Interfax News Agency, Russia
April 25 2008

ARMENIA TO BUY GAS FROM GAZPROM ON BETTER TERMS THAN OTHER CIS …

Armenian Prime Minister Tigran Sargsyan has said he is sure that the
price for natural gas imported by Armenia will be better than that at
which other countries buy it from Gazprom.

Speaking with journalists on Friday, Sargsyan said Gazprom CEO Alexei
Miller is expected to visit Armenia in May to discuss the price at
which Gazprom should sell gas to Armenia within the next three years
and sign a relevant agreement.

Asked whether the prices for goods and services in Armenia would
increase, Sargsyan admitted that higher prices for gas always
negatively influence the Armenian economy. "We should make sure that
the increase in prices do not have a negative effect on our economy’s
competitiveness. The rate at which the prices will grow will not be
higher than the identical figures in the countries neighboring
Armenia," he said.

The Gazprom Board of Directors endorsed an increase in prices for gas
sold to the CIS and Baltic countries at a session on April 23. In
particular, Armenia will buy gas at $165 per 1,000 cubic meters
starting from 2009, compared to the current $110. This price will
remain the same for the next three years. For the other CIS countries,
Gazprom plans to gradually increase the price to the average European
level.