CO-OWNER OF VTB-ARMENIA COULD SELL 30% STAKE TO VTB

Interfax News Agency
Russia & CIS Business and Financial Newswire
August 28, 2006 Monday 5:06 PM MSK

Armenian businessman Mikhail Bagdasarov is planning to sell his 30%
stake in VTB-Armenia Bank (formerly Armsberbank).

Bagdasarov told reporters that he is holding negotiations on selling
his stake with Vneshtorgbank (RTS: VTBR) (VTB), the owner of 70%
of the bank’s shares and an initial right of refusal to buy up the
remaining shares. Talks are also being held with other potential
investors, but Bagdasarov did not give any further details about them.

VEB refused to comment.

VTB acquired 70% of Armsberbank in March 2004 and has provided
financial institutions with subordinated loans for approximately $15
million-$20 million since then. VTB-Armenia had charter capital of
around $18 million at the end of the first half of 2006.

Bagdasarov owns Armenia’s Armavia Airlines, the Mika Cement plant
and oil trader Mika Limited.

VTB-Armenia is a mid-sized bank in Armenia. There were 21 banks in
Armenia at the beginning of 2006.