The Board of Directors Meeting has finalized at the Gazprom Headquarters.

The Board of Directors took notice of the data on the progress with the Agreement between the Government of the Republic of Armenia and Gazprom with regard to the participation of the latter in gas and energy projects in Armenia. The Board considered it expedient to further work in this direction and approved the terms and conditions of the current  interested party deals aimed at purchasing additional shares in ArmRosgazprom.

Reference:

ArmRosgazprom was incorporated in December 1997. Gazprom, the Armenian Energy Ministry and ITERA owned 45%, 45% and 10% of ArmRosgazprom’s stake, respectively. Gazprom’s stake in ArmRosgazprom increased to 57.59 per cent after acquisition of additional shares in ArmRosgazprom in November 2006 within the first step of the project’s investment stage.

ArmRosgazprom’s major business line is natural gas supply to Armenia’s internal market. In addition, ArmRosgazprom is engaged in natural gas transmission, storage, processing, distribution and marketing, gas transmission system and UGS facility upgrading and expansion in the Republic of Armenia.

On March 31, 2006, Gazprom and the Government of the Republic of Armenia signed a 25-year Agreement identifying the strategic principles of cooperation in the gas & energy sector of the Republic of Armenia.

The Agreement stipulates ArmRosgazprom acquiring from the Armenian Government the fifth power generating unit of the Razdan CHP (Razdan-5) and a range of gas facilities.

The deal execution will result in Gazprom taking a qualified majority in ArmRosgazprom authorized capital.