AGREEMENT ON THE ARMENIAN-IRANAIN FREE TRADE TO BE SIGNED SOON

YEREVAN, JULY 20, NOYAN TAPAN: On July 20 the cermenony of signing a
number of documents on bilateral cooperation followed the end of the
seventh sitting of the Armenian-Iranian inter-governmental commission
held in Yerevan. In particular, a document on the 2007-2009 cooperation
practical program in the sphere of tourism was signed between the
Ministry of Trade and Economic Development of the Republic of Armenia
and the Organization of Cultural heritage, manuscripts and tourism
of the Islamic Republic of Iran.

Foreign Minister of the Islamic Republic of Iran, co-chairman of the
commission from the Iranian side Manouchehr Mottaki said, that as a
result of negotiations with the authorities of Armenia an agreement was
reached to bring to a final shape the agreement on free trade between
two countries in the coming two months. He noted that it is envisioned
to raise the annual goods turnover between the two countries to 500
mln USD from the current 200 mln USD and speed up the finalization
of the Armenian section of the Iran-Armenia gas pipeline. Besides,
the Iranian side can provide engineering-technical services worth
500 mln USD. According to M. Mottaki, it is also envisaged to set up
joint ivestment and trade companies.

M. Mottaki did not rule out the possibility of participation of the
Iranian side in the construction of the new nuclear power plant in
Armenia, noting at the same time that "maybe the Armenian side does
not have financial problems."

Minister of Energy of the Republic of Armenia Armen Movsisian said
that in two months the construction of the 3rd high voltage line to
Iran will start, and, by the end of the year, the problems connected
with the construction of the Armenian hydro station of Meghri will be
solved, and the next year, most likely, construction works will start.

A. Movsisian also told the journalists that the construction
Iran-Armenia railway requires serious studies for which one year
is needed.