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TV Looks At Background To Russian-Armenian Energy Talks

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  • TV Looks At Background To Russian-Armenian Energy Talks

    TV LOOKS AT BACKGROUND TO RUSSIAN-ARMENIAN ENERGY TALKS

    RBK TV, Moscow,
    30 Oct 06

    "Gazprom will get everything it asked for in Armenia. Armenian
    President Robert Kocharyan today assured Vladimir Putin that the
    Russian holding company would remain a monopolist in the republic. It
    has no competitors," Russia's RBK TV said on 30 October, following
    reports of talks between the Russian and Armenian president in Moscow.

    "Vladimir Putin, who most likely was quite well aware of what his
    Armenian colleague was about to announce, immediately hinted: Russia
    is ready to seriously increase investments in the republic," the
    presenter on the channel's "Intrigue of the Day" evening round-up said.

    Kocharyan will have made his trip to Moscow, RBK TV said, to discuss
    the future of the Iran-Armenian gas pipeline. The 140-km gas pipeline,
    which is to run from southern Armenia and join up with the gas pipeline
    going through Georgia to Russia, is being built by the Armrosgazprom
    Armenian-Russian enterprise. Gazprom and Armenia's Energy Ministry have
    45 per cent of shares each in this enterprise, and another 10 per cent
    belongs to the Iter international group. "In April, after the turbulent
    gas wars, Gazprom agreed to sell gas to Armenia at a fixed price for
    another three years. In exchange, it demanded an extra emission of
    Armrosgazprom shares. As a result, the Russian holding in the joint
    enterprise was to increase substantially. Gazprom was thus to get
    almost complete control on the Iran-Armenia gas pipeline," RBK TV said.

    "The opposition in Yerevan sees this as a transit pipeline, passing
    not only from Armenia to Russia but from Iran to Europe, bypassing
    Russia. For obvious reasons, Gazprom takes a dim view of this variant,
    since with the right to a veto, it will be able to control the gas
    network in the region," the presenter went on.

    Interviewed on the programme, investment company analyst Dmitriy
    Mangilev said that Gazprom needed control over supplies of gas from
    Iran in order to preserve its monopoly over gas supplies to Ukraine.

    "Otherwise, Iranian gas could be sent through an upgraded gas pipeline
    to Ukraine. From the political point of view, supplies of gas to
    Armenia from Iran will make it possible to control supplies of gas
    to Georgia from Russia. Because otherwise, gas supplies to Armenia
    could only be made transiting through Georgia."

    This, the presenter said, would mean Gazprom could "as a minimum,
    influence the cost of pumping and the final price of Iranian gas for
    Europe, and as a maximum, control all the energy movements in the
    Caucasus and the European Union".

    "The topic of gas as a method of exerting influence in the Caucasus,
    analysts suggest, was a central one in the Kocharyan-Putin talks,
    even thought the official reason for the visit was the end of the
    Year of Armenia in Russia. But analysts reckon that behind closed
    doors there will be discussion of how as soon as construction of
    the gas pipeline is completed, Russia will calmly be able to close
    off the valve to Georgia. Something may have to change in relations
    between Tbilisi and Moscow very fast and very radically, for not for
    nothing did Robert Kocharyan first of all assure Putin that Gazprom
    would get what it had been promised," the presenter said.

    Tehran, the presenter commented, needs sales markets, and will be
    looking to the gas pipeline as a transit pipeline to sell gas to
    Europe. Gazprom currently supplies Armenia with as much gas as it
    needs, so Armenia will be able to sell Iranian gas. "But if Iranian
    gas does in fact go to Europe, it will be only under supervision,
    and if it brings Russia not losses but profits; and what is more,
    the money aspect is the least important thing."

    The programme then carried a clip showing the chairman of the
    Duma committee for energy, transport and communications, Valeriy
    Yazev, calling for Russia to lead an alliance of regional gas
    producers. "We need to set up a gas alliance. Its format can be more
    or less determined - at least Turkmenistan, Kazakhstan, Uzbekistan,
    Russia, Ukraine, Belarus. And tomorrow - I'm speaking figuratively,
    in brackets, here, if the problem of Iran's nuclear programme is
    removed - I see Iran in this alliance. Then this is more than 50 per
    cent of the world's gas, and of course, Russia and Gazprom should
    emerge as the integrator of this gas alliance."

    Proposals like these "have not gone down well in Europe recently",
    the RBK TV presenter said. "European officials are openly accusing
    the Kremlin of energy blackmail. The EU sees Moscow as demanding
    Russian companies be allowed into the markets of the Old World,
    otherwise it threatens to start sending supplies to other markets".

    The Kremlin denies this, "though it also makes it clear that it does
    not like everything in European policy". RBK TV said.
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