Armenia should pay for Russian gas in rubles
24.10.2018,
15:27
Sergey Glazyev, an adviser to the president of the Russian Federation, told a news conference in Yerevan on October 23 that it would be natural for Armenia to pay for the Russian natural gas shipped to it across Georgia in Russian rubles.
YEREVAN, October 23 /ARКА/. Sergey Glazyev, an adviser to the president of the Russian Federation, told a news conference in Yerevan on October 23 that it would be natural for Armenia to pay for the Russian natural gas shipped to it across Georgia in Russian rubles.
He said as the US was slapping new financial sanctions against Russia, shifting to settlements in Russian rubles became an absolute priority. ‘We cannot afford to use the US dollar in settlements between our countries because it has become a toxic currency," Glazyev said.
According to him, any use of the US dollar is fraught with political risks that may entail failures or forfeitures. ‘Gazprom uses rubles in its operations in Russia, so, it will be logical when the gas agreement with Armenia is also in rubles," he said.
"Armenia and Russia should review the contract and rewrite not only the provisions of the payment currency but also the terms of pricing," he said.
“The Russian ruble is gradually becoming the main currency in our mutual trade. Our corporations are beginning to understand that using foreign currencies is fraught with risks for which we cannot be responsible. This concerns not only the US dollar, but also the euro and the British pound, since many EU countries have joined the anti-Russian sanctions. We have no other choice but to switch to settlements in national currencies," said Glazyev.
"It is necessary to revise the pricing terms. The ruble, unfortunately, has been too volatile for a number of reasons over the past four years. And this volatility should also be reflected in revised contracts. This is a technical issue," Glazyev said.
Under a 2016 Armenian- Russia agreement, Russian Gazprom sells one thousand cubic meters of gas to its Armenian subsidiary Gazprom Armenia at $150. Gazprom Armenia that owns and runs the country’s natural gas distribution network, sells it to households at about $300 per one thousand cubic meters.
Armenia’s Minister of Energy Infrastructures and Natural Resources Garegin Baghramyan, appointed to the post on October 8, said earlier this month that government searched for options to have the price of Russian natural gas cut.
He said a prime minister-set up task force headed by the vice-premier was looking into how the price of natural gas is formed. He said the chance to achieve this goal would be more evident when the study is over and when expectations, forecasts at the exchange rate of USD were available.-0-
He said as the US was slapping new financial sanctions against Russia, shifting to settlements in Russian rubles became an absolute priority. ‘We cannot afford to use the US dollar in settlements between our countries because it has become a toxic currency," Glazyev said.
According to him, any use of the US dollar is fraught with political risks that may entail failures or forfeitures. ‘Gazprom uses rubles in its operations in Russia, so, it will be logical when the gas agreement with Armenia is also in rubles," he said.
"Armenia and Russia should review the contract and rewrite not only the provisions of the payment currency but also the terms of pricing," he said.
“The Russian ruble is gradually becoming the main currency in our mutual trade. Our corporations are beginning to understand that using foreign currencies is fraught with risks for which we cannot be responsible. This concerns not only the US dollar, but also the euro and the British pound, since many EU countries have joined the anti-Russian sanctions. We have no other choice but to switch to settlements in national currencies," said Glazyev.
"It is necessary to revise the pricing terms. The ruble, unfortunately, has been too volatile for a number of reasons over the past four years. And this volatility should also be reflected in revised contracts. This is a technical issue," Glazyev said.
Under a 2016 Armenian- Russia agreement, Russian Gazprom sells one thousand cubic meters of gas to its Armenian subsidiary Gazprom Armenia at $150. Gazprom Armenia that owns and runs the country’s natural gas distribution network, sells it to households at about $300 per one thousand cubic meters.
Armenia’s Minister of Energy Infrastructures and Natural Resources Garegin Baghramyan, appointed to the post on October 8, said earlier this month that government searched for options to have the price of Russian natural gas cut.
He said a prime minister-set up task force headed by the vice-premier was looking into how the price of natural gas is formed. He said the chance to achieve this goal would be more evident when the study is over and when expectations, forecasts at the exchange rate of USD were available.-0-
