ARMENIA : ARMENIA SHOULD SET A PROFITABLE PRICE FOR GAS

TendersInfo
April 7, 2010 Wednesday

Armenia should set a profitable price for gas, Anatoly Podmishalsky,
chief of Gazprom’s division in charge of relations with the near
abroad and deputy chairman of ArmRosgasprom s board, said Tuesday at
a news conference in Yerevan.

Commenting on the suit filed by Armenian opposition in connection with
gas price rise, he said: Armenia continues enjoying preferences, but it
can t stand still and should follow Russia and set a profitable price.

Natural gas price for Armenia s consumers was raised 37.5% form AMD
96 per one cubic meter to AMD 132 on April 1, 2010.

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

ArmRosgasprom, explaining this move, said that the price for the
natural gas imported from Russia rose from $154 per 1,000 cubic meters
to $180.

Podmishalsky stressed that for three consecutive years Russia have
exported natural gas at $110 since it signed the relevant agreement
with Armenia in March 2006.

In April 2009, Russia raised the price to $154, and now time has come
to raise it again.

He added that prices for natural gas are going up also in Russia.

The representative of Gazprom said that Belarus, who is building a
federal state with Russia, receives gas from the latter at $200.

He said that Russia sells its natural gas to Ukraine at $350 and to
Moldova at $300, while the average European price ranges between $325
and 330.

Podmishalsky also said that Armenian government has already taken
some measures to shield the poor from the increase-caused shocks.

He expressed hope that Armenians will take the steps taken by Russia
and Gazprom with understanding.

Shushan Sardaryan, the press secretary of ArmRosgasprom, said that
the company was concerned about the price rise, thinking it can strike
hard at ordinary consumers.

However, she said, even after the increase, natural gas will remain
the cheapest fuel.

That since November, when the word of gas price rise already reached
consumers, over 10,000 new customers joined the system.

ArmRosgasprom CJSC is the sole importer and distributor of Russian
natural gas in Armenia.