RUSSIAN ALUMINUM SET TO ACQUIRE ARMENAL

YEREVAN, SEPTEMBER 24, ARMENPRESS:A Moscow-based Kommersant daily quoted Armenian deputy trade and economic development minister Ashot Shakhnazaryan as saying that the Armenian government has approved a proposal of Russian Aluminum to buy the remaining 26% of shares in the Armenian-Russian foil rolling mill Armenal in Yerevan. Shahnazarian was also quoted as saying that discussion on the terms of the deal is in progress. After the successful end of the negotiations the government of Armenia and Russian Aluminum are supposed to sign an agreement on the volume of investments, which is not disclosed yet. After the sale of a 26% stake in Armenal that now belongs to Armenia, Russian Aluminum will become the sole owner of the venture. Armenal was established on May 18, 2000. Its authorized capital amounts to $5.7 million. At the initial stage a 56% stake in Armenal belonged to Armenia in the form of the Kanaker aluminum smelter (KanAZ) and 44% belonged to the Russian party. In November 2001, after Russian Aluminum paid off $1.7 million of debts of the KanAZ, Russian Aluminum received other 30% of Armenal shares, increasing its stake to 74%. In 2001, Armenal produced 2,804 tons of aluminum foil, and in the first half of 2002 - 1,485 tons.