ARMENIA PAYS $110 FOR 1,000 CUBIC METERS OF GAS TO RUSSIA AND CONTINUES TALKS

Regnum, Russia
April 4 2006

Yerrevan, 4 April 2006 (Regnum – website) – Since April 1, the
ArmRosGazprom will pay $110 for each 1,000 cubic meters of gas supplied
from Russia to Armenia, spokeswoman for the company Shushan Sardaryan
told a REGNUM correspondent. Meanwhile, as spokeswoman for the Armenian
Energy Ministry Lucine Arutyunyan said to a REGNUM correspondent,
the talks between the Armenian party and Gazprom have continued in
Yerevan. The spokeswoman did not specify what questions are discussed
at the talks, taking into consideration the fact that price for gas
supplied to Armenia is $110 for 1,000 cubic meters.

“Details of the talks and their results will be announced by the
Armenian government after the end of the talks,” noted Lucine
Arutynyan.

Before April 1, gas was imported into Armenia at a price of $56 for
1,000 cubic meters. After that date, the delay given by Gazprom to
the Armenian party expired. Meanwhile, since April 10 gas tariff will
increase for domestic consumers: by 52.2% for residents, by 85.2%
for companies.

Prominent Armenian businessman Mikhail Bagdasarov earlier announced,
the gas supplied by Russia to Armenia would cost $68 for 1,000 cubic
meters. According to him, the gas price for domestic users will not
exceed $100 for 1,000 cubic meters. “The talks on the price for the
gas supplied by Russia to Armenia have continued, and according to the
information I have it will not exceed $70 for 1,000 cubic meters,”
concluded the businessman. Earlier, there was a report in the press
that Armenia agreed to give the 5th block of the Hrazdan Power Plant
for $250 million to achieve a compromise on settling the accounts.