Below are excerpts of a October 9th on-line interview that the Caucasus Journalists Network (www.caucasusjournalists.net ), comprised of Georgian, Azeri and Armenian reporters, conducted with Hrant Bagratyan, a former Prime Minister of Armenia who holds a Doctorate of Economic Sciences and who leads the “Freedom” political party.

H.B. - I think there are going to be relations between these two countries. As an Armenian politician, I must naturally start doing something to promote the amelioration of Russian and Georgian relations. Of course, nothing depends on me, but the normal functioning of the Armenian state reminds us that Armenia will only lose in case Georgia and Russia are on bad terms. Here is a very interesting example: some Armenian wine-makers came to consult me. Naturally, in the course of the conversation it became clear that in case the export of Georgian wines to Russia was stopped, this might mean that Armenian wine-makers would have an opportunity to export more wines to Russia, besides cognac. And the issue of employing the distributors who were engaged in the sales of Georgian wines in Russia emerged. And guess what? No Armenian wine-maker wanted to employ those distributors. And there is a very simple explanation for this - our Georgian colleagues will sooner or later return to the Russian market.

Zerkalo Newspaper (Azerbaijan) - Today energy policy in the South Caucasus largely depends on the policy led by Russia which, I would say, is exclusively unpredictable. How did the temporary cession of communication with Russia affect the energy provision/security of Armenia?

H.B. - Naturally it was rather badly affected. But, taken on a larger scale, say the past 20 years, Armenia has managed to survive. It is not accidental that Armenia has the lowest production energy output index for a GDP unit. Moreover, this is the only index by which we can be compared with West European countries. To sum up, the situation is not good, but it is not hopeless.

"RUH” - Committee on Azerbaijani Journalists’ Protection (Azerbaijan) - Do you believe in the possibility of real restoration of the economic, including energy, cooperation between Armenia and Azerbaijan in the light of the new energy projects in Armenia before the resolution of the Karabakh conflict?

H.B. - It is hard to say that the resolution of the Karabakh conflict cannot be presented as a one time act. I would not like you to think that a signed document can finally solve a problem. It has been in the process of resolution for at least 250 years. I think that some intermediary solution may be achieved after which energy cooperation between Armenia and Azerbaijan will move ahead. But once again it should be kept in mind that Armenians and the Azerbaijanis will have to be convened more than once to discuss the Karabakh issue in the coming century.

"RUH” - Committee on Azerbaijani Journalists’ Protection (Azerbaijan) -  As it is known, after the August events in Georgia, policy is being transformed due to new conditions in the South Caucasus. What is the position of Armenia with regard to Georgia in the newly established conditions in terms of economic and energy cooperation? I would like to know your opinion regarding the fact that Georgia calls the established maritime communication between Russia and Abkhazia illegitimate.

H.B. - There are no big differences in Armenia’s position towards Georgia. One thing is clear: after the August events economic cooperation between Armenia and Georgia will shrink a little because the way to Russia by land, at least, is drastically blocked. As for evaluating the relations between Russia and Abkhazia, in diplomatic terms the fact of Russian and Abkhazian maritime communication is ‘accord to discord.’

Zardabi Center Monitoring Group (Azerbaijan) - Do you presume that the use of the nuclear power station may be a repetition of the Chernobyl accident?

H.B. - No, I don’t. The Armenian Reactor VVV-440 has a water cooler. In Chernobyl it was a reactor with an air cooling system. The laboratory experiments on Framatom and Behtel have proved that nothing of the kind is possible with the Armenian reactor: atmospheric emission of nuclear particles is impossible, provided you have a water cooling system. Even if such an accident is deliberately plotted, there will not be any repetition of Chernobyl. After the Armenian Nuclear Power Station was reopened in 1995, a huge water pool was added to the old Soviet system. And this absolutely hinders any Chernobyl type accident.

Shorena Inasaridze (Samtskhe-Javakheti, Georgia) - How correct was Georgia’s behavior during its occupation by Russia, and how would Armenia behave in an analogous situation? Would Armenia be able to solve such a problem without a war?

H.B. - I think that war will not help anyone in the Caucasus. Don’t even expect to hear any answer to this question. It is simply unnecessary.

Shorena Inasaridze (Samtskhe-Javakheti, Georgia) - What role does the geopolitical disposition of Georgia play in Armenian and Georgian relations?

H.B. - It plays a most immediate role. Georgia is one of our four neighbors and the only Christian state among these four. By the way, Georgian and Armenian relations in the region could be qualified as exemplary. These two people have practically had not serious territorial ambitions regarding each other in the course of two thousand years of border-to-border existence.

Emin Ahmedov ( Marneuli, Georgia) - How do you evaluate Russia’s acknowledgement of the independence of Abkhazia and Ossetia?

H.B. - The acknowledgement went in line with Russia’s geopolitical goals and that is why it was normal from the Russian perspective. On the other hand, this testifies to the fact that Georgia should have treated the Abkhaz and Ossetian population more seriously: it should have respected human rights, the right of the nation to self-determination. Georgia should have tried to find a solution within the limits of territorial integrity. Unfortunately, Georgia failed to do so.

Tsaulina Malazonia (Samtskhe-Javakheti, Georgia) - What are the guarantees that Russia will not be able to draw Armenia into the conflict with Georgia?

H.B. - This is a very good question. But knowing Armenians I can say that we are the carriers of a genetic code to be friends with Georgian. But at the same time, and I will not conceal the fact, we like telling jokes about each other. I assume that Russians also understand these nuances. And I exclude the possibility of provocations for the aggravation of Armenian and Georgian relations by any of these three nations - Armenians, Georgians or Russians.

Tsaulina Malazonia (Samtskhe-Javakheti, Georgia) - Does the Armenian government intend to establish good neighborly relations with Azerbaijan?

H.B. - I find it hard to answer this question. But I want to believe that yes, it does. However, the political longevity of the Armenian and Azerbaijani leaders is dangerous. And that is why I do not exclude that the continuation of the conflict is beneficial for the retention of their power.

Angela Kachaturyan (free-lance journalist from Akhaltsikhe, Georgia) - During Serzh Sargsyan’s visit to Georgia an agreement on the construction of a motor highway through Akhalkalaki was achieved with President Saakashvili. The timeframe of the realization of this project is not mentioned. However, some Georgian politicians and political scientists perceived this agreement rather negatively. In their opinion, the realization of this project will mean the continuation of Georgia’s annexation. They compare this to the Rock tunnel. Mr. ex-Prime Minister, how can you explain such mistrust towards Armenia?

H.B. - I think this is an internal Georgian problem. I will reiterate myself by saying that in the course of two thousand years Armenians have never annexed anything in Georgia. Moreover, they have multiplied the wealth of this country by their hard work and also fought for that state. The construction of the highway is a wise decision on the part of the Georgian government, from the perspective of respecting the needs of its citizens residing in Javakhetia.

Angela Kachaturyan (free-lance journalist from Akhaltsikhe, Georgia) - When we discuss the construction of the highway, it is impossible to go round the topic of Samtskhe-Javakheti     really assuming the function of a transit region. How will the construction of the new highway impact on the development of this region?

H.B. - First of all, Georgia as a whole will gain a lot. And in these terms the highway will   definitely be good for the residents of Samtskhe-Javakheti region.

Angela Kachaturyan (free-lance journalist from Akhaltsikhe, Georgia) - You might be aware of the incident that took place in Akhalkalaki on July 17. Two policemen died in this incident. Vahagn Chakhalyan, his under-age brother and Gurgen Shirinyan’s father (it is noteworthy that the health of the latter is very poor) have been under arrest since then. Even though the Georgian government promises to pay 10 thousand Laris to every single person who reveals where Gurgen Shirinyan is, the population of Javakheti considers him innocent and thinks that he is persecuted because of his nationality. Taking this fact into account, how would you evaluate the present situation in Javakheti and the policy led by the present Georgian government regarding ethnic minorities living in the country?

H.B. - I do not think that the people you mentioned in your question are maltreated only because they are Armenians by nationality. In the same way some Georgian authorities think: “Oh God, these Armenians!” There have been many provocations of the kind. Be tolerant and things will be all right after some time. In fact, Armenophobia cannot be beneficial to Georgia.

Novoye Vremya Newspaper (Azerbaijan) - Regardless of a number of countries having their own considerable resources of carbohydrates, the introduction of new facilities in the power industry in Georgia, Turkey and Iran will not be able to cover the predicted demand for electricity. Thus, can you assume that these countries will make up a profitable market in the future and how do you envisage the growth in the energy security of Armenia?

H.B. - First of all, whatever you described in your question does not relate to Iran. Don’t forget that this country has 15% of the world’s carbohydrate resources (natural gas and oil). As for the other countries that you mentioned, yes, Armenia can supply energy to them for a short period of time. But from a long-term perspective, to be honest, I would like to see Armenia self-sustainable in terms of electric-power resources. I would like to see Armenia exporting something else; it is not in Armenia’s interests to turn the country into a hot-house. There is no comparative advantage for Armenia here. Armenia will solve the problem of its energy security through the development of water power plants and the construction of a new nuclear station.

Azerbaijani Female Journalists’ Association (Azerbaijan) - Do you think that there is some collision of interests between Turkey and the USA after the creation of the Platform of Stability and Security in the Caucasus, given that Ankara holds the “keys” to the gulfs?

H.B. - To tell the truth, I do not know the answer to this question. Time will show.

Hetq Online - Mr. Bagratyan, do you see any real prerequisites for Armenia to become an active figure in the communications construction sector in our region, and how should this construction differ from the previous attempts?

H.B. - Yes, of course, Armenia is the only of the five countries in the region that has immediate borders with the other four. That is why this is our comparative advantage and along with the resolution of political problems we are obliged to provide communication services to our neighbors.

Hetq Online - How seriously can the international financial crisis affect the economies of Armenia, Georgia and Azerbaijan, and what can it concretely impact on the lives of the residents of these countries?

H.B. - It will surely have its impact. It is possible that the deepest worsening awaits us this winter. Such risks do exist, at least for Armenia - liquidation of banks, decrease of foreign transfers, IPO instability, and crisis in the mining sector, an abrupt decrease in housing construction. Decrease in oil prices can be added here for Azerbaijan, and Georgia will have significant losses because of reduced freight flow.