RUSSIAN TOP FINANCIAL OFFICIAL: TRADE IN RUSSIAN SECURITIES POSSIBLE IN ARMENIA

ARKA
May 20, 2009

YEREVAN, May 20. /ARKA/. Bembya Khulkhachiyev, Deputy Head of the RF
Federal Financial Markets Service, does not rule out trade in Russian
securities in Yerevan.

"I think it will be a very good step because out economies are
interdependent. So we must afford ampler opportunities for investors
to purchase securities and invest their money," Khulkhachiyev told
reporters during the 9th sitting of the CIS Council of Heads of
government agencies for securities markets held in Yerevan on May
19-20.

"We are well aware of our responsibility for not having pyramids in
our countries," he said.

Speaking of specific measures aimed to improve the situation on the
securities markets, Khukhachiyev cited Russia’s example and pointed
out lower taxes on operations with securities.

"This adds to the attractiveness of our instruments and, particularly
in Russia, gives rise to new bonds that do not require state
registration," he said. Khukhachiyev added that bonds to the amount
of US $1bln are sometimes registered during one day.

According to him, this is a serious alternative to bank crediting.

"Interest rates may be a little lower, and any issuers of such
securities creates a good credit history for himself, which will
allow him to borrow longer-term funds at lower interest rates from
both Russian and Western banks," Khukhachiyev said.

He also pointed out the necessity for creating a reliable exchange
trade system to reduce the present risks.

"It is clear we are of different weight classes, but each country’s
experience is quite interesting. We are considering the rules of
admitting professional participants licensed in a particular country
to other markets as well as rules of admitting foreign securities,"
he said.

The Council was formed by the CIS Heads of Government in 2003. At
present the Council includes representatives of Azerbaijan, Armenia,
Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan and
Ukraine.

The primary task of the Council is economic integration of the
CIS member-states in the securities market, ensure cooperation in
forming international standards of securities market management,
create conditions for further liberalization of capital flow in the
CIS member-states, ensure effective protection of investors’ rights
and effective supervision over the securities market.