CARGO TRANSIT FROM ARMENIA TO RUSSIA VIA GEORGIA TO CONTINUE

ITAR-TASS, Russia
Oct 10 2006

MOSCOW, October 9 (Itar-Tass) — Cargo transit from Armenia to Russia
through Georgia and back will not be stopped, Armenian Defence Minister
Serzh Sarkisyan said.

Russian Transport Minister Igor Levitin said cargoes would go to and
from Armenia through the ports of Novorossiisk and Kavkaz.

The parties said cargo turnover between Russia and Armenia would double
this year to 363.9 million U.S. dollars. Russia supplies machinery,
equipment, nuclear fuel, and surface transport to Armenia in exchange
for food and agricultural products, alcohol, previous and semi-precious
metals and stones.

Two railway ferries will run between Novorossiisk and Kavkaz by the
end of the year. Currently there is only one ferry for 20 railway
carriages.

According to Levitin, the ferry is not efficient and it will be
replaced with two ferries, each capable of carrying 52 railway
carriages.

Armenia’s National Statistics Service said Russia was the third largest
investor in Armenia in 2005 after Germany and Turkey, having invested
67.5 million U.S. dollars.

The ministers said 589 joint ventures with Russian capital were
registered in Armenia. About 300 of them are doing well, including
Armenal at the Kanaker Aluminium Plant that makes foil. It plans to
make up to 2.5 percent of foil in the world by 2008.