World Bulletin / News Desk
An American company bought a Armenian hydropower complex, cornering a niche slice of Armenia’s energy sector. Most of their energy sector is controlled by Russian entities.
New York-based ContourGlobal agreed in 2014 to purchase Vorotan Hydro for $250 million, but the deal took over a year to complete, reportedly due to heavy Russian resistance. The facility currently supplies up to 40 percent of Armenia’s electricity; ContourGlobal intends to increase generating capacity, according to Armenian officials.
Eurasia reports that finalisation of the purchase comes a week after Gazprom, via its Armenian subsidiary, purchased the Armenian portion of an Iranian natural gas export pipeline. The acquisition has given Gazprom full control of the natural gas supply and distribution network in Armenia.
The deal makes this the first American investment in Armenia's energy system.