Q. - Mr. President, what the coming 2006 will bring to settlement of the Karabakh conflict and whether serious promotion is expected?

A. - Negotiations, as you know, continue. They move at the level of presidents, at the same time, there are Ministers of Foreign Affairs, and there are discussions. I repeatedly declared, that it is necessary for us to try all opportunities, to discuss possible variants. Only after that it will be possible to speak about something. Anyway, our position remains constant. The said conflict, the Armenia-Azerbaijan, Nagorno-Karabakh conflict can find the settlement extremely within the framework of territorial integrity of Azerbaijan. Outside of these frameworks, behind their limits, any question is not discussed and is not a subject of discussion. I have put this position forward two years ago during my first meeting with the President of Armenia, since then in our position, there is no change.

Certainly, in 2005 there were positive events. First of all, the Prague process started and strengthened, now negotiations go in these frameworks. As you know, the Prague process means stage-by-stage settlement. Besides, other international organizations also made active efforts in connection with the given question. It is included in the agenda of the United Nations Organization. Simultaneously, the OSCE mission on studying the facts has visited on the occupied areas and has revealed there the fact of illegal settlement of the Armenians. In the beginning of year, the Council of Europe has accepted very important resolution. Activity is observed and on the part of the European Union. That is all these factors testify to strengthening of the position of Azerbaijan during negotiations. It is the fact. However, it does not mean yet, that the given question finds or will find its solution. Today it is difficult to tell, whether it will solution in 2006 or not. If Armenia will observe norms of international law if it will undertake the actions peculiar to the normal country in this case, certainly, negotiations can become productive.

Q. - Mr. President, today Vartan Oskanian in his statement has once again declared, that if we wish settlement of the conflict, both sides should go on the compromise. In what questions in that case Azerbaijan can go on the compromise?

A. - I repeatedly expressed and on this question. About compromises all speak much, and we, certainly, should consider all possible variants. But in what can concede Azerbaijan?! I spoke that we seized nobody's lands. And we did not carry out ethnic cleaning concerning somebody, and today Azerbaijan is the injured state. What have we taken away from Armenia to concede? The point may be, certainly, on processes occurring in region and influence of the given processes on safety of peoples living in region. We also understand necessity of safety of all peoples of region. Certainly, it is possible to speak about it. If the conflict will find its fair settlement, then, certainly, it will be natural to set in region the peace-making forces. That is we can agree to it. Communications can be open. Certainly, the certain economic relations can be established. That is, such questions can be discussed. Territorial integrity of Azerbaijan is not the subject of negotiations, and Azerbaijan will not go on any concessions.

Q. - Mr. President, the Armenian side considers, that after the next year, extremely important for Azerbaijan the pipeline of Baku-Tbilisi-Ceyhan will be put into operation, Azerbaijan, at least, with a view of its safety will refuse confrontation. This idea is frequently emphasized. How it can be reflected in settlement of the conflict?

A. - These questions are not connected at all with each other. But as we know, it is possible, and that the positive factors listed by me on negotiations are connected to successful construction of the Baku-Tbilisi-Ceyhan oil pipeline as for anybody it is not a secret, that the given pipeline will promote significant strengthening of Azerbaijan from the economic point of view. Today, the economic difference between Armenia and Azerbaijan is great. Our budget grows. It allows us to increase the military budget. The next year, as you know, we shall increase it twice, but it is not the limit. 600 million dollars, that is the money directed on military charges, is not the limit for Azerbaijan. All knows it. Both Armenia, and the intermediaries engaged in the given question.

Certainly, the BTC will play important role in maintenance of peace, safety in region. At the same time, Azerbaijan becomes even stronger from the economic point of view. After economic strengthening of Azerbaijan, in region, there will be a new situation. It is difficult to predict it beforehand. Anyway, this factor is very strong tool in our hands. I do not doubt that we shall take advantage of it.

Q. - Mr. President, 2005 was remembered by a number of personnel rearrangements in structures of power. In press, messages are disseminated on continuation of personnel rearrangements. Should these changes will be continued, and whether serious changes are expected?

A. - Personnel rearrangements is a natural process to which it is necessary to approach in this way. This process occurs in all countries. I cannot tell, that the given process began in Azerbaijan at the end of 2005. It also occurred earlier. Probably, at the end of 2005, it was more notable. But it is natural process and to perceive it, it is necessary as natural. People work on the certain posts. And this post is not eternal, and nobody receives it for life. The president, too, is limited within the term of powers. Therefore, any other official also should understand, that each official works in the certain time frameworks. If in his work there are no lacks, if he made successes, that, certainly, activity of the given official receives estimation, and he is appointed to a new post. On the contrary, if they suppose gross infringements on the site entrusted by him, and then he is dismissed of work. That is, there is nothing unusual in it.

Q. - Mr. President, there is information that from Iran 1 billion cubic meter of gas will be received in addition. That is, Russian company “Gazprom” has raised tariffs, and with a view of indemnification, the gas will be received from Iran. Is this right?

A. - As you know, we have signed with “Gazprom” a new contract for 2006. In spite of the fact that the price has doubled approximately, we, nevertheless, consider, that it is necessary for Azerbaijan. To tell the truth, we had the contract for 2006, which provided 61, or 62 dollars for one thousand cubic meters. But we had no other way. Therefore, the contract about purchase of 4 billion 500 million cubic meters of gas has been signed. Alternative sources are studied also. It is not excluded, that, whenever possible, we can receive gas and from Iran.

As you know, now began exchange of gas between Nakhchivan and Iran. We have tested capacity of these pipelines. After a long break, delivery of gas to Nakhchivan has renewed. Further, probably, from Iran the certain quantity of gas will be delivered. But to speak about is too early, as it is necessary to carry on negotiations, to come to a certain agreement. But further, certainly, it is necessary for us to expect for own forces. In 2006, in Azerbaijan, on deposits of “Azeri-Chirag-Guneshli”, it will be extracted approximately 3 billion cubic meters of gas. As you know, it agrees to the “Contract of the Century”, it is transported to Azerbaijan free-of-charge. I hope, that up to the end of year, extraction of gas and on deposit "Shahdeniz” will begin. It will give us the additional volume, and the gas delivered from Russia also will help us. Whenever possible, it will be delivered and from Iran, we shall consider the given question.

Our needs grow, and new stations are under construction. The needs of the population increase. In a number of settlements and villages, there goes gasification. Therefore, it is necessary for us to use all opportunities for maintenance of the needs.

I congratulate you on the Day of Solidarity of World Azerbaijanis and New Year. Thanks.