RAO UES OF RUSSIA’S SUBSIDIARY PURCHASED ARMENIAN DISTRIBUTION GRID FOR $80 MILLION

Inter RAO UES Company, the subsidiary of the RAO UES of Russia has purchased the distribution grid of Armenia from Midland Resources Holding LTD for $80 million, Haykakan Zhamanak daily reports noting that the official information on the bargain will be spread in April 2005. According to the daily the World Bank is categorically against the idea of passing the Armenian grid to the Russian party. The daily also affirms that “after the sale Russia’s control will be sole”. Evidently this bargain testifies of the RAO UES of Russia’s wish to synchronize the work of the power grids throughout the whole region. With the exploitation of the Iran-Armenia gas pipeline and taking into account the item of the general agreement on the export of the Armenian energy to Iran, the issue of the synchronization of the energy systems of Armenia and Iran will be raised. Taking into consideration the fact that the RAO UES of Russia controls almost the whole Georgian power system the company is to all appearances striving to synchronize the power systems, including the Armenian and Georgian ones, and may be Turkish as well.