RUSSIA DOUBLES GAS PRICE FOR ARMENIA

RIA Novosti, Russia
April 1 2006

MOSCOW, April 1 (RIA Novosti) – Russia will double Saturday the
price for its natural gas supplied to Armenia from the current $54
per 1,000 cu m to $110.

A Russian-Armenian joint venture, ArmRosgazprom, which is owned by
the Armenian Energy Ministry (45%), Russian energy giant Gazprom (45%)
and independent Russian oil and gas company Itera (10%), has a monopoly
right to supply and distribute gas on Armenia’s domestic market.

ArmRosgazprom requested the Armenian commission for the regulation
of public services to raise natural gas tariffs from $131 to $240 per
1,000 cu m for private consumers and from $175 to $322 for commercial
consumers using more than 10,000 cu m. A relevant decision will come
into force a month after the request is approved.