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Sudden Turnaround in Price of Gas

SUDDEN TURNAROUND IN PRICE OF GAS
X-Sender: Asbed Bedrossian <asbed@usc.edu>
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Lragir/am
23 March 06

New and interesting episodes are coming along in reference to the
price of gas. On March 22 Serge Sargsyan, Secretary of the Council of
National Security, Co-chair of the Russian-Armenian Intergovernmental
Committee, made an interesting statement. He mentioned that since the
meeting of the presidents of Armenia and Russia in Moscow considerable
work has been done with regard to the price of gas.

`After consulting the prime minister on the instruction of the head of
state in early March, I sent a letter to the head of Gasprom
Mr. Miller with definite proposals. On Friday we received an answer
from Mr. Miller that the leadership of Gasprom is willing to sign
agreements by the end of March, which will allow to sell gas to people
and producers at much lower prices than foreseen,’ announced Serge
Sargsyan.

Serge Sargsyan declined to mention an exact price. He simply said that
in his opinion the increased price will not have an impact on their
budgets. This statement of the defense minister would, of course,
encourage people and producers, but the problem is that the Public
Utilities Commission has already set the price of gas for these
consumers. Hence, since April 10 they will have to pay twice as much
for one cubic meter as they pay now. Whereas, the announcement of the
minister of defense allows to suppose that the Public Utilities
Commission hurried to accept the bid of Hayrusgasard. But the minister
of defense does not think so. He believes that the Public Utilities
Commission acted in accordance with the law. `That is, the law could
not be violated,’ said Serge Sargsyan.

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