Gazprom’s Armenian Unit Plans IPO


The Moscow Times, Russia
july 10 2007

Gazprom’s Armenian unit, ArmRosGazprom, plans to issue shares on a
foreign exchange in an initial public offering as early as this year.

The company may sell $1 billion in shares, Shushan Sagaryan, a
spokeswoman for the firm, said by telephone Monday from Yerevan.

Haik Papian, CEO of Yerevan-based Cascade Investments, which is
advising ArmRosGazprom on the sale, said the final figure had not
been set and would probably be less.

"One billion dollars may be the long-term figure" for the total share
sale, Papian said. "At the beginning, I think we’re talking about
something closer to $100 million."

ArmRosGazprom, Armenia’s only gas distributor, buys fuel from Gazprom
at a price of $110 per 1,000 cubic meters. Gazprom charged its European
customers an average of $260.70 per 1,000 cubic meters in 2006.

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