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Azerbaijan arrests former top Karabakh official as Armenian exodus grows


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By Felix Light

GORIS, Armenia (Reuters) – A former head of the breakaway ethnic Armenian government in Nagorno-Karabakh was arrested by Azerbaijan on Wednesday as he tried to escape into Armenia as part of an exodus of tens of thousands of people that has triggered a humanitarian crisis.

Ruben Vardanyan, a billionaire banker and philanthropist, headed Karabakh’s separatist government between November 2022 and February 2023.

His wife Veronika Zonabend said on his Telegram channel that he had been arrested while trying to flee as part of a mass departure by ethnic Armenians after Azerbaijan took back control of the territory last week.

Azerbaijan’s border service said he had been taken to the capital Baku and handed over to other state agencies.

Karabakh is internationally recognised as part of Azerbaijan but populated mostly by ethnic Armenians who broke away in the 1990s in the first of two wars there since the collapse of the Soviet Union.

Fearing Azerbaijani reprisals because of the bloody history between the two sides, ethnic Armenians are abandoning their homes and fleeing en masse in cars and trucks along the snaking mountain road that leads to Armenia. Karabakh authorities said 47,115 people had left so far, out of an estimated ethnic Armenian population of 120,000 people.

Western governments fear a humanitarian disaster and are pressing for Azerbaijan to allow international observers into Karabakh to monitor its treatment of the local population.

“What is needed now is transparency, and the eyes and ears of the international community on the spot,” German Foreign Minister Annalena Baerbock posted on X, formerly Twitter.

“It would be a sign of confidence that Azerbaijan is serious about its commitments to the security and wellbeing of the people of Nagorno-Karabakh if it allows international observers”.

ACCUSATIONS

Azerbaijan says it wants to peacefully reintegrate the ethnic Armenian residents of Karabakh and emphatically rejects Armenian accusations of ethnic cleansing.

Azeri President Ilham Aliyev said last week that Armenians could “finally breathe a sigh of relief” and would be able to vote, receive state education and freely practise their Christian religion in mainly Muslim Azerbaijan. Baku would turn Karabakh into a “paradise”, he said.

It was not clear on what grounds Vardanyan had been held, but Azerbaijan has signalled it will seek to prosecute some figures in the Karabakh leadership.

“We have accused elements of the criminal regime and we will bring them to justice,” Aliyev said last week, without naming anyone or specifying any crime.

Zonabend said she asked for people’s “prayers and support for my husband’s safe release”.

The mountain road that winds out of Karabakh towards Armenia has been choked for days, with many people sleeping in cars or searching for firewood to keep warm. The journey of just 77 km (48 miles) to the border was taking at least 30 hours.

“I left everything behind. I don’t know what is in store for me. I have nothing. I don’t want anything,” Vera Petrosyan, a 70-year-old retired teacher, told Reuters.

DEATH TOLL

Local authorities said at least 68 people had been killed, 105 were missing and nearly 300 were injured in a huge explosion at a fuel station in Karabakh on Monday. It was unclear what caused it.

Russia said its peacekeeping force in the region had evacuated more than 120 people by helicopter.

Armenia is angry that the Russian peacekeepers, in place since a 44-day war in 2020, did nothing to prevent Azerbaijan from launching its offensive last week.

With Russia distracted by the war in Ukraine, the crisis has highlighted its waning ability to play the role of security guarantor in the Caucasus region, where Turkey, Iran and the United States are vying with it for influence.

Tens of thousands have been killed in wars over Karabakh since the 1991 fall of the Soviet Union, of which both Armenia and Azerbaijan were part.

The toll climbed further in last week’s fighting, in which Karabakh authorities said they lost at least 200 people.

Azerbaijan said on Wednesday that 192 of its soldiers had been killed, and published their names and photographs on the defence ministry website. More than 50 were young men in their teens.

(Writing by Mark Trevelyan; Editing by Gareth Jones and Philippa Fletcher)


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South Caucasus News

US Treasury yields fell from 16-year highs


US Treasury yields fell on September 27 from 16-year highs reached the day before

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South Caucasus News

Ambassador: UK will continue to work with all parties for peaceful future in region


The UK will continue to work with all parties for a peaceful future in the region, British Ambassador to Azerbaijan Fergus Auld said on X, Report informs.

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South Caucasus News

Azerbaijan’s military top brass visits Victory Park under construction


On September 27, the Defense Minister of Azerbaijan, Colonel General Zakir Hasanov, and other high-ranking officers of the Ministry visited the Victory Park, which is under construction in Baku, Report informs, citing the ministry.

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South Caucasus News

Expert: Europe accepts new reality in Karabakh


Recent statements by the President of the European Council, Charles Michel, and other EU officials show that Europe is accepting the new reality created after local anti-terrorism measures carried out by the Azerbaijani Armed Forces, American journalist,

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South Caucasus News

About 40 houses flooded in Greece due to Cyclone Elias


The main impact of the cyclone Elias that hit Greece fell on the island of Euboea. In some places there fell from 150 to 198 mm of precipitation. Some houses were flooded, traffic on a number of local roads was interrupted

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China Evergrande Chairman Put Under Police Watch; Liquidation Risk Looms 


The chairman of China Evergrande Group has been placed under police surveillance, Bloomberg News reported on Wednesday, raising more doubts about the embattled developer’s future as it grapples with the mounting threat of liquidation. 

Citing people with knowledge of the matter, the report said Hui Ka Yan, who founded Evergrande in 1996 in the southern city of Guangzhou, was taken away by police earlier this month and is being monitored at a designated location. 

Evergrande is the world’s most indebted developer with more than $300 billion in total liabilities and has been at the center of an unprecedented liquidity crisis in China’s property sector, which accounts for roughly a quarter of the economy. 

It was not clear why Hui was placed under residential surveillance, Bloomberg News said, adding the move was a type of police action that falls short of formal detention or arrest and does not mean Hui will be charged with a crime. 

Reuters could not immediately verify the report. Evergrande, the police department in Guangdong province, whose capital is Guangzhou, and the public security ministry did not immediately respond to requests for comment. 

A person close to Evergrande said Hui had stopped contacting staff over the past few days, while an industry source said he had become totally inaccessible. Both of them declined to be identified as they were not authorized to speak to the media. 

The reported action against Hui comes after police in southern China said earlier this month that they have detained some staff at Evergrande’s wealth management unit, which raised funds from individual investors by selling investment products. 

Once China’s top-selling developer, Evergrande’s financial crisis became public in 2021 and since then it and a string of its peers have defaulted on their offshore debt obligations amid slowing home sales and fewer new avenues for fundraising. 

Adding to its woes, Evergrande’s offshore debt restructuring plan, the key to its survival amid a stifling cash crunch, looks set to falter and the prospects of the firm being liquidated are gathering momentum. 

The company is “very likely to fail on debt restructuring, and with negative equity, Evergrande may go into bankruptcy, which includes bankruptcy reorganization and bankruptcy liquidation,” UOB Kay Hian wrote in a note on Wednesday. 

As the developer’s already sold but unfinished apartments will pose a risk to “social stability,” there is a good chance that Evergrande will likely seek bankruptcy reorganization, the brokerage said. 

Reuters reported on Tuesday that a major Evergrande offshore creditor group was planning to join a liquidation court petition filed against the developer if it does not submit a new debt revamp plan by the end of October. 

That plan comes after the company rattled markets on Sunday with its announcement that it could not issue new bonds as part of its debt restructuring plan because of a regulatory investigation into its main Chinese unit, Hengda Real Estate. 

Hengda, in a separate filing on Monday, said that it had failed to pay the principal and interest on a $547 million bond due by a Sept. 25 deadline. 

Shares in Evergrande ended down 19% on Wednesday, while an index tracking Hong Kong-listed mainland developers fell 0.2%. 

Coupon payment  

Evergrande grew rapidly through a land-buying spree backed by loans and by selling apartments quickly at low margins, making Hui Asia’s richest man in 2017, according to Forbes. 

But with its overall liabilities ballooning to more than $300 billion, it came under pressure as the property market weakened and Chinese regulators cracked down on companies with high debt levels.   

The structure of Evergrande and the way the business operated under Hui came under scrutiny as the empire began to unravel amid growing pressure to meet repayment obligations and finish apartment construction. 

A Shanghai-based holder of Evergrande’s yuan-denominated bonds said the news that Hui had been put under police watch was not a surprise given the company’s massive problems. 

The focus will now be on whether the government will rescue Evergrande and how much Hui personally would pay to creditors, said the bondholder, also declining to be identified due to the sensitivity of the matter. 

“We are now just resigned to our fate.” 

Investors are also focused on problems at another major Chinese developer, Country Garden, which is facing a new bond coupon repayment deadline on Wednesday. 

The $40 million coupon, with a 30-day grace period, is tied to an 8%, $1 billion dollar bond that matures in January and is the latest payment challenge facing Country Garden, as the developer strives to avoid default. 

The country’s No.1 private developer, whose financial woes worsened the property sector outlook and prompted Beijing to unveil a raft of support measures in the last few weeks, scrambled to successfully dodge defaults this month. 

Offshore creditors widely expect Country Garden to delay the coupon payment due by Wednesday, while making use of the grace period to come up with plans to restructure all of its offshore debt. 

A Country Garden spokesperson declined to comment. 

“The fall of industry stalwarts in China’s property space has been alarming, to say the least,” said Fiona Kwok, Asian Fixed Income portfolio manager, First Sentier Investors. 

“Until Chinese regulators come through with stimulus significant enough to inject optimism into the property market and increase property sales, default risk remains high among private and mixed ownership developers.” 


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Geórgia pretende recuperar pacificamente territórios ocupados pela Rússia


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“O grande desafio que a Geórgia enfrenta atualmente é a desocupação dos territórios ocupados pela Rússia. Os problemas com a Abcásia e a Ossétia só serão resolvidos por meios pacíficos”, escreveu o chefe do Governo georgiano nas redes sociais no 30.º aniversário da queda da capital da Abcásia, Sukhumi, para os separatistas.

Garibashvili, juntamente com membros do executivo e outras autoridades, depositou uma coroa de flores na chama eterna na Praça dos Heróis, no centro da capital.

“A 27 de setembro de 1993, um dos acontecimentos mais dramáticos da história recente da Geórgia chegou ao fim”, afirmou Garibashvili na mensagem à população, recordando a perda de Sukhumi.

O primeiro-ministro georgiano sublinhou que a derrota resultou numa “limpeza étnica, que transformou centenas de milhares de georgianos em refugiados”.

Em memória dos mortos, as bandeiras dos edifícios públicos da Geórgia foram hoje colocadas a meia haste.

O conflito armado entre a Geórgia e a Abcásia começou a 14 de agosto de 1992 e terminou a 27 de setembro do ano seguinte com a vitória dos separatistas apoiados por milhares de voluntários russos, provocando cerca de 12.000 mortos.

JSD // APN

Lusa/Fim


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South Caucasus News

Празднование «Тбилисоба» пройдет на трех локациях


По словам мэра Тбилиси Кахи Каладзе, в этом году день города «Тбилисоба» будет отмечаться 30 сентября и 1 октября, праздничные мероприятия пройдут на трех локациях: парк Рике, площадь Орбелиани и Абанотубани. По словам Каладзе, помимо разнообразной программы, которая будет представлена ​​в течение двух дней, 30 сентября в парке Рике состоится концерт с участием грузинских артистов, […]

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South Caucasus News

Baku Detains Former Russian Businessman Vardanian, Who Briefly Served As Nagorno-Karabakh’s De Facto PM


Azerbaijan’s State Border Service (DSX) said on September 27 that it has detained billionaire Ruben Vardanian, a former Russian citizen of Armenian descent, who served as prime minister in the de facto government of the breakaway region of Nagorno-Karabakh for less than four months before he was dismissed from the post in February.