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Armenia negotiates gas prices with Gazprom

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  • Armenia negotiates gas prices with Gazprom

    ITAR-TASS, Russia
    May 21, 2013 Tuesday 01:50 AM GMT+4



    Armenia negotiates gas prices with Gazprom

    YEREVAN May 20

    - The aim of the negotiations Armenia now conducts with Russia's
    Gazprom is to make decisions to result in lower gas prices," Prime
    Minister Tigran Sargsyan told Armenian parliament on Monday.

    "The government uses every lever so that gas should be supplied to
    Armenia at a lower price," Sargsyan said. "We do all for this purpose
    - from discussions with the neighbor Iran to negotiations with our
    traditional strategic partner (Russia - Itar-Tass editor)." "The
    negotiations go on at the highest political. They are aimed to arrive
    at the decisions to cut gas prices," the premier said.

    Gazprom offers gas to Armenia at 189 dollars per cubic meter, the
    premier said. "However, as a result of the 30-percent export tax, the
    gas price reaches 270 dollars at the Armenian border." "The theme of
    the negotiations at present is what mechanism should be used to avoid
    applying the 30-percent export tax to gas supplies to Armenia,"
    Sargsyan said.

    The tariffs on Russian gas were in the focus of attention in Armenia
    these days. The ArmRosgazprom gas transportation company referred to
    the Public Services Regulation Commission in Armenia the application
    to increase the gas price by 67 percent at once. This applies to gas
    deliveries equally to citizens consuming up to 10,000 cubic meters of
    gas per month and to entrepreneurs using over 10,000 cubic meters of
    gas per month.

    The premier recalled that in his letter to the Public Servicer
    Regulation Commission he reported that the government would subsidize
    gas tariffs to 30 percent. Besides, poor families will be given relief
    so that heavier gas prices should not cut into their budgets.

    "Thanks to the efforts of the Armenian government, the gas price
    remained unchanged over five years and the talks with Russian
    colleagues were about gas supplies at the lowest price," Sargsyan
    noted.

    Experts predict that the gas price hike will inevitably result in
    higher prices of bread and other products, as well as of goods and
    services.

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