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When you exclude the possibility of weakening the position of monopoly
June 21 2013
The mistake comes from the previous government. The Russian gas which was
supplied to Ukraine by German RWE company is $ 100 cheaper than gas
supplied by the `Gazprom'. Such statement was made by the Prime Minister of
Ukraine Nikolai Azarov during a meeting with French businesses
representatives. Azarov said that the long chain of intermediaries,
contrary to the logic, only reduces the price for Russian gas, in
comparison with the direct supply from Russia. `We now buy gas from RWE, it
passes through Poland, Slovakia and Hungary. We are buying that gas cheaper
than the Russian gas, which we buy at the border with Russia, RWE sell to
us the same gas, which the company is buying from Russia. The gas passing
through the long chain of pipelines, comes back to us becoming 100 dollars
cheaper', - said Azarov. This information is interesting on the background
of the `gas' chaos in Armenia. Yesterday, the Minister of Energy Armen
Movsisyan confirmed that they are negotiating with `Gazprom' on the
information to concede the shares. The Government of Armenia will end up
the negotiations with the Russian `Gazprom' company by the end of this
month, during which, as it turned out, despite the rise in gas prices, the
possibility of conceding the last 20 % of shares owned by the Republic of
Armenia in the `ArmRusGasArd' to `Gazprom' company is also discussed. But
what is behind the government of Armenia in exchange for the 20 percent of
share, Armen Movsisyan refuses to detail noting that it will hamper the
negotiations. `The shares to transfer to `Gazprom' company are sitting on
the table, of course, we will find the right equivalent solution to obtain
>From them', - said Movsisyan, without denying that the alternatives are
also discussed. Starting from July 7, cubic meter of gas one instead of the
current 132 will cost 156 drams for citizens. Due to rising gas prices, the
cost for electricity will increase by AMD 8 to 1 kilowatt per hour. At one
time, Armenia had 45% of share in the company, but the local authorities
handed it over to the Russian side. Now the possibility of transferring the
last 20% again to the company is discussed. That is, if it becomes a
reality, `ArmRusGasArd' will no longer be an Armenian-Russian joint
venture, it will become a Russian company, which will possess Armenia gas
supply chain. What is expected to our society if the last 20% of the shares
is conceded to `Gazprom'? For example, the Russian side does not intend to
raise the price of gas supplied to Armenia every year, it is conditioned
with the fact whether Armenia's authorities justify this-and-that
expectations of Russia in non-economic issues, or not =85 The Minister of
Energy said on this occasion,- `The issue is not so raised that next year
they can do whatever they want. The negotiations are held not because they
can do whatever they want, but to have a long-term better gas supply.' The
authorities are also silent on the issue of whether the idea of giving one
hundred percent of management possibility to `Gazprom' occurred with the
authorities of the Armenian side or the Russian side. However, the Minister
Energy made one issue clear, in the issue of just gas supply, there is no
compulsion for Armenia to enter the Eurasian Union. It seems that if the
compulsion was there, they should confess. To say that with its 20 per cent
of shares the Armenian side, in the negotiations with the Russian side,
could extract crucial decisions for the benefit of our society, of course,
would be a naivety. It is clear for everyone that the mistake comes from
the previous Government of Armenia. If there is no alternative in any
field, we must be ready for any surprise. And if the Russian side having
even the monopoly position decides to sell gas for a cheaper price, again
the question arises, as to what for it becomes cheaper=85. Consequently,
transferring the entire gas supply network of Armenia to the Russian
company incorporates serious risks to all aspects, regardless of whether
the Russian side will raise or lower the price for gas. In the result of
the policy implemented by the former President of Armenia Robert Kocharyan,
the most importance strategic facilities, including almost the entire
energy system was given to Russia. Moreover, the authorities were found so
`smart' that they transferred the Iran-Armenia gas pipeline of already
small diameter to the Russia, excluding the possibility of weakening the
Russian position of monopoly. But despite everything, one should also
notice the political trend in this whole process, after summing up the
phases of three elections in Armenia, the Russian side plays more openly.
And as long as there are leverages and even in the areas where the Russian
side is in a monopoly position, the resistance will be more difficult. But,
as people say, we must think about it in time.
Emma GABRIELYAN `Aravot' Daily
Read more at: http://en.aravot.am/2013/06/21/154989/
June 21 2013
The mistake comes from the previous government. The Russian gas which was
supplied to Ukraine by German RWE company is $ 100 cheaper than gas
supplied by the `Gazprom'. Such statement was made by the Prime Minister of
Ukraine Nikolai Azarov during a meeting with French businesses
representatives. Azarov said that the long chain of intermediaries,
contrary to the logic, only reduces the price for Russian gas, in
comparison with the direct supply from Russia. `We now buy gas from RWE, it
passes through Poland, Slovakia and Hungary. We are buying that gas cheaper
than the Russian gas, which we buy at the border with Russia, RWE sell to
us the same gas, which the company is buying from Russia. The gas passing
through the long chain of pipelines, comes back to us becoming 100 dollars
cheaper', - said Azarov. This information is interesting on the background
of the `gas' chaos in Armenia. Yesterday, the Minister of Energy Armen
Movsisyan confirmed that they are negotiating with `Gazprom' on the
information to concede the shares. The Government of Armenia will end up
the negotiations with the Russian `Gazprom' company by the end of this
month, during which, as it turned out, despite the rise in gas prices, the
possibility of conceding the last 20 % of shares owned by the Republic of
Armenia in the `ArmRusGasArd' to `Gazprom' company is also discussed. But
what is behind the government of Armenia in exchange for the 20 percent of
share, Armen Movsisyan refuses to detail noting that it will hamper the
negotiations. `The shares to transfer to `Gazprom' company are sitting on
the table, of course, we will find the right equivalent solution to obtain
>From them', - said Movsisyan, without denying that the alternatives are
also discussed. Starting from July 7, cubic meter of gas one instead of the
current 132 will cost 156 drams for citizens. Due to rising gas prices, the
cost for electricity will increase by AMD 8 to 1 kilowatt per hour. At one
time, Armenia had 45% of share in the company, but the local authorities
handed it over to the Russian side. Now the possibility of transferring the
last 20% again to the company is discussed. That is, if it becomes a
reality, `ArmRusGasArd' will no longer be an Armenian-Russian joint
venture, it will become a Russian company, which will possess Armenia gas
supply chain. What is expected to our society if the last 20% of the shares
is conceded to `Gazprom'? For example, the Russian side does not intend to
raise the price of gas supplied to Armenia every year, it is conditioned
with the fact whether Armenia's authorities justify this-and-that
expectations of Russia in non-economic issues, or not =85 The Minister of
Energy said on this occasion,- `The issue is not so raised that next year
they can do whatever they want. The negotiations are held not because they
can do whatever they want, but to have a long-term better gas supply.' The
authorities are also silent on the issue of whether the idea of giving one
hundred percent of management possibility to `Gazprom' occurred with the
authorities of the Armenian side or the Russian side. However, the Minister
Energy made one issue clear, in the issue of just gas supply, there is no
compulsion for Armenia to enter the Eurasian Union. It seems that if the
compulsion was there, they should confess. To say that with its 20 per cent
of shares the Armenian side, in the negotiations with the Russian side,
could extract crucial decisions for the benefit of our society, of course,
would be a naivety. It is clear for everyone that the mistake comes from
the previous Government of Armenia. If there is no alternative in any
field, we must be ready for any surprise. And if the Russian side having
even the monopoly position decides to sell gas for a cheaper price, again
the question arises, as to what for it becomes cheaper=85. Consequently,
transferring the entire gas supply network of Armenia to the Russian
company incorporates serious risks to all aspects, regardless of whether
the Russian side will raise or lower the price for gas. In the result of
the policy implemented by the former President of Armenia Robert Kocharyan,
the most importance strategic facilities, including almost the entire
energy system was given to Russia. Moreover, the authorities were found so
`smart' that they transferred the Iran-Armenia gas pipeline of already
small diameter to the Russia, excluding the possibility of weakening the
Russian position of monopoly. But despite everything, one should also
notice the political trend in this whole process, after summing up the
phases of three elections in Armenia, the Russian side plays more openly.
And as long as there are leverages and even in the areas where the Russian
side is in a monopoly position, the resistance will be more difficult. But,
as people say, we must think about it in time.
Emma GABRIELYAN `Aravot' Daily
Read more at: http://en.aravot.am/2013/06/21/154989/