Armenian-Russian talks on subsidizing increased gas prices in final stage: Minister says

YEREVAN, July 10. / ARKA /. Armenian energy and natural resources minister Armen Movisisyan said today the Armenian government was still negotiating with Russia sources of funding for subsidizing new,  higher prices of natural gas and electricity in Armenia that entered into force on July 7. According to him, the negotiations were in the final stage and their results would be announced in a few days.

The state Public Services Regulatory Commission (PSRC) raised them by 18 percent and 27 percent respectively last month, citing a 50 percent surge in the price of gas imported from Russia.  The price hikes would have been even sharper had the government not pledged to subsidise the gas tariff for households by 30 percent. Beginning from July 7 households will pay 156 drams per one cubic meter of gas instead of previous 132 drams 

On May 16, Prime Minister Tigran Sargsyan said the Armenian government would  subsidize 30% of the price of gas in the event of its increase. Later, Armen Movsisyan said the government was  trying to negotiate the subsidy  with Russian Gazprom that owns  80% in Armenia’s gas distributing company  ArmRosgazporm (ARG). The government indicated that the subsidy, worth an estimated $150 million per annum, will not be financed from the state budget. 

Gazprom chief Alexey Miller and Armen Movsisyan met in Moscow June 17 to discuss the possibility of selling 20 percent in ARG held by the Armenian government to Gazprom 

Which said it could  offer a price discount in return for gaining full control over  ARG.

ARG , created in 1997, is the sole supplier and distributor of Russian natural gas to Armenia that arrives across Georgia. ($ 1 - 411.50 drams). -0-