ARMENIA FOREIGN RELATIONS
Armenia is a member of the United Nations, the Council of Europe, the Organization for Security and Cooperation in Europe (OSCE), the Commonwealth of Independent States, NATO's Partnership for Peace, the Euro-Atlantic Partnership Council, the International Monetary Fund, the International Bank for Reconstruction and Development, and the World Trade Organization.

Nagorno-Karabakh
In 1988, the territory of Nagorno-Karabakh, a predominantly ethnic Armenian enclave within Azerbaijan, voted to secede and join Armenia. This eventually developed into a full-scale armed conflict. Armenian support for the separatists led to an economic embargo by Azerbaijan, which has had a negative impact on Armenia's foreign trade and made imports of food and fuel more expensive, three-quarters of which previously transited Azerbaijan under Soviet rule.

Peace talks in early 1993 were disrupted by the seizure of Azerbaijan's Kelbajar district by Nagorno-Karabakh Armenian forces and the forced evacuation of thousands of ethnic Azeris. Turkey in protest then followed with an embargo of its own against Armenia. A cease-fire was declared between Azeri and Armenian/Nagorno-Karabakh forces in 1994 and has been maintained by both sides since then in spite of occasional shooting along the line of contact. All Armenian governments have thus far resisted domestic pressure to recognize the self-proclaimed independence of the "Nagorno-Karabakh Republic," while at the same time announcing they would not accept any peace accords that returned the enclave to Azerbaijani rule. Approximately 526,000 of the estimated 800,000 ethnic Azeris who fled during the Karabakhi offensives still live as internally displaced persons in Azerbaijan, while roughly 235,000 of 360,000 ethnic Armenians who fled Azerbaijan since 1988 remain refugees.

Negotiations to peacefully resolve the conflict have been ongoing since 1992 under the aegis of the Minsk Group of the OSCE. The Minsk Group is currently co-chaired by the U.S., France, and Russia. Negotiations have intensified since 2004.

According to Armenia's Office of the Geographer, Karabakhi Armenians, supported by the Republic of Armenia, now hold about 11% of Azerbaijan and have refused to withdraw from occupied territories until an agreement on the status of Nagorno-Karabakh is reached. Armenia and Azerbaijan continue to observe the cease-fire that has been in effect since May 1994, and in late 1995 both also agreed to OSCE field representatives being based in Tbilisi, Georgia, to monitor the cease-fire and facilitate the peace process.

U.S.-ARMENIAN RELATIONS
The dissolution of the Soviet Union in December 1991 brought an end to the Cold War and created the opportunity to build bilateral relations with the New Independent States (NIS) as they began a political and economic transformation. The U.S. recognized the independence of Armenia on December 25, 1991, and opened an Embassy in Yerevan in February 1992.

The United States has made a concerted effort to help Armenia and the other NIS during their difficult transition from totalitarianism and a command economy to democracy and open markets. The cornerstone of this continuing partnership has been the Freedom for Russia and Emerging Eurasian Democracies and Open Markets (FREEDOM) Support Act, enacted in October 1992. Under this and other programs, the U.S. to date has provided nearly $1.5 billion in humanitarian and technical assistance for Armenia. U.S. assistance programs in Armenia are described in depth on the website at: http://www.usaid.am/main/en/129/.

On March 27, 2006 Armenia signed a Millennium Challenge Compact with the United States; the agreement entered into force on September 29, 2006. The agreement will provide $235 million to Armenia over five years to reduce rural poverty through the improvement of rural roads and irrigation networks.

U.S.-Armenian Economic Relations
In 1992 Armenia signed three agreements with the U.S. affecting trade between the two countries. The agreements were ratified by the Armenian parliament in September 1995 and entered into force in the beginning of 1996. They include an "Agreement on Trade Relations," an "Investment Incentive Agreement," and a treaty on the "Reciprocal Encouragement and Protection of Investment" (generally referred to as the Bilateral Investment Treaty, or BIT). Armenia does not have a bilateral taxation treaty with the U.S. The 1994 Law on Foreign Investment governs all direct investments in Armenia, including those from the U.S.

Approximately 70 U.S.-owned firms currently do business in Armenia, including such multinationals as Procter & Gamble, M&M-Mars, Xerox, Dell, Microsoft, and IBM. Recent major U.S. investment projects include the Hotel Armenia; the Hotel Ani Plaza; Tufenkian Holdings (carpet and furnishing production, hotels, and construction); several subsidiaries of U.S.-based information technology firms, including Viasphere Technopark, an IT incubator; a Greek-owned Coca-Cola bottling plant; petroleum exploration by the American-Armenian Exploration Company; jewelry and textile production facilities; a large perlite mining and processing plant; and Jermuk Mother Plant, which produces one of the more popular brands of mineral water in Armenia.

U.S. Support To Build A Market Economy
The U.S. continues to work closely with international financial institutions like the International Monetary Fund and the World Bank to help Armenia in its transition to a free-market economy. Armenia has embarked upon an ambitious reform program, which has allowed a gradual transition from humanitarian aid toward more developmental assistance. U.S. economic assistance programs, primarily under the administration of the U.S. Agency for International Development (USAID), have three objectives: to help create a legal, regulatory, and policy framework for competition and economic growth in energy, agriculture, housing, and other sectors; to promote fiscal reform; and to develop a competitive and efficient private financial sector. Other agencies, including the Departments of State, Agriculture, Treasury, Defense, Commerce, Energy, Justice, and the Peace Corps sponsor various assistance projects. The U.S.-Armenia Task Force, established in 2000, is a bilateral commission that meets every 6 months to review the progress and objectives of U.S. assistance to Armenia.

Specific USAID programs focus on the development of a private sector and small and medium-size enterprises, including microcredit programs; energy sector reform, focusing on efficient management of Armenia's physical resources; democracy and good governance programs, including the promotion of a well-informed and active civil society; social sector reform, including benefits administration for vulnerable populations and targeted vocational training; health sector reform, including improvement of management and delivery of primary healthcare services with an emphasis on preventive medicine; and earthquake zone assistance, which provides housing and economic reactivation for victims of the 1988 earthquake. Under this program, more than 4,000 families who lost their homes have participated in a housing certificate program allowing them to secure permanent and adequate housing.

The U.S. Department of Agriculture's (USDA) Caucasus Agricultural Development Initiative provides targeted and sustained technical, financial and marketing assistance to small and medium-sized agribusinesses and farmer-marketing associations. The U.S. Department of Agriculture's Cochran Fellowship Program provides training to Armenian agriculturists. USDA and USAID also have launched efforts to revive production and export of Armenian vegetables, fruits, and other agricultural products.

U.S. Humanitarian Assistance
Over the past decade the U.S. has provided over $1.5 billion in assistance to Armenia, the highest per capita amount in the NIS. Humanitarian aid originally accounted for up to 85% of this total, reflecting the economic effects caused by closed borders with Turkey and Azerbaijan related to the Nagorno-Karabakh conflict, destruction in northern Armenia left from the devastating 1988 earthquake, and the virtual paralysis of most of the country's factories.

As conditions in Armenia have improved, with the stabilization of the economy and increased energy production--including the restarting of the Armenian Nuclear Power Plant at Metsamor--U.S. assistance programs have moved away from humanitarian goals to longer-term development ones.

U.S. Support To Achieve Democracy
Technical assistance and training programs have been provided in municipal administration, intergovernmental relations, public affairs, foreign policy, diplomatic training, rule of law, and development of a constitution. Specific programs are targeted at promoting elections that meet international standards, strengthening political parties, and promoting the establishment of an independent judiciary and independent media. This includes financing for programs that support civil society organizations, local non-governmental organizations (NGO) capacity building, National Assembly professional development, and local and community-level governance.

State Department and USAID educational exchange programs play an important role in supporting democratic and free-market reforms. Assistance in the translation and publication of printed information also has been provided. Exchange programs in the U.S. for Armenian lawyers, judges, political party members, business people, government officials, NGO activists, journalists, and other public figures focus on a range of topics, including the American judicial and political system, privatization, specific business sectors, the media, and civil society. The State Department has funded an ongoing project to provide Internet connectivity to schools at various levels throughout the country; these centers provide both educational and community-building opportunities.

USAID has funded international and domestic groups to monitor national elections. USAID also has funded programs to educate voters and to strengthen the role of an array of civic organizations in the democratic process.

[Also see fact sheet on FY 2006 U.S. Assistance to Armenia.]

Principal U.S. Embassy Officials
Ambassador--vacant
Charge d'Affairs a.i.--Anthony Godfrey
Political/Economic Chief--Steve Banks
Assistance Coordinator--Daniel Renna
Consular Officer--Mary Stickles
Management Officer--Lawrence Hess
Regional Security Officer--Peter Ford
USDA Marketing Assistance Project Director--Jeffrey Engels
USAID Director--Karl Fickenscher
Public Affairs Officer--Thomas Mittnacht

The U.S. Embassy in Yerevan, Armenia is at 1 American Avenue; tel: 374-10-46-47-00; fax: 374-10-46-47-42.

TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Consular Information Sheets, Public Announcements, and Travel Warnings. Consular Information Sheets exist for all countries and include information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Public Announcements are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.