Foreign Investments In Armenia

[Armen]

ZANGEZOUR COPPER-MOLYBDENUM GROUP TO BE SOLD FOR $132 MLN

 

YEREVAN, DECEMBER 14. ARMINFO. A contract to sell for $132 mln 100%

shares of Zangezour Copper-Molybdenum Group was signed in Yerevan

today.

 

Armenia's Trade and Economic Development Minister Karen Tchshmarityan

says that 60% stake has been given to Cronimet Mining (Germany), 15%

Pure Iron Plant (Yerevan), 12.5% to Armenian Molybdenum Production and

12.5% to Zangezour Mining. The shareholders will set up a joint

managing company. The first $45 mln payment will be made by Jan 1

2005, the rest till Dec 31 2005. The contract is financed by Deutsche

Bank and Creditten Stadt Bank.

 

$250-350 mln is to be invested in the group by 2012 under preliminary

agreement with the final amount to be specified by feasibility report

in 2005.

 

The project is expected to pay off in 6-7 years, says

Tchshmarityan. Jan 1 2005 Armenia is stopping to export molybdenum

concentrate to process it fully at home. In 2005-2008 the group will

deepen its molybdenum processing activities to receive a maximally

finished product. In 2008-2012 it will launch a rolled copper. The

investments will allow the group to redouble its ore production, says

Tchshmarityan.

 

Cronimet Mining President Hunter Pilarsky says that his company is an

international trade group covering 4 continents. It owns 51% of Pure

Iron Plant, an enterprise processing 50% of Zangezour molybdenum

concentrate. Pilarsky says that international molybdenum prices are

high today which is normal even considering high transportation costs

from Armenia. The company exports its production to Europe via Iran

and Georgia.

 

In 2003 Zangezour Copper Molybdenum Group registered a $20 mln balance

sheet profit. In Jan-June 2004 its output totalled 24.8 bln AMD - 2.1%

less than in Jan-June 2003. In 2003 the group mined and processed 8.1

mln tons of ore producing 6,300 tons of molybdenum concentrate and

11,000 tons of copper in copper concentrate. Zangezour has the biggest

molybdenum reserves in the whole former USSR.

[Armen]

I think this is good news!

[hytga]

i thought they sold it for $40 mln

[Armen]

This is going to be the largest EU investment in Armenia as far as I remember. Moreover, they are going to move to some finished products instead of exporting the molibdenum concentrate. Also, this plant is on of the most successful businesses in Armenia and there was a lot of corruption arround it. I hope the Germans are going to be in actual full control (unlike the Armentel case) as the shareholding scheme suggests.

[Armen]

DEUTSCHE BANK MAY BECOME SHAREHOLDER OF RUSSIAN VNESHTORGBANK

CONTROLLING OVER ARMSAVINGSBANK

 

 

 

YEREVAN, JANUARY 21. ARMINFO. The largest financial institution in

Germany, Deutsche Bank, intends to considerably expand its activity in

Russia by purchasing ten percent of the shares of the Russian

Vneshtorgbank, which has been fully state structure so far. A German

newspaper "Handelsblatt" reports referring to Head of Vneshtorgbank

Andrey Kostin. Thus, Deutsche Bank will become shareholder of

Vneshtorgbank, the owner of 70% of shares of the Armenian

Armsavingsbank.

 

It should be noted that Vneshtorgbank gained control over

Armsavingsbank in March, 2004. Vneshtorgbank plans $100-150 mln

financial injections. Part of these funds will be provided in terns of

a subordinated credit. Armsavingsbank's assets make up over $82 mln at

present, with its total capital being $74 mln. The bank's profit in

2004 totaled $1.9 mln. Chairman of the bank's Board Alexander Vardanov

said that one of the key tasks of the banks was support to the

infrastructural programs implemented by Gazprom and RAO UES in

Armenia.

 

Vneshtorgbank is the largest commercial bank of Russia as to its

authorized capital, which totaled 42.1 bln RUR in the middle of

2004. According to data of Venshorgbank, own funds of the bank totaled

65.3 bln RUR and net assets - 356.4 bln RUR on October 1,

2004. Venshtorgbank is one of the largest creditors of Russian

economy.

[Armen]

JAPAN'S SHIMIZU TO LAUNCH WARMING GAS EMISSION RIGHTS BUSINESS IN ARMENIA

 

Asia Pulse

February 16, 2005 Wednesday

 

TOKYO, Feb 16 -- Shimizu Corp. (TSE:1803) intends to team up with

Mitsui & Co. (TSE:8031) and Hokkaido Electric Power Co. (TSE:9509)

to start greenhouse gas emission rights business in Armenia.

 

The major construction company is hoping the joint operation will

be approved as a clean-development-mechanism (CDM) business, which

allows companies to gain emission rights in exchange for cooperating

in efforts to reduce emissions in developing countries. CDM is featured

in the Kyoto Protocol, which takes effect Wednesday.

 

If the project is approved as a CDM business, it will be the first

such operation in Armenia. The company expects to gain approval by

the middle of this year.

 

Under the plan, Shimizu will build a power generation plant to produce

electricity from methane gas piped in from a waste material disposal

site. The firm intends to spend about 800 million yen on the project.

 

Shimizu expects the facility to eliminate about 135,000 tons of

carbon dioxide a year, which will enable the company to acquire

emission rights.

[Armen]

Looks like underdeveloped countries like Armenia can gain from the entry of Kyodo protocol into force. Armenia may well sell rights for emissions to Japan because Armenia's current level of emission must be realy low.

[Armen]

CANADIAN CORPORATION TRANSEURO ENERGY STARTS PREPARATION WORKS FOR

SEARCH OF OIL AND GAS IN ARMENIA

 

YEREVAN, FEBRUARY 23. ARMINFO. A Canadian corporation Transeuro Energy

(the former Indusmin Energy) has started preparation works for search

of oil and gas in the so-called second licensed bloc embracing the

territory of Armavir region, Armenia, says Head of the Department for

Fuel and Energy Recourses, the Armenian Energy Ministry, Candidate of

technical sciences Andranik Aghabalyan in his interview to ARMINFO.

 

He says that due to good weather conditions, the corporation will

start field works to determine the place of the first well. Transeuro

Energy has concentrated its efforts on the search of natural gas

resources taking into account the infrastructures of industry in

Armenia. He explains that Armenia is the only country in the territory

of the former USSR that lacks oil-processing facilities, at the same

time having a well-developed gas transport system. In this connection

gas recovery for industrial purposes is more perspective than oil.

During the first five years, the corporation pledges to invest in

search of gas and oil in Armavir region at least $10.5 mln, Aghamalyan

says. He adds that as to the second licensing bloc, Transeuro Energy

has become a legal successor of the Armenian-American geological

survey company having purchased its rights and obligations;

continuation of the started work is in question.

 

It should be noted that the contract of the Armenian Government and

the Armenian-American geological survey company on the second licensed

bloc was signed yet on 27 January 1997 and came into effect 6 February

1997. Active field works were carried out within the first three years

in Armavir. After the owner of the company Alen Polsen died in July

2000, the works were suspended and the company was just processing the

received data and seeking for financial partners. In 2004 Canadian

Indusmin Energy renamed into Transeuro Energy in the autumn of 2004

has become its legal successor. Later the company opened its office in

Armenia.

[Armen]

LYCOS ARMENIA PERSONNEL TRIPLED IN 2004

 

YEREVAN, FEBRUARY 25. ARMINFO. In 2004 the Armenian office of Lycos Europe tripled its personnel to 190 employees, says Managing Director of Lycos Armenia Hovhannes Avoyan.

 

He says that 130 people were employed by the company last year. Now it has 30-50 vacancies of programmers, system and network administrators and operators. The company has no specific employment plans for 2005 yet. "We will employ as many specialists as we can find," Avoyan says noting that 100 students are presently involved in Lycos Armenia's training program at Yerevan State University and Yerevan Engineering University.

 

Besides software design Lycos Armenia has started monitoring its information centers worldwide round-the-block.

[Siamanto]

IN 2004, ARMENIA MAKES INVESTMENTS OF 135.9 MLN USD IN FOREIGN

COUNTRIES

 

YEREVAN, APRIL 1, NOYAN TAPAN. The amount of foreign investments made

in Armenia in 2004 grew 17.9% compared with 2003 and made 467.8 mln

dollars. According to the National Statistical Service, the direct

investments made 235.2 mln USD (a 49.6% growth), portfolio invetments

- 1.4 mln USD (a 6.6% growth), other investments - 231.2 mln USD (a

11.1% decline).

 

Last year, the outflow of financial resources from Armenia made 135.9

mln USD, including 91.7 mln USD as cash and deposits. In 2004, the

foreign investments in the real sector of Armenia's economy (excluding

those received through the banking system and the state governance)

made 305 mln 550.8 thousand USD (a 33.1% growth compared with 2003

index), with direct investments making 226 mln 723.4 thousand USD (a

47.7% growth).

 

The main investments in the real sector were done by Greece ($75 mln

70 thousand), Russia ($67 mln 204.6 mln), France ($32 mln 180.5

thousand), Germany ($38 mln 705.9 thousand), Argentina ($30 mln 401

thousand) and the US ($24 mln 97.5 thousand).

 

 

http://groong.usc.edu/news/msg107044.html

[Armen]

CASCADE CAPITAL HOLDING TO HELP ATTRACT INVESTMENTS TO

ARMENIA AND CAUCASIAN REGION

 

YEREVAN, MAY 31, NOYAN TAPAN. With the aim of attracting

investiments to Armenia and the Caucasus, the Gafesjian Family

Foundation (CFF) established in 2004 the company Cascade Capital

Holdings in Armenia. Executive director of the company Jonathan

Stark stated at the May 31 press conference that Cascade Capital

Holding receives technical assistance from USAID and other

agencies. The company cooperates with the European Bank of

Reconstruction and Development and is conducting negotiations

for cooperation with the World Bank.

In order to provide commercial and financial services to

meet European standards on the Armenian market, the company set

up its subsidiaries - Cascade Credit, Cascade Investments, Cascade

Insurance and Reinsurance and Cascade Bank.

Cascade Credit is a nonbank financial institution that

gives advice on investment, manages assets and charitable funds.

It also intends to issue securitires partly guaranteed by the US

Treasury. At present, its share capital amounts to 600 thousand

USD.

Cascade Investment is engaged in management of private and

corporate property, as well as assets and foundations. Cascade

Insurance and Reinsurance is the first reinsurance company in

Armenia, which has already signed 70 insurance agreements. Its

total authorized capital makes 325 thousand USD and will

increase to 0.5 mln USD during 2005.

*04e-tr-te #01 %000 >c24 +p $10 &06 @06 .am 31/05/05 20:20

"CASCADE CREDIT" UNIVERSAL CREDIT ORGANIZATION TO BE BIG ISSUER OF

CORPORATIVE SECURITIES IN ARMENIA

 

YEREVAN, MAY 31. ARMINFO. "Cascade Credit" universal credit

organization (UCO) in the structure of "Cascade Capital" financial

Holding, belonging an American businessmen by Armenian origin Gerard

L. Cafesjyan, intends to become Armenia's biggest issuer of

corporative securities, informed the UKO's executive director Tigran

Hovanissyan at today's press-conference. He noted that the main

emphasis will be placed on both debt formation (provided with assets)

and giving trade credits. In his words, "Cascade Credit" applies a

regulation model and financial estimation of risks provided with

well-founded balance of risk and income.

 

Hovanissyan also informed that the "Cafesjyan" Fund, by means of

"Cascade Credit", is going to participate in the program of financing

restoration works in Armenia's energy sector, noting that it will be

a big investment.

 

To note, the UCO was registered in December, 2004. Its authorized

capital stock totals $600.000. It is intended to increase financial

capabilities at the assistance of the American structure on credit

development and other international financial structures. -r-

 

CASCADE CAPITAL OFFICIALLY DECLARED ABOUT BUYING OF 100% OF SHARES OF

EMPORIKI BANK

YEREVAN, MAY 31. ARMINFO. Financial Holding Cascade Capital, which

belongs to American businessman Gerard Cafesjyan, officially declared

about its buying the 100% of the shares of the Emporiki Bank. As

General Director of Emporiki Bank/Armenia Levon Levonian informed

during the news conference Tuesday, the entry of the holding in the

capital of the bank supposes increase of the capital by $2.5 mln,

which today total $4 mln. He noted that the re-registration of the

name of the bank from Emporiki Bank into Cascade Bank is underway in

the Central Bank of Armenia now.

 

According to Director of the Holding Cascade Capital Jonathan Stark,

the process of formation of united resource of global financial

services jointly with USAID and other international financial

structures was completed by buying the bank. He also informed that

negotiations are being conducted with the World Bank and European

Bank of Reconstruction and Development on share in credit programs.

 

Cascade Bank intends to introduce new banking services, to improve

the quality of providing services to clients and to pay special

attention to increase the confidence of the population in the bank.

New financial services are to be provided in the sphere of retail

service to the population, provision of consumer and mortgage

credits.

 

Cascade Bank plans to buy the Emporiki Bank (Georgia) till the end of

the current year, due to which assistance will be provided to

Armenian exporters while delivery of products to the Georgian market.

 

It should be noted that the insurance company Cascade insurance and

re-insurance, the company specializing in the development of the

market of capital "Cascade investment", universal credit organization

Cascade Credit, as well as the Emporiki Bank (Armenia) (in future

Cascade Bank) form the holding Cascade Capital.

 

Noteworthy, total capital of the Emporiki Bank (Armenia) was $2.8 mln

by Dec 31, 2004, the authorized capital - $4.4 mln, assets - $12.1

mln, liabilities - $9.3 mln. The net profit totaled $111,500 at the

end of 2004. -S-

GERALD L.GAFESJIAN MUSEUM CONSTRUCTION WORKS ARE UNDERWAY IN YEREVAN

 

YEREVAN, JUNE 1. ARMINFO. Gerald L.Gafesjian Museum construction

works are underway in Yerevan. The museum will be included in the

architectural complex "Cascade." Public Relations Executive of

Gafesjian Museum Madlen Minasyan informed journalists today.

 

She said that in conformity with the project of American architect

David Hotson the basic building will be extended, which is a way

linking Tamanyan Park and Victory Park. The greatest part of the

museum will be built of glass. The museum will exhibit the collection

of the eminent American billionaire of Armenian origin Gerald

Gafesjian "Glass Art," the works of the famous artists and sculptors

on glass Stanislav Libenskiy and Yaroslava Bikhtovaya. Besides, the

museum will exhibit part of Gafesjian's collection, the works of the

famous Colombian sculptor Fernando Botero, whose "Cat" of black

bronze decorates the lower area of the "Cascade." Yesterday,

another 7 works of Botero were presented in Yerevan, which will be

placed in the museum.

 

The open territory of the Museum will total 12,000 and the closed one

5,000 sq/m. No construction company has been chosen yet, but

Zangezour Transshin company is currently engaged in land works. The

project costs $25 mln. The museum is to open in 2007.-M-