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Russian Control Of Iran-Armenia Pipeline 'Not A Certainty'

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  • Russian Control Of Iran-Armenia Pipeline 'Not A Certainty'

    RUSSIAN CONTROL OF IRAN-ARMENIA PIPELINE 'NOT A CERTAINTY'
    By Emil Danielyan

    Radio Liberty, Czech Rep.
    Nov 30 2006

    The widely anticipated handover to a Russian company of a pipeline
    that will supply Armenia with Iranian natural gas is not a forgone
    conclusion, Prime Minister Andranik Markarian claimed in a Russian
    newspaper interview published on Friday. He also reiterated Yerevan's
    hopes that Russia will defuse its festering confrontation with Georgia.

    "The construction of the pipeline is not yet complete, and it is still
    too early to speak of its transfer or non-transfer to any operator,
    including Gazprom," Markarian told the Moscow daily "Kommersant,"
    referring to the Russian state gas monopoly. He said the pipeline's
    first Armenian section will come on stream "soon."

    Gazprom makes no secret of its desire to control the pipeline which is
    supposed to reduce Armenia's strong dependence on Russia for energy
    resources. Last April the company confirmed but then refuted reports
    that it will get hold of the first 40-kilometer stretch of the facility
    as part of an agreement that allowed Armenia to temporarily avoid a
    hike in the price of Russian gas.

    Armenian officials insist that the Russian giant will only get an
    incomplete thermal power plant in Hrazdan and a controlling stake in
    Armenia's national gas distributor, ArmRosGazprom (ARG), as a result of
    the deal. According to Energy Minister Armen Movsisian, the government
    will choose the owner of the under-construction pipeline next spring.

    Still, Markarian himself strongly hinted on October 31 that the
    pipeline will be incorporated into ARG, 58 percent of which is now
    owned by Gazprom. "It would be illogical to have two gas distribution
    networks in Armenia," he said.

    The pipeline from Iran is taking on a greater significance in the
    light of the mounting Georgian-Russian tensions that increasingly
    threaten continued Russian gas supplies to Georgia. Armenia, which
    imports Russian gas through Georgian territory, might also be affected
    as a result.

    "We are interested in a quick resolution of the problematic aspects
    of Russian-Georgian relations because cooperation between Russia and
    Georgia is one of the most important components of stability in our
    region," Markarian told "Kommersant."

    The Armenian authorities signaled earlier their frustration with the
    continuing Russian transport blockade of Georgia which is hurting
    Armenian companies trading with Russia.
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