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PIPES AND POLITICS: ENERGY PROJECTS WITH IRAN SEEN AS KEY TO REDUCING ARMENIA'S DEPENDENCE ON RUSSIA
http://www.armenianow.com/commentary/analysis/47099/armenia_iran_election_president_hassan_rohani
ANALYSIS | 21.06.13 | 10:13
Iran-Armenia gas pipeline is the first completed project between the
two countries
By NAIRA HAYRUMYAN ArmeniaNow correspondent
Iran has been active in Armenia in the past several weeks, which
brings forth opinions about the likelihood of closer Armenian-Iranian
relations in the time to come and the implementation of a number of
major regional projects involving the two neighbors. This closer
cooperation may also mean that Armenia will depend less on Russia
when it comes to energy matters.
The Islamic Republic's Ambassador to Armenia Mohammad Reisi made a
number of remarkable statements to Armenian journalists at a press
conference that he called earlier this month. In particular, he hinted
at the possibility of Iran's selling natural gas to Armenia at prices
that would be lower than those offered by Russia. Although a vague
answer was given at the level of the minister of energy - that Iranian
gas is not cheaper than Russian gas - it became apparent that Armenia
did not mind purchasing Iranian gas if it really were sold at a lower
price, if Russia did not mind it and if it did not contradict the U.S.
sanctions imposed on Tehran.
The election of Hassan Rohani as Iran's next president and mostly
approving response from Washington in this regard make it likely that
U.S. sanctions against Iran will be eased. Recently, for example,
a British court lifted sanctions imposed on the Iranian Mellat Bank,
which operates in Armenia as well. There are also hints that the
West would not be against Armenian-Iranian energy cooperation. In
any case, U.S. Ambassador to Armenia John Heffern is pursuing a whole
project on Armenia's energy diversification, which does not exclude
Armenian-Iranian cooperation.
The Armenian parliament recently adopted a law that exempts the laying
of power lines from Armenia to Iran from a number of taxes and duties.
Armenia is known to be paying for Iranian gas with electric power,
but so far only two lines have been laid, while the two countries
agreed on the construction of the third one a long time ago. This
will make it possible to buy more gas from Iran.
Several days ago Iranian news agency Mehr published data from the
National Iranian Gas Company, according to which between 2007 and 2012
only 1.5 billion cubic meters of gas was delivered to Armenia. This
is much less than the planned volumes, and Iran, in fact, suggests
that Armenia should fulfill its obligations.
In order for Armenia to buy more gas from Iran it needs to start
buying less gas from Russia. Moscow recently raised the price of
gas for Armenia. Furthermore, negotiations are currently underway
for the transfer of full control of ArmRosgazprom, which manages the
gas distribution network in Armenia, to Russia's Gazprom. At present,
the Armenian government has a 20-percent stake in ArmRosgazprom and
if the company becomes fully controlled by Russia, Gazprom will simply
prohibit buying less expensive gas from Iran.
In turns out that it is not U.S. sanctions, but rather Russia's
position that obstructs the development of energy relations between
Armenia and Iran. And since energy is directly linked to politics,
Russia, in fact, now has to obstruct not only Armenia's political
integration with Europe, but also regional political integration.
Regional integration can be stimulated if the U.S. sanctions are
really relieved and Iran offers its pipes that will open up borders
in the region. One such project has long been a talking point - Iran
proposes a gas pipeline that would run through Armenia to Georgia,
reaching the Black Sea.
http://www.armenianow.com/commentary/analysis/47099/armenia_iran_election_president_hassan_rohani
ANALYSIS | 21.06.13 | 10:13
Iran-Armenia gas pipeline is the first completed project between the
two countries
By NAIRA HAYRUMYAN ArmeniaNow correspondent
Iran has been active in Armenia in the past several weeks, which
brings forth opinions about the likelihood of closer Armenian-Iranian
relations in the time to come and the implementation of a number of
major regional projects involving the two neighbors. This closer
cooperation may also mean that Armenia will depend less on Russia
when it comes to energy matters.
The Islamic Republic's Ambassador to Armenia Mohammad Reisi made a
number of remarkable statements to Armenian journalists at a press
conference that he called earlier this month. In particular, he hinted
at the possibility of Iran's selling natural gas to Armenia at prices
that would be lower than those offered by Russia. Although a vague
answer was given at the level of the minister of energy - that Iranian
gas is not cheaper than Russian gas - it became apparent that Armenia
did not mind purchasing Iranian gas if it really were sold at a lower
price, if Russia did not mind it and if it did not contradict the U.S.
sanctions imposed on Tehran.
The election of Hassan Rohani as Iran's next president and mostly
approving response from Washington in this regard make it likely that
U.S. sanctions against Iran will be eased. Recently, for example,
a British court lifted sanctions imposed on the Iranian Mellat Bank,
which operates in Armenia as well. There are also hints that the
West would not be against Armenian-Iranian energy cooperation. In
any case, U.S. Ambassador to Armenia John Heffern is pursuing a whole
project on Armenia's energy diversification, which does not exclude
Armenian-Iranian cooperation.
The Armenian parliament recently adopted a law that exempts the laying
of power lines from Armenia to Iran from a number of taxes and duties.
Armenia is known to be paying for Iranian gas with electric power,
but so far only two lines have been laid, while the two countries
agreed on the construction of the third one a long time ago. This
will make it possible to buy more gas from Iran.
Several days ago Iranian news agency Mehr published data from the
National Iranian Gas Company, according to which between 2007 and 2012
only 1.5 billion cubic meters of gas was delivered to Armenia. This
is much less than the planned volumes, and Iran, in fact, suggests
that Armenia should fulfill its obligations.
In order for Armenia to buy more gas from Iran it needs to start
buying less gas from Russia. Moscow recently raised the price of
gas for Armenia. Furthermore, negotiations are currently underway
for the transfer of full control of ArmRosgazprom, which manages the
gas distribution network in Armenia, to Russia's Gazprom. At present,
the Armenian government has a 20-percent stake in ArmRosgazprom and
if the company becomes fully controlled by Russia, Gazprom will simply
prohibit buying less expensive gas from Iran.
In turns out that it is not U.S. sanctions, but rather Russia's
position that obstructs the development of energy relations between
Armenia and Iran. And since energy is directly linked to politics,
Russia, in fact, now has to obstruct not only Armenia's political
integration with Europe, but also regional political integration.
Regional integration can be stimulated if the U.S. sanctions are
really relieved and Iran offers its pipes that will open up borders
in the region. One such project has long been a talking point - Iran
proposes a gas pipeline that would run through Armenia to Georgia,
reaching the Black Sea.