ARMENIA WANTS BIGGER STAKE IN GAS TRANSPORT JV WITH RUSSIA

Prime-Tass English-language Business Newswire
November 7, 2008 Friday 12:48 PM EET
Russia

The Armenian government is seeking to increase its stake in a natural
gas transport joint venture with Russian gas producers Gazprom
and Itera.

Armenia has proposed transferring natural gas distribution
pipelines worth 3.6 billion Armenian drams (U.S. $11.8 million)
to Russian-Armenian gas pipeline operator ArmRosgazprom in exchange
for new shares in the company, Armenian Energy and Natural Resources
Minister Armen Movsisyan said Friday.

ArmRosgazprom currently operates these distribution systems, but does
not own them.

Additionally, the Armenian government will seek to increase its stake
by injecting $20 million-$25 million into the company, Movsisyan said.

The proposals will likely be put forward at the general meeting of
the company’s shareholders in January-February 2009, he said.

Armenia’s government currently owns 17.32% in ArmRosgazprom, Gazprom
owns 78.83% and Itera owns 3.85%.