All Headline News
April 7 2006

Armenia Gives Russia’s Gazprom Control Over Pipeline, Power Plant

April 7, 2006 2:30 a.m. EST

Matthew Borghese – All Headline News Staff Writer

Moscow, Russia (AHN) – Russia’s Gazprom will take control over an
Armenian-Iranian pipeline in a new deal, as well as a power plant.

The 25-year deal gives Russia’s energy company control over Armenia’s
yet-to-be-constructed, 122-mile section of the pipeline to Iran, as
well as the rights to the electricity produced at the Razdan-5 power
plant.

Armenian Foreign Minister Vardan Oskanian, asked why the country sold
such key control to a Russian firm, says, “The goal is to soften the
impact of the price increases on the population, to make it happen
gradually.”

According to Gazprom executives, the deal fixes the prices for
Armenians at $110 USD (90 EUD) for three years.

According to BusinessWeek, Russia already largely controls the
Razdan-5 plant, the country’s main electricity producer, and Armenia
is wholly dependent on Moscow for gas supplies.