ARMENIAN GOV’T TO SELL IRANIAN-ARMENIAN GAS PIPELINE

RosBusinessConsulting, Russia
April 6 2006

RBC, 06.04.2006, Moscow 14:35:30.Gazprom and the Armenian government
have signed an agreement under which Armrosgazprom is to buy the
40-kilometer section of the Iranian-Armenian gas pipeline under
construction and the fifth energy generating unit of the Razdan Thermal
Power Plant (Razdan-5) from the republic’s government, Gazprom’s press
service reported. A preliminary purchase agreement is to be signed by
April 14 while the transfer of ownership should be completed by January
1, 2007. The Armenian government will also entitle Armrosgazprom to
act as the Customer for construction of the second section of the
Iranian-Armenian gas pipeline, which is 197 kilometers long.

To secure efficient gas conversion into electric power, the parties
will join efforts to recover and hook up the Razdan-5 assets under a
unified control center, and to launch construction of a gas turbine
unit with a capacity of 140 megawatts.

Further operation of these facilities will allow decreasing fuel
costs related to energy production. The agreement makes provisions
for export of the energy generated at Razdan-5. As soon as the deal is
completed, Gazprom will obtain qualified majority in Armrosgazprom’s
authorized capital.