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Pashinyan tries to pressure Russia due to gas prices

05 July 2019 [15:11] - TODAY.AZ

By Azernews


By Abdul Kerimkhanov

The indexation of gas prices in Russia from July 1 became a new reason for Yerevan to return to the old problem.

Armenian authorities continue unsuccessful attempts to get Moscow to reduce the price of the exported Russian natural gas. Negotiations between Russia and Armenia have been going on for more than one month, but no agreement has been reached.

Domestic gas prices for the Armenian population have not increased yet due to the fact that Gazprom Armenia, the main supplier of gas to the country, is making huge cuts in its staff. The company plans to lay off 6,000 people in 13 branches and cut investment plans.

At the same time, it is highly likely that Gazprom Armenia will not be able to raise enough funds by optimizing costs and will increase domestic gas tariffs for the Armenians already this year.

Theoretically, it would be possible not to raise tariffs if the Armenian authorities subsidized natural gas prices for domestic consumers. However, Armenian Prime Minister Nikol Pashinyan refused to do it in early 2019.

Yerevan considers that creating equal conditions for Russian and Armenian businesses is problematic since the cost of a cubic meter of gas for industrial consumers in Armenia is higher than in Russia.

Moscow yet abstains to make any promises to Yerevan regarding the decline in gas prices. At least nothing concrete was said regarding the public sector.

The circumstances made the Armenian authorities to launch a counter-offensive. In June, Gazprom Armenia was fined 10 million drams (about $20,000). This decision was made at a meeting of the Public Services Regulatory Commission. The Commission noted that in some cases the Russian gas supplier did not comply with the conditions for connecting local companies and residential houses to the gas network.

Gazprom Armenia denies all accusations and intends to challenge the fine. Some Armenian experts think this move by the Armenian government is a signal to Gazprom and the Kremlin.

Konstantin Simonov, General Director of the Russian National Energy Security Fund, says that Armenia already receives gas at a very competitive price, lower than the market. “So, this is a new low,” he stressed.

Thus, there will be no quick solution to this issue. The first results of the talks will appear no earlier than October when Russian President Vladimir Putin’s visit to Yerevan is expected. Until then, Armenia has to live in a state of uncertainty.

URL: http://www.today.az/news/regions/184184.html

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