Expert: Russia should think about gas price increase in Armenia
02.02.2011,
17:05
Russia should think what means gas price increase for Armenia, said Director of the Institute of Political and Social Researches of Black Sea-Caspian region, Prof. Vladimir Zakharov in the international news center “Novosti”.
YEREVAN, February 2. /ARKA/. Russia should think what means gas price increase for Armenia, said Director of the Institute of Political and Social Researches of Black Sea-Caspian region, Prof. Vladimir Zakharov in the international news center “Novosti”.
Spring price hikes will be disastrous for population, therefore Russia and Armenia should undertake measures.
At the beginning of September 2010 “Gasprom” announced about the transfer to market pricing with Belarus, Moldova and Armenia. Price rise is expected in 2011 in this regions. Currently the Government of Armenia is negotiating with Russia on regulation of this issue.
Zakharov said that material state of Armenian population is not stable. There are many people in Armenia for whom the gas price issue is very important.
“Now this topic will be the main subject of opposition and other people. The government should think how to negotiate with Miller (Board Chairman of Gasprom open jsc)”, he said.Armenia has certain appointments with Russia on changing gas prices in a certain period of time. According to the agreement on deliveries of Russian gas to Armenia from April 1, 2009 gas price for Armenia on the border cost $154 for 1 thousand cubic meters VAT included instead of earlier operating $110. From April 1, 2010 gas price on the border was $180 instead of earlier envisaged $200 for 1 thousand cubic meters.
By the decision of Public Services Regulatory Commission (PSRC) from April 1, 2010 payment for the consumed gas for one cubic meter increased to 37.5% to 132 drams (0.34 dollars) versus the operating 96 drams (0.25 dollars). For the enterprises using more than 10 thousand cubic meters of gas monthly, the tariff increased by 13% to 243.13 dollars for each thousand cubic meters of the consumed gas instead of former 215.
CJSC “ArmRosgasprom” is a monopolist in the internal market of Armenia. Gas enters Armenia by transit through Georgia. The company was established in 1997. The share of Open JSC “Gasprom” is 80% in the charter capital of the company, the share of the Government of Armenia is 20%. --0—
Spring price hikes will be disastrous for population, therefore Russia and Armenia should undertake measures.
At the beginning of September 2010 “Gasprom” announced about the transfer to market pricing with Belarus, Moldova and Armenia. Price rise is expected in 2011 in this regions. Currently the Government of Armenia is negotiating with Russia on regulation of this issue.
Zakharov said that material state of Armenian population is not stable. There are many people in Armenia for whom the gas price issue is very important.
“Now this topic will be the main subject of opposition and other people. The government should think how to negotiate with Miller (Board Chairman of Gasprom open jsc)”, he said.Armenia has certain appointments with Russia on changing gas prices in a certain period of time. According to the agreement on deliveries of Russian gas to Armenia from April 1, 2009 gas price for Armenia on the border cost $154 for 1 thousand cubic meters VAT included instead of earlier operating $110. From April 1, 2010 gas price on the border was $180 instead of earlier envisaged $200 for 1 thousand cubic meters.
By the decision of Public Services Regulatory Commission (PSRC) from April 1, 2010 payment for the consumed gas for one cubic meter increased to 37.5% to 132 drams (0.34 dollars) versus the operating 96 drams (0.25 dollars). For the enterprises using more than 10 thousand cubic meters of gas monthly, the tariff increased by 13% to 243.13 dollars for each thousand cubic meters of the consumed gas instead of former 215.
CJSC “ArmRosgasprom” is a monopolist in the internal market of Armenia. Gas enters Armenia by transit through Georgia. The company was established in 1997. The share of Open JSC “Gasprom” is 80% in the charter capital of the company, the share of the Government of Armenia is 20%. --0—
