ARMENIAN PUBLIC SERVICES REGULATORY COMMISSION APPROVES NEW GAS PRICES

ARKA
Feb 27, 2009

YEREVAN, February 27. /ARKA/. The RA Public Services Regulatory
Commission has approved the new gas price – 96,000 AMD for 1,000 cubic
meters against the present 84,000 AMD. The new price is to take effect
from April 1.

The gas consumers using over 10,000 cubic meters of gas will pay $215
for 1,000 cubic meters.

In its application ArmRosgasprom proposed 99,000 AMD for 1,000
cubic meters.

Ashot Hovsepyan, ArmRosgasprom Vice-Chief Executive Officer, said
that the company is not satisfied with the newly approved price as it
challenges the execution of the company’s commitments and may force
it to abandon a number of plans as "even now the company’s margin
does not allow it to implement some projects".

According to him, the new prices will reduce profits, and, with the
unfavorable economic situation considered, the company will hardly
execute its commitments.

Commission Chairman Robert Nazaryan pointed out that the average
Armenian consumer uses 1,000 cubic meters a year. Therefore, a 12
AMD rise in the gas price means a 12,000 AMD rise a year.

"We realize this is an additional burden for the population. However,
we hope that the Government will make steps. Specifically, last
year the Government planned to raise pensions, social allowances and
salaries for some population groups," Nazaryan said.

=0 D The ArmRosgasprom CJSC holds a monopoly of distribution of
Russian natural gas in Armenia.

The company was founded in 1997. The share of the Gazprom OJSC in
the company’s authorized capital is 75.55%, the rest being held by
the RA Government (20%) and Itera Company (4.44%).