Armenian Government Approves Increasing Authorized Capital Of "ArmRo


March 14, 2008

YEREVAN, March 14. /ARKA/. As per the law "About stock companies"
Armenia’s Government assigned the country’s Ministry of Energy
and "ArmRosgasprom" closed joint stock company (CJSC) to submit a
proposal to the Board and approve increasing the authorized capital of
"ArmRosgasprom" CJSC through an additional issue of shares and their
placement in favor of Armenia.

The government also assigned the ministries of energy, finances and
economy, as well as the municipality of Yerevan to submit proposals
on payments for "ArmRosgasprom" shares additionally issued and placed
for the state.

The payments are to be made not in money, but in estimated heating
facilities and their servicing areas that are at the balance of
"Yerevan Municipality Administration" state company.

The additional issue of "ArmRosgasprom" shares is to be effected to
replenish the company’s authorized stock with 95.5bln Drams (about

On February 15 2008 Armenia’s Public Services Regulatory Commission
permitted "Gasprom" open joint stock company to purchase 19mln
additional ordinary nominal shares of "ArmRosgasprom" with 5,026.5Drams
nominal value each. The General Director of "ArmRosgasprom" Karen
Karapetian made a statement that the Government of Armenia, being one
of the stockholders of the company, has right to apply for obtaining
shares within the additional issue.

"ArmRosgasprom" enjoys the monopoly for supply and distribution of the
Russian natural gas on the domestic market of Armenia. The company was
established in 1997. Its capital is $580mln currently. The shareholders
are "Gasprom" open joint stock company (57.59%), Armenia’s Ministry
of Energy (34.7%) and "Itera" oil and gas company (7.71%).