Within the framework of his visit to Armenia, Andrey Kostin, Chairman and CEO of VTB met Serge Sarkisyan, Prime Minister of Armenia. During the meeting the parties discussed specific lines of cooperation between VTB and the Republic of Armenia in the sphere of investments. In particular, VTB participation in financing large projects on gasification and gas-holding, network system modernization, metal mining industry development, and aerotechnics delivery from Russia to the Republic of Armenia.
Significant attention was paid to the issue of arranging Russian Rouble settlement schemes in the CIS, mentioned by Russian President Vladimir Putin at the XI International Economic Forum in St. Petersburg. Head of Armenia supported VTB plans to develop settlement options through national currencies of the CIS.
Andrey Kostin also held a meeting with Tigran Sarkisyan, Chairman of Armenian Central Bank and shared his plans to increase VTB Group capital in Armenia up to USD 40 million that will allow VTB Bank (Armenia) to become the largest bank in the Republic. Besides, Andrey Kostin told about his plans concerning modernization and improvement of VTB Bank (Armenia) regional network and extension of its banking services to citizens, including mortgage lending.
During VTB Head visit to Armenia, a Cooperation Agreement with "Armenia network system" (ANS) was signed. Under the Agreement VTB Group banks will participate in financing ANS investments and short-term capital operations of enterprise with the total volume up to USD 70 million. Moreover, Andrey Kostin took part in the opening ceremony of VTB Bank (Armenia) branch, located in the house of Moscow in the centre of Yerevan.
Major activities of "Armenia network system" are regulated distribution and sale of electric power. On 2006, Interenergo B.V. acquired 100% of the company shares (Interenergo B.V. is a subsidiary of INTER RAO UES, 60% of its shares belong to RAO UES of Russia, and 40% - to Rosenergoatom concern). Earlier, the company belonged to Midland, a British group. RAO UES of Russia owns Sevan-Razdansky Kaskad HPS, Razdanskaya TPP in Armenia and runs financial flows of Armenian APP. In May 2003, the holding set up " International power corporation" to control Sevan-Razdansky Kaskad HPS, transferred to the ownership of Russia to cover part of debt for the delivered nuclear fuel to Armenian APP.