SCR GENERAL DIRECTOR RULES OUT RISE IN SHIPMENT TARIFFS IN ARMENIA

ARKA
June 5, 2009

YEREVAN, June 5. /ARKA/. The South Caucasus Railway (SCR) has
no intention to raise shipment tariffs in Armenia, SCR General
Director Shevket Shaidulin was quoted as saying Thursday at Novosti
International Press Centre (Yerevan).

"We are doing our best to help local manufacturers enter the CIS and
global markets. This is the reason why we refused to raise tariffs
this year despite the hike in the electricity price," he added.

The company’s expenditures rose 500mln drams due to the recent hike
in the electricity price that affected almost all communal services
in Armenia, the SCR general director said.

However, the company will try to retain current tariffs with the help
of special technologies and expenditures management policy.

"With a new tariff classifier coming soon, our price policy will
offer a clear and transparent price policy," Shaidulin said.

The company has approved a new tariff policy, RA Minister of Transport
and Communication Gurgen Sargsyan has signed the document and it will
be published soon.

According to Shaidulin, the new tariffs will be lower than those
effective in 2008, particularly tariffs for using the universal
rolling stock to ship particular goods depending on the distance from
Ayrum station.

"We do not plan to raise tariffs, as we believe management is the only
way to earn pr ofits amid the global financial crisis," he concluded.

On 1 June 2008, SCR, a wholly-owned subsidiary of Russian Railways,
received property owned by Armenian Railways under the February 13,
2008 concession agreement the parties concluded for 30 years, with a
right of extension for another 20 years after the first 20 years of
operation.