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Vestnik Kavkaza, Russia
May 20 2013
Impetus for anti-Russian sentiment
20 May 2013 - 2:42pm
Author: Susanna Petrosyan, Yerevan, exclusively to VK
"Gazprom"'s subsidiary "ArmRosgasprom" addressed to the Public
Utilities Commission (PUC) with the proposal to revise the price for
natural gas sold to consumers. Instead of the current 132 thousand
drams ($ 1 = 415 drams) per thousand cubic meters of gas the company
offers to fix the price at 221 thousand drams. It is related to the
increase in the 64-65%. The gas supplied to entrepreneurs will also
become more expensive - instead of the current 243 drams per one cubic
meter the rate of 392 drams, i. e. higher by 62%, is proposed.
The last time the price of Russian gas for Armenia was increased on
April 1, 2010. The decision about the next revision of the tariffs
will be made within three months, and the increase is expected by 1
September.
Media reports about another increase appeared in the summer of 2012.
It was indirectly confirmed by President Serzh Sargsyan, who, after a
meeting with his Russian counterpart, in August last year, said that
the price of gas has to be connected to the reality of the market
value, comparable with regional rates. But then, in order to avoid
social tensions on the eve of the presidential elections in Armenia,
the parties agreed that the prices would rise after the election.
According to the spokesman of "ArmRosgasprom" Shushan Sardaryan, the
increase in gas prices is due to changes in customs tariffs and
inflation. "In 2010, the dollar was 386 drams. Today, it rose to 416.
Gas prices in Armenia, compared to prices in other CIS countries, are
considered exclusive, we have a relatively low price. Armenia in this
sense is second only to Belarus", Sardaryan said.
The head of the "Alternative" research center, economist Tatul
Manaseryan thinks that in parallel with the increase in gas prices
price not only for food but also for electricity, transportation and
other services will raise. The PUC has already started the process of
revising electricity tariffs. If various state agencies will conduct
the necessary activities comparable to the monetary policy, the
inflation will be a maximum of 1-1.5%; otherwise, this figure will
reach 3%. Manaserian does not exclude that inflation will increase the
scale of migration.
Chairman of the Consumers' Association of Armenia Armen Poghosyan is
sure that the increase in gas prices will see an increase in prices
for essential commodities and undermine a number of industries, such
as cement production.
Future increase in gas prices caused a wave of indignation in the
Armenian society, which is interested neither in the fact that the
increase was expected, nor in the fact that it is based on inflation
or on the changes in customs tariffs. At the initiative of a group set
up on Facebook, "Let's nip gas price hike", a protest rally in front
of the Armenian government was organized. Participants of the rally,
which included members of the opposition party "Dashnaktsutiun"
"Sardarapat" organization and civil initiatives, required to
reconsider the decision to raise tariffs, saying that it is fraught
with the disappearance of the middle class and rising inflation. Head
of the department for letters, requests and complaints by citizens of
the government Alexander Ghazaryan noted that "the demands of the
demonstrators coincide with the wishes of the government", and the
latter will make every effort so that rise in price will be minimal.
Indeed, the government has responded remarkably quickly. Prime
Minister Tigran Sargsyan sent a letter to the chairman of the PUC: "In
the letter, we can state that the government subsidizes 30% of the
price of gas. I want to inform our citizens that socially vulnerable
families will receive assistance, and higher gas prices will not
affect their family budget negatively."
According to some reports, for the citizens of Armenia, whose monthly
consumption up to 10 thousand cubic meters, the prices will be higher
by 35%, and every 1000 cubic meters will be sold for 180 thousand
drams instead of the current 132 thousand.
Today, "Gazprom" gas supplies to Europe are on average at 415 dollars
per 1000 cubic meters. The same price applies to Ukraine. The other
countries of the CIS buy gas at $ 200-300.
If we consider the issue of raising tariffs by Russia for its
strategic ally from a commercial point of view, there is somewhat
strange picture.
After the previous increase in gas prices in 2010, some villagers
started to use wood instead of gas. According to the press-secretary
of the PUC Mariam Stepanyan, "gas consumption was reduced by reason of
the fact that in many villages, despite the gasification, people
prefer to use wood instead of gas for heating." And this in a country
where the rate of gasification is more than 90%!
Obviously, the increase in gas prices in Armenia, where there is more
than one-third of the poor people, will not give commercial advantage
to "ArmRosgazprom" which is automatically associated with Russia. It
turns out that the answer lies in the political arena. Perhaps Russia
took up the "gas cudgel," because the strategic ally is in no hurry to
fulfill any obligations taken on. Some Armenian experts believe that
this step shows Russia's desire to "drive Armenia into a corner in
joining the Customs Union." In this case, the actions of Russia are
quite logical: putting pressure on the leadership, which will feel the
outrage of the public. But in Armenia any statement about raising gas
prices provokes anti-Russian sentiment. During the years of
independence, a new generation grew up in Armenia, which, due to
objective factors, is remote from Russia, and the use of "gas cudgel"
enhances this process.
http://vestnikkavkaza.net/analysis/economy/40461.html
May 20 2013
Impetus for anti-Russian sentiment
20 May 2013 - 2:42pm
Author: Susanna Petrosyan, Yerevan, exclusively to VK
"Gazprom"'s subsidiary "ArmRosgasprom" addressed to the Public
Utilities Commission (PUC) with the proposal to revise the price for
natural gas sold to consumers. Instead of the current 132 thousand
drams ($ 1 = 415 drams) per thousand cubic meters of gas the company
offers to fix the price at 221 thousand drams. It is related to the
increase in the 64-65%. The gas supplied to entrepreneurs will also
become more expensive - instead of the current 243 drams per one cubic
meter the rate of 392 drams, i. e. higher by 62%, is proposed.
The last time the price of Russian gas for Armenia was increased on
April 1, 2010. The decision about the next revision of the tariffs
will be made within three months, and the increase is expected by 1
September.
Media reports about another increase appeared in the summer of 2012.
It was indirectly confirmed by President Serzh Sargsyan, who, after a
meeting with his Russian counterpart, in August last year, said that
the price of gas has to be connected to the reality of the market
value, comparable with regional rates. But then, in order to avoid
social tensions on the eve of the presidential elections in Armenia,
the parties agreed that the prices would rise after the election.
According to the spokesman of "ArmRosgasprom" Shushan Sardaryan, the
increase in gas prices is due to changes in customs tariffs and
inflation. "In 2010, the dollar was 386 drams. Today, it rose to 416.
Gas prices in Armenia, compared to prices in other CIS countries, are
considered exclusive, we have a relatively low price. Armenia in this
sense is second only to Belarus", Sardaryan said.
The head of the "Alternative" research center, economist Tatul
Manaseryan thinks that in parallel with the increase in gas prices
price not only for food but also for electricity, transportation and
other services will raise. The PUC has already started the process of
revising electricity tariffs. If various state agencies will conduct
the necessary activities comparable to the monetary policy, the
inflation will be a maximum of 1-1.5%; otherwise, this figure will
reach 3%. Manaserian does not exclude that inflation will increase the
scale of migration.
Chairman of the Consumers' Association of Armenia Armen Poghosyan is
sure that the increase in gas prices will see an increase in prices
for essential commodities and undermine a number of industries, such
as cement production.
Future increase in gas prices caused a wave of indignation in the
Armenian society, which is interested neither in the fact that the
increase was expected, nor in the fact that it is based on inflation
or on the changes in customs tariffs. At the initiative of a group set
up on Facebook, "Let's nip gas price hike", a protest rally in front
of the Armenian government was organized. Participants of the rally,
which included members of the opposition party "Dashnaktsutiun"
"Sardarapat" organization and civil initiatives, required to
reconsider the decision to raise tariffs, saying that it is fraught
with the disappearance of the middle class and rising inflation. Head
of the department for letters, requests and complaints by citizens of
the government Alexander Ghazaryan noted that "the demands of the
demonstrators coincide with the wishes of the government", and the
latter will make every effort so that rise in price will be minimal.
Indeed, the government has responded remarkably quickly. Prime
Minister Tigran Sargsyan sent a letter to the chairman of the PUC: "In
the letter, we can state that the government subsidizes 30% of the
price of gas. I want to inform our citizens that socially vulnerable
families will receive assistance, and higher gas prices will not
affect their family budget negatively."
According to some reports, for the citizens of Armenia, whose monthly
consumption up to 10 thousand cubic meters, the prices will be higher
by 35%, and every 1000 cubic meters will be sold for 180 thousand
drams instead of the current 132 thousand.
Today, "Gazprom" gas supplies to Europe are on average at 415 dollars
per 1000 cubic meters. The same price applies to Ukraine. The other
countries of the CIS buy gas at $ 200-300.
If we consider the issue of raising tariffs by Russia for its
strategic ally from a commercial point of view, there is somewhat
strange picture.
After the previous increase in gas prices in 2010, some villagers
started to use wood instead of gas. According to the press-secretary
of the PUC Mariam Stepanyan, "gas consumption was reduced by reason of
the fact that in many villages, despite the gasification, people
prefer to use wood instead of gas for heating." And this in a country
where the rate of gasification is more than 90%!
Obviously, the increase in gas prices in Armenia, where there is more
than one-third of the poor people, will not give commercial advantage
to "ArmRosgazprom" which is automatically associated with Russia. It
turns out that the answer lies in the political arena. Perhaps Russia
took up the "gas cudgel," because the strategic ally is in no hurry to
fulfill any obligations taken on. Some Armenian experts believe that
this step shows Russia's desire to "drive Armenia into a corner in
joining the Customs Union." In this case, the actions of Russia are
quite logical: putting pressure on the leadership, which will feel the
outrage of the public. But in Armenia any statement about raising gas
prices provokes anti-Russian sentiment. During the years of
independence, a new generation grew up in Armenia, which, due to
objective factors, is remote from Russia, and the use of "gas cudgel"
enhances this process.
http://vestnikkavkaza.net/analysis/economy/40461.html