RUSSIAN-OWNED ARMENIAN PLANTS TO BE PRIVATIZED – RUSSIAN PREMIER

RIA Novosti, Russia
Feb 6 2008

Yerevan, 6 February: The Armenian enterprises handed over to Russia
in return for the state debt will be reorganized and then, may be
handed over to the private sector, Russian Prime Minister Viktor
Zubkov said in Yerevan on Wednesday [6 February].

"As is known, in 2003 Armenia and Russia signed an agreement on the
handover of five Armenian enterprises to Russia in return for the
state debt – the so-called Equity for Debt agreement.

These enterprises are currently being reorganized in order to merge
into one scientific-production complex. Preparatory work is currently
under way. I think that in the first half-year this work will be
accomplished and the private sector will then be involved in the work
regarding the complex," Zubkov said at a news conference held jointly
with Armenian Prime Minister Serzh Sargsyan.

The agreement on the handover of the shares of Armenian enterprises
to Russia in return for Armenia’s state debt to the Russian Federation
was signed in 2002.