"Gasprom" To Continue Participation In Armenia’s Gas-Energy Projects

"GASPROM" TO CONTINUE PARTICIPATION IN ARMENIA’S GAS-ENERGY PROJECTS

ARKA News Agency, Armenia
Dec 18 2007

YEREVAN, December 18. /ARKA/. Board of Directors of "Gasprom" OJSC
during the session found it advisable to continue work in Armenia’s
gas-energy projects, the press service of the Russian gas holding
reports.

"Board of Directors took into account the information about the
process of implementing the agreement between Armenia’s Government and
"Gasprom" OJSC about the Company’s participation in gas-energy projects
in the territory of Armenia, and found it advisable to continue the
work in this direction," runs the holding’s statement.

On March 31, 2006, "Gasprom" and Armenia’s Government signed an
agreement on determining strategic principles of cooperation in
gas-energy projects in the territory of Armenia for 25 years. The
document envisages purchase of the fifth energy unit of Hrazdan TPP
and the entities of gas field of Armenia by "ArmRosgasprom".

Board of Directors of "Gasprom" OJSC during the session approved the
terms of deals on obtaining supplementary shares of "ArmRosgasprom"
within the project.

The Armenian-Russian ArmRosgasprom CJSC was founded in 1997.

"Gasprom" and Armenia’s Ministry of Energy had 45% of the Company’s
shares each, and 10% belonged to "Itera."

After obtaining the supplementary shares of "ArmRosgasprom"
within the first stage of innovative programs in November 2006,
the share of "Gasprom" in the company increased up to 57.59%. After
the implementation of the investment stage this share will make the
qualified majority (75% plus one share).

The main field of "ArmRosgasprom" activity is importing and
distributing Russian natural gas to Armenia. The Company is occupied
with transporting, maintaining, processing, distributing and realizing
the natural gas, reconstructing and expanding gas and transport
systems and underground storages in Armenia.