RISE IN PRICES WAS EXPECTED

A1+
[02:54 pm] 12 May, 2008

"Our country would have counteracted the recent price hike if it had
taken the right path," says the Chairman of the Armenian Consumers
Union Armen Poghossian.

He thinks Armenia could have found a way out if it had carried out
a sound policy with regard to two powerful enterprises-ArmRusGasArd
and ArmenTel.

Poghossian says ArmRusGasArd is the most powerful, lucrative and
well-equipped enterprise in Armenia and its authorized capital stock
mounts one milliard dollars. Armenia could have more profit from the
company if it had kept its shares. "Armenia owned 45 percent of the
company’s shares, but they have fallen up to 22%."

The chairman of the RoA Consumers Union thinks that Armenia’s
government should have taken steps to increase its shares as it
was possible. "For instance, former heating systems, boiler-house,
could have been shifted to the company’s balance thus increasing
Armenia’s shares.

Similarly, the recent rise in prices wouldn’t have affected Armenia’s
economy so much if the country /possessing 10% of ArmenTel’s shares/
hadn’t sold them at a symbolic price-30 million dollars.

The country lacks an economic policy. Ours is a "patched" hole,"
he says.