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ARMENIAN GOVERNMENT FINALIZES GAS DEAL WITH RUSSIA AMID MORE CONCERNS ABOUT ENERGY SECTOR PROSPECTS
http://www.armenianow.com/commentary/analysis/51410/armenia_government_gas_deal_gazprom_russia_iran_en ergy_oil
ANALYSIS | 17.01.14 | 11:11
By NAIRA HAYRUMYAN
ArmeniaNow correspondent
On January 16, the Armenian government approved the agreement on
transferring to Russia's Gazprom the remaining 20-percent stake
in local gas distribution subsidiary ArmRosgazprom and instructed
Minister of Energy and Natural Resources Armen Movsisyan to sign the
agreement with the Russian gas giant.
The agreement has drawn extremely negative reactions and evaluations
as well as some public discontent in Armenia. Four of the six
parliamentary forces boycotted the vote on it in the National Assembly
late last year. But the majority represented by President Serzh
Sargsyan's ruling Republican Party and its junior coalition partner,
Orinats Yerkir, still voted to ratify it. Under the agreement, until
2043 Armenia loses the right to make laws or adopt other acts related
to buying, selling or transiting natural gas.
It is this point of the agreement that is viewed as particularly
discriminatory. In his latest interview Armenia's former president
Robert Kocharyan stated that exclusive rights have been granted to the
Russian monopoly. "And this is happening when the oil and gas industry
in the world and, in general, the world energy sector have entered a
period of dynamic changes. Already in the foreseeable future this may
require a change in legislation, a serious upgrading of approaches
in energy matters. Will the energy sector of the country not become
hostage to this agreement?" wondered Kocharyan in his remarks.
Changes are, indeed, taking place in regional and world energy
markets. In particular, the strengthening of relations between Iran and
the West, the removal of a number of sanctions against Iran have led
to a bitter bargaining for the transportation and transit of Iranian
oil and gas. Armenia could become the shortest transit route for it,
but because of agreements with Russia official Yerevan has had to
turn down Tehran's gas-related proposals. In particular, there was
a polite rejection when the Iranian ambassador to Armenia officially
declared that Iran is ready to sell natural gas to Armenia at prices
lower than Russian.
It is not known whether there was a proposal regarding the transit of
natural gas through Armenia, but experts have discussed this option as
well. But now analysts say that even if Iran decides to implement this
transit through Armenia, it will have to negotiate not with Yerevan,
but with Moscow that has exclusive rights in Armenia.
Iran's foreign minister was in Moscow yesterday. According to official
reports, he discussed trade and economic cooperation with Russian
President Vladimir Putin. The U.S. State Department had expressed
concern over the possibility of Russia's buying 500 barrels of Iranian
oil a day with a view to reselling this oil. However, the Iranian
side said that this issue was not on the agenda of the talks.
For many years now Iran and Armenia have been trying to lay an oil
pipeline, but for some reason this project has been delayed. Until
now, Russia has not been a monopolist in the oil market of Armenia,
but it was recently announced that Russia's Rosneft planned to enter
the Armenian market. Experts say that the Russian oil corporation may
become a monopolist oil trader in Armenia. And it is possible that
if Russia and Iran manage to agree on the purchase of oil, Armenia,
or rather its territory, will also be involved in this deal and the
pipeline will finally be constructed.
http://www.armenianow.com/commentary/analysis/51410/armenia_government_gas_deal_gazprom_russia_iran_en ergy_oil
ANALYSIS | 17.01.14 | 11:11
By NAIRA HAYRUMYAN
ArmeniaNow correspondent
On January 16, the Armenian government approved the agreement on
transferring to Russia's Gazprom the remaining 20-percent stake
in local gas distribution subsidiary ArmRosgazprom and instructed
Minister of Energy and Natural Resources Armen Movsisyan to sign the
agreement with the Russian gas giant.
The agreement has drawn extremely negative reactions and evaluations
as well as some public discontent in Armenia. Four of the six
parliamentary forces boycotted the vote on it in the National Assembly
late last year. But the majority represented by President Serzh
Sargsyan's ruling Republican Party and its junior coalition partner,
Orinats Yerkir, still voted to ratify it. Under the agreement, until
2043 Armenia loses the right to make laws or adopt other acts related
to buying, selling or transiting natural gas.
It is this point of the agreement that is viewed as particularly
discriminatory. In his latest interview Armenia's former president
Robert Kocharyan stated that exclusive rights have been granted to the
Russian monopoly. "And this is happening when the oil and gas industry
in the world and, in general, the world energy sector have entered a
period of dynamic changes. Already in the foreseeable future this may
require a change in legislation, a serious upgrading of approaches
in energy matters. Will the energy sector of the country not become
hostage to this agreement?" wondered Kocharyan in his remarks.
Changes are, indeed, taking place in regional and world energy
markets. In particular, the strengthening of relations between Iran and
the West, the removal of a number of sanctions against Iran have led
to a bitter bargaining for the transportation and transit of Iranian
oil and gas. Armenia could become the shortest transit route for it,
but because of agreements with Russia official Yerevan has had to
turn down Tehran's gas-related proposals. In particular, there was
a polite rejection when the Iranian ambassador to Armenia officially
declared that Iran is ready to sell natural gas to Armenia at prices
lower than Russian.
It is not known whether there was a proposal regarding the transit of
natural gas through Armenia, but experts have discussed this option as
well. But now analysts say that even if Iran decides to implement this
transit through Armenia, it will have to negotiate not with Yerevan,
but with Moscow that has exclusive rights in Armenia.
Iran's foreign minister was in Moscow yesterday. According to official
reports, he discussed trade and economic cooperation with Russian
President Vladimir Putin. The U.S. State Department had expressed
concern over the possibility of Russia's buying 500 barrels of Iranian
oil a day with a view to reselling this oil. However, the Iranian
side said that this issue was not on the agenda of the talks.
For many years now Iran and Armenia have been trying to lay an oil
pipeline, but for some reason this project has been delayed. Until
now, Russia has not been a monopolist in the oil market of Armenia,
but it was recently announced that Russia's Rosneft planned to enter
the Armenian market. Experts say that the Russian oil corporation may
become a monopolist oil trader in Armenia. And it is possible that
if Russia and Iran manage to agree on the purchase of oil, Armenia,
or rather its territory, will also be involved in this deal and the
pipeline will finally be constructed.