RUSSIA CUTS INVESTMENTS TO ARMENIA BY 3.04 PCT

ARKA
June 2, 2009

YEREVAN, June 2. /ARKA/. Russian investments in Armenia dropped almost
3.04 pct to $33.1mln this year, the RA National Statistical Service
(NSS) reports.

According to statistics, Russian investments comprised 17.8% of total
investments in Armenia and 20.1% of direct investments. During the
period under review, Russian direct investments in Armenia’s economy
dropped 49% year-on-year.

Russia is the third largest investor in Armenia and the number two
direct investor in the country’s economy.

The lion’s share (86.1% or $28.6mln) of investments was injected into
the communications sector. Russia invested $1mln 782,400 (5.4% of
total investments) in electricity, gas, water and steam distribution,
$930,000 (2.8%) in cultural activities and recreations, $881,200
(2.7%) in others services, $769,200 (2.3%) in wholesale trade and
brokerage business (without cars and motorbikes trade).

Russia also allocated funds for hotel and restaurant business
($109,000), shoe and leather making ($79,900), food and beverage
industry ($30,000) and education ($13,500).

Russian investments in Armenia totaled $186.3mln in Q1 2009, compared
to $100.8mln in the same period last year, with direct investments
totaling $54.9mln.

Foreign quarterly investments in Armenia reached $186.3mln with
$139.3mln direct investments.