Source: Aravot, Yerevan,
11 Jan 2007 p 2

Russia thinks that Armenia does not need Iranian gas

by Naira Mamikonian

The High Voltage Energy Networks [HVEN] company announced at the end
of the last year that the construction of the Armenian sector of the
Iran-Armenia gas pipeline will be completed on 20 December and after
that, Iranian gas will be supplied to Armenia. The Iranian party has
also confirmed this. But after Armenian Foreign Minister Vardan
Oskanyan’s visit to Iran on 17 December, Armenia and Iran said that
the commissioning of the gas pipeline had been postponed till spring
2007. Iranian official Mohammad Reza Lorzadeh, who is responsible for
the gas pipeline construction programme, recently said that Iran is
ready to supply gas to Armenia but the Armenian party is not ready to
receive it.

According to Aravot, the problem is actually more complicated than
the official reason for postponing the commissioning of the pipeline.
The point is that Russia and the HayRusgazard company are
categorically against Iranian gas supplies to Armenia. It is known
that Russia has always been against the construction of the
Iran-Armenia gas pipeline not only for political but also for
economic reasons. On the one hand, it is clear that Iranian gas
import will allow Armenia to diversify its energy sources and not to
rely only on Russian gas. But on the other, Russia will sell less gas
to Armenia.

We think it is not by chance that last year Russia’s Gazprom tried to
get the right to control the gas pipeline. Russia and Gazprom
probably think that Armenia does not need Iranian gas as they supply
Armenia with the necessary amount of gas and have made Armenia
understand that Iranian gas will not be supplied to Armenia.

Asked about Iran’s attitude towards Armenia’s possible decision to
hand over the Armenia-Iran gas pipeline to HayRusgazard, the Armenian
foreign minister replied that "the Iranian party will treat this
issue with understanding". But there is a question: how long is
Armenia going to tolerate the caprices of its strategic partner
Russia and its policy aimed at gaining a monopolistic position on
Armenia’s energy market, losing the trust of its neighbour Iran?

The point is that the implementation of another interstate contract,
under which for 1 sq.m. of Iranian gas Iran will get 3kWt/h of
electricity from Armenia, depends on Iranian gas supplies. But a
question mark is hanging over this contract until March this year.