The price for the natural gas that Russia's Gazprom exports to Armenia will be lowered from the present $190 to $165 per 1000 cubic meters, Gazprom CEO Alexei Miller said last week. "This price allows us also to make investments in the reconstruction and modernization of the gas-supply system," he stressed.
According to the head of Gazprom, an arrangement has been made with his Armenian colleagues on development of a general scheme for supplying gas and expanding gas consumption space, which is planned to be ready by autumn this year.
"Our goal is to make gas consumption available in 100% of the country's territory," Miller said.
The Deputy Director of the Institute of Energy Strategy, Alexey Belogoriev, said in an interview with Vestnik Kavkaza that, according to Gazprom, this price is still higher than the cost of gas supplies. He expressed the opinion that the decision to reduce the prices was adopted by the company as part of a package deal that involves questions of political and economic cooperation with Armenia.
Belogoriev stressed that the decision is associated with profound political cooperation with Armenia and subsidizing of its economy. "That is the same thing that Russia makes against Belarus. Until 2006, this policy was carried out practically in all post-Soviet countries. Then Gazprom revised this policy for most countries," he said, adding that to date there are no prospects of a price increase for Belarus or Armenia to market prices.
The head of the analytical center "Alternative", Tatul Manaseryan assessed the offer as a win-win solution, but added that the ordinary citizens of the republic will not feel any changes. "As a strategic partner of Russia, Armenia could expect such a decision, as cheap gas can enhance the competitiveness of the Armenian economy, which will affect the overall economic integration within the EAEC," he said."Unfortunately, we can not expect an adequate decline in gas prices for ordinary citizens, for consumers. Gazprom Armenia will try to compensate by discount those losses that the company, according to its representatives, suffers due to the devaluation of the dram. If we'd buy gas from Russia for rubles, the prices of supplies would be comparable with the prices of sales at the domestic market, " the expert said.The head of the Parliament Committee for Economic Affairs, the head of the committee on the gas supply, Vardan Ayvazyan said that the current tariff is based on the exchange rate of 416 AMD/ $1, while the CB's current rate is much higher (about 480 drams per $1), and Gazprom Armenia suffered serious losses and had nearly no incomes, which means the tariffs for the citizens will not be reduced, ArmInfo repots.
The head of the analytical center "Alternative", Tatul Manaseryan, assessed the offer as a win-win solution, but added that the ordinary citizens of the republic will not feel any changes. "As a strategic partner of Russia, Armenia could expect such a decision, as cheap gas can enhance the competitiveness of the Armenian economy, which will affect the overall economic integration within the EAEC," he said.
"Unfortunately, we cannot expect a corresponding decline in gas prices for ordinary citizens, for consumers. Gazprom Armenia will try to compensate by discounting those losses that the company, according to its representatives, suffers due to the devaluation of the dram. If we'd buy gas from Russia for rubles, the prices of supplies would be comparable with the prices of sales on the domestic market, " the expert said.
The head of the Parliamentary Committee for Economic Affairs, the head of the committee on gas supply, Vardan Ayvazyan, said that the current tariff is based on an exchange rate of 416 AMD/ $1, while the CB's current rate is much higher (about 480 drams per $1), and Gazprom Armenia suffered serious losses and had nearly no income, which means the tariffs for the citizens will not be reduced, ArmInfo reports.
