ArmRosGazprom

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ArmRosGazprom was formed from the existing natural gas transmission and distribution assets in Armenia. The company was created as a joint venture among Russian Gazprom (45%), Ukraine Energy Export Company Itera (10%) and the government of Armenia (45%) in December 1998. ArmRosGazprom was licensed to transmit and distribute natural gas in the country, maintain and overhaul existing pipelines, build new ones, and handle the transit of Russian gas via Armenia to third countries such as Turkey and Israel. ArmRosGazprom started its commercial operations in December 1998 with an initial capital of US$270 million. In March 31, 2006 Gazprom and the Government of the Republic of Armenia signed a 25-year agreement which laid out the principles of Gazprom's participation in gas and power projects in Armenia. According to the agreement Gazprom planned to increase its stake in ArmRosGazprom. Gazprom became the majority shareholder in ArmRosGazprom in March 2007, when it increased its stake via a capital increase and share purchase to 57.6%. As of end of 2007, the shareholders of or ArmRosGazprom were Gazprom (57.59%), the Armenian Energy Ministry (34.7%) and Itera (7.71%) Through a series of further capital increases and share purchases that took place in 2008 and 2009, Gazprom increased its stake in ArmRosGazprom to 80%, while the government's stake declined to 20% and Itera sold all of its holdings. The funds from these capital increases were to be used to build the fifth block of Hrazdan power plant which had started in the 1980 but stopped after the fall of the Soviet Union. Capacity info from 2011 AR (Gazprom)http://www.gazprom.com/investors/reports/ Gazprom does not provide itemized Capex info for each subsidiary/affiliated company.