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Expensive Russian Gas to Be Compensated by Cheap Arms for Armenia?

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  • Expensive Russian Gas to Be Compensated by Cheap Arms for Armenia?

    PanARMENIAN.Net

    Expensive Russian Gas to Be Compensated by Cheap Arms for Armenia?

    25.03.2006 21:30 GMT+04:00

    /PanARMENIAN.Net/ «The situation with Russian gas supplies to Armenia
    seems to be solved. Gazprom, as in case of Ukraine, will get its
    price, while Armenia will not increase gas prices for the
    population. What is the secret?», Neftegaz.ru writes. `Already March
    22 Armenian PM Andranik Margaryan said the gas tariffs will not
    change. `The price of $110 fixed in the bilateral agreement is a final
    one and no changes should be expected,' he said, adding the parties
    are specifying opportunities and mechanisms of compensation. Armenia
    tried to dissuade Gazprom from increasing the gas prices, stating it
    can undermine Russia's authority in the region, however the company
    did not give up. At that Mr. Medvedev specially noted that political
    alliances do not play any role in change of tariffs for gas being
    supplied to Transcaucasia. Moscow, however, agreed to consider option
    of compensation for increase of the gas prices, which would mitigate
    the blow for the Armenian consumer. Earlier, Russia had suggested a
    number of schemes that were to assist Armenia is overcoming the rise
    of price. Moscow, specifically displayed interest in acquiring a large
    share holding of ArmRosgazprom. In the Russian party's opinion, the
    money from the deal will be enough for Yerevan to support low price
    for domestic consumers. The other option provided for passing
    ownership of the fifth energy block of Hrazdan Thermal Plant, as well
    as the entire gas and transport system of Armenia to Moscow.

    However, judging from reports from Armenia, the matter did not come to
    it and the parties accepted a compromise. «Commissioned by the
    Armenian President I sent a letter to Gazprom's head, making several
    proposals. Friday we got the response from Miller. Before end of
    March Gazprom is ready to sign corresponding documents, which will
    allow the population and producers paying lower prices that expected
    before,» Serge Sargsyan said.

    The rescue mechanism was worked out in Moscow. Supplies of Russian
    Arms to Armenia on preferential terms is the point. Moreover, part of
    the contracts have even gratuitous basis. As the military budget of
    Armenia is rather large, these benefits can overlap the increase of
    the gas price,» reports Neftegaz.ru.
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