WHEN IN THE GOVERNMENT YOU MUST REFUTE

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[06:43 pm] 11 April, 2006

The rumors that the Russian company “GasProm” took the 40% of the 45%
Government shares of the “ArmRusGasArd” company in order to abate
the gas price are not refuted. Let us remind you that the government
sold the 5th block of the Hrazdan heat-electric generating plant to
“GasProm.” As a result of the deal the Government will give most of
the money for the gas price subsidization.

So far the executive branch officials and the Prime Minister
made an announcement that only the Hrazdan energy block will be
given to Russia for 188 million USD. According to the contract
provisions the RA Government has a 25 – year cooperation program with
“GasProm.” The contract highlights the strategy principles of gas
and energy cooperation. The year 2006 will be the most significant
from the above mentioned 25 years. According to “GasProm” they will
take the Hrazdan 5th energy block and “other objects of Armenian
gas sphere” by the last contract with the RA Government. The list of
the objects is kept in secret but we are informed that they will be
finally given to the Russian side by January 1, 2007. Our Government
officials periodically declare that the Armenian – Iran gas main will
be exploited by the end of 2006. Thus, by the deadline of the contract
with “GasProm” the next property of the country will be ready and it
will likely be given to the partner country.

The most striking point of the contract signed between Armenia and
“GasProm” is the following, “By the end of the deal the “GasProm”
company will have the overwhelming share of high quality in the company
“ArmRusGasArd.”

The RA Government and the Russian company “GasProm” have equal 45%
shares in “ArmRusGasArd,” the 10% of the shares belongs to the company
“Itera.” The rumors that the Government refused most of its share
in favor of “GasProm” are not warranted. The press secretary of
“ArmRusGasArd” Shushan Sardaryan said that the negotiating side is
the Government, and only the Government can give an answer to the
question. They did not refute the news. It was not refuted by the
Government press service representative Mery Harutyunyan either. The
latter gave a diplomatic answer, “I informed the mass media about
the Government decision. There is no mention about the shares in it.”

We can get further information on shares and the Iran – Armenian gas
main from the May decision of the Government when the deadline of
the deal with “GasProm” expires.