RUSSAIN GAS PRICE TO BE RECONCILED IN ARMENIA BY 2011

ARKA
May 20, 2008

YEREVAN, May 20. /ARKA/. Armenia’s President Serge Sargsian and
Gazprom President Alexey Miller have agreed at the May 19 meeting on
the reconciliation of gas prices by 2011, the RA Government’s press
service reports.

Gazprom plans to ensure equal profitability both in Russia and
partner-countries by 2011, Miller said.

In his turn, Sargsian assured the Gazprom President Armenian-Russian
energy cooperation will develop in the future as well.

The participants to the meeting stated ArmRosGasProm works
effectively. They agreed that the increasing number of gas consumers
in Armenia testifies to the country’s constant economic development.

According to ArmRosGasProm, about 2bln cubic meters of gas was
imported to Armenia last year (19.7% increase as compared to 2006),
with gas consumption reaching some 1bln 869bln in the same period
(17.9% increase).

Sargsian said Armenia has become one of the largest gas consumers in
the world as a result of Gazprom’s large-scale policy.

The Prime Minister and Gazprom President touched upon negotiations
over the construction of a new refinery in Armenia and discussed the
company’s investment program.

Monopolist in Armenia’s gas supply market, the ArmRosgasprom CJSC
was established in 1997. The company’s capital amounts $580mln. Its
shareholders are the Gasprom OJCS (57.59% of shares), the RA Ministry
of Energy (34.7%) and the Itera Oil and Gas Company (7.71%).

From: Emil Lazarian | Ararat NewsPress