DEVELOPMENT OF URANIUM DEPOSITS NEW RUSSIAN PROJECT IN ARMENIA THIS YEAR

ARKA
Feb 5, 2009

YEREVAN, February 5. /ARKA/. The development of uranium deposits
will be a new Russian project in Armenia this year, RF Ambassador to
Armenia Nikolay Pavlov told a press conference at the international
press center Novosti.

The Armenian-Russian Mining Company established last September is
developing uranium deposits in Armenia. The issues of financing
the company have been settled, and the field work is under way. The
company plans to invest about $3mln in the Armenian economy.

RF Trade Representative in Armenia Alexander Zaitsev pointed out that,
amid the global economic financial crisis, the major task for Russia
is to support the previously launched projects.

"Among them is the long-term projects of construction of a second
nuclear power plant, modernization of railways, as well as all the
projects Armenia is actively developing with Russia’s assistance,"
Zaitsev said.

Armenia plans the construction of a new nuclear power plant with a
capacity of 1,000 MW. The RA Ministry of Energy estimates the project
at $5bln. In 2006 the Armenian Parliament abolished the government
monopoly of nuclear power plants to facilitate the attraction of
foreign capital.

The South-Caucasian Railway CJSC, fully owned by the Russian Railways
OJSC, is concessionaire of the Armenian Railways. Under a concession
agreement signed on February 13, 2008, the South-Caucasian Railway
CJSC, registered the rolling stock of the Armenian Railways in its
fixed assets on June 1, 2008. The 30-year concession agreement can
be prolonged for another 20 years.