Expensive russian gas to be compensated by cheap arms for Armenia?

"Gazprom, as in case of Ukraine, will get its price, while Armenia will not increase gas prices for the population. What is the secret?", Neftegaz.ru writes.

Already March 22 Armenian PM Andranik Margaryan said the gas tariffs will not change. The price of $110 fixed in the bilateral agreement is a final one and no changes should be expected," he said, adding the parties are specifying opportunities and mechanisms of compensation. Armenia tried to dissuade Gazprom from increasing the gas prices, stating it can undermine Russia's authority in the region, however the company did not give up.

At that Mr. Medvedev specially noted that political alliances do not play any role in change of tariffs for gas being supplied to Transcaucasia.

Moscow, however, agreed to consider option of compensation for increase of the gas prices, which would mitigate the blow for the Armenian consumer.

Earlier, Russia had suggested a number of schemes that were to assist Armenia is overcoming the rise of price. Moscow, specifically displayed interest in acquiring a large share holding of ArmRosgazprom. In the Russian party's opinion, the money from the deal will be enough for Yerevan to support low price for domestic consumers.

The other option provided for passing ownership of the fifth energy block of Hrazdan Thermal Plant, as well as the entire gas and transport system of Armenia to Moscow.

However, judging from reports from Armenia, the matter did not come to it and the parties accepted a compromise.

"Commissioned by the Armenian President I sent a letter to Gazprom's head, making several proposals. Friday we got the response from Miller. Before end of March Gazprom is ready to sign corresponding documents, which will allow the population and producers paying lower prices that expected before," Serge Sargsyan said.

The rescue mechanism was worked out in Moscow. Supplies of Russian Arms to Armenia on preferential terms is the point. Moreover, part of the contracts have even gratuitous basis. As the military budget of Armenia is rather large, these benefits can overlap the increase of the gas price, reports Neftegaz.ru.

/PanARMENIAN.Net/