Armenia to continue cooperation with ITERA

Gateway 2 Russia, Russia
May 17 2004

Armenian President Robert Kocharian met with Igor Makarov, head of the
ITERA group. Mr. Kocharian expressed interest in further cooperation
with ITERA. The agenda was dominated by natural gas supplies to the
republic and cooperation in the energy sphere. Armenian President
praised ITERA’s performance in Armenia in the past years. He said the
company was Armenia’s long time partner, which met its obligations,
and expressed confidence that mutually beneficial cooperation would
continue.

Mr. Kocharian visited Russia on May 13-15. During the visit, he met
with Russian President Vladimir Putin, Prime Minister Mikhail Fradkov
and Alexey Miller, head of the Gazprom company.

Armenia’s energy sector relies heavily on imported gas. ITERA
supplied gas to the republic from 1996 to 2004. Until 2002, it fully
satisfied Armenia’s natural gas needs. Since 1996, the company has
supplied about 9bn cubic meters of natural gas to the republic.
Gazprom resumed gas supplies to Armenia in June 2003, and it is the
only gas supplier now. In 2003, Gazprom supplied 288.4m cubic meters
of gas to Armenian consumers, and ITERA – about 1bn cubic meters of
gas. This year, Gazprom plans to deliver about 1.4bn cubic meters of
gas to the republic.

ITERA has a 10 percent stake in Armrosgazprom, set up in 1997. The
Armenian government and Gazprom have each 45 percent in the project.
Armrosgazprom controls the entire gas distribution system in Armenia.
It supplies natural gas and generates electricity.