YEREVAN, MAY 3, ARMENPRESS: The Russian-Armenian joint venture Hayrusgazard said it will continue electricity supplies to neighboring Georgia until June. Shushan Sardarian, a spokeswoman for the company, said talks are underway with Georgia's United Distribution Company in an effort to raise the price of the electricity. She said the company has been sustaining heavy damages due to the dramatic appreciation of the Armenian national currency dram.

Hayrusgazard now sells electricity to Georgia at US 2.5 cents per one kilowatt/hour. Though the contract with the Georgian company terminated on March 31, the latter asked for 900,000 kilowatt/hour daily electricity supplies until June.

On Monday the International Energy Corporation, a Russian-owned company stopped supplies of Armenian electricity to Georgia, citing substantial losses incurred as a result of the dramatic appreciation of the dram.

The dram has strengthened against the dollar about 30 percent since the beginning of last year, incurring losses to export-oriented Armenian companies, as a strong dram makes their products less competitive abroad.

Meantime Georgian deputy energy minister Aleko Khetaguri announced on May 2 that the government is accepting privatization bids for the state-owned energy distributing company and five hydro power plants.

These five hydro power plants are all in western Georgia.

The United Distribution Company (UDC), which is currently managed by the U.S. company PA Consulting - a USAID contractor company, distributes electricity in the regions throughout Georgia.