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Our 20% share to `Gazprom': for subsidization?
June 21 2013
Recently, the Minister of Energy and Natural Resources Armen Movsisyan
stated that they are negotiating with `Gazprom' owning 80% of
`ArmRusGazArd' about concedeing 20% of Armenian share. `Gazprom' wants to
become a 100% owner `ArmRusGazArd'. Whether transferring those 20%
belonging to Armenia to the Russian side, we will not pay for the grant
expected from Russia, with the help of which the government is going to
make a 30% subsidy for the gas which will become expensive from the next
month. The negotiations to receive a grant for the subsidy, as the
government assures, are pending, but actually it's not excluded that by
just giving 20% of Armenian share of ' ArmRusGazArd `, the Russian grant
will be paid. However, by estimations of economists, the volume of 30%
subsidy coincides with the price of 20% of Armenian share. In a talk with
`Aravot', the Deputy of ARF faction, economist Artsvik Minasyan presented
her analysis, according to which, only the balance value of the share of
the Armenian side, calculated as of January 1, 20013, amounts to AMD
150-160 million, which coincides with our 20% participation in `ARG'. `This
corresponds to the number which is the value of 30% subsidy of the last
price increase of `Gazprom' for gas.
It is possible that we concede the share, because my calculations show that
the numbers are the same. If we multiply the volume of gas entering Armenia
during one year, and calculate 30%, the numbers are almost the same. If
this is sitting on the negotiation table, then we may say that the
statement made by the Government of Armenia again does not meet the
reality, when talking about receiving grant from Russia. This is a simple
transaction under the name share for the gas. But the subsidy cannot be a
long-term, just 1-2 years.' As presented by Mr. Minasyan, if we take into
account that ArmRusGazArd in addition of gas acquiring and distribution, is
also implementing other energy projects, given the fact that the company
has a strategic importance, monopoly position and is an extended company,
the sale of 20% Armenian share must be viewed as a business sale, and
150-160 million balance must be multiplied by several times, and, in this
respect, 20% is of a significant importance. As for losing 20% Armenian
share of ArmRusGazArd, with which we are going to lose many opportunities,
Mr. Minasyan thinks that with that 20% so far the Government of Armenia did
not use any serious opportunity and right. According to the Deputy,
ArmRusGazArd is a closed joint-stock company, and 20% provides a number of
rights in the joint-stock companies. `He enjoys the right to vote at the
general meeting of shareholders, where the company's strategic issues are
determined, has the right to have a representative on the board of
directors. In addition, 20% has a decisive importance in major and
interested transactions, for example, if the `Gazprom' delivers its
products to `ArmRusGazArd', and the latter must make a decision, the right
for making the decision in this case is reserved exclusively to 20%. The
other important and fundamental right is the right to receive the dividend.
In this sense, when we analyze to understand whether the Government of
Armenia has used its rights or not, it appears that no annual or general
meeting of the shares was held, where the Armenian side may speak against
regarding the principal issues. Our government does not excel with
remarkable efficiency in the composition of the Management Board, not any
interested deal is mentioned or published, and when we send a written
request to the Minister of Energy, they have noted that such deals were not
made. While it is clear that acquisition of gas is a big deal, if we do not
account other investment projects.
As for the right to receive dividend, we see that Armenia's budget has not
ever received any dividend, we haven't received revenues, and why, it is a
subject for another analysis. `In other words, according to Mr. Minasyan,
with 20% and important rights equivalent to them, our government did not
use them anyway. An opinion was expressed that it would be right if our
government would sell 20% to Armenia business entities or residents of
Armenia. In this regard, Artsvik Minasyan said that, of course, it would be
nice, but for this reason the gas supplying company should become an open
joint stock company from a closed join stock company, which, of course,
they will not do. As viewed by the Deputy, `Armenia cannot sell its 20%
share without `preliminary consent of Gazprom. `Gazprom' has a preferential
right to purchase, after refusal of `Gazprom' other persons can make a
proposal. And in this case, if the proposal is public, the organizational
structure of the company must be changed, it must become an open and sell
at the stock exchange. This would be a major step to become a public
company. But I can confidently say that the Russian side would not agree.'
Artsvik Minasyan pointed to another problem, the Government of Armenia, in
fact, from now one will have to consider not `ArmRusGazArd' but `Gazprom'
as an operator for selling gas to Armenia. The latter with the help of its
daughter enterprise `Armrusgasprom' and its own `Transgaz' delivers
services to Armenia. `And the fixed price at the boarder does not matter,
except when calculated for VAT. The policy `Gazprom' is unprecedented
because there is no such high rate in any other country in the territory.
Here the government is able to influence and demanded from `Gazprom' to
eliminate discriminatory policy towards Armenia, it remains only to wish.
In other words, `Gazprom' receives profit from `Transgaz' and
`Armrusgasard,' and residential viewpoint it does not have the right to
implement a discriminatory policy: to sell gas to Armenians at more
expensive price than, let's say, to Russians.'
Nelli Babayan `Aravot' Daily
Read more at: http://en.aravot.am/2013/06/21/154993/
© 1998 - 2013 Aravot - News from Armenia
June 21 2013
Recently, the Minister of Energy and Natural Resources Armen Movsisyan
stated that they are negotiating with `Gazprom' owning 80% of
`ArmRusGazArd' about concedeing 20% of Armenian share. `Gazprom' wants to
become a 100% owner `ArmRusGazArd'. Whether transferring those 20%
belonging to Armenia to the Russian side, we will not pay for the grant
expected from Russia, with the help of which the government is going to
make a 30% subsidy for the gas which will become expensive from the next
month. The negotiations to receive a grant for the subsidy, as the
government assures, are pending, but actually it's not excluded that by
just giving 20% of Armenian share of ' ArmRusGazArd `, the Russian grant
will be paid. However, by estimations of economists, the volume of 30%
subsidy coincides with the price of 20% of Armenian share. In a talk with
`Aravot', the Deputy of ARF faction, economist Artsvik Minasyan presented
her analysis, according to which, only the balance value of the share of
the Armenian side, calculated as of January 1, 20013, amounts to AMD
150-160 million, which coincides with our 20% participation in `ARG'. `This
corresponds to the number which is the value of 30% subsidy of the last
price increase of `Gazprom' for gas.
It is possible that we concede the share, because my calculations show that
the numbers are the same. If we multiply the volume of gas entering Armenia
during one year, and calculate 30%, the numbers are almost the same. If
this is sitting on the negotiation table, then we may say that the
statement made by the Government of Armenia again does not meet the
reality, when talking about receiving grant from Russia. This is a simple
transaction under the name share for the gas. But the subsidy cannot be a
long-term, just 1-2 years.' As presented by Mr. Minasyan, if we take into
account that ArmRusGazArd in addition of gas acquiring and distribution, is
also implementing other energy projects, given the fact that the company
has a strategic importance, monopoly position and is an extended company,
the sale of 20% Armenian share must be viewed as a business sale, and
150-160 million balance must be multiplied by several times, and, in this
respect, 20% is of a significant importance. As for losing 20% Armenian
share of ArmRusGazArd, with which we are going to lose many opportunities,
Mr. Minasyan thinks that with that 20% so far the Government of Armenia did
not use any serious opportunity and right. According to the Deputy,
ArmRusGazArd is a closed joint-stock company, and 20% provides a number of
rights in the joint-stock companies. `He enjoys the right to vote at the
general meeting of shareholders, where the company's strategic issues are
determined, has the right to have a representative on the board of
directors. In addition, 20% has a decisive importance in major and
interested transactions, for example, if the `Gazprom' delivers its
products to `ArmRusGazArd', and the latter must make a decision, the right
for making the decision in this case is reserved exclusively to 20%. The
other important and fundamental right is the right to receive the dividend.
In this sense, when we analyze to understand whether the Government of
Armenia has used its rights or not, it appears that no annual or general
meeting of the shares was held, where the Armenian side may speak against
regarding the principal issues. Our government does not excel with
remarkable efficiency in the composition of the Management Board, not any
interested deal is mentioned or published, and when we send a written
request to the Minister of Energy, they have noted that such deals were not
made. While it is clear that acquisition of gas is a big deal, if we do not
account other investment projects.
As for the right to receive dividend, we see that Armenia's budget has not
ever received any dividend, we haven't received revenues, and why, it is a
subject for another analysis. `In other words, according to Mr. Minasyan,
with 20% and important rights equivalent to them, our government did not
use them anyway. An opinion was expressed that it would be right if our
government would sell 20% to Armenia business entities or residents of
Armenia. In this regard, Artsvik Minasyan said that, of course, it would be
nice, but for this reason the gas supplying company should become an open
joint stock company from a closed join stock company, which, of course,
they will not do. As viewed by the Deputy, `Armenia cannot sell its 20%
share without `preliminary consent of Gazprom. `Gazprom' has a preferential
right to purchase, after refusal of `Gazprom' other persons can make a
proposal. And in this case, if the proposal is public, the organizational
structure of the company must be changed, it must become an open and sell
at the stock exchange. This would be a major step to become a public
company. But I can confidently say that the Russian side would not agree.'
Artsvik Minasyan pointed to another problem, the Government of Armenia, in
fact, from now one will have to consider not `ArmRusGazArd' but `Gazprom'
as an operator for selling gas to Armenia. The latter with the help of its
daughter enterprise `Armrusgasprom' and its own `Transgaz' delivers
services to Armenia. `And the fixed price at the boarder does not matter,
except when calculated for VAT. The policy `Gazprom' is unprecedented
because there is no such high rate in any other country in the territory.
Here the government is able to influence and demanded from `Gazprom' to
eliminate discriminatory policy towards Armenia, it remains only to wish.
In other words, `Gazprom' receives profit from `Transgaz' and
`Armrusgasard,' and residential viewpoint it does not have the right to
implement a discriminatory policy: to sell gas to Armenians at more
expensive price than, let's say, to Russians.'
Nelli Babayan `Aravot' Daily
Read more at: http://en.aravot.am/2013/06/21/154993/
© 1998 - 2013 Aravot - News from Armenia