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GAZPROM'S POWER PLAY IN ARMENIA
EurasiaNet.org
March 12 2014
March 12, 2014 - 2:37pm, by Giorgi Lomsadze
Gazprom, the Russian energy goliath, reportedly continues its shopping
spree in Armenia; this time around, setting its eyes on the Caucasus
country's power-distribution grid. Such a buy would get Gazprom
closer to becoming the main source of light and heat in Armenia,
second only to the sun.
This week, the Russian version of Forbes magazine reported that
Gazprom is negotiating the purchase of Electric Networks of Armenia,
36,000 kilometers of power wires that supply electricity to some
950,000 customers out of the country's population of just over 3
million people.
If the deal is done, the electricity network will change hands from
one Russian company, Inter RAO UES, to another. But then, Gazprom
is, of course, not just another Russian company. It is the Kremlin's
magic wand for political clout and foreign policy.
As the main supplier of Armenia's natural gas and security (and
possibly electricity), and its main trade partner, Russia, some fear,
practically owns the country.
In 2013, following Armenia's surprise decision to opt for Russia's
planned Customs Union over closer ties with the EU, Gazprom took over
100-percent of Armenia's natural gas supply company, ArmRosGazprom.
Armenia gets about one-third of its electricity from natural gas,
according to the World Bank, so where else to go next but the national
power company? But Armenian investigative service Hetq.am suggests
that this is no recent move.
Inter RAO's Armenian electricity network began posting losses in 2012.
The company then blamed the slump on the hard-bargain price it had to
pay for purchasing electricity from one of Gazprom-controlled thermal
power plants in Armenia. That purchase may have contributed to Electric
Networks of Armenia's drift toward possible bankruptcy, Hetq claims.
Now, a lifesaver, of a sort, may be on the way. Sources told Forbes
that Gazprom offered $50 million to Inter RAO for the Electric Networks
of Armenia. Inter RAO has not confirmed talks with Gazprom, but said
it would consider shedding its assets in Armenia for the right price.
http://www.eurasianet.org/node/68137
From: Emil Lazarian | Ararat NewsPress
EurasiaNet.org
March 12 2014
March 12, 2014 - 2:37pm, by Giorgi Lomsadze
Gazprom, the Russian energy goliath, reportedly continues its shopping
spree in Armenia; this time around, setting its eyes on the Caucasus
country's power-distribution grid. Such a buy would get Gazprom
closer to becoming the main source of light and heat in Armenia,
second only to the sun.
This week, the Russian version of Forbes magazine reported that
Gazprom is negotiating the purchase of Electric Networks of Armenia,
36,000 kilometers of power wires that supply electricity to some
950,000 customers out of the country's population of just over 3
million people.
If the deal is done, the electricity network will change hands from
one Russian company, Inter RAO UES, to another. But then, Gazprom
is, of course, not just another Russian company. It is the Kremlin's
magic wand for political clout and foreign policy.
As the main supplier of Armenia's natural gas and security (and
possibly electricity), and its main trade partner, Russia, some fear,
practically owns the country.
In 2013, following Armenia's surprise decision to opt for Russia's
planned Customs Union over closer ties with the EU, Gazprom took over
100-percent of Armenia's natural gas supply company, ArmRosGazprom.
Armenia gets about one-third of its electricity from natural gas,
according to the World Bank, so where else to go next but the national
power company? But Armenian investigative service Hetq.am suggests
that this is no recent move.
Inter RAO's Armenian electricity network began posting losses in 2012.
The company then blamed the slump on the hard-bargain price it had to
pay for purchasing electricity from one of Gazprom-controlled thermal
power plants in Armenia. That purchase may have contributed to Electric
Networks of Armenia's drift toward possible bankruptcy, Hetq claims.
Now, a lifesaver, of a sort, may be on the way. Sources told Forbes
that Gazprom offered $50 million to Inter RAO for the Electric Networks
of Armenia. Inter RAO has not confirmed talks with Gazprom, but said
it would consider shedding its assets in Armenia for the right price.
http://www.eurasianet.org/node/68137
From: Emil Lazarian | Ararat NewsPress