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Iran energy seen as key to reducing Armenia's dependence on Russia
Economic Desk
On Line: 22 June 2013 15:10
In Print: Sunday 23 June 2013
http://www.tehrantimes.com/economy-and-business/108711-iran-energy-seen-as-key-to-reducing-armenias-dependence-on-russia
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.
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.
It 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.
Economic Desk
On Line: 22 June 2013 15:10
In Print: Sunday 23 June 2013
http://www.tehrantimes.com/economy-and-business/108711-iran-energy-seen-as-key-to-reducing-armenias-dependence-on-russia
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.
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.
It 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.