PanARMENIAN.Net

Expensive Russian Gas to Be Compensated by Cheap Arms for Armenia?

25.03.2006 21:30 GMT+04:00

/PanARMENIAN.Net/ «The situation with Russian gas supplies to Armenia
seems to be solved. 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.