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Energy Security Of Armenia Reduced To Zero. Part 2

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  • Energy Security Of Armenia Reduced To Zero. Part 2

    ENERGY SECURITY OF ARMENIA REDUCED TO ZERO. PART 2

    Vestnik Kavkaza, Russia
    June 27 2013

    Susanna Petrosyan, Yerevan. Exclusively to Vestnik Kavkaza

    The gas sphere is posing serious worries for Armenia. The gas
    pipeline Iran-Armenia, which began working in the mid 2000s, initially
    belonged to the Armenian side. Armenia and Iran agreed to construct
    a gas pipeline 1 meter in diameter. Such a pipeline enabled the
    transportation of gas, which could not only cover Armenia's demands,
    but also be exported through Georgia to Ukraine. However, the Russian
    side pressed the vulnerable Armenian authorities and they yielded
    to Russia which wasn't interested in gas export from Iran through
    Armenia to Georgia. As the result, the diameter reduced to 700 mm,
    and the gas pipeline began to provide the Armenian-Iranian program
    "gas for electricity."

    We can understand the aggressive policy by Russian energy concerns
    which captured key positions in the Armenian energy system, but
    it is not clear what interests the Armenian authorities have. The
    second president of the country, Robert Kocharyan, said that "gas for
    electricity" was good business - gas exported to Armenia from Iran
    turned into electricity and returned to Iran. The Armenian authorities
    treated an opportunity for alternative gas as business rather than
    as a strategic leverage which could improve Armenia's position in
    the region.

    The climax of the energy security policy provided by the Armenian
    leadership was a decision by Kocharyan to give the gas pipeline
    Iran-Armenia to the company ArmRosGazprom in 2007. For sure, the
    control over the gas pipeline enabled Gazprom which possesses 80%
    of ArmRosGazprom to protect its positions in the European gas market
    from the undesirable Iranian rival.

    However, what did Armenia gain from this? Statements by Armen Movsisyan
    that Iranian gas is more expensive than Russian gas seem strange and
    doubtful. Moreover, recently the Iranian ambassador in Armenia Mohammad
    Reisi said that Iranian gas wasn't more expensive than Russian.

    Unfortunately, the energy policy of Armenia in the past 10-15years
    has been aimed only at the so-called technical security without a
    consideration of any political component.

    Armenian power economy is developing rapidly, but it doesn't belong
    to Armenia.

    >From the technical point of view, security improved due to
    implementation of new technologies, new equipment, including
    modernization and so on. But in the political sphere Armenia's energy
    security is reduced to zero because of "wise" policy of the Armenian
    authorities.

    As the result of nontransparent deals Russia received key facilities.

    Today the major and the most important power facilities don't belong
    to Armenia, except for the Nuclear Power Station and the Vorotan
    hydroelectric power chain. In the early 2000s experts of the Ministry
    of Energy developed a report for the government, which said that
    Vorotan must not be given to a private investor or a foreign state
    because Vorotan was a main controller of our power system. The Vorotan
    chain was withdrawn from the privatization program. However, some
    "caring" hand included Vorotan into this list again; and according
    to some information, the future purchaser of Vorotan will be the
    American company ContourGlobal.

    http://vestnikkavkaza.net/analysis/economy/41934.html


    From: Baghdasarian
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