"Why Armenia is not participating?"

On 24 February, over twenty Armenian singers signed a petition asking ARMTV to withdraw from the contest. They cited the death of an Armenian soldier who was allegedly shot by an Azerbaijani sniper a few days earlier in the violated ceasefire as a reason for their "refusal to perform in the contest." However, later the Armenian Ministry of Defense announced that the Armenian soldier was killed by a fellow Armenian soldier, and not by Azerbaijani army. But despite that, the Armenian singers claim that Armenia should not participate this year and that they would have called for the boycott of Eurovision in Baku even if the Armenian soldier had not been killed.* (Many soldiers were killed from an Azerbaijan sniper, this is not the 1st or last).
ARMTV and the EBU announced on 7 March 2012 that Armenia would be withdrawing from the 2012 Eurovision Song Contest. ARMTV said that it was no longer confident that the Azerbaijani authorities would carry out their promise to guarantee the security of the Armenian delegation after Ilham Aliyev, President of Azerbaijan, in a speech given on 28 February 2012, had stated that Azerbaijan's "main enemies are Armenians of the world". They could not send participants to a country where they "will be greeted as an enemy", ARMTV explained.
*Last month, a group of Armenian pop singers launched a Eurovision boycott campaign, saying: "We refuse to appear in a country that is well known for mass killings and massacres of Armenians, in a country where anti-Armenian sentiments have been elevated to the level of state policy.
"There is no logic to sending a participant to a country where he will be met as an enemy."