Armenia to transfer power station to Russia as debt payment

Armenia is to transfer ownership of the Razdan heat and power plant to Russia in September. The plant is being handed over in payment of Armenia's debt to Russia. The transfer was revealed by the plant's general director, Elbert Bagdasaryan.
Bagdasaryan said that the plant would be transferred to the Russian Property Ministry and then to a company that would be responsible for running it. The company is likely to be UES of Russia, which is also to take over the financial management of the Armenian nuclear power station.

Bagdasaryan said that in the first six months of 2003 the plant produced 1,05 bn kWh of electricity, of which 975 mm went into the Armenian grid. The general director added that the cost of electricity generated at the plant might fall after the handover due to cheaper natural gas supplies.
The plant is currently Armenia's largest consumer of natural gas and produces the country's most expensive energy. The Armenian authorities hope that transferring the plant to Russia will allow electricity to be exported to Turkey and other countries.