ARMENIAN GOVERNMENT TO HELP SOCIALLY UNSECURED PEOPLE STAND GAS AND WATER PRICE INCREASE

ARKA
March 12, 2010

YEREVAN, March 12. /ARKA/. Armenian government will help socially
vulnerable people stand the raise of gas and water prices, Vazgen
Khachikyan, chief of social security service affiliated to the labor
ministry, said on Thursday.

He said that the government is now thinking over the matter and is
though to unveil its initiative before April 1, he said.

First of all, the support will target those 110,000 families or 300
to 330 people receiving social benefits.

Khachikyan said that priority is given to low-income families, not
pensioners, because there are also high-income people among Armenian
pensioners. Their family income exceeds an average size of income.

"Compensation mechanisms are under discussion now, and the results
will be made public in late March or early April," he said.

He doesn’t think the raise of gas and water prices can spark backlash
and rules out such a possibility.

"I don’t think price rise to spark social outburst in Armenia," he
said. "Our people realize very well that gas and water prices are
increased because of objective circumstances and not on somebody’s
whim."

Natural gas price for Armenia’s consumers will be raised 37.5% to
AMD 132 on April 1, 2010, from present AMD 96 per one cubic meter.

Those consumers using more than 10,000 cubic meters of gas monthly
will pay $243.13 per each 1,000 cubic meters instead of $215 presently.

In late February, Yerevan Jur water company appealed to the Public
Services Regulatory Commission for authorization of water price
raise from present 181 per one cubic meter to AMD 206.976. ($1 =
AMD 389.94).