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ARMENIA APPROVES SALE OF ELECTRICITY NETWORKS TO RUSSIA

MOSCOW, JULY 20, ARMENPRESS: Armenia’s authorities have authorized a U.K.-based Midland Resources Holding Ltd. to sell its 100% stake in the Armenian Electricity Networks (AEN) to Interenergo, a subsidiary of Russia’s Inter UES.

Interenergo is a joint venture of Inter UES (60%), a subsidiary of Russia’s electricity monopoly Unified Energy System (UES), and state-owned Rosenergoatom (40%), the world’s largest nuclear energy company. The deal was approved by the Public Services Regulatory Commission of Armenia Wednesday. Under Armenian energy legislation, the company was not entitled to sell its shares in the AEN without obtaining permission from the Armenian government and the committee.

Interenergo said it was willing to lease AEN for a 99 year term. Midland Resources had acquired 100% of AEN shares for $40 million.

Margarita Grigorian, a spokeswoman for AEN, could not tell when the deal will be formalized and would not disclose its price, saying it would be announced after signing the deal.

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