Budget Planning of the RK Mr. Kayrat Aytekenov has called such data.
By his words, above 50% of the total investments were allocated for only 3 years. And a share of foreign investments to the development of oil and gas sectors made 50% in average from the total volume for mentioned period. Meanwhile, as the Vice-Minister has noted, the development of oil production in the Caspian Sea is one of the main factors of the economic growth of the country in the long-term perspective. 26% of the state budget incomes are earned in the oil and gas sector. At the same time incomes from oil export organize the finance reserve of the government, Mr. K. Aytekenov has signed.
By the words of the Vice-Minister of Energy and Mineral Resources of Kazakhstan Mr. Lyazzat Kiinov, for the realization of the program of the development of the Kazakhstan sector of the Caspian Sea investments by a total of $28 - 30 bn are required. It is supposed to realize the program of the development by three stages. On the first stage it is planned to continue works on license blocks and negotiations on tender blocks. Besides, on this stage the complex estimation of impact of oil operations on environment will be conducted, the relevant infrastructure and be developed and the Kazakhstan personnel will be trained.
On the second stage (2005 - 2010) it is planned to increase volumes of production of hydrocarbons, continue the exploration works, put into operation the exporting pipelines.
On the third stage (2011 - 2015) it is planned to stabilize a level of offshore production, put into operation additional capacities for hydrocarbons export and conduct environment-restoring works.
The supplies of the Kazakhstan sector of the Caspian Sea make 15 bn tons of conditional fuel.


ISSUES OF TRANSPORTATION OF OIL IN THE SOUTHERN DIRECTION ARE CONSIDERED IN KAZAKHSTAN

BAKU.30.04.2004.MEDIA-PRESS: Issues of the Kazakhstan oil transportation through Turkmenistan and Iran are considered in Kazakhstan. The Managing Director of the JC "NC "KazMunayGaz" Mr,. Kairgeldi Kabildin has declared in Astana on the international forum "The Caspian Sea: policy, economy, business", - the Managing Director of the JC "NC "KazMunayGaz" Mr. Kayrgeldi Kabildin has said.
By his words, issues of oil deliveries up to northern regions of Iran are considered. Further in account of swap operations it is planned to receive the relevant oil volumes in the Persian Gulf. "In future if sufficient, grounded oil resources are available, the construction of the pipeline in direction to ports of the Persian Gulf will be possible", - Mr. K. Kabildin has said. The given direction, by his opinion, is profitable for deliveries of the Caspian oil to markets of the Asian-Pacific Ocean region.


THE FIRST IRANIAN TANKER FOR THE CASPIAN OIL TRANSPORTATION HAS BEEN LAUNCHED

BAKU.30.04.2004.MEDIA-PRESS: On April 29 at the same time with the official ceremony of the operation start of the Iranian oil pipeline Neka - Rey (within frameworks of the deliveries of the Caspian oil by the replacement scheme) in presence of the President of Iran Mr. Mohammad Khatami the first Iranian oil tanker "Iran - Neka" constructed for oil transportation from the Caspian countries to the Iranian port Neka, has been launched in the port Amirabad. The ship costs $7 MM and its deadweight makes 4800 tons.
Up to date foreign ships have been used for delivering 120 - 170 thou bbl of oil from the Caspian countries to the port Neka. After the launching the first Iranian tanker a gradual going over to using the Iranian ships for oil transportation will start.
By the future year it is supposed to increase volumes of oil being delivered by scheme of replacement up to 370 thou bbl. For transportation of such volume of oil the Iranian National Company of oil-bulk fleet has ordered 6 tankers by total deadweight of 63 thou tons. The first one will be ready for operation in 2006.

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