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ENERGY SECURITY OF ARMENIA REDUCED TO ZERO. PART 1
Vestnik Kavkaza, Russia
June 26 2013
Susanna Petrosyan, Yerevan. Exclusively to Vestnik Kavkaza
Talks between the head of the board of Gazprom, Alexei Miller, and the
minister of energy and natural resources of Armenia, Armen Movsisyan,
took place in Moscow recently. Along with cooperation in the sphere of
energy, the parties discussed the possibility of increasing Gazprom's
share in the joint Armenian-Russian company ArmRosGazprom from 80%
to 100%. At the moment the Armenian government possesses 20% of
the company.
Selling 20% of assets to the Russian side was actually confirmed by
the minister of energy, according to whom, no deals were signed with
Gazprom, no decision was made, and the question was in the process
of negotiation. The minister said that they would do their best for
Gazprom, after getting 100% of ArmRosGazprom, to provide stable gas
export to Armenia.
Even though the authorities say that the coming deal is not connected
with subsidies for gas rates' increase in Armenia by the Russian side,
this variant seems to be most logical: the Armenian government gives
20% of its assets in exchange for Russian finances which will be
spent for social benefits for low-income layers of the population.
It is not the first case when the Armenian authorities give a part of
their share in the joint company ArmRosGazprom to Russia for softening
consequences of gas rates' growth. This share decreased from initial
55% to 20% in recent 12-13 years.
Is this the only way to settle issues on increasing gas rates for
the Armenian government? It seems to sell or to give for credits
energy enterprises to a foreign country, Russia, for instance, is
the easiest way out of the situation - they shouldn't think over a
more effective energy system or different financial schemes.
Some experts believe that "patriotic" methods of the Armenian
leadership are explained by their low level of legitimacy and
vulnerability in front of foreign players. The fact is that the
Armenian authorities gave away 80% of the energy system of the
country to Russia in 15 years, promising the population that it was
economically profitable. The most surprising is that well-working
enterprises are being sold. Obviously, it presents a unique approach to
"independent" energy policy by the Armenian authorities.
After the heavy energy crisis in Armenia in the first half of the
1990s, which was caused by the USSR collapse and the Karabakh war, the
government began to think about improvement of energy independence and
security. During the war an additional gas pipeline was built on the
territory of Georgia; and alternative route of fuel transportation was
provided from Iran; in late 1995 the Armenian Atomic Power Station was
launched. However, it was sufficient for providing satisfactory energy
security. It was decided to diversify energy import, to develop minor
hydropower, to built major hydroelectric stations. It was planned to
construct an alternative Iranian pipeline and to build a new atomic
power station.
At the moment, the strategic program on providing energy security has
been fulfilled only in the sphere of minor hydropower and partially
in construction of major hydroelectric stations.
From: Emil Lazarian | Ararat NewsPress
Vestnik Kavkaza, Russia
June 26 2013
Susanna Petrosyan, Yerevan. Exclusively to Vestnik Kavkaza
Talks between the head of the board of Gazprom, Alexei Miller, and the
minister of energy and natural resources of Armenia, Armen Movsisyan,
took place in Moscow recently. Along with cooperation in the sphere of
energy, the parties discussed the possibility of increasing Gazprom's
share in the joint Armenian-Russian company ArmRosGazprom from 80%
to 100%. At the moment the Armenian government possesses 20% of
the company.
Selling 20% of assets to the Russian side was actually confirmed by
the minister of energy, according to whom, no deals were signed with
Gazprom, no decision was made, and the question was in the process
of negotiation. The minister said that they would do their best for
Gazprom, after getting 100% of ArmRosGazprom, to provide stable gas
export to Armenia.
Even though the authorities say that the coming deal is not connected
with subsidies for gas rates' increase in Armenia by the Russian side,
this variant seems to be most logical: the Armenian government gives
20% of its assets in exchange for Russian finances which will be
spent for social benefits for low-income layers of the population.
It is not the first case when the Armenian authorities give a part of
their share in the joint company ArmRosGazprom to Russia for softening
consequences of gas rates' growth. This share decreased from initial
55% to 20% in recent 12-13 years.
Is this the only way to settle issues on increasing gas rates for
the Armenian government? It seems to sell or to give for credits
energy enterprises to a foreign country, Russia, for instance, is
the easiest way out of the situation - they shouldn't think over a
more effective energy system or different financial schemes.
Some experts believe that "patriotic" methods of the Armenian
leadership are explained by their low level of legitimacy and
vulnerability in front of foreign players. The fact is that the
Armenian authorities gave away 80% of the energy system of the
country to Russia in 15 years, promising the population that it was
economically profitable. The most surprising is that well-working
enterprises are being sold. Obviously, it presents a unique approach to
"independent" energy policy by the Armenian authorities.
After the heavy energy crisis in Armenia in the first half of the
1990s, which was caused by the USSR collapse and the Karabakh war, the
government began to think about improvement of energy independence and
security. During the war an additional gas pipeline was built on the
territory of Georgia; and alternative route of fuel transportation was
provided from Iran; in late 1995 the Armenian Atomic Power Station was
launched. However, it was sufficient for providing satisfactory energy
security. It was decided to diversify energy import, to develop minor
hydropower, to built major hydroelectric stations. It was planned to
construct an alternative Iranian pipeline and to build a new atomic
power station.
At the moment, the strategic program on providing energy security has
been fulfilled only in the sphere of minor hydropower and partially
in construction of major hydroelectric stations.
From: Emil Lazarian | Ararat NewsPress