KOCHARYAN: SERIOUS ALL-EMBRACING MARKET REFORMS OBSERVED IN ARMENIA

ARMINFO News Agency
September 23, 2006 Saturday

"I was against any other non-market mechanisms of interaction,"
said Armenian President Robert Kocharyan in an interview with "Vesti
Nedeli" TB program in connection with the rise of gas tariffs by
Russia. Presidnet Kocharyan said all-embracing market reforms in all
the spheres of economy are observed in Armenia. Infrastructure reforms,
first of all in the sphere of energy, were very serious.

"The energy system is effective. Where the system works and on
the basis of market relations, this transition (to market prices
-ed.) is always less painful. Price fluctuations are compensated by
the efficiency of economy, and often by the general process of pricing.

That is why I saw no problems here, though I had rather difficult
negotiations," Robert Kocharyan said. The president thinks that it
would be even strange considering the problem separate from the market
conjuncture "as market reforms in Armenia were implemented thoroughly."

In this connection, Robert Kocharyan brought the history of
establishment of Armenian-Russian joint venture ArmRosgazprom. "We
founded it in 1998, 45% of the shares belong to Gazpron, 45% to Armenia
and 10% to ITERA. I see no position where we lose something in this
deal. Gas supply to Armenia is at the highest level in the CIS in
conditions of the lack of own reserves. Multi-million investments are
made. Gas is effectively used on enterprises. And the venture itself
is rather profitable," the president said.