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Armenia has an area of 11,490 sq. mi. (29,800 sq. km), this is 0.1% of the total area of the Soviet Union. It has mostly mountainous terrain, and the arable soil is very fertile. The climate is continental.
The population is 3.3 million (1990) which is 1.1% of the total population of the U.S.S.R. Armenia is densely populated at 110.5 persons per sq. km, and 68% of the population live in urban areas.
Armenia is the most homogeneous of the U.S.S.R.'s republics. Its ethnic population distribution is (1990):
On August 23, 1990, the Supreme Soviet of Armenia declared independence
and created the "Republic of Armenia. "
Armenia restated its independence on September 23, 1991, following
a nationwide referendum vote in favor of secession (99% voted in favor
of independence) from the Soviet Union.
Armenia has had a democratically-elected parliament since July 1990. On October 16, 1991, Levon Ter-Petrossian was overwhelmingly elected President of the Republic.
Armenia and Azerbaijan have been in conflict since 1988 over the territory of Nagomo-Karabagh. As a result, Armenia has repeatedly been subjected to Azerbaijani economic blockades.
Armenia was proclaimed a Soviet Socialist Republic on November 29, 1920. Having been subjected to Ottoman rule for 600 years, Armenians suffered a series of massacres from 1894 to 1921. In 1915-16 alone, 1.5 million Armenians were massacred by Ottoman Turks. From May 28, 1918 to 1920 Armenia enjoyed two years of independence.
Armenia has historically had a strong pro-West orientation.
PRODUCTION AND PRODUCTIVITY:
Armenia's GDP (Gross Domestic Product) was $ 15.5 billion dollars. This
is 1.3% of total Soviet GDP for 1990. The structure of Armenia's GDP is
as follows:
Industry (64.9%) Construction (12.5%) Agriculture (11.5%) Trade/Public
Services (8.7%) Transport/Communication (2.4%)
Armenia's per capita GDP is $ 4,710 dollars (this is 2nd highest in the Soviet Union).
The net output of Armenia was 0.8% of total Soviet output for 1990. Armenia's agriculture output was 0.6% of the total for the Soviet Union while its share of national wealth is 0.9% (1990).
Share of Armenian production of selected products of total Soviet production:
Electric motors (7.7%) Metal cutting machines (5.5%) Knitted garments (4.7%) Grapes (3.2%) Hosiery (2.3%) Shoes (2.2%) Fruit (2.0%) Canned goods (1.9%) Vegetable oil (1.5%)
INDUSTRY:
The predominant industries in Armenia include:
Building materials Footwear Mining
Textiles (knitted wear, carpet weaving) Foodstuffs and beverages (wine, brandy) Chemicals (rubber, synthetic and plastic materials, fertilizers) Mechanical engineering (machine tools, presses, foundries)
Armenia has the highest number of cooperatives (per capita) in the U.S.S.R.
AGRICULTURE:
Armenia has 1,200,000 acres of arable land. The republic produced 50% of its agricultural needs, before privatization.
Armenia became the first republic to introduce a comprehensive land privatization program in 1991. Over 840,000 acres (340,000 hectares) of farm land were privatized (approx. 70%), making Armenia's the most extensive privatization program of all republics.
The main crops in Armenia are potatoes, tomatoes, other vegetables, fruit (in particular, grapes), and grain. Plant oil distillates are used in the production of perfumes. Tobacco growing is also significant.
MINERALS AND NATURAL RESOURCES:
Armenia is rich in natural resources such as copper, zinc, aluminium (bauxite), molybdenum, precious metals, gold, diamonds, marble, purmice and volcanic basalt. However, Armenia imports 80% of its total fuel supplies. There are periodic shortages of gas, oil, and electricity.
LABOR:
Armenia offers a highly educated and well trained workforce at relatively inexpensive labor rates. The average monthly wage of Armenian workers is 91% of the Soviet average.
FOREIGN ECONOMIC RELATIONS:
The Republic of Armenia has signed the Economic Union Treaty. Armenia has also signed several independent cooperation agreements with other republics.
On August 16, 1991, Armenia and Lithuania signed a cooperation agreement in which each side recognized the other's independence and sovereignty. Both parties pledged cooperation in a wide variety of fields, including the economy, politics, science, and technology.
On July 27, 1991, Armenia and Georgia signed a cooperation treaty, based on the principles of sovereignty, territorial integrity, and noninterference in each other's internal affairs.
Armenia has also concluded agreements with the Ukraine on shipments of sugar, and with the Baltic states on shipments of meat products and butter.
TECHNOLOGY. TELECOMMUNICATIONS AND INFRASTRUCTURE
Armenia has the highest number of specialists with higher education and the second highest number of scientists per 10,000 inhabitants of all republics. Armenia enjoys a relatively high technological base, particularly within research institutions and academia.
The American Telephone & Telegraph Company (AT&T) has provided 200 new longdistance circuits into Armenia. Armenia is the only republic to be able to receive direct international calls besides Moscow's system, which is limited to handling 91 simultaneous conversations.
The communication system within Yerevan and the major cities is relatively good, but much less reliable in rural areas.
Armenia has an infrastructure that is better developed than most other republics. The transport system is relatively good, roads connecting major cities are reliable. The Yerevan airport is also well regarded. Flight time to Moscow is three hours, and Paris is four hours away. Land and rail routes connect Armenia with Russia (via Georgia) and with Turkey.
Products can be shipped through Georgian or Turkish ports. The only railroad link between the Soviet Union and Turkey, the Kars-Leninakan Railway, is through Armenia.
THE SOCIO-CULTURAL ENVIRONMENT:
The Armenian language has in the past three years replaced Russian as the official language in government and business.
The population of Armenia is predominantly Christian, mainly followers of the Apostolic Church. Religious participation has been spreading at a rapid pace.
Armenian dress is Western in urban areas, businessmen and government employees dress informally (coat and shirt, no ties) except for high level officials who wear suits.
The Armenian computer software industry holds promise for Western firms interested in establishing joint ventures or penetrating the expanding Soviet market. With its low-cost, highly educated labor force, and the progressive, market-oriented policies of the republic's government, Armenia's software industry offers appealing opportunities for foreign trade and investment. The economic reforms now being implemented by the government are expected to create a commercial sector with strong ties to the West. At the same time, Armenia has realized that its economic future depends on rapid development of focused industrial sectors. As would be expected, many of the sectors targeted for preferential development are areas in which Armenia is already relatively strong. High technology (including computer software) is one of these priority areas, and in the future, the Armenian gov-rnment will provide special incentives for its growth.
The Armenian computer software industry is in a state of extraordinary transition. The industry is undergoing a massive restructuring whereby software professionals are abandoning large, state-run software centers (often tied to government ministries or large production enterprises) and migrating to a growing number of small, private or cooperative software houses. Indeed, this process seems to be a natural outgrowth of the underlying transformation in the economies of the Soviet republics from one dependent on central planning to an economy driven by market forces. This phenomenon is not only decentralizing the software industry, but is also accelerating the growth of the computer user culture. Smaller software houses can be more receptive to the expanding community of computer users by offering software and support that is more in line with demand in the emerging market. Although this trend is encouraging, small firms have a more difficult time maintaining viability, especially given the severe economic conditions present in the country.
The continuing breakdown of the command economic system within the Soviet Union has resulted in an unappealing, stagnant work environment within the large, state-owned software enterprises. Salaries in these firms remain low as compared with skyrocketing inflation levels, and the uncertain future of the Soviet defense industry has diminished software procurement as well as the requisite technical challenges that accompany these contracts. Armenian software specialists are realizing that there is no future in these oversized enterprises, and are leaving in large numbers. The best, brightest and most ambitious software programmers are realizing that the future economy will be based on market supply and demand. They believe that they can position themselves best to take advantage of future opportunities in the software area by forming small groups. Specialists are being attracted to these small software ventures with offers of greater creative freedom, higher salaries, a better work environment, and the potential for more promising future opportunities and returns. Despite a promising future in an eventual market-oriented economy, these small private/cooperative firms must still survive the present chaos of the transforming Soviet economy. With few ties with the West and little knowledge of available markets for their software products, these small firms are faced with a dearth of orders and contracts. They are struggling to survive in this difficult period of economic transition.
The development of the Soviet software industry, like that of other countries, is intimately tied to two interrelated factors the availability of hardware platforms for which it provides applications, and the number and enthusiasm of sophisticated software users who, through their feedback on and critique of current programs, provide developers with market information which guides the design, development, and improvement of their products. The Soviet Union, the Republic of Armenia included, severely lacks in both of these critical factors. It is estimated that there is a current installed base of only some 300,000 PCs in the U.S.S.R (Financial World, March 6, 1990). Due to this relative scarcity of computers, at present, the development and marketing of computer software in the Soviet Union is limited. This situation, however, should not be regarded as a drawback for potential investors, but as a challenge similar to that faced by American computer companies in the early 1980's; innovative software with no commercial market and no installed computer base. In the coming years, the computer hardware base of the Soviet Union is projected to expand extremely rapidly. According to Creative Strategies Research (Santa Clara, CA), a high-technology market research firm, growth will be 150% to 200% annually for the next several years (Business Marketing, October, 1990). While this projection may be overly optimistic, there is no doubt that the future proliferation of computers in the U.S.S.R. will be extremely rapid. This growth will provide Western firms with extraordinary opportunities to supply the large, unexploited Soviet computer market with both foreign and locally developed software.
The Triad Consulting Group (TCG) believes that it is during these initial stages of rapid growth of the Soviet computer hardware base that offers the greatest potential for foreign investment in software. Due to the many political and economic attributes previously mentioned in this report, we think that Armenia may be one of the better locations for making an initial investment in the Soviet software industry. As with many of the firms in the other Soviet republics, Armenia's small, nascent software cooperatives are now appealing for financial and technical assistance from the West. In return, they are willing to design generous cooperative agreements with those Western investors that are willing to help them. The Armenian government is also in the process of creating incentives for foreign firms that develop new relationships with Armenia's software companies. Aggressive investors have the opportunity to create competitive advantages that will be difficult to overcome by later entrants. With a relatively low level of financial and technical investment now, joint development or production ventures can be very well positioned to penetrate the rapidly emerging software market in the U.S.S.R.
As yet, the markets for computer software both in Armenia and especially in the Soviet Union are not well defined. Nonetheless, numerous foreign firms have set up joint development and distribution outlets in Moscow. The success of some of these joint ventures prove that the Soviet market may be penetrated, but only with the assistance of local, joint-venture partners. In Armenia, opportunities have yet to be exploited and competition amongst the top half dozen software firms has not developed to a noticeable degree. Foreign firms with experience in computer markets have the opportunity to stake their competitive positions quickly and forcefully.
Although the Armenian software industry is well advanced relative to other republics in the Soviet Union, it still is deficient in a number of areas. The greatest difficulty for the Armenian software industry is its inexperience in marketing (both within the Soviet Union and abroad), distribution, and support (both customer and product). Basically, never in the past have companies in the Soviet Union had to market their products. These deficiencies, however, can probably be easily alleviated through Western experience, guidance and know-how which will be supported by the high level of education and interest of Armenian software professionals. Additionally, the Armenian software industry has yet to establish a structure through which to exchange ideas and information with equivalent professionals abroad (this includes a lack of access to conferences and meetings as well as to manuals, publications and research articles). Exchange programs, joint projects, and distribution of materials and journal literature may rectify this problem of technical and intellectual isolation. If one adds to this professional isolation outdated computer equipment, foreigners realize that comparisons between Soviet programs and those written in the West cannot be made equitably. Despite these shortcomings, however, Armenian software professionals display extraordinary skill at improvising and compensating for these deficiencies with their own programs and computer systems. Therefore, when evaluating the software written by Armenian programmers, Western specialists should take into account these difficulties and try to determine the potential productivity of Armenian software professionals in more ideal settings. By offering assistance in any of these areas, Western firms may design cooperation/joint venture packages that can be lucrative and beneficial to all involved.
The most effective way to enter the Soviet computer software market
through Armenia is with exclusive Armenian partners and agents. This type
of access can take the general form of three different types of cooperative
relationships between foreign investors and their Armenian software partners.
These choices are based on the competitive advantages
offered by specifically locating operations in the Armenian Republic.
These advantages include a high level of technical skill at relatively
low wage rates, an entrepreneurial-minded labor force, a well-developed
infrastructure (AT&T has just installed a state-of-the-art satellite
telephone switching station in Armenia for long distance calls), progressive
government reforms and encouragement of private enterprise and a free market
economy, and knowledge of and experience in the Soviet market. The first
type of possible relationship with Armenia is a joint design, development
and production venture which would seek to either export the software product
for hard currency, and/or focus on satisfying the emerging, unexploited
market of the Soviet Union. A second strategy is to develop a 'for contract'
production operation, where an investor can exploit both the technical
expertise and the cheaper costs of labor and production in Armenia to supply
contracted software. A third choice could be to provide computer software
services through Armenian partners for firms in other sectors of the rapidly
growing Soviet economy (ie. payroll systems, management and control systems,
data entry, etc.). This type of relationship would entail adapting presently
available software from the West to the local Soviet business environment.
Within the Soviet Union, software made in Armenia has a reputation for
being relatively well advanced. This provides Armenian software engineers
with the self-confidence and enthusiasm to demonstrate their skills and
technical competence to Western colleagues and investors. For example,
some Armenian software firms propose cooperative agreements whereby Western
partners give them trial software problems, thus allowing Armenian
programmers to demonstrate their software design skills at little cost
or risk to the contractor. This trial problem would take the form of a
feasibility study of doing further work with the Armenian partner. If acceptable,
a longer term contract may be initiated. The foreign partner would determine
specifications and develop a construction plan (including agreed upon milestones
and an intermediate feedback mechanism), estimate the number of U.S. staff-months
that would be required for development of the software (although the accuracy
of this costing approach is suspect, it can give approximate labor requirements).
These staff-months can then be equated to the Soviet rouble currency; in
Armenia, labor costs of $100/staff-month would be generous. To the labor
costs, a foreign partner would want to add an additional 100-200% surcharge
(the additional cost of doing business in the Soviet Union/Armenia) for
expenses related to program management and technical management functions
which would be probably supplied by the foreign partner remotely. Finally,
some hardware expenses will have to be included such as computers, modem,
fax, and documentation. In the final estimation, the cost of developing
software in Armenia could be much more cost effective than the equivalent
project in the West.
The Triad Consulting Group provides services for Western investors that will facilitate rapid access to Armenian partners. TCG offers analysis and advice to executives on developing and implementing competitive strategies in Armenia. Through our office in the Armenian capital of Yerevan, which is headed by an American, TCG can act quickly to satisfy the needs and requirements of foreign firms and investors. In terms of the software industry, TCG can provide further detailed information (including demo software) both on individual software enterprises and on the Armenian computer software industry in general.
The computer software industry in the Soviet Union is unique and must
be approached accordingly. In the U.S., the software industry was developed
during the last decade by entrepreneurs who often lacked business experience
but understood technology and the local marketplace. Some were able to
succeed in ways that nobody ever imagined. Today, opportunities similar
to those in the U.S. a decade ago may be available in the Soviet
Union.
It is now obvious that the Soviet Union is in an irreversible transition
to a market-based economy. For this transition to succeed, it will require
integration of the Soviet economy into the Western business infrastructure,
and therefore essential adoption of systems and standards that are now
prevalent in the West. These systems include Western accounting, database,
management systems, etc. — systems based on computers and specialized software.
The Soviet Union will have to adopt these systems if it wants to be a partner
in the global market. There is no other choice. TCG believes the Soviet
marketplace offers opportunities unavailable elsewhere at this time. Therefore,
it is advisable for Western
firms to try to get in early and utilize unexploited opportunities.
Firms that take the plunge early will surely be rewarded in the long run.
The information contained in this industry report was collected and compiled during the summer of 1991 by the Triad Consulting Group (TCG) using the resources of the Marketing section of the Ministry of Foreign Economic Relations of the Republic of Armenia. Over a period of two months, detailed questionnaires were distributed to the leading computer software enterprises in the republic. These surveys were augmented by personal visits by TCG to these enterprises. The purpose of these visits was twofold. First, TCG sought to motivate the presidents and directors of these enterprises to reply to the questionnaires with honesty and completeness. Second, we wanted to observe first hand the operation of these enterprises, speak to programmers and software engineers, and subsequently, form an overall perspective as to the level and abilities of each individual software enterprise. We also sought to validate the written responses in the questionnaire. We were able to see demonstrations of many of the best software programs. Copies of many of these demos are available through TCG.
What follows are descriptions and assessments of software enterprises in the Republic of Armenia collected and compiled in the Summer 1991 by the Triad Consulting Group. The enterprises in this report represent many types of organizations including those affiliated with government committees and ministries, university-affiliated groups, state-owned corporations, and private cooperatives. In this compilation, the firms are organized in order based on subjective ratings suggested by TCG. These ratings are on a scale of I to 5 (5 being the best rating) and are based on our subjective assessment of a number of factors including technical capabilities, equipment, management competence, and overall future potential. This listing of firms is in no way an exhaustive list of all software enterprises in Armenia. The goal of TCG's study was rather to select a representative sample of some of the best software enterprises in Armenia and provide thorough information on their skills, capabilities, programming specialties, products, etc.
Note:
CONTACT: Vahram Mekhitarian, director
ADDRESS: 26 Amman St., Yerevan 375002
TELEPHONE: 53-63-82,53-04-92
TYPE OF ORGANIZATION: government-affiliated, semi-autonomous institute
SPECIALIZATION: desktop publishing technologies, information systems,
databases, sound-voice systems, musical systems, imaging systems, tutorials
and computer games, translation and publishing of computer literature and
manuals.
LANGUAGES: all high level programming languages.
OPERATING SYSTEMS: most standard operating systems.
HARDWARE: both Apple Macintosh and IBM personal computers.
General Description;
The ACC is one of the leading software centers in the Republic of Armenia.
The organization is involved in a broad range of activities, and has the
following goals:
- development and production of a broad range of software systems.
- adaptation of information technologies for use in Armenia (Armenian
keyboard and software drivers).
- creating an infrastructure that unites computer specialists from
Armenia, and abroad (ie. publishing magazines, holding international conferences,
etc.).
- normalizing procedures dealing with intellectual property such as
licenses, copyrighting, patents, etc.
- creating strong ties with international organizations and firms though
collaborations, exchanges, joint ventures, etc.
- becoming a consultation center and distributor of standardized software
in the Republic of Armenia.
Technical Accomplishments;
The ACC has undertaken the following projects:
Publishing Technologies:
- Armenian variety of IBM GEM VENTURA PUBLISHER publishing system.
- Armenian variety of IBM Windows Page Maker publishing system.
- Armenian fonts of publishing quality for IBM computers.
- Armenian fonts of publishing quality for Macintosh computers.
- Tutorial for working on Armenian keyboard computers.
- Text import and conversion software.
Translating and Publishing of computer literature and manuals:
- Manuals for the following systems and software: IBM computer, Macintosh
computer, DOS 3.3 operating system. Windows, Macintosh, Turbo Pascal, Ventura
Publisher, PageMaker, Ready!Set!Go!
Language Translators and Dictionaries:
- Armenian comprehensive dictionary.
- Armenian/English/Armenian dictionary.
- Root-forming structures of originals in Armenian.
- Armenian/English/Armenian translating software.
Translation of Software Systems:
- Norton commander in Armenian.
- Windows in Armenian.
- DOS operating system in Armenian.
Information Systems:
- Armenian version of dBase.
- Herk program - an Armenian database.
Sound-Voice Systems:
- Sound-Voice synthesizing hardware and software.
- software storage of human voices.
- system for dictating texts.
- speech recognition and storage.
Musical Systems:
- hardware and software for transmission of music.
- software for music storage.
- software for comparative analysis of music.
- software for input and interpreting of music.
Image and Movie Systems:
- movie creating program.
- image storage.
Tutorials and Computer Games:
- system for creating tutorial programs.
- tutorial system for teaching computer languages.
- tutorial for alphabet system.
Foreign Cooperation;
The Armenian Computer Center would like to form very broad relationships
with foreign partners. This includes ioint design, development, and marketing
projects. they believe that with some refinement, some of their software
may be marketable in the West.
TCG rating;
The ACC provides a wide range of high level products and services for
the Armenian software industry. In terms of PC applications, the ACC probably
comes closest to the cutting-edge (in the U.S.S.R., of course) of all computer
groups in Armenia. Their Ventura Publisher software and their Sound-Voice
synthesis systems are impressive, especially when considering the lack
of manuals and publications available to them as well as the minimal interaction
with foreign programmers. The director, Vahram Mekhitarian is very ambitious
and wants to have the premier computer software group in the Republic.
He has managed to attract very good programmers by offering superior computer
equipment and challenging projects. An atmosphere of excitement that is
often present at cutting-edge research laboratories was noticable at this
place. A foreign firm that wants to penetrate the service segment of the
Soviet computer industry would do well to consider the ACC.
CONTACT: Hayk Tigranian, president
ADDRESS: Amman 3, Yerevan
TELEPHONE: 56-70-82
YEAR OF ESTABLISHMENT: 1991
TYPE OF ORGANIZATION: cooperative
SPECIALIZATION: software for scientific research and industrial applications
- research, analysis, and marketing requirements related to software.
EMPLOYEES:
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LANGUAGES CURRENTLY IN USE: Turbo C, Turbo Pascal, Auto Lisp, BASIC
OPERATING SYSTEMS: MVS, VM, VMS, DOS
HARDWARE: 7 - IBM PC 286, 1 - IBM PC 386
General Description;
The Basis Design Center is an architecture and design firm that is
now diversifying into other computer software applications. After designing
software for the particular applications of their own firm. Basis has begun
to focus on the commercial software market. Their ARTools CAD software
has been successfully marketed in the Soviet Union. The director, Hayk
Tigranian, is also involved in establishing a design/urban studies institute
in Armenia, pursuing intellectual property legislation in government, and
organizing international conferences.
Foreign Cooperation;
This cooperative is interested in joint research and training relationships,
personnel exchange programs, and Western contracts. They are especially
looking for relationships that can facilitate their understanding of foreign
markets. They believe they can offer a Western firm their experience in
the Soviet market. They have had contact with IBM, Hewlett Packard, and
Borland.
TCG rating:
As the leading architecture firm using CAD in Armenia, the Basis Design
Center has a proven record of innovation and product successes. Having
successfully developed software for their own architectural applications,
they are now broadening their software products and applications. The firm
has an impressive library of software with hundreds of programs from the
West. The greatest strength of the firm is its director, Hayk Tigranian.
One of Armenia's leading entrepreneurs and managers, Tigranian attracts
the best and brightest computer programmers with promises of exciting projects
and an excellent work environment. People were always hard at work at Basis.
Tigranian also has strong contacts with Armenian business leaders and government
officials. Basis is very receptive to contacts and relationships with Western
individuals and firms.
CONTACT: Gourguen Siffilian, president
ADDRESS: Ajarian St. 31, Yerevan 375040
TELEPHONE: 61-07-61, 62-79-40
YEAR OF ESTABLISHMENT: 1989
TYPE OF ORGANIZATION: cooperative
SPECIALIZATION: computer equipment (hardware), electronics and related
software.
EMPLOYEES: 8
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LANGUAGES CURRENTLY IN USE: Turbo C, Pascal, Assembler
OPERATING SYSTEMS: UNIX, DOS
HARDWARE: 5 - IBM Compat. 286
Technical Accomplishments;
Brabion is involved in the development of sophisticated electronic
equipment and related software with expertise in diagnostic systems (hardware
and software), computer games, animation, software protection, fast fourier
transform (FFT), digital signal processing and system design. Some of Brabion's
software products include a cancer diagnosis system, an electronics apparatus
diagnosis system, and an A/DC (analog to digital converter) analysis system.
Foreign Cooperation;
This cooperative has a joint programming venture with a French firm
(Ashiv France) and has sold font drivers in France. Brabion would like
to attract more Western contracts.
TCG RATING;
Brabion displays a high level of technological sophistication in both
its hardware and software, and appears to have broad capabilities in a
number of specialties. Brabion's president, Siffilian, is very intelligent
and capable. This is illustrated by his past products and achievements.
He is also well integrated in U.S.S.R. computer circles with strong ties
with many specialists. Given direction and guidance in finding market opportunities,
this group has the potential to be very productive.
CONTACT: Grigor Karapetian, director of Sevan Corporation, R.V. Atoyan,
director of automated systems management department
ADDRESS: 3 Hagop Hagopian, Yerevan 375033
TELEPHONE: 27-01-97
YEAR OF ESTABLISHMENT: 1956
TYPE OF ORGANIZATION: subsidiary of state-owned corporation
SPECIALIZATION: YCRI is involved in the design of small- and medium-sized
computers, and related software, design of automated control systems for
management, operating systems, computer-aided design systems.
EMPLOYEES:
OPERATORS - 50
PROGRAMMERS - approx. 700
LANGUAGES CURRENTLY IN USE: Turbo C, Turbo Pascal, FORTRAN, PL/I, MacroAssembler,
Turbo Assembler/Machine language
OPERATING SYSTEMS: UNIX. MVS, VM, DOS, PSX II, special Russian operating
system.
HARDWARE: 100 - IBM 286, 8 - IBM 386, 4 - ES-1045 (IBM compat.), 7
- ES-1046 (IBM compat.), 2 - DEC compat. NAIRI, 4 plus other specialized
computers.
General Description;
The Sevan Corporation is the largest computer enterprise, and YCRI
is the largest computer research institute in Armenia. Products developed
by YCRI are manufactured by Sevan. The Sevan Corporation is the producer
of the well known (in the U.S.S.R.) NAIRI minicomputer (PDP-compatible)
as well as multilayer printed circuit boards, semi-custom LSI circuits,
hybrid circuits, thin-film technology. Computer software is developed,
and produced by YCRI.
Technical Accomplishments;
A detailed description of software specialties, and proposed areas
of cooperation with foreign firms follows:
Automated Control Systems Division (ACS)
This division is involved in the development of twin-computer and multiprocessor
systems, real time operating systems, diagnostic systems, personal computers
and network software. ACS has 300 hardware designers, 150 system and 250
application programmers.
Proposed areas of cooperation with foreign firm:
- general purpose ACS design using foreign specifications.
- operating system development.
- hardware and communications protocols and software for local and
distributed networks.
- software for PC protection against viruses and intrusion/information
protection.
- enhancing reliability of information processing and storage on PCs.
- artificial intelligence.
- PC application software for evaluating computer systems and network
time-probability characteristics.
- custom-made application software development.
Mainframe and Computer Systems Division
With more than 400 hardware and software engineers, this division has
experience in the design and production of general-purpose computers, special-purpose
processors, multiprocessor and multicomputer systems. This division has
developed and produced three generations of general-purpose, medium performance
computers (ES series computers which are IBM compatible). These computers
have been sold to Eastern Europe and presently make up a large portion
of all computers used in the Soviet Union. Special-purpose vector processors
with 100 million operations/sec throughput and fault-tolerant computer
systems have also been developed. The PDP-compatible "NAIRT'-series minicomputers
and "NAIRT'-based twin-computer systems (PDP 11/40 and PDP 11/44 compatibles)
were designed and produced.
Proposed areas of cooperation with foreign firm:
- custom-made general- and special-purpose hardware.
- special-purpose co-processors, adapters and controllers to increase
PC efficiency and functional capabilities such as graphic co-processors,
image processors, interface adapters, FFT processors, C-processors, scanning
devices, etc.
- organizing and maintaining computing and users service centers for
PC- and IBM-compatible computers.
- operating systems and extension packages.
- peripheral devices and software.
- software for multiprocessor and multicomputer systems reliability
up-grades.
- operating systems package adaptation such as translation, adaptation,
generation, application and in-situ maintenance, users teaching and consultation.
- operating systems and application subsystems investigation for system
performance improvement such as development of microprogram supports, and
software optimization.
- diagnostic systems and testing programs.
- teleprocessing systems and network software.
Computer-Aided Design (CAD) Systems Division
Produces the "Autodesign" CAD-system which consists of the following
subsystems: -array semi-custom LSI chip design; - multilayer plug-in printed
circuit boards; - backplane design subsystems; - simulation and tests generation
subsystem in LSI-circuits, plug-in components and modules development;
- microprograms design subsystem. Division has about 80 application programmers
and 90 engineers.
Proposed areas of cooperation with foreign firm:
- design and manufacture of custom-made multilayer and double-sided
printed circuit boards and backplanes.
- all stages of engineering and production of components.
- subsystems for automation of design plans and specifications.
- design of extension board families and co-processors.
- PC-based CAD application software and computer graphics.
Electronic Devices Design and Manufacturing Division
With more than 300 skilled product engineers, and designers, this division
specializes in and is ready to cooperate with foreign firms in the following
areas:
- Custom-made micro-assemblies, integral microsensors, array semi-custom
integrated circuits and other microelectronic products which use during
this manufacturing process films deposition, precision photolithography,
plasmochemistry, etc.
- high precision chip carriers and LSI packages.
- printed circuit boards, micro-assemblies, LSI high-precision photomasks.
- thin-film magnetic materials deposition.
- PC-controlled automatic test equipment.
- logic analyzers.
- home electronics.
- power supplies.
Foreign Cooperation;
YCRI is aggressively pursuing business and technical relationships
with the West. They suggest these take the form of joint ventures, joint
research and development arrangements, and contracts from the West. The
firm believes that if its current technological base is supplemented with
Western technology, it can produce high quality products capable of competing
in a free-market economy.
TCG RATING;
YCRI has numerous attributes including high level theoretical expertise:,
experience in production and distribution throughout the U.S.S.R., and
familiarity with some Western technologies. Although this firm has a relative
abundance of both well-trained workers and computer hardware, its technologies
are many generations behind its Western counterparts. Due to the dismantling
of the Soviet central planning system, this state-run company is presently
stagnant, with professionals leaving in large numbers for smaller enterprises.
Nonetheless, its broad areas of specialization as well as its proven successful
products make it attractive. The spinning-off or breaking-up of the various
divisions and groups may be an attractive strategy for foreign investors.
CONTACT: Prof. Yuri Shoukourian, director
ADDRESS: P. Sevak, I, Yerevan 375044
TELEPHONE: 28-58-12,28-20-50
YEAR OF ESTABLISHMENT: 1957
TYPE OF ORGANIZATION: government-affiliated institute
SPECIALIZATION: a wide range of software applications, scientific research,
computing, hardware.
EMPLOYEES: total 200
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LANGUAGES CURRENTLY IN USE: C, C++, Turbo C, Lisp, BASIC, Pascal, Turbo
Pascal, FORTRAN
OPERATING SYSTEMS: MVS, VMS, DOS, RT II, RSX II
HARDWARE: 1 - IBM compat. mainframe 360/370, 1- IBM compat. PS/2 80,
6 - IBM XT, 12 - IBM AT 286, 1- IBM AT 386, 1 - IBM AT 486, 2 - DEC compat.
minicomputers, 1 - PDP 11/45 I - VAX 11/750,
Technical Accomplishments;
The computing section of the Academy of Sciences is involved in many
areas of computing ranging from software engineering to hardware design
and production. Examples of some of their applications include a "Verificator"
software system for automated design of electrical schematics; universal
microprocessor "MacroPro", VI.0; software system for earthquake mapping
in Armenia and a related earthquake database; computer support system for
teaching chess; system for digital image processing; "Signal Analyzer"
software system and signal transform device for IBM PC; device for telemetric
pickup and transfer of ECG to PC and a program for its recognition and
analysis; instrumental system to create scheme simulators (trainers); software
system for testing and analysis of electrical circuits; software for Armenian
language support on PC.
The major directions of research and development for the computing section are as follows:
Use of mathematical methods in automated design systems
automating theory and computing structures, conveyor research, automated
design, parallelization of sequential programs.
Algorithm theory and program synthesis
theory of difficulty, grades of insolvability, reflective equations,
automated program synthesis, reflective programs reformation, solving reflective
equations, multiuse microprocessor research.
Pattern/image recognition
discrete optimization, discrete modeling, earthquake database creation,
earthquake prediction, statistical systems.
Coding Theory
data storage and reporting reliability research, code creation, algebra
in coding theory, increasing of magnetic wear capacity.
Intellectual and experimental systems
artificial intelligence, inductive synthesis, game analysis, experimental
systems.
Mathlogic
classic and constructive mathlogic, logical output automation, logical
languages theory research, verifying design.
Image analysis and counting methods
transforming theory, image analysis, tomography, signal analysis, signal
adaptive studies, image compression.
Foreign Cooperation:
The Academy of Sciences - Computing Section is looking for both joint
programming ventures and contracts with the West. Additionally, it would
like to develop strong communication channels with colleagues abroad which
may eventually progress into some type of exchange program.
TCG RATING;
In the former Soviet communist system, the Academy of Sciences was
generally the place where the highest ranking scientists conducted their
research. Although characterized by broad research subjects, high quality
personnel, and relatively good computer equipment, the Academy of Sciences
is faced with a period of lethargy. This inactivity is a general characteristic
of most institutions with strong ties with the state. In spite of these
disadvantages, the Academy does offer selective opportunities for astute
investors.
CONTACT: A. Amatuni, director
ADDRESS: Alikhanyan Brothers 2, Yerevan
TELEPHONE: 34-15-00
YEAR OF ESTABLISHMENT: 1943
TYPE OF ORGANIZATION: government-affiliated institute
SPECIALIZATION: software for material structure, elemental, cosmic
ray, and applied physics studies.
EMPLOYEES: 70
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LANGUAGES CURRENTLY IN USE: Turbo C, Waterloo C, BASIC, Turbo Pascal,
VS, PL/I, REXX, Prolog (Turbo), Assembler (IBM/370)
OPERATING SYSTEMS: VM/SP R 5.3, MS-DOS V 5.0, V 3.30
HARDWARE: IBM 370, ES - 1046 (IBM compat.), IBM-AT 80XX, IBM-AT 286,
IBM-AT 386
Technical Accomplishments;
The Physics Institute is active in a number of hardware and software
areas. These include the design of printed circuit cards; production and
installation of experiments in high energy, particle, and nuclear physics
for both electron accelerators and cosmic rays; information management
systems and computer software. Software specialties include online controlling
systems, drivers for non-standard devices, information management systems
using DBMS, IMS, ADABASE, RBASE, ORACLE, and original file systems, and
system programmer tools.
Foreign Cooperation;
The Physics Institute proposes working with Western firms in the assembly
of PCs using Western components; assembly and production of individual
subunits of computing equipment; developing software for both PCs and larger
systems. In return for Western ollaboration, the Institute is willing to
offer a minimum of 700 square meters of floor space designed specially
for computers (ie. false floor, false ceiling, air conditioning system,
water and power supply); approximately 100 qualified engineers, programmers
and technicians; Soviet-made machine tools; room for an experimental electrophysical
workshop including apparatus (lathes, milling and coordinate machines,
galvanics, etc.).
TCG rating;
The Yerevan Physics Institute is well regarded in the Soviet Union,
and is relatively advanced in a number of areas. The institute is especially
capable in hardware areas, which are supported by a staff of software specialists.
The Institute is actively looking for joint ventures with Western partners,
and is willing to offer generous incentives. This is especially true in
the areas of hardware and scientific instruments, however they are also
open to cooperation on ventures that only focus on software.
CONTACT: Eduard Manoogian, director
ADDRESS: Terian Si. 105, Yerevan
TELEPHONE: 59-86-49
YEAR OF ESTABLISHMENT: 1987
TYPE OF ORGANIZATION: university-affiliated cooperative
SPECIALIZATION: artificial intelligence and expert systems.
EMPLOYEES: 12
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LANGUAGES CURRENTLY IN USE: C, Assembler/machine language
OPERATING SYSTEMS: MS-DOS
HARDWARE: 2 - IBM PC 286, 3 - IBM compat. 286,
General Description;
Professor Manoogian is one of the leading professors in computer software
at the Yerevan Polytechnic (the leading technological university in the
republic), and has started his own cooperative software firm. He has designed
programs in the areas of artificial intelligence and expert systems as
well as accounting and database packages.
Foreign Cooperation;
This cooperative wants joint programming relationships, contracts,
and personnel training opportunities from the West.
TCG rating;
Professor Manoogian has established a reputation in the Soviet Union
as a leading academic in artificial intelligence. He has very good programmers
working under him. This is the type of group that has the potential to
come up with really "hot" software.
Foreign Cooperation:
This computing center believes that with some advice and technical
help from the West, it can improve its products and make them attractive
to potential customers. The computer center is interested in a joint programming
venture with the West.
TCG RATING;
For a government affiliate, this computer center is quite attractive.
The abovementioned products illustrate the capabilities of the computer
center. With some direction and guidance, this center has the potential
to be very productive. Some of the programmers are very gifted. Although
presently a government affiliate, this does not preclude foreign ventures
and cooperation. Liberal government regulations make cooperation with this
type of organization possible.
CONTACT: Rafik Pezanian, director
ADDRESS: Amiryan St. 2/8, Yerevan
TELEPHONE: 58-79-41, fax 56-06-98
TYPE OF ORGANIZATION: government affiliate
SPECIALIZATION: automated management system design for economic applications.
EMPLOYEES: 16
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LANGUAGES CURRENTLY IN USE: Turbo C, Microsoft C, Turbo Pascal, BASIC,
Turbo BASIC, FORTRAN, Assembler, Clipper, Foxbase
OPERATING SYSTEMS: MS-DOS
HARDWARE: 10 - IBMAT/286
General Description:
This computer center designs software programs to automate management
of city services. The software helps government managers undertake accounting
and database applications. Although this computer center is affiliated
with the government, individual programmers have the flexibility to work
on programs that are not directly related to their job
responsibilities.
Technical Accomplishments:
The computer center has written two products that offer an indication
of its potential. The first is an automated city planning database that
incorporates a graphics interface. This program provides geographical (a
graphically reproduced map), and database informadon on city services,
zoning regulations, building characteristics, and urban planning. This
software is presently being used by the Sevan town council for city management
and utility service
improvement.
A second application produced by the computer center is a packet radiocommunication controller (both hardware and software). This unit serves as an intermediate between a computer terminal and a receiver/transmitter, and is designed for transmission of radiofrequency information. Detailed information is available on this product from TCG.
Foreign Cooperation:
This computing center believes that with some advice and technical
help from the West, it can improve its products and make them attractive
to potential customers. The computer center is interested in a joint programming
venture with the West.
TCG RATING:
For a government affiliate, this computer center is quite attractive.
The abovementioned products illustrate the capabilities of the computer
center. With some direction and guidance, this center has the potential
to be very productive. Some of the programmers are very gifted. Ahhough
presently a government affiliate, this does not preclude foreign
ventures and cooperation. Liberal government regulations make cooperation
with this type of organization possible.
CONTACT: Prof. Haig Khandjian
ADDRESS: Acharyan 31, Yerevan
TELEPHONE: 62-64-60
YEAR OF ESTABLISHMENT: 1988
TYPE OF ORGANIZATION: government-affiliated institute
SPECIALIZATION: software for scientific research including neural networks,
CAD, graphics, and databases.
EMPLOYEES: 20
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LANGUAGES CURRENTLY IN USE: Turbo C, Pascal, Pascal++, Lisp, BASIC,
QBASIC, Turbo BASIC, FORTRAN
OPERATING SYSTEMS: DOS
HARDWARE: 7 - IBM compatible 286, 1 - IBM compatible 386, 1 - Macintosh,
1 - Atari.
Technical Accomplishments;
The institute has written educational programs based on neural systems,
image recognition programs, city transport calculation programs based on
entropic models, and databases. Its expertise is in neural networks, CAD,
graphics, and transportation problems.
Foreign Cooperation:
The institute wants to form joint programming, personnel training and
contractual relationships with Western firms. It already has contracts
with a German firm for designing graphical programs in Turbo C for Windows
3.0.
TCG rating;
Professor Khandjian is very well regarded in academic circles. He has
a good sized group with English language capabilities. The group seems
to have potential, however, the quality of their software needs to be evaluated
more closely. They also have experience in interacting with foreign firms.
CONTACT: Yuri Baroyan, director ADDRESS: Acharian St. 31, Yerevan 375040
TELEPHONE: 61-65-55; telex: 243357 TROID SU YEAR OF ESTABLISHMENT: 1990
TYPE OF ORGANIZATION: government-affiliated institute
SPECIALIZATION: Institute is responsible for organization and implementation
of training and education programs in computer sciences, information technologies
and the use of computers in education for the Republic of Armenia. It produces
software to reach these ends.
General Description:
The institute specializes in the design and development of computer-aided
educational systems, training of teachers in computer science and information
systems, microprocessor system design, automated systems for collecting
and processing information, CAD/CAM, and graphics.
Technical Accomplishments:
The institute has produced a highly successful educational program
that teaches problem solving through an algorithmic approach. This project
was undertaken in collaboration with the United Nations Industrial Development
Organization (UNIDO), however, UNIDO does not have exclusive right to its
distribution. The institute has created a number of other educational programs
using a graphics interface as well as computer games and databases.
Foreign Cooperation:
The institute has a joint project arrangement with UNIDO, as well as
with the Brabion French/Armenian Joint Venture. It looks to undertake other
joint development projects with the West.
TCG rating:
The joint project with UNIDO has been very successful. This project
has also resulted in the acquisition of a large number of personal computers
by the institute. The institute, however, is in a very difficult financial
situation due to a reduction of funds from Moscow. This has resulted in
an exodus of many highly-skilled programmers. The institute is presently
in decline. Although the institute has potential, this potential is more
in the realm of education and services rather than sophisticated program
design. A foreign partner interested in educational applications and software
services (the teaching of computer skills and programming) may consider
this institute.
CONTACT: Artavast Terhanian, director ADDRESS: Bagharashian ISA, Yerevan
375012
TELEPHONE: 26-57-90 , fax 26-31-13
YEAR OF ESTABLISHMENT: 1991
TYPE OF ORGANIZATION: university-affiliated cooperative
SPECIALIZATION: information systems, mathematical models for simulating
consumer goods transactions.
EMPLOYEES: 5
LANGUAGES CURRENTLY IN USE: Turbo C, Turbo Pascal, Clipper, Foxpro
OPERATING SYSTEMS: DOS HARDWARE: IBM compat. 80XX, 286
General Description:
Professor Terhanian is a computer software professor at Yerevan Polytechnic
University and has started his own software cooperative. His group writes
a wide range of computer programs but has developed particular expertise
in information systems.
Technical Accomplishments:
Terhanian's most successful program is a medical diagnostic computer
system. With this database program, medical professionals input the symptoms
exhibited by their patients and the program diagnoses possible illnesses
or disorders. Further information on this software is available from TCG.
Norart Cooperative also has written the following programs: PopUp Help,
Turbo-protected Toolbox, SIMPAS - SIMulated systems using PAScal. Norart
also has expertise in real time simulation, program protection and the
use of mathematical methods in designing software.
Foreign Cooperation:
Norart is interested in joint programming and development relationships
as well as contracts from the West.
TCG rating:
Norart Cooperative is affiliated with the Yerevan Polytechnic University.
This group has been very active in software development and has a number
of noteworthy products. The sophistication of Norart's software needs to
evaluated to a greater degree. Professor Terhanian is very enthusiastic
about possible Western contacts, and could be a very
productive joint venture partner. The university affiliation could
offer opportunities in other areas.
CONTACT: Ashot Khatchadorian, director
ADDRESS: Furmanov 58, Yerevan
TELEPHONE: 25-71-65, 25-49-88, 25-54-66, 63-64-06
YEAR OF ESTABLISHMENT: 1987
TYPE OF ORGANIZATION: cooperative
SPECIALIZATION: accounting and database software.
EMPLOYEES: 11
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LANGUAGES CURRENTLY IN USE: C, Assembler/machine language
OPERATING SYSTEMS: DOS, Windows, OS/2
HARDWARE: 4 - IBMb compat. 286
Technical Accomplishments:
This cooperative specializes in general accounting, and database programs.
They claim that their programs are very flexible and may be used in many
different types of applications. The firm uses Novell networks.
Foreign Cooperation:
K.2 is looking to the West for help in marketing its products, training
its programmers, and upgrading its equipment.
TCG rating:
This group is well organized and ambitious. They seem to have acquired
relatively advanced Western software. Their products do not seem particularly
sophisticated. However, these programs may not be an accurate indicator
of their capabilities or potential.
CONTACT: Ara S. Gyurdjian, director
ADDRESS: Djaparidze 31, Yerevan 375037
TELEPHONE: 24-51-30. telex: vaza 24-35-55, fax: 24-64-10
YEAR OF ESTABLISHMENT: 1969
TYPE OF ORGANIZATION: government-affiliated institute
SPECIALIZATION: applications are primarily in the field of economics.
EMPLOYEES: total employees: 247
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Technical Accomplishments:
The institute specializes in statistical and economic analysis, and
mathematical econometric models. Software applications involve creation
of information systems for the planning and management of economic information,
design and application of economic models, forecasting and econometrics,
and computer networks.
Foreign Cooperation: The institute is looking for contracts from the
West.
TCG rating:
insufficient information to make fair rating.
CONTACT: Alexander Stepanian, director
ADDRESS: Apelian 6, Yerevan 375038
TELEPHONE: 34-47-00
YEAR OF ESTABLISHMENT: 1975
TYPE OF ORGANIZATION: government-affiliated committee
SPECIALIZATION: automated control and management systems for enterprises
that distribute consumer goocs.
EMPLOYEES: 77
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LANGUAGES CURRENTLY IN USE: Pascal, dBaselll+, Foxbase
OPERATING SYSTEMS: DOS
HARDWARE: 50 - Robotron CM-1910 (modeled after DEC PDP II minicomputer)
General Description;
This computer center has expertise in designing distribution models.
They solve problems related to estimating goods flow in inventory, accounting
and finances, delivery schedules, databases and other information systems.
The organization has sold its software only within the U.S.S.R.
Foreign Cooperation;
This organization presently has no Western contacts and is looking
to do joint program development with Western partners.
TCG rating: insufficient information to make fair rating.
CONTACT: Eduard Petrossian, director
ADDRESS: Tigranian 27, Yerevan 375014
TELEPHONE: 23-29-63
YEAR OF ESTABLISHMENT: 1974
TYPE OF ORGANIZATION: government ministry
SPECIALIZATION: design and implementation of software dealing with
transportation systems.
EMPLOYEES: 44
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LANGUAGES CURRENTLY IN USE: C, Pascal, FORTRAN, BASIC, PL/I, Clipper
OPERATING SYSTEMS: MS-DOS, MVS, SCP
HARDWARE: BK -2M36 ES -1841 (IBM compat.) lskra 226 (IBM compat.)
General Description;
This computer center designs efficient control systems for transportation
problems. It has sold its programs only within Armenia.
Foreign Cooperation:
The organization presently has no Western contacts and is looking for
joint programming contracts with the West.
TCG rating: insufficient information to make fair rating.
CONTACT: Levon Hagopian, director
ADDRESS: Republic Street 5, Yerevan 10
TELEPHONE: 58-95-32
YEAR OF ESTABLISHMENT: 1979
TYPE OF ORGANIZATION: government ministry
SPECIALIZATION: automated financial management and control systems
EMPLOYEES: 37
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LANGUAGES CURRENTLY IN USE: Foxbase, Clipper
OPERATING SYSTEMS: MS-DOS
HARDWARE: 18 - IBM compat. 8088/286
General Description;
This computer center designs automated financial control systems for
the ministry.
Foreign Cooperation;
It presently has no contacts with the West.
TCG rating;
insufficient information to make fair rating.
CONTACT: Misak Julpaian, director ADDRESS: Komitas St. 546, Yerevan
TELEPHONE: 23-04-11,23-38-76
YEAR OF ESTABLISHMENT: 1975
TYPE OF ORGANIZATION: government ministry
SPECIALIZATION: software for the construction industry.
EMPLOYEES: 60
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LANGUAGES CURRENTLY IN USE: Assembler, PL/I, Turbo C, C.Turbo BASIC,
BASIC, dBaselll+ , Foxbase, Pascal, FORTRAN, Supercalc, Assembler/machine
language
OPERATING SYSTEMS: MS-DOS
HARDWARE: 2 - IBM PS/2 286, 4 - IBM compatible AT 286, 15 - Iskra-1030
(IBM compat.), 1 - ES-1841 (IBM compat.), 1 - ES-1036 (IBM compat.).
General Description;
This computer center writes software for solving problems in the construction
industry. It has an extensive database of information in the construction
field.
TCG rating;
insufficient information to make fair rating.
A) Ownership of Joint Ventures and Joint Stock Companies
The Registration Process
Soviet and foreign organizations, amalgamations, and enterprises may create branches, representations and joint ventures throughout the Republic of Armenia (R.A.) In order to be eligible for participation in joint ventures with foreign enterprises, state, cooperative and other enterprises must be registered with the Finance Ministry of the R.A.
The registration of joint ventures is performed by the Office of Foreign Economic Relations of the Finance Ministry of the R.A., within a period of 15 days since application. The registration of the joint venture may be performed by any one of the partners of the venture.
The application for registration must include:
d) A certificate of incorporation of the foreign enterprise in the home
country. e) A certificate from the bank of reference of the foreign enterprise.
For the registration of subsidiaries and representations of joint ventures
and other enterprises, the following documents must be submitted:
a) Documents (a) through (c) from the above section. b) The written
resolution of the highest body of the joint venture or enterprise. c) The
statutes of the subsidiary or representative office confirmed by its notary.
Joint ventures, international subsidiaries, and other organizations
must notify the Finance Ministry of the R.A. of any changes within their
foundation documents within one month of those changes.
Microprocessors