NET FOREIGN DIRECT INVESTMENTS IN ARMENIA DOWN IN FIRST HALF

[MosJan]

NET FOREIGN DIRECT INVESTMENTS IN ARMENIA DOWN IN FIRST HALF OF YEAR

YEREVAN, SEPTEMBER 7, ARMENPRESS: The volume of foreign investments in Armenia in the first half of the year made $62.5 million, of which net foreign direct investment (FDI) made only $51.2 million, Armenian trade and industry ministry said.

The foreign investments were directed to real sector of economy, mostly to processing enterprises, energy sector and development of information technologies. Deputy trade and industry minister Tigran Davtian said to Armenpress that the main investments came from Russia, $28 million for the joint Russian-Armenian HayRusGasArd and Armenal companies, next were Greece and USA.

The influx of Russian capital to Armenia in the first half of the year grew by 13.5 percent against the specified period of time last year. Investments from Greece and USA made respectively $19 million and $16.5 million.

In 2000 the volume of foreign investments in Armenia was $190 million. The deputy minister avoided to explain this sharp reduction saying only that it could be attributed partly to significant fall in the Armentel's investments.

Davtian described the process of investments as "natural", adding that the volume of domestic investments has seen a significant rise, which are also directed to the real sector of economy. Davtian said the actual volume of domestic investments would be known by the end of the year after introduction of a special statistical system for its calculation..