As Zhoghovurd daily reported citing diplomatic sources, French President Francois Hollande expressed readiness to organize a meeting between Armenian leader Serzh Sargsyan and his Azeri counterpart Ilham Aliyev if Armenia agrees to ratify a document on Karabakh conflict settlement.

President Sargsyan, however, refused the offer, noting the step as impossible on the threshold of 2013 presidential elections in Armenia.

“The President’s refusal brought the issue to a stalemate; which means Yerevan won’t be receiving a funding of $1bn for new energy unit construction, promised by France,” the daily said.