Experts: Russian gas imported to Armenia will inevitably grow in price

• Thursday, November 1, 18:03

 The Russian gas imported to Armenia will inevitably grow in price after the presidential elections in Armenia in Feb 2013, Chairman of the Association of Consumers of Armenia NGO Armen Poghosyan and expert Haroutyun Mesrobyan told at today's press conference.   

Poghosyan expressed confidence that the price of the Russian gas consumed in Armenia is fixed in the Kremlin. By his data, in Europe gas costs no less than $330 per 1000 cu m. Armenia receives gas for 180 USD. He thinks that these preferential terms cannot exist eternally and after the presidential elections in Armenia in Feb 2013 the gas imported to Armenia will rise in price to $200-250. "This is not a matter of resistance to the price boost, but it is a matter of fundraising to compensate for the impact the gas price boost on the price of commodities and services. First and foremost, the matter concerns the growth of electricity price, 40% of which is generated by gas thermal power plants", he said. 

Mesrobyan said that the Russian gas imported to Armenia for $180 per 1 cu m is sold to the end consumer for $360, i.e. by 10% higher than the average gas price ($330) for the end consumers in Europe. He supposes that Armenia is conducting business by means of reselling the gas to its own citizens at a double price, and the Government of Armenia, which owns 20% of ArmRusgasprom's shares (natural gas supplier in the Armenian domestic market), has never expressed its position on the gas price boost for the consumers. 

He pointed out that if Armenia is a social state as fixed in the Constitution, the gas prices should not grow.  Earlier the Ministry of Energy and Natural Resources told ArmInfo that Armenia was negotiating with Russia on the gas tariffs. The Armenian media reported that starting Oct 1 2012 Gazprom would raise the gas price for Armenia from $180 to $280 per 1 cu m, and to $320 starting from 1 Jan 2013. 

To recall, in early September 2012 the Government took a decision to offer ArmRusgasprom to take measures to increase Armenia's share. ArmRusgasprom CJSC is the only gas supplier to Armenia. 80% of the company's shares belong to Gazprom OJSC (Russia), 20% - to the Armenian Government. The authorized capital of the company has not changed over year and totaled 312,072 bln AMD as of late 2011.  The net loss of the company grew by 43% to 15.425 bln AMD in 2011.