Sep 1, 2008

YEREVAN, September 1. /ARKA/. Trade turnover between Russia and Armenia
has grown 20% over the first six months of this year to $400 million,
RIA Novosti reports referring to the information received from a
source in Kremlin ahead of Russian-Armenian high-level talks in Sochi.

The source said that the two countries' presidents will discuss
prospects for development of trade and economic relations.

He said that Russia is Armenia's largest partner.

The 2007 result was $821 million (66-percent growth, compared with

Russian export grew 67% to $655 million.

The accumulated capital investments exceeded $1.3 billion. Russian
investments are mainly sent to energy, banking, mining, construction,
communications and information technologies sectors.

The Kremlin representative also said that Russian credit and financial
companies whose share in Armenian banks' capital exceeds one quarter
express intention to enlarge their presence in Armenian banking system.

He said that "the parties are now discussing ways of implementation
of new large-scale joint projects in various sectors of mining and
processing industries and transport".

He said these projects will lay ground for doubling Russian financial
injections in Armenia.

The source in Kremlin said that Russia intends to develop cooperation
also in diamond and jewelry industry.