Armenia expects liberal prices of gas from Russia

YEREVAN, October 16. /ARKA/. `Armenia expects liberal prices of gas
from Russia’, said Armen Movsisyan, Minister of Energy and Natural
Resources of Armenia to the journalists on Friday.

According to the newspaper `Commersant’, `Gasprom’ currently conducts
negotiations on decrease of prices of Russian gas for Yerevan. In 2010
the price of gas for Armenia can decrease from $200 for 1 thousand
cubic meters up to $180. `Armenia and Russia have certain appointments
for the change of price of gas in a certain period of time and we try
to negotiate with Russian party’, said Movsisyan. According to the
agreement about gas provision to Armenia, the price of gas for Armenia
makes 154 US dollars for 1 thousand cubic meters with VAT as of April
1, 2009 instead of 110 US dollars for 1 thousand cubic meters with
VAT.

Since April 1, 2010 the price of gas will make 200 US dollars for 1
thousand cubic meters with VAT and 169.5 US dollars without VAT. The
agreement was signed on the basis of mutually beneficial conditions
from 2009 to 2015. `We do not refuse from preliminary appointments,
but we try to get rather `soft’ and low gas price. We do not know yet
whether it is possible or not, because according to the appointments
the change in gas price enters into force since April 1.

We have still time till April 1 and we will see the results of
negotiations’, said Movsisyan. The company `ArmRosgasprom’ is a
monopolist in the provision and distribution of Russian natural gas in
the internal market of Armenia. CJSC `ArmRosgasprom’ is established in
1997. The share of `Gasprom in charter capital is 80%, and the share
of the Government of Armenia – 20%. Russian gas enters Armenia by
transit through Georgia. –0–