Gazprom becomes formally full owner of Armenia’s natural gas distribution company

Gazprom becomes formally full owner of Armenia’s natural gas distribution company

YEREVAN, February 5, /ARKA/.  Russia’s Gazprom has formally completed the purchase of a 20 percent stake in Armenia’s natural gas distribution company ArmRosGazporm (ARG) held by the Armenian government becoming the full owner of the utility. 

The deal, signed on January 17 in Yerevan was completed on January 21, RBK reported.  Earlier it was reported also that ARG would be renamed Gazprom Armenia.

This and some other energy agreements were first signed during Russian President Vladimir Putin’s December 2 visit to Yerevan. One of them  also set the price of Russian natural gas for Armenia at almost $190 million per one thousand cubic meters.

Earlier energy and natural resources minister Armen Movsisyan said the  Armenian government sold its minority share in ARG to pay half of  a $300 million debt to Gazprom, which was  incurred as a result of  subsidizing the Russian gas price from 2011-2013. 

The other half of the debt was said to have been written off by the Russian company.  Gazprom was also granted 30-year exclusive rights in the Armenian energy market.

Armenia does not have natural gas or oil gas reserves and its energy sector depends entirely on imported fuel. In 2013 Gazprom delivered 1.96 billion cubic meters of gas to Armenia.

Under another Armenian-Russian contract  the Russian monopoly will be delivering 2.5 billion cubic meters of gas to Armenia across Georgia until 2018. -0-

15:35 05.02.2014

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