NATURAL GAS PRICE HIKES DISCUSSED

Panorama.am
19:37 30/08/2007

The Russian Gazprom organization has started discussions in
pre-Baltic and Commonwealth states concerning price hikes of natural
gas. Lithuania has already been informed of a possible increase of 40%,
meaning 280 dollars for one thousand cubic meters of gas. Negotiations
for Latvia and Estonia will start in October, and for Ukraine in
November. A possible increase of 15-40% above these agreed prices is
seen for Belarus.

Negotiations with Ukraine, which pays 180 dollars per thousand cubic
meters, are contingent on the future agreed-on price of natural gas
coming from Central Asia, which could reach 180 dollars. Negotiations
with Uzbekistan, Turkmenistan, and Kazakhstan are foreseen for
October. Belarus, Russia’s second largest customer, currently pays 100
dollars for one thousand cubic meters, also awaits a large increase
in price.

On Monday, Russia’s ambassador in Belarus, Aleksander Surikov, the
price of gas there would be 125-150 dollars.

For Armenia, the price of blue fuel will not change in 2008. Sergey
Kuprianov, press secretary for the president of Gazprom, says that the
price of natural gas for Armenia will stay at 110 dollars until 2009.

"This has been agreed upon in an contract with "Hayrusgasard," in
which an increase of participation with Russia is guaranteed. This
company will take part in the construction of the fifth block of the
Hrazdan power station," Kuprianov pointed out.