Rise in gas price will not result in social revolt: analyst
17.05.2013,
17:13
A possible increase in the price of Russian natural gas shipped to Armenia across Georgia that will automatically trigger price hikes for other commodities will not result in a social revolt, according to Aleksander Iskandaryan, head of the Yerevan-based Caucasus Institute.
YEREVAN, May 17. /ARKA/. A possible increase in the price of Russian natural gas shipped to Armenia across Georgia that will automatically trigger price hikes for other commodities will not result in a social revolt, according to Aleksander Iskandaryan, head of the Yerevan-based Caucasus Institute.
"I do not think that the price rise will make people take to streets without a leader and start hurling stones and smashing shops,” he said at a news conference.
Iskandaryan downplayed speculation that a possible rise in the price of natural gas is to be treated as a Russian pressure on Armenia as part of Kremlin’s efforts to force Armenia to join the Customs Union.
According to him, there is a huge protest in the country, but there is no political force capable of transforming it into a political protest.
Earlier this week Armenia’s Russian-controlled gas operator ARG and Transgaz LLC asked the regulator to revise upward the current tariff for Russian natural gas. They want to raise the price for consumers using up to 10 thousand cubic meters a month from current 132,000 drams per one thousand cubic meters (including VAT) to 221,000 drams. Armenia currently buys 1,000 cubic meters of Russian gas for $180.
ArmRosGazprom is the sole company dealing with delivery and distribution of Russian natural gas to Armenia through Georgia. The company was founded in 1997, some 80 percent of its shares are owned by Russian Gazprom and the rest by Armenian government.-0-
