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ARMENIA FACES CRISIS
Armenia's membership to the Customs Union will not guarantee that
the Russian gas exported to Armenia will be exempt from export taxes,
the economist Ashot Yeghiazaryan told Lragir.am.
The minister of energy and natural resources Armen Movsisyan has
recently stated that after Armenia's statement on joining the Customs
Union the Russian side is likely to exempt gas sold to Armenia from
tax on export. According to the minister, it will reduce the price of
gas by 30%, and the government will not have to cover 30% of the price.
"Some officials say that Russia will exempt gas from tax after
membership to the Customs Union. There is no certainty, it is not known
whether gas will be exempted from tax now or after joining the Customs
Union or will be exempted at all. There is no guarantee because the
customs procedures are not related to transit of carbohydrates. Belarus
has continuously brought up the issue of cheap carbohydrates, and
you know what conflicts and scandals resulted.
Nevertheless, no such procedures have been foreseen yet. In addition,
Armenia is not a member of the Customs Union," Ashot Yeghiazaryan said.
According to him, the bills are important. And the price of gas will
not be reduced for consumers.
The economist says the Russian gas is expensive. It is extracted
in places with severe climate and transported over thousands of
kilometers.
"It is necessary to take into account that by tying us to that we
are depriving ourselves of the opportunity to maneuver in the sphere
of gas because Armenia is not free in its energy policy, even with
neighboring Iran. All the initiatives are eventually blocked by the
Russian side. There have been a lot of examples over the past five or
six years - an oil refinery, a small-width gas pipeline, Tabriz-Yeraskh
oil refining terminal and pipeline construction etc," he notes.
Ashot Yeghiazaryan says not gas but efficacy of the energy system
should be considered.
"If gas should be used to generate electricity, and we do not have
a nuclear power plant, sources of cheap electricity, electricity
generated from gas will be very expensive. Armenia can consume
relatively cheap electricity thanks to the NPP. It is the safeguard
of our energy security," he notes.
As long as Armenia is linked to the Customs Union, the issue of
building a new NPP is closed. He thinks Armenia multiplies its
economic, including energy security risks. Armenia's energy-related
issues multiplied, and now our energy sector is moving towards
a crisis.
The energy sector is obsolete, infrastructures are old, sooner or
later they will have to be stopped. Meanwhile, no new capacities are
considered, the economist says, adding that these require immense
investments in our energy sector whereas no sources are available.
According to the economist, when in the early 2000s Russian energy
companies invested money and privatized our energy sector, they
expected Armenia to be an energy platform, using our energy sector
to export generated electricity to the countries of the region. In
other words, Russia became a regional actor.
"This policy is outdated for several reasons, however, and we are
not even saying that it was not in line with the interests of Armenia.
Today this policy may not work because the countries of the region
have changed considerably, and their energy systems have been
adjusted to the settlement of energy issues of those countries. On
the other hand, the Russian energy companies are not well-off to
make investments. Hence, the issue of energy supply is a challenge
to Armenia's economy," the economist noted.
Roza Hovhannisyan 22:46 15/10/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/economy/view/31103
From: Emil Lazarian | Ararat NewsPress
Armenia's membership to the Customs Union will not guarantee that
the Russian gas exported to Armenia will be exempt from export taxes,
the economist Ashot Yeghiazaryan told Lragir.am.
The minister of energy and natural resources Armen Movsisyan has
recently stated that after Armenia's statement on joining the Customs
Union the Russian side is likely to exempt gas sold to Armenia from
tax on export. According to the minister, it will reduce the price of
gas by 30%, and the government will not have to cover 30% of the price.
"Some officials say that Russia will exempt gas from tax after
membership to the Customs Union. There is no certainty, it is not known
whether gas will be exempted from tax now or after joining the Customs
Union or will be exempted at all. There is no guarantee because the
customs procedures are not related to transit of carbohydrates. Belarus
has continuously brought up the issue of cheap carbohydrates, and
you know what conflicts and scandals resulted.
Nevertheless, no such procedures have been foreseen yet. In addition,
Armenia is not a member of the Customs Union," Ashot Yeghiazaryan said.
According to him, the bills are important. And the price of gas will
not be reduced for consumers.
The economist says the Russian gas is expensive. It is extracted
in places with severe climate and transported over thousands of
kilometers.
"It is necessary to take into account that by tying us to that we
are depriving ourselves of the opportunity to maneuver in the sphere
of gas because Armenia is not free in its energy policy, even with
neighboring Iran. All the initiatives are eventually blocked by the
Russian side. There have been a lot of examples over the past five or
six years - an oil refinery, a small-width gas pipeline, Tabriz-Yeraskh
oil refining terminal and pipeline construction etc," he notes.
Ashot Yeghiazaryan says not gas but efficacy of the energy system
should be considered.
"If gas should be used to generate electricity, and we do not have
a nuclear power plant, sources of cheap electricity, electricity
generated from gas will be very expensive. Armenia can consume
relatively cheap electricity thanks to the NPP. It is the safeguard
of our energy security," he notes.
As long as Armenia is linked to the Customs Union, the issue of
building a new NPP is closed. He thinks Armenia multiplies its
economic, including energy security risks. Armenia's energy-related
issues multiplied, and now our energy sector is moving towards
a crisis.
The energy sector is obsolete, infrastructures are old, sooner or
later they will have to be stopped. Meanwhile, no new capacities are
considered, the economist says, adding that these require immense
investments in our energy sector whereas no sources are available.
According to the economist, when in the early 2000s Russian energy
companies invested money and privatized our energy sector, they
expected Armenia to be an energy platform, using our energy sector
to export generated electricity to the countries of the region. In
other words, Russia became a regional actor.
"This policy is outdated for several reasons, however, and we are
not even saying that it was not in line with the interests of Armenia.
Today this policy may not work because the countries of the region
have changed considerably, and their energy systems have been
adjusted to the settlement of energy issues of those countries. On
the other hand, the Russian energy companies are not well-off to
make investments. Hence, the issue of energy supply is a challenge
to Armenia's economy," the economist noted.
Roza Hovhannisyan 22:46 15/10/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/economy/view/31103
From: Emil Lazarian | Ararat NewsPress