RIA Novosti, Russia
Feb 22 2005

TURKEY AND IRAN TO CONSUME ARMENIAN POWER

MOSCOW, February 22 (RIA Novosti) – The Russian UES (United Energy
Systems) Company plans electricity supplies to Turkey and Iran, UES
chairman of the board Anatoli Chubais has said.

“We are thinking of expanding the export of Armenian generating
capacity. Today electricity is exported from Armenia to Georgia and
we are thinking of a more complex arrangement of Armenian electricity
supply to Turkey and Iran”, Mr. Chubais said.

The UES manages a set of generating facilities in Armenia. It keeps
in trust management 100 percent of the Armenian nuclear power plant.
As part of its debt repayment for the Russian nuclear fuel, the UES
has received the property set of the Sevan-Razdan cascade and manages
the Razdan heat and power plant.

According to Mr. Chubais, the UES priority project in Armenia is the
fifth unit of the Razdan facility. He has called “realization of the
Razdan agreements concluded with the Armenian government” as the
target goal on the fifth unit.

The UES investments in building the fifth unit will come up to 120
million euros.

“This project (fifth unit) is linked to the Iranian gas pipeline
project, which is of interest to Armenia, power holding and Gazprom.
I don’t rule out that jointly with Gazprom we’ll build up a scheme of
participation in the gas pipeline project. If we do, we are ready to
make investments”, Mr.Chubais noted.

He also confirmed that the UES has received a proposal from the
British company Midland Resource Holding Ltd. on selling to the UES a
package of assets of the Armenian Electricity Grids, which the
British company has in management, of which some news agencies
earlier reported.

“I confirm having received the proposal. We are studying it. Whatever
decision is taken, it has to be coordinated with the leadership of
Armenia at the political level”, Mr. Chubais added.