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Armenia Aims to Convince Gazprom to Maintain Gas Discount for 2011

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  • Armenia Aims to Convince Gazprom to Maintain Gas Discount for 2011

    Global Insight
    November 19, 2010


    Armenia Aims to Convince Gazprom to Maintain Gas Price Discount for 2011

    BYLINE: Andrew Neff



    Armenia's Energy and Natural Resources Minister, Armen Moysisyan, told
    the country's parliament this week that the Armenian government is
    attempting to convince Russia's Gazprom not to raise gas prices for
    Armenia to "European levels" beginning next year. Moysisyan told
    lawmakers in the National Assembly that Armenia had presented its
    arguments for maintaining the 10% discount to market prices that the
    country currently enjoys in purchasing Russian gas, although he said
    it was premature to say whether these arguments would be successful
    since negotiations are continuing.

    Significance:Armenia receives a discount in its price for gas imports
    from Russia as a legacy of an earlier deal cut with Gazprom back in
    2006, when the Russian gas firm first began pushing to end the
    practice of providing subsidised gas supplies to ex-Soviet countries
    (seeCIS: 7 April 2006:). Armenia's gas import price jumped sharply
    this year, to about US$180 per 1,000 cm, as part of the transition to
    European prices which is supposed to be completed in 2011. Armenia
    pushed through a 37% increase in domestic gas prices for end-users on
    1 April 2010 in response to the hike in the border price of imported
    Russian gas, but the Armenian government is hopeful that it can keep
    import prices from rising again in 2011, which could then help avoid
    the need for another round of gas price increases for domestic
    consumers.




    From: A. Papazian
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