RUSSIA HAS LION’S SHARE IN INVESTMENTS IN ARMENIA: RUSSIAN TRADE REPRESENTATIVE

ARKA
Sep 17, 2008

YEREVAN, September 17. /ARKA/. Russia is Armenia’s major trade partner
and has the lion’s share in investments in the country’s economy,
said RF Trade Representative in Armenia Alexander Zaitsev.

Touching upon the prospects of Armenia-Russia trade cooperation,
Zaitsev expressed hope the upcoming Expo-Russia Armenia exhibition
would become a momentum in bilateral cooperation.

He said the ArmenTel Company (under the Beeline brand) plans to invest
$35.5mln in local telecommunications sector. The newly established
Armenian-Russian Mining Company will allocate $3mln for Armenia with
$200,000 by late 2008, the Russian Trade Representative added.

He stressed the importance of the Russian Troika Dialog’s large-scale
investments in Armenia’s banking system. The company has become the
principal shareholder of Ameriabank. The Russian giant Gazprombank
is now a shareholder of Areximbank. The VTB Group is the absolute
shareholder of the VTB Bank Armenia.

Russia’s RUSAL, which is now the absolute shareholder of ARMENAL foil
mill in Yerevan, will also make considerable investments in Armenia.

ArmRosGasProm, subsidiary of the Russian gas giant Gazprom, has
allocated some $80mln for the country’s gas supply system, Armenia
being a top leading gas consumer in the CIS.

Zaitsev pointed out the activities of the Electric Network o f Armenia
and MTS (80% shareholder of VivaCell-MTS), as well as the Russian
Railways. He also stressed the importance of Russia’s contribution
to Armenia’s aviation. The national air carrier Armavia has bought
from two new Sukhoi Superjets (SSJ 100) from the Russian Sukhoi
aircraft holding.

"Armenia was the first country in the CIS to buy four Russian jets,"
Zaitsev said.

According to the RA National Statistical Service, Russia’s first-half
investments in Armenia totaled $38mln 742,300 with direct investments
amounting to $27mln 404,300 (75.1% of total investments in the
real sector and 77.7% of direct investments) – 3.2% year-on-year
increase.