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FOR JANUARY - APRIL THE VOLUME OF CARGO ACTIVITIES IN AZERBAIJAN HAS MADE 36 MM T

BAKU.21.05.2004.MEDIA-PRESS: For four months of 2004 the volume of cargo activities in Azerbaijan has made 36 MM tons - by 7.8% more than for the same period of 2003.
By data of the State Statistic Committee, 52.9% of cargos were transported by cars, 18.2% - by railway, 16.8% - by main pipelines, and 12.1% - by marine transport.
Cargo activities by car grew by 0.5% as compared to the analogous period of the past year, railway - 0.1%, marine transport - 0.3%. Deliveries by pipelines reduced by 0.9%.
By predictions, in 2004 the volume of cargo activities will make 111.5 MM tons that is will grow by 6.4% as compared to 2003. In particular, cars will transport 61 MM of cargos (a growth is 7%), railway will transport 19.3 MM tons (a growth is 3.7%) and pipelines will transport 17.2 MM tons (a growth by 2.3%), 14 MM tons - marine (a growth by 12.9%).


THE OFFICIALS OF TPAO HAVE DISPROVED RUMORS ABOUT THAT THE COMPANY IS GOING TO LEAVE FROM THE PROJECT "AZERI - CHIRAQ - GUNESHLI"

BAKU.21.05.2004.MEDIA-PRESS: "Our company is not going to leave from the project of the development of the fields "Azeri - Chiraq - Guneshli". The information of the newspaper of "Civil Solidarity" about that we leave this project in a sign of protest against the position of Azerbaijan on the Cyprus problem is not true and baseless". Officials of the Baku Office of the Turkish company TPAO declared this to Media-Press.
We shall remind that the by information of some mass media, the newspaper "The Civil Solidarity" has published a sensation information that the Turkish TPAO leaves from Azerbaijan and sells its share in the project "Azeri - Chiraq - Guneshli". However, authors of this "sensation" have forgot that TPAO does not shares in any Azerbaijan oil and gas project. Besides of 6.75% of stocks in the project of the development "Azeri - Chiraq - Guneshli" has also 9% in the gas project "Shakh-Deniz", 5% in the agreement on exploration and development of the contract area "Kurdashi", 10% - in the contract on structures "Araz - Alov - Sharg". Besides of this, TPAO has 5.08% in the sponsor group founded for financing the construction of the Main Export Pipeline Baku - Tbilisi - Ceyhan. If logic of the newspaper will be followed to, the TPAO should sell its sharing in this projects for leaving from Azerbaijan. However, nobody refuse of such business.
Especially as for years of operation in Azerbaijan (since 1994) the company has allocated $1.2 bn to the energetic projects in the country. By this rate the TPAO occupies the fourth place among oil companies operating in Azerbaijan after BP, ExxonMobil and Statoil. This year TPAO plans to allocate else $500 MM to the Azerbaijan projects. And in the forthcoming five years this figure will increase else by $2 bn.


THE NEXT PARTY OF PROFITABLE OIL OF AZERBAIJAN WITHIN FRAMEWORKS OF THE PROJECT ACG HAS BEEN SOLD FOR $39 MM

BAKU.21.05.2004.MEDIA-PRESS: The State Oil Company of Azerbaijan has earned $39 MM from sales of 1 MM bbl of profitable oil. In the next time these means will be transferred to the State Oil Fund of Azerbaijan (the SOFA). The Executive Director of the SOFA Mr. Samir Sharifov has informed journalists about this.
This is the 33rd party of profitable oil of Azerbaijan since the start of oil production on the field "Chiraq" and the third one this year. The British company "Arcadia" has purchased it. The Italian API Oil has purchased the first in 2004 and the Austrian company OMV has purchased the second party. The tender on purchasing profitable oil of Azerbaijan is held twice in two months.
The Azerbaijan International Operating Company AIOC produces the profitable oil within frameworks of the contract "Azeri - Chiraq - Guneshli" from the field "Chiraq" and exported by the route Baku - Supsa. The produced oil is distributed amongst the shareholders in dependence on their sharing.
Within the project "Early Oil" the AIOC has produced above 240 MM bbl of oil (about 33 MM tons) on the field "Chiraq" since November 1997. For this period 218 tankers have been shipped for export (28 MM tons of oil), including 32 tankers (above 4.2 MM tons) shipped by the profitable oil from Azerbaijan.


GLOOMY FORECASTS OF THE ARMENIANS EXPERTS REALIZE: MR. SAAKASHVILY HAS DECIDED TO DRIVE ARMENIA TO DEADLOCK

BAKU.21.05.2004.MEDIA-PRESS: "We have achieved an agreement on joining of the Georgian Railway passing by the territory of Adjaria to the system of Railways of Turkey", - the President of Georgia Mr. M. Saakashvily has said on the briefing in Ankara after the end of meeting with the President of Turkey Mr. Akhmed Nejet Sezer. The Georgian President is in Turkey with the state visit.
As Mr. Saakashvili has declared, the sides have agreed to adjust the railway communication between both the countries. "A great work shall be done: at first the Turkish segment up to the frontier with Georgia should be built. We hope to carry out the project of connection of two railways by joint forces and find those, who will invest to the project - supposedly countries-donors, banks and other finance resources", - the President of Georgia has said.
By his words, the railway will allow Georgia to connect to the railway system of Europe through Turkey and Turkey would be able to export its cargos to Russia and Central Asian countries through Georgia.
Thus, gloomy forecasts of the Armenian experts that in conditions of the delay of the railway line connecting Turkey with Armenia and further Georgia and Russia, the Turkish side will find out the alternative.
The Agency REGNUM quotes the words of the Executive Director of the largest Armenian transport-expeditor company "Apaven" Mr. Gagik Agadjanyan: "Armenia is a large geographical crossway, however it is not able unfortunately, use this advantage for political problems - particularly with Turkey in this case.
As to the railway Turkey - Armenia - Georgia, Mr. Agadjanyan has noted that in formed conditions "Armenia risks, because men, who will finance a construction of the railway Kars (Turkey) - Ahalkalaki (Georgia) may appear. And this means that we are driven to deadlock. Today Turkey understands very well that for getting to Azerbaijan it should to go roundabout Armenia. The line Kars - Ahalkalaki will allow Turkey to connect with Azerbaijan by railway transit through Georgia.
In accordance with the declaration of the Georgian leader, Turkey will connect with not only Azerbaijan roundabout Armenia, but also Russia. The fact that Mr. Saakashvili has reminded the direction, which differed some from one predicted the Armenian expert does not change an essence of the matter. The fact is real: in a case of construction of railway connecting Georgia and Turkey, opening of existing, however delaying to date line Turkey - Armenia will become the least probable. At the same time some experts register an extreme complexity of realization of the project of the construction of the direct railway communication between Georgia and Turkey for high mountains in this regions. The route from Turkey to Armenia was not chosen occasionally that time. Nevertheless there is high probability that Ankara and Tbilisi will find sponsors in the end although for interests of the USA in direct connections of both the countries: this allow deliver the American cargos including military ones without their passing through the territory of the third countries, particularly Armenia, satellite of Russia.


RUSSIA, AZERBAIJAN AND IRAN CREATE CONSORTIUM WITHIN FRAMEWORKS OF THE INTERNATIONAL TRANSPORT ROUTE "NORTH - SOUTH"

BAKU.21.05.2004.MEDIA-PRESS: Russia, Azerbaijan and Iran create the international consortium on the construction of the railway branch within frameworks of the international corridor (ITC) "North-South". This agreement has been achieved during the meeting of the chiefs of the railways of three countries.
As the President of OJC "The Russia Railways" Mr. Gennadi Fadeev has informed during the joint press conference, the project provides the construction of the railway branch Kazvin - Resht (Iran) - Astara (Azerbaijan), which should to connect the railway structure of Iran through Azerbaijan with the Russian one.
The issue of the foundation of the international consortium "has been decided principally and the concrete staff and a start of the operation of the consortium will be agreed during the same trilateral meeting in Baku", - Mr. Fadeev has said.
By the words of Mr. Fadeev, already in the beginning of the future year a realization of the project on the construction of the new railway branch may start. At the same time the Director of the RRW has not excluded that the consortium may be extended in future. Besides of the mentioned countries India (the country-member of the international route "North - South") and further Pakistan (after completion of the construction of the railway Kerman - Zakhedan) and countries of the Persian Gulf may be attracted to the realization of the project.
The railway Kazvin - Resht - Astara is the part of the western route of the international transport route "North - South". Within the project by a cost of $177 Mm the construction of the railway, which will pass through Azerbaijan to the Iranian transport cross point Kazvin. A length of the line makes 350 km.
As Mr. Fadeev has noted, expectedly in 4 - 5 years this project will justify itself if even annual cargo activities make 4 MM tons, though by his opinion, "they may be significantly higher". This will be the project of high efficiency with the stable activities", - he has said. In connection with this is not worthwhile to be afraid of risks, the President of the OJC "RRW" has emphasized.
In his turn the Deputy Minister of Roads and Transport of the IRI, the Chief of the Railway Office of this country Mr. Saidnejad Mokhamad has noted that "the new route will increase cargo activities between Russia and Iran up to 8 MM tons annually". He has reminded that he cargo railway transportation between Moscow and Tehran was interrupted in 1990 for the Karabakh conflict. Before this, he has noted, "railway transportation between our countries made about 3 MM tons of cargos annually".
As the Minister of Transport of Azerbaijan Mr. Ziya Mamedov informed earlier, the construction of the railway Astara (Azerbaijan) - Astara (Iran) within frameworks of the project "North - South" is estimated by $12 MM. This project provides the construction of the railway branch and number of bridges as well as special passageway for wagons for incongruity of railway standards in Azerbaijan and Iran. Mr.Mamedov has told that a number of countries including Russia express their readiness for crediting this project.
The railway branch Kazvin - Resht - Astara will complete forming of the corridor "North - South". The experts believe that as compared to the marine transport Transcaspian route existing now, the railway Kazvin - Astara will reduce a time of cargo deliveries by 5 - 14 days.


THE USA WILL ASSIST AZERBAIJAN IN JOINING TO THE WORLD TRADE ORGANIZATION

BAKU.21.05.2004.MEDIA-PRESS: The USA will assist to Azerbaijan in joining to the World Trade Organization (WTO). The coordinator of the administration of the USA on countries of Europe and Eurasia Mr. Carlos Pascal has informed.
He has said that in the first turn a support will be of technical character and experts will render it for creation of relevant legislative base in Azerbaijan, which would correspond to requirements of the WTO. The American diplomat has not called the concrete date of joining of Azerbaijan to the WTO and noted that this will depend entirely on a period required for execution of relevant conditions and procedures.
Mr. Pascal, who head the delegation of the USA at the next sitting of bilateral working group on economic cooperation, held in Baku has informed that issues of competitive bank system in Azerbaijan, effective managing oil profits, foundation of the new working group, development of small and middle business were main discussions.
Mr. Pascal has noted also that now a possibility on creation of the new working group for development of so called program of social investing. The activities of this group, by his words, will be directed for allocation of donors to Azerbaijan for investing in different fields of economy.
By the words of the American diplomat, in 2004 the USA plan to render assistance to Azerbaijan by a total of $70 MM, and $20 MM will be transferred to humanitarian support, $9 MM - "development of democracy and democratic institutes", $11 MM - support to law-enforcement organs, $13.5MM - economic assistance, $4.8 MM - student exchange program.
In 2003 the USA have allocated $68 MM to Azerbaijan, Mr. Pascal has reminded.


MR. KHAVIER SOLANA: THE EUROPEAN UNION SUPPORTS STAGE BY STAGE WAY OF ADJUSTMENT OF THE KARABAKH CONFLICT

BAKU.21.05.2004.MEDIA-PRESS: The European Union will consider a possibility of taking part into searches for ways of adjustment of the Karabakh conflict. The General Secretary of the EU on external policy and security Mr. Khavier Solana has said after negotiations in Brussels with the President of Azerbaijan Mr. Ilham Aliyev.
In accordance with the information of BBC, Mr. Solana has noted that the EU intends to support the stage by stage way of adjustment of the conflict, in which not only Azerbaijan and Armenia would take part, but also Turkey.
Mr. Solana has noted that there are not registered positive changes in adjustment of the conflict. "We hope that meetings between the Presidents of Armenia and Azerbaijan as well as the foreign ministries should promote to the progress of the process", - he has said.
As BBC notes, the President of Azerbaijan has given an opportunity to understand that the way of the EU satisfies him enough. By the words of one of the diplomats of the EU, Brussels considers a possibility of conduction of trilateral discussion between Azerbaijan, Armenia and Turkey. By the words of diplomat, the USA pressured on Turkey in the last time, demanding opening frontiers with Armenia.


THE PRESIDENT OF AZERBAIJAN CONFIRMS A READINESS FOR ALLOWING AUTONOMOUS STATUS TO NAGORNI KARABAKH

BAKU.21.05.2004.MEDIA-PRESS: The President of Azerbaijan has confirmed a readiness for allowing autonomous status to Nagorni Karabakh. The Azerbaijan TV channel quoted partially his interview on Thursday.
"We have announced openly to the world society that we are ready for allocation of high autonomous status to the Armenians of the Nagorni Karabakh", - the President of Azerbaijan has said. At the same time he has emphasized that "intensions of the Armenians to self-determination are entirely absurd as they long time ago have established their independence". "They have country called Armenia", - Mr. I. Aliyev has said.
By his words, "up to date a large number of the Armenians live in San-Francisco, Marcel, Georgia and Russia". "And thus have they to found their separate states in each of these places?", - he has asked.
Mr. I. Aliyev has emphasized that the same situation has formed also in Azerbaijan. "They are in minority and may use all rights provided for ethnic minorities", - the President of Azerbaijan has said.


"WHOM DOES THE "ARMENIAN LOBBY" PAY OUT IN THE PAEC?

BAKU.21.05.2004.MEDIA-PRESS: The Deputy of Milli Mejlis of Azerbaijan (the Parliament of the country), the member of the national delegation in the PAEC Mr. Rafael Guseynov shares his ideas on the Nagorni Karabakh problem and positions of some officials of the PAEC on this issue in the interview to the agency REGNUM.
Hereto published the interview.
What do you think about the last declaration of the Deputy of the European Parliament Mr. Par Carton in Erivan that he does not accepts Nagorni Karabakh, which will have been included in Azerbaijan?
This may by the next lie of the Armenian mass media. However, if Sir Garton said really similar phrases, this shows only his incompetence. This deputy is co-reporter of the EP on the South Caucasus. And if he makes such declarations, how may we believe to his objectivity as a reporter. A professional diplomat and policy maker will never say such words. Probably, "the Armenian lobby" has paid out good money to him.
For years of work in the EC, I have seen many similar men as Garton. Such men said to me that they "supported" just demands of Azerbaijan, and then changed sharply their opinions. One day I asked one of such deputies, why he changed so often his opinion, and he answered me that "the Armenian friends have made an offer, and it is impossible to refuse of it". I not only think, but also confirm that declarations of Garton are the next actions of the "Armenian lobby". Any health minded policy maker opposes to separatism, however Garton, by my opinion does not know this term. He has supported the Armenian Karabakh separatism and in such way broken the integrity principle of the Azerbaijan integrity. I think that the Azerbaijan authorities should express their opinion to the chiefs of the EU and EP. But the EU and EP have recognized the integrity of the Azerbaijan territory including Nagorni Karabakh and occupied seven regions.
And what do you think about another declaration of Mr. Garton that Azerbaijan and Turkey should restore the former communications with Armenia without any conditions?
This is else one gibberish of Garton. The position of Azerbaijan in this issue is famous to all world community. While Armenia does not leaves from the occupied territories and recognize territorial integrity of Azerbaijan, there is not any question about restoration of communications and economic relations. It seems to me that Garton did not recognize his actions when he made such declarations. I do not causes of this: whether the Armenian brandy or his subjective relations to Azerbaijan.
Can the international organizations to take the declarations of Par Garton as a base?
Not at all. This is the declaration of separate deputy. And we have often heard such declaration for these ten years. And in the end this is not opinion of the EU. If Armenia will still stand on its position further Azerbaijan remains his right to solve this problem in any way.
Do you contact with the Armenian colleagues in the PAEC?
I do not contact privately, but if the Armenian deputies want to discuss some constructive offers, I am ready always. But a great trouble of the Armenians is that they don not recognize their mistakes. The truth is for Azerbaijan and I think that sooner or later they will recognize this. And for the present they are under influence of forces, who do not want stability in Caucasus.


THE USA AND NATO DEVELOP THE PROGRAM OF AID TO SOUTH CAUCASUS COUNTRIES IN THE MILITARY FIELD

BAKU.21.05.2004.MEDIA-PRESS: The USA and NATO develop unprecedented program of aid to former Soviet republic of the South Caucasus in military field. By the information of ITAR-TASS, the sources in the European commandment of the USA's troops located in Germany inform about this. Particularly, by their information, the Baltic states, which recently joined to the alliance, are ready to play active role in these efforts.
The Americans intend to continue the "careful applying of soften strength" on Caucasus. The program "To Teach an Equip Georgia" by a cost of 65 MM dollars is a sample of such strategy. By data of the newspaoper "Boston Globe", within frameworks of this program the USA has trained four infantry battalions and one tank company since 2002.
And the new American initiative "The Caspian Guard" overcomes Caucasus already. It should to assist Azerbaijan and Kazakhstan to strengthen safety of the Caspian region in the sea, land and air. The United States and their satellites do not hide that they are interested in the first turn in unhindered Caspian oil deliveries. At the same time with the USA the Great Britain, Germany and Turkey render significant military aid to the countries of the South Caucasus.
As to Latvia, Lithuania and Estonia, they are ready for sharing the experience of troops with Azerbaijan for their correspondence to the NATO standards. Besides, three Baltic republics express their wills to assist in training of frontier guards.
Particularly the two days conference of officials of the NATO's Ministries of Defense held in the German town Garmish-Partenkirkhen in this month by the European Center of Security Researches, was devoted to coordination of efforts for rendering aid to the countries of the South Caucasus. By the information of "Boston Globe", officials of Georgia and Armenia have taken part in this forum.
We shall remind that for the current year the USA provided separately budget allocations for development of military field of republics of the South Caucasus. For Azerbaijan this figure has made $12 MM, Georgia - $8 MM and only $2 MM for Armenia.


THE MISSION OF THE WB WILL FAMILIARIZE WITH REALIZATION OF TWO IRRIGATION PROJECTS IN AZERBAIJAN

BAKU.21.05.2004.MEDIA-PRESS: For familiarizing with the realization of irrigation projects the Mission of the WB arrives in Baku on May 24.
As Media-Press has been informed in the Baku Office of the WB, the experts of the bank will conduct meetings in the working groups of both the projects and familiarize with their realization on places.
Two irrigation projects are realized in Azerbaijan jointly with the WB - "The Restoration of the Irrigation System and Infrastructure of Draining Systems" and "Modernization of Water Distribution System in Azerbaijan".
The first one consists of three components: prevention of the further degradation of water supplying of Baku City, improvement of draining system of Samur-Absheron Channel and restoration of the pumping economy. Its realization has started on November of 2003 and is planned by the end of May of 2006. The cost of the project makes $46.86 MM and 42 MM - the credit of the World Bank.
The joint working group of the WB and State Committe of Azerbaijan of Melioration and Water Economy has developed the second project. During the work experts studied potential affect on environment in its realization as well as conducted the expertise of reliability and security of dams in Azerbaijan. The project is realized in 11 regions of the country. This will allow adjusting normal irrigation of 56 thou hectares.
A cost of the project makes $39 MM, and the credit of the WB will make $35 MM. The government of Azerbaijan will allocate rest $4 MM. The credit has been allocated for 35 years under 0.75% annual rate with 10 years favorable period.


FOR FOUR MONTHS OF 2004 THE INVESTMENTS TO THE ECONOMY OF AZERBAIJAN MADE 7.163 TRLN MANATS

BAKU.21.05.2004.MEDIA-PRESS: The volume of the investments to the economy of Azerbaijan from all finance sources has made 7.163 trln manats (the official course for April 21 - 4914 manats/$1). This exceeds the analogous rate of 2003 by 63.4%.
A share of the foreign investments made 86.8% or 6.21 trln manats, a share of inner investments - 13.2% or 945.5 bn manats.
In account of proper means of the enterprises and organizations (including foreign ones) 6.46 trln manats (90.3%), bank credits by 28bn manats (0.4%), budget means - 7.87 bn (1.1%), nonbudget funds - 7.1 bn manats (0.1%), proper means of the population - 39.3 bn manats (5.5%) were allocated to the economy of the country.
It is expected that in 2004 18 trln 405.4 bn manats (about $3.755 bn) will be allocated to the economy of Azerbaijan and the foreign investments will make 14 trln 855.4 bn, and inner ones - 3 trln 550 bn manats.
In the past year the investments to the economy of the country made $3 bn and since the beginning of 1996 the total volume mad about $16 bn. For the present Azerbaijan occupies one of the leading places amongst the countries of the CIS and Eastern Europe by investments per capita.

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