GAZPROM INCREASES ITS STAKE OF ARMGAZPOM TO 80%

YEREVAN, FEBRUARY 22, NOYAN TAPAN. Gazprom OJSC intends to increase
its holding of ArmRusgazprom CJSC from 57.6% to 80% by 2009. Regnum
information agency reported citing Gazprom’s press service that the
company will increase its share holding by acquiring shares that the
enterprise issued additionally. It was mentioned that Gazprom has no
plans to acquire shares of Itera company in ArmRusgazprom.

ArmRusgazprom is the only supplier of natural gas from Russia to
Armenia. To recap, 45% of ArmRusgazprom shares of $126 mln belonged to
the Armenian government, another 45% – to Gazprom and 10% to Itera
($28 mln), while the company’s authorized capital made $280 mln. After
Gazprom’s acquisition of extra shares of $118.8 mln, the authorized
capital of ArmRusgazprom increased to $398.8 mln. It is noteworthy
that the increase of Gazprom’s holding in ArmRusgazprom through
additional issue is related to the purchase of the Hrazdan Thermal
Power Plant’s 5th unit by Gazprom. Gazprom purchased the incomplete
5th unit for $248.8 mln from the Armenian government. Another $180 mln
will be spent on putting the new gas turbine into operation.