Deutsche Presse-Agentur
April 7, 2006, Friday
11:28:26 Central European Time

Russia charges Armenia more for natural gas

Russia Friday announced it was raising the price of natural gas
delivered to Armenia to 110 dollars per 1,000 cubic metres from the
earlier 56 dollars.

The new prices were set by agreement in Moscow with visiting Armenian
Foreign Minister Vardan Oskanyan.

As part of the agreement, Russia guarantees not to raise the prices
again for three years, and will receive in return control of all
Armenian pipeline projects.

A 25-year cooperation agreement also will see Russia invest up to 800
million dollars into the Armenia gas industry, according to estimates
out of Moscow.

Armenia has a strategic importance for Moscow as a possible supply
route for Iranian natural gas.

The Russia gas monopoly Gazprom has raised prices for all the former
republics of the Soviet Union.

At the beginning of year, there was a week-long row with Ukraine,
which refused to accept a price rise to 230 dollars per 1,000 cubic
metres from 50 dollars. A price of 95 dollars was finally agreed.

>From 2007, Moscow will attempt at least to triple prices for close
ally Belarus which currently pays 47 dollars per 1,000 cubic metres.
dpa so mga sc