Russia might contribute to gas price subsidies in Armenia

YEREVAN, May 24. /ARKA/. Armenian government is trying to get the Russian side involved in subsidizing increased prices for the Russian gas, Armenian minister of energy and natural resources Armen Movsisyan said.

On May 16, Armenian prime-minister Tigran Sargsyan said the gas price will be 30% subsidized if it is raised.

“The main aim of the negotiations is to get the Russian side involved in the subsidizing announced by the government, as it owns 80% of ArmRosgasprom”, Movsisyan said during the gas price debates in the parliament Thursday.

The problem is that 30% export tax is added to Gasprom’s selling price, which results in a $270 gas price at the border, the minister said.

ArmRosgasprom’s application to Armenia’s Public Services Regulatory Commission says as from April 1, according to its agreement with Gasprom, the company pays $270 per 1,000 cubic meters of the gas at the border, instead of the previous $180.

During the debates at the parliament, ARF Dashnaktsutiun faction deputy Artsvik Minasyan asked how could Armenia benefit from its 20% share in ArmRosgasprom, if it is unable to influence the company’s decisions. 

“We are getting no dividends: everything is being directed at development”, the minister said in response.

On May 14, ArmRosgasprom cjsc and TransGas limited filed an application with Armenia’s public services regulatory commission for review of the Russian gas price. The new tariffs will take effect on July 7-10. Customers with monthly consumption of up to 10,000 cubic meters will pay 156,000 drams per 1,000m3 (18.2% increase); the price fixed for major consumers (with consumption of over 10,000 m3 per month) is $276.98 per 1,000m3 (13.9% increase).

ArmRosgasprom closed joint stock company founded in 1997 holds the monopoly for gas supplies and distribution on Armenia’s domestic market. The company’s stockholders are Russian Gazprom (80%) and the Armenian government (20%). ($1=414.82drams).  -0-