Pipeline is given to Russians in nice package

Lragir, Armenia
Oct 27 2006

PIPELINE IS GIVEN TO RUSSIANS IN NICE PACKAGE

In an effort to escape news reporters who encircled him on October 25
with questions on the possible sale of the Iran-Armenia gas pipeline
the defense minister Serge Sargsyan said he would ask the head of
Armrusgasard Karen Karapetyan to elucidate the gas pipeline project.
It should be noted that Karen Karapetyan’s reaction followed at once,
but it would be exaggerated to call it an elucidation. The head of
Armrusgasard simply noticed that the Iran-Armenia pipeline does nor
have two sections, it is a whole and he also said that it would be
illogical if this construction were not managed by Armrusgasard
because Armrusgasard owns the distribution network of Armenia.
Certainly, if there is wish, Karen Karapetyan’s words can be
considered as elucidation, but like Russians say, `for gifted
people’.

And since there are few gifted people among the Armenian public, and
all of them are in the government which deals with the gas pipeline,
the others need more elucidation. For instance, why does the Russian
Gazprom company state on its official Web site and through its
officials that it bought or is likely to buy the Armenian section of
the Iran-Armenia gas pipeline? The answer to this question may bring
light on the situation. Meanwhile, no Armenian official has stated
yet that the official messages and statements of Gazprom are not
true. Moreover, the statement by Foreign Minister Vardan Oskanyan
several months ago and the recent statement of Prime Minister
Andranik Margaryan show that Armrusgasard will have no relation to
the Iranian gas pipeline except for a formal one. The point is that
the foreign minister and the prime minister hinted at money, capital.
In other words, Armenia expects money from Russia for the gas
pipeline. Armrusgasard can be a channel for this money, which became
clear from the prime minister’s words.

What can happen? The Russians give money to Armenia for the
construction of the gas pipeline, which will transport gas from
Kajaran to Ararat. Even though Karen Karapetyan says that the gas
pipeline does not have two sections, it is known to everyone that it
is conventionally divided into two sections: the Meghri-Kajaran
section funded by Iran and Kajaran-Ararat. The money of Gazprom will
solve the question of funding of the construction of this section.
But how? One is the traditional way when Russia provides a loan and
chooses property in return. Apparently, however, the Armenian
government realizes that the pipeline cannot be this property because
there will be serious problems with Iran, and they will not give
other property because they have already taken all the attractive
property in Armenia.

Consequently, the new `property for debt’ deal is not suitable for
the gas pipeline. But the ingenuity of the Russian-Armenian
friendship of centuries has taken the test of centuries. The Russians
give the money via Armrusgasard. They increase the capital of this
company. And the Armenian government entitles Armrusgasard to
operating the gas pipeline, which funds the construction of the
pipeline on the capital that Gazprom provides. It appears that the
gas pipeline goes to Armrusgasard, not to Gazprom. But this is only
the appearance. In reality, it turns out that the gas pipeline is
packaged in Armrusgasard and given to Gazprom. When the capital of
Armrusgasard increases, it is natural that the share of Gazprom in
Armrusgasard increases. Presently, it is equal to the share of the
Armenian government, 45 percent. Itera, a daughter company of Gazprom
owns the remaining 10 percent. Hence, the Russian side possesses 55
percent of shares of Armrusgasard. Plus the share that increases as
the capital increases, and it becomes clear that the Russians possess
the controlling interest. What happens then? Do not disturb yourself
to imagine, just look through the history of Armentel.

JAMES HAKOBYAN