US embassy cable - 04YEREVAN2449

UNCLAS YEREVAN 002449 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EUR/CACEN FOR SIDEREAS, EUR/ACE FOR LONGI, EB/ESC, 
PASS TO USAID EGAT FOR WALTER HALL 
 
E.O. 12958: N/A 
TAGS: ECON, EPET, ENRG, ETRD, EAID, GG, AJ, AM 
SUBJECT:  ARMENIAN FLIGHTS HAMPERED BY FUEL SHORTAGES 
 
Ref: A) YEREVAN 2367  B) YEREVAN 2406 
 
1.  This cable is sensitive but unclassified.  Please 
protect accordingly. 
 
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SUMMARY 
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2. (SBU) A shortage of aviation fuel is forcing Armenia's 
outbound flights to make intermediate landings to refuel 
before continuing on their scheduled itinerary.  Although 
government and aviation authorities claim the problem has 
been solved and expect a shipment soon, the Directorate of 
Civil Aviation told us that they have nevertheless 
instructed airlines to take care of their own fuel needs 
(from other airports) until the situation stabilizes.  GOAM 
officials allege that actions of Azerbaijan have caused the 
shortages.  End Summary. 
 
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ARMENIAN FLIGHTS FORCED TO FUEL ELSEWHERE 
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3. (U) Armenia's main carrier Armavia has borne the brunt of 
Armenia's shortage of aviation fuel over the last three 
weeks.  Their twice-daily service to Moscow, a two-and-one- 
half hour flight, requires a stopover in the southern 
Russian city of Sochi to refuel.  Insufficient supply has 
driven prices at Yerevan's Zvartnots Airport from USD 380 
per ton to USD 680 per ton, forcing European airlines like 
Austrian Air to carry fuel for their return trip with them 
to Yerevan. 
 
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AZERI EMBARGO? 
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4. (SBU) Deputy Minister of Trade Tigran Davtyan confirmed 
reports in the press that shipments of aviation fuel to 
Armenia have been limited by authorities in Georgia under 
pressure from Azerbaijan.  Armenia's aviation fuel comes 
from Turkmenistan via both Georgia and Azerbaijan.  Davtyan 
said that President Kocharian discussed the issue with 
Georgian President Saakashvili along with other transport 
concerns "in the context of Georgia's WTO obligations to 
Armenia." He said that Georgia had promised to solve the 
problem.  Head of Air Traffic Control Elmira Minasyan at 
Zvartnots International Airport confirmed that the airport 
is expecting to receive replenished supplies November 5 and 
does not expect a problem in the future. 
 
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COMMENT:  ANOTHER SIGN OF ARMENIA'S VULNERABILITY 
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5. (SBU) Unsettled by the recent border closure between 
Russia and Georgia (ref A), possible pressure to deliver 
cheap electricity to Georgia (ref B), and now the shortage 
of aviation fuel, the geographic and political isolation of 
Armenia remains strongly in evidence.  As Deputy Minister 
Davtyan pointed out, alternate trade routes through Iran are 
undeveloped and inconvenient, leaving Armenia vulnerable to 
disruptions in trade through Georgian territory.  We are not 
able to verify Davtyan's claim that the Government of 
Azerbaijan is behind this interruption in supply. 
EVANS