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Kyrgyzstan buys Russian gas at lower prices than Armenia: Why?

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  • Kyrgyzstan buys Russian gas at lower prices than Armenia: Why?

    Kyrgyzstan buys Russian gas at lower prices than Armenia: Why? - opinions

    17:09 * 02.09.14


    Russia's move to sell Kyrgyzstan natural gas at $165 instead of $224
    is an attempt to boost the country's economy, says Vazgen Safaryan,
    the president of the Union of Native Commodity Producers.

    "The calculations for every year are based on the given country's
    economic development trends. Kyrgyzstan is economically more
    disadvantaged than Armenia. So perhaps they are boosting their
    economy, having that in mind," he told Tert.am, when asked to comment
    on the higher tariffs imposed on Armenia.

    Safaryan noted that Russia had earlier granted privileges to Armenia
    by offering 30% subsidies. "The price for gas is 270 Dollars here, but
    they subsidized it by 30% by reducing it to 189 Dollars. So we already
    have that privilege," he said, considering further subsidies
    unnecessary.

    Safaryan stressed the need of adopting a selective approach to
    Russia-owned Armenian companies. "The gas price for those companies
    should be in line with the domestic prices in Russia," he added.

    Noting that the Russian Gazprom has plans to offer a $20 million worth
    loan to Kyrgyzstan, Safaryan said he thinks that it is yet another
    measure to assist in the country's development.

    Commenting on the problem, a deputy leader of the opposition Heritage
    party, Armen Martirosyan, said he doesn't find privileges for
    economically more dependent partners the right approach.

    The politician said he is under the impression that the Armenian
    authorities are ready to absolutely any step in order to please
    Russia. "The Armenian authorities cannot express any position, so they
    have to applaud and accept anything that the Russian authorities say.
    They have no other way," he told our correspondent.

    Addressing the issue, the political analyst Levon Shirinyan said he
    expects Russia to do everything possible to maintain leverages over
    Kyrgyzstan in an attempt to pave way to a further control over
    Afghanistan and India. "Russia's steps over the recent period are
    based on more strategic rather than an economic merits, so whatever it
    gives [to other countries] is commensurate to the extent it evaluates
    them. And the estimates of their relations with us are based on the
    fact that we have the Turkish problem, so they are aware that we will
    agree to concessions in face of the Turkish hazard and will always be
    in need of their arms and ammunition," he said.

    Evaluating the advantages and disadvantages for Armenia, Shirinyan
    said he thinks that the country's gains are based on its merits in
    terms of the Russian interests. "The Armenian authorities have to
    first of all focus their efforts on their own dignity and build the
    relations with Russia and others from that perspective. The lack of
    dignity lowers the cost for the country," he added.


    http://www.tert.am/en/news/2014/09/02/Gas-price-comments/

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