RUSSIA NOT TO RAISE GAS PRICES FOR ARMENIA

ARKA News Agency, Armenia
Nov 8 2006

YEREVAN, November 7. /ARKA/. RA Minister of Finance of Economy Vardan
Khachatryan believes that Russia will not raise the prices for gas
supplied to Armenia. However, he does not rule out transit problems.

"This process is unclear, and it is the people involved in it that
must be asked about it," the Minister said.

On April 6, 2006, the Armenian Government and the "Gasprom" OJSC
signed an agreement on strategic cooperation for 25 years.

Under the agreement, the ArmRosgasprom CJSC is to purchase the 5th
power unit of the Hrazdan TPP from Armenia for $248.8mln. A total of
$188.8mln will be directed to the compensation for the population’s
expenses as a result of rise in gas prices during the next three years,
and $60mln will be paid to the RA state budget.

"Gasprom" pledged to complete the construction of the 5th power unit as
well as construct a gas-turbine plant with a capacity of 140 megawatts
within two years.

From: Emil Lazarian | Ararat NewsPress