GAZPROM SAYS WILL SELL ARMENIA GAS AT $110 PER 1,000 CU M TO 2009

RIA Novosti, Russia
April 6 2006

MOSCOW, April 6 (RIA Novosti) – Energy giant Gazprom said Thursday
it would supply natural gas to Armenia at $110 per 1,000 cu m until
2009 under an agreement signed with the country’s authorities.

The agreement defines strategic cooperation principles for projects
in the gas and energy sector in Armenia.

In January, Russia doubled the price for natural gas supplies to
Armenia from $54 per 1,000 cubic meters to $110.

The move has stirred heated debate in Armenia, whose struggling
economy is heavily dependent on Russian gas, and prompted some
political groups to demand a review of relations with Moscow.

Armenia does not produce natural gas, which it uses to generate
electricity, and Russia is its only supplier.