Armenia exempts Russia from paying $6.2m

RosBusinessConsulting, Russia
May 11 2004

RBC, 11.05.2004, Yerevan 13:40:45.The parliament of Armenia
exempted the Russian Economy Ministry from paying VAT totaling $6.2m
within the framework of a deal on including the assets of Razdan
thermal power station in the authorized capital of Razdan Energy
Company. According to the ARKA news agency, the Armenian parliament
adopted a corresponding bill on the second reading. The final stage
of transferring the Razdan thermal power station to Russia implies
including its property in the authorized capital of Razdan Energy
Company, a legal entity, which is being established by Russia in
Armenia.

According the legislation of Armenia, Russia had to pay a 20-percent
VAT from the cost of the property ($31m), which amounted to $6.2m. As
a result, Russia faced unforeseen expenditures and the Armenian side
decided to introduce changes to legislation, which imply VAT relief
for establishing Razdan Energy Company.

From: Emil Lazarian | Ararat NewsPress