RIA Novosti, Russia
July 29 2005

Armenia plans to build new nuclear power units

YEREVAN, July 29 (RIA Novosti, Gamlet Matevosyan) – The government of
Armenia believes the construction of new nuclear power units is a
strategic goal to maintain and enhance the republic’s energy security
and independence, Armenian Prime Minister Andranik Markaryan said
Friday.

Markaryan held a meeting with chief of the International Atomic
Energy Agency (IAEA) Muhammad El-Baradei who is currently visiting
Yerevan.

El-Baradei said the IAEA could assist Armenia in conducting
feasibility studies for the construction of a new nuclear power
station.

The IAEA chief said that Armenia had made significant progress in
enhancing the safety of the country’s nuclear power station but much
had yet to be done. He suggested the drafting of a systematized plan
with an outline of the project’s timeframe and financial breakdown to
simplify creditors’ efforts.

Markaryan said Armenia was committed to using nuclear energy for
peaceful purposes only and pursuing a nuclear non-proliferation
policy.

The Armenian nuclear power station was launched in 1980, but its
operations were suspended in March 1989 for political reasons. It
restarted operations in November 1995 due to a severe energy crisis
in the republic.

The station’s second unit is equipped with Russia’s first-generation
VVER-440 reactor and generates an average of 30-40% of all electric
power in the republic. Experts say the nuclear power station can
operate until 2016.

In September 2003, the nuclear power station was transferred to a
subsidiary of Russia’s electricity monopoly RAO UES and Rosenergoatom
Corporation for five years of trust management.

The European Union insists that Armenia’s nuclear power station be
deactivated and is ready to allocate 100 million euros for this
purpose. However, Armenian experts say the creation of alternative
energy capacities in the mountainous republic will require almost 1
billion euros.