PRE-TERM TERMINATION OF FINANCIAL MANAGEMENT OF ARMENIAN NPP ON AGENDA

ARKA News Agency, Armenia
March 28 2006

Yerevan, March 28. /ARKA/. The Russian side’s pre-term termination of
financial management of the Armenian nuclear-power plant (NPP) is not
currently on the agenda, the “Novosti-Armenia” News Agency reports
referring to Yevgeny Dod, Director General of the “INTER RAO UES” CJSC.

At his meeting with journalists in Moscow reported that the agreement
on financial management of the Armenian NPP was signed two years and
a half ago for the purpose of settling financial problems with the
supply of nuclear fuel.

Dod added that the agreement was signed for five years, and the issue
of its cancellation is not on the agenda.

“Unfortunately, Armenia had no financial sources then. I think
that the situation has got stabilized: 100% payments are ensured,
the rates necessary for investment activities and maintaining safe
operation of stations are in effect,” Dod said.

He pointed out that the crisis management of the NPP has come to an
end, and the NPP has entered a new level of operation.

In this context, Dod added that last year the NPP could pay for
nuclear fuel.

According to Dod, some circles in Armenia claimed that the RAO
“UES of Russia” monopolized Armenia’s energy market and controls
the Sevan-Hrazdan coordinated hydro-electric system, the NPP and
electricity networks. He stated that this issue no longer on the
agenda, because the two countries’ Governments reached an agreement.

The Armenian NPP was put into operation in January 1980. The second
power unit (407.5 megawatts) is currently operating.

In September 2005, the NPP’s financial management was trusted to the
“INTER RAO UES” CJSC, a daughter company of the RAO “UES of Russia”
(60% of shares) and the “Rosenergoatom” concern (40%).