ARMENIA HAS GREAT POTENTIAL FOR INCREASING GERMAN INVESTMENTS IN COUNTRY’S ECONOMY
Arka News Agency, Armenia
Feb 22 2007
YEREVAN, February 21. /ARKA/. Armenia has great potential for
increasing the volume of direct German investments in the country’s
economy. This proves the progress of the Armenian-German relations,
Armenian Ambassador to Germany Karine Kazinian told journalists.
Direct German investments in Armenia exceed EUR200mln, she said
pointing out the numerous possibilities for the progress in the field,
particularly in Armenia’s chemical industry and machine-building
industry.
According to Kazinian, the greatest German investment has been the
investment made to Kajaran-based Zangezur copper-molybdenum factory,
which was also the largest direct foreign investment in Armenia
till recently.
Kazinian added that the turnover between Armenian and Germany totaled
EUR 400mln in 2006.
The Zangezur Copper-Molybdenum Factory CJSC is Armenia’s major mining
and smelting enterprise. On December 14, 2004, Armenia’s Government
made decision to privatize the factory. Under the privatization
agreement, 60% of shares were transferred to the German "Cronimet"
company and 15% to the "Yerevan Factory of Pure Iron" OJSC. "Armenian
Molybdenum Production" and "Zangezur Mining" CO Ltd received 12.5%
of shares each.
The investment program of the Zangezur Copper-Molybdenum Factory
totals $240mln and will be implemented in two phases – in 2005-2008
and 2008-2020.
Total of $157mln is to be invested at the first phase – $20mln in 2005,
$47mln in 2006, $63mln in 2007 and $27mln in 2008.
According to Armenia’s National Statistical Service, the turnover
between Armenia and Germany totaled $293.5mln, with the exports from
Armenia making $148mln and imports $145.5mln.