VLADIMIR PUTIN FINDS "SHAMEFUL" INACTIVENESS OF RUSSIAN INVESTORS IN ARMENIA

Regnum, Russia
Oct 30 2006

On October 30Russia’s President Vladimir Putin received Armenia’s
President Robert Kocharyan, who is on a work visit in Moscow. As a
REGNUM correspondent reports, before the talks with Robert Kocharyan,
the Russian president said he found it "shameful" that "Russia is
only third in investments to the economy of its strategic partner."

At the same time, the Russian president noted that for the last
year goods turnover between Russia and Armenia increased by 60%,
which indicates development of the economic relations.

In his turn, Robert Kocharyan informed that all Yerevan’s agreements
with Gazprom are being implemented. "All the contracts on energy
projects with Gazprom are entering the stage of implementation,"
the Armenian president said, expressing hope for intensification of
Russia’s investment policy. "Next year, the situation will change
significantly, I cast no doubts on it," Robert Kocharyan is quoted
as saying. He also says that several days ago the process of complex
modernization of the Russian-Armenian Armenal aluminum plant was
completed.

Gazprom and the Armenian government signed the contract for 25 years.

It outlines strategic principles of cooperation in gas and energy
projects in the Armenian territory. The document envisages that
ArmRosgazprom acquires the fifth energy reactor of the Hrazdan Nuclear
Power Plant and gas facilities from the Armenian government.

Final passing of property for the facilities is to be completed by
January 1, 2007. On October 27, Gazprom Executive Board approved
acquiring additional issue of ArmRosgazprom, as a result share of
the Russian company in ArmRosgazprom authorized capital stock will
increase from 45% to 58%.