Armenia exempts Russia from paying $6.2m
RosBusinessConsulting, Russia
May 11 2004
RBC, 11.05.2004, Yerevan 13:40:45.The parliament of Armenia
exempted the Russian Economy Ministry from paying VAT totaling $6.2m
within the framework of a deal on including the assets of Razdan
thermal power station in the authorized capital of Razdan Energy
Company. According to the ARKA news agency, the Armenian parliament
adopted a corresponding bill on the second reading. The final stage
of transferring the Razdan thermal power station to Russia implies
including its property in the authorized capital of Razdan Energy
Company, a legal entity, which is being established by Russia in
Armenia.
According the legislation of Armenia, Russia had to pay a 20-percent
VAT from the cost of the property ($31m), which amounted to $6.2m. As
a result, Russia faced unforeseen expenditures and the Armenian side
decided to introduce changes to legislation, which imply VAT relief
for establishing Razdan Energy Company.
From: Emil Lazarian | Ararat NewsPress
Disclaimer: This article was contributed and translated into English by Emil Lazarian. While we strive for quality, the views and accuracy of the content remain the responsibility of the contributor. Please verify all facts independently before reposting or citing.
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