ARMENIAN-RUSSIAN GAS COMPANY PLANNING TO EXPORT ELECTRICITY

ArmInfo, Armenia
Sept 12 2007

Yerevan, 12 September: The HayRusgazard closed-type joint-stock company
is not just a gas company, it also intends to take an active part in
the electricity business in the region, the chairman of the council
and general manager of HayRusgazard, Karen Karapetyan, told a news
conference today.

He said that Armenia is pursuing a liberal policy with regard to power
export to neighbouring countries that experience a shortage of power.

The second Iran-Armenia gas pipeline is being built in Armenia as an
alternative to the northern main gas pipeline, which creates extra
energy in the republic.

"We have acquired Hrazdan-5 [power station] and are planning to
export electricity," Karapetyan said. He added that the company has
been exporting electricity to Georgia since 2002.

We should recall that Armenia stopped exporting electricity to Georgia
last year because Georgia does not need it and has its own resources.

Moreover, the price of power export from Armenia has risen due to
the strengthening of the dram [national currency].