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Energy Security Of Armenia Reduced To Zero. Part 1

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  • Energy Security Of Armenia Reduced To Zero. Part 1

    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
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