BREAKTHROUGH IN REORGANIZATION OF ARMENIAN ENTERPRISES HANDED OVER TO RUSSIA EXPECTED

ARKA News Agency, Armenia
Feb 6 2008

YEREVAN, February 6. /ARKA/. A breakthrough in reorganization of
Armenian enterprises handed over to Russia under property-for-debt
program is expected to be seen in the first half of 2008, Russian
Prime Minister Victor Zubkov said Wednesday in Yerevan, at a joint
news conference with his Armenian counterpart Serge Sargsyan.

"We keep this work under constant control. I think considerable
progress will be visible in the first half of this year", he said.

Zubkov said that the reorganization aimed at merging there enterprises
into scientific industrial complex is under way now.

"We have completed the inventory of Mars CJSC’s property and now
shares of this joint venture are being evaluated", he said.

The Russian premier said that a private investor will be attracted
to the enterprise.

"AFC Sistema’s interest in this enterprise hasn’t disappeared, and it
will actively participate in this complex exploitation in the future",
he said.

Armenia signed the $93-million property-for-debt agreement with Russia
in 2002.

Under this agreement, five Armenian enterprises – Mars CJSC,
($56.29mln), Mathematical Machines Scientific Research Institute
(2.75mln), Yerevan Institute of Automate Control System ($3.37mln),
Institute of Science of Materials ($0.35mln), Hrazdan Thermal
Electric Plant’s property complex($31mln) – have been handed over
to Russia.