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Fueling Fear: Armenians fear ripple effect of increased gas tariffs

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  • Fueling Fear: Armenians fear ripple effect of increased gas tariffs

    Fueling Fear: Armenians fear ripple effect of increased gas tariffs

    NEWS | 22.05.13 | 15:53


    Photolure

    By GAYANE MKRTCHYAN
    ArmeniaNow reporter

    The expected hike in the natural gas tariff continues to be a painful
    topic among political and social strata, deeply concerned not only by
    the prospect of chain-effect inflation to follow, but also a new wave
    of emigration. Many believe that by raising the gas price Russia is
    punishing Armenia for not joining the Customs Union.

    Democratic party leader Aram Sargsyan believes if Armenia wanted cheap
    gas, it should have entered the Customs Union, because now Russia's
    message is - you prefer the European Union, then let them provide you
    with everything you need.

    Republican MP Vardan Ayvazyan counters that Armenia does not approach
    it as Customs Union versus European Union, but cooperates with both.

    `The Association Agreement with the European Union cannot be viewed as
    an obstacle to the development of Armenian-Russian relations, and no
    pressure is possible either from European structures or Moscow,' he
    claims.

    Armenian Revolutionary Party MP Artsvik Minasyan warns that raising
    the gas tariff would mean Armenia with no Armenians left. He condemns
    the authorities talking about energy independence, yet not taking any
    steps to establish that independence.

    Minasyan believes that among CIS countries Armenia's use of gas is
    only 2 percent, which suggests that GazProm's decision to raise the
    tariff is the consequence of improper actions. He recommends starting
    to think about Iranian gas and alternative sources of energy.

    The Republican Union of Employers shares the opinion that Iranian gas
    could be an alternative. President of the Union Gagik Makaryan says
    Iranian gas is cheaper and raises a question: in that case why isn't
    it used? He assures that Yerevan Thermoelectric plant is quite
    satisfied with Iranian gas, while, he says, the 30 percent promised
    state subsidy is not a solution, because the state budget cannot
    afford it.

    `It is not right to take businesses by such surprise. It leads to
    growing discontent among people; today small and medium businesses are
    on a very low profit level and are moving to a deadlock. If Russia is
    keeping us under pressure, our leadership has to take proper
    measures,' he says. `We keep hearing that our country is in
    negotiations with Russia, but nobody ever says what was decided as a
    result of those negotiations. If Russia has set almost the highest
    price, where have we slipped?'

    The gas tariff raise means a heavy blow against greenhouse entities.
    Head of the Association of Greenhouses Poghos Gevorgyan says people in
    that sphere feel at a loss whether to keep working the greenhouses, or
    suspend their businesses.

    `ArmRusGasProm company also sets a coefficient depending on weather
    conditions, but in the warm season that coefficient does not decrease
    and consumers have to pay for gas by the winter tariff, which is
    higher. Besides, there are fines for delayed payments, and it becomes
    a big issue for farmers,' he says.


    From: Baghdasarian
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