ARG PAYS BACK $40 MILLION GOVERNMENT LOAN

ARKA
March 19, 2010

YEREVAN, March 19, /ARKA/. ArmRosGazprom (ARG), Armenia’s national gas
distribution company, said it has paid a $40 million loan provided
by the government. The loan, repayable in six months at the annual
interest rate of 11 percent, had been approved by the government during
a cabinet meeting held in the northern Armenian city of Vanadzor on
October 1, 2009.

A government statement issued after the meeting said it would be
allocated from the state budget "in the fourth quarter of 2009."A
statement by ARG spokeswoman said the loan was used for financing the
ongoing construction of a major thermal-power plant in the central
town of Hrazdan. ARG said the loan was paid back ahead of schedule.

ARG is the only company dealing with import and distribution of
Russian natural gas coming to Armenia from Russia via Georgia. It
was established in 1997. Russian Gazprom holds 80 percent in it,
the rest is owned by Armenian government.