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Gazprom: Armenia Should Set A Profitable Price For Gas

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  • Gazprom: Armenia Should Set A Profitable Price For Gas

    GAZPROM: ARMENIA SHOULD SET A PROFITABLE PRICE FOR GAS

    ARKA
    Apr 6, 2010

    YEREVAN, April 6. /ARKA/. Armenia should set a profitable price for
    gas, Anatoly Podmishalsky, chief of Gazprom's division in charge of
    relations with the near abroad and deputy chairman of ArmRosgasprom's
    board, said Tuesday at a news conference in Yerevan.

    Commenting on the suit filed by Armenian opposition in connection
    with gas price rise, he said: "Armenia continues enjoying preferences,
    but it can't stand still and should follow Russia and set a profitable
    price."

    Natural gas price for Armenia's consumers was raised 37.5% form AMD
    96 per one cubic meter to AMD 132 on April 1, 2010.

    Those consumers using more than 10,000 cubic meters of gas monthly
    will pay $243.13 per each 1,000 cubic meters instead of former $215.

    ArmRosgasprom, explaining this move, said that the price for the
    natural gas imported from Russia rose from $154 per 1,000 cubic meters
    to $180.

    Podmishalsky stressed that for three consecutive years Russia have
    exported natural gas at $110 since it signed the relevant agreement
    with Armenia in March 2006.

    In April 2009, Russia raised the price to $154, and now time has come
    to raise it again.

    He added that prices for natural gas are going up also in Russia.

    The representative of Gazprom said that Belarus, who is building a
    federal state with Russia, receives gas from the latter at $200.

    He said that Russia sells its natural gas to Ukraine at $350 and to
    Moldova at $300, while the average European price ranges between $325
    and 330.

    Podmishalsky also said that Armenian government has already taken
    some measures to shield the poor from the increase-caused shocks.

    He expressed hope that Armenians will take the steps taken by Russia
    and Gazprom with understanding.

    Shushan Sardaryan, the press secretary of ArmRosgasprom, said that
    the company was concerned about the price rise, thinking it can strike
    hard at ordinary consumers.

    However, she said, even after the increase, natural gas will remain
    the cheapest fuel.

    That since November, when the word of gas price rise already reached
    consumers, over 10,000 new customers joined the system.

    ArmRosgasprom CJSC is the sole importer and distributor of Russian
    natural gas in Armenia.

    The company was established in 1997.

    Russian Gazprom holds 80% of the company's shares, and the remaining
    20% belong to Armenian government.
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