ARMENIA NEEDS TO DECIDE ON PROSPECTIVE MARKETS TO BUILD OIL REFINERY: LEVITIN

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. Armenia must decide on prospective
markets before constructing an oil refinery, said Igor Levitin,
co-chairman of the Armenian-Russian Intergovernmental Commission on
Economic Cooperation.

"Armenia must understand the markets that will buy its products. If the
markets are shaped, the issue on the oil refinery and crude oil will
be considered as well," Levitin told ARKA at today’s press conference
in Yerevan.

Citing experts, he said it would be ineffective for Armenia to build
a refinery with a capacity more than 5mln tons. However, the issue
remains on today’s agenda and will be considered taking into account
exports.

Armenia’s Minister of Energy and Natural Resources Armen Movsisyan
formerly stated the Armenian-Russian-Iranian working group dealing
with the construction of the oil refinery intends to build an oil
terminal and Iran-Armenia oil pipeline.

To construct the oil refinery, Armenia needs some $3bln. The
feasibility analysis of the project is under way and the
Russian-Armenian-Iranian working group is trying to settle the existing
technical problems.

According to rough calculations, the annual output of the refinery
will be 7mln tons. Armenia, Russia and Iran will finance construction
of the refinery.