RIA OREANDA
Economic News
July 14, 2004 Wednesday

Premier Fradkov: There are prospects for Russian natural gas exports
via Armenia to third countries.

Moscow. Russias Prime Minister Mikhail Fradkov met with his Armenian
counterpart A. Markarian as part of the latter’s visit to Moscow.
During their meeting they reiterated that Russia and Armenia intend
to develop their cooperation in all spheres of business, the
presidential press service said today.

Fradkov stated that Russia and Armenia cooperate successfully in the
economic sphere, as their trade turnover increased by 30% y/o/y.
According to Fradkov, toward the end of this year the
intergovernmental commission on trade and economic cooperation will
meet in its regular session to discuss economic and humanitarian
issues, as well as issues relating to payment of debts resulting from
Russias property acquisitions in Armenia.

According to Premier Fradkov, the near future will see solutions to
problems relating to Russias obligations to invest in companies on
Armenian territory, which have been transferred to Russia to offset
Armenias debts to Russia.

The discussants also addressed issues of military and technical
cooperation. According to Fradkov, bilateral military and technical
cooperation will be oriented toward upgrading hardware that had been
formerly supplied and adopted by the Armenian army and extending its
service life. In addition, Russia is ready to provide Armenias armed
forces with the necessary spare parts and equipment.

In the coming days Russia and Armenia will also complete the
agreement on cooperation in the natural gas sphere. Fradkov stated
that issues of cooperation on construction of new gas mains are
currently under discussion. There are prospects for Russian natural
gas exports via Armenia to third countries.