Russia to raise gas prices for Armenia by 40% in 2009

steelguru.com
September 24, 2008
Russia to raise gas prices for Armenia by 40% in 2009

Interfax cited Mr Karen Karapetian CEO of Armrosgazprom during a meeting
with Mr Serzh Sargsian president of Armenia Russia will raise gas prices for
Armenia 40% to USD 154 per 1,000 cubic meters on April 1st 2009 from the
current USD 110.

He said that gas prices will then rise to USD 200 per 1,000 cubic meters on
April 1st 2010. The growth in gas prices for Armenia is on par with the
increase on the Russian energy market. Starting in 2011, Armenia is to start
paying European prices for gas.

Mr Karapetian said the upcoming hike in gas prices would not lead to a
reduction in gas consumption.

Mr Sargsian said the negotiations with Gazprom are based on a gradual
increase in gas prices, which allows the population and business to plan in
advance. The president said that the price hike will have a negligible
impact on the population but create great opportunities for heightened
competition among businesses."

He also called on Armrosgazprom to actively continue the process of bringing
gas to the whole country.

In September 2008, Gazprom signed a contract on gas supplies to Armenia in
2009 to 2010. Gazprom delivered 2.05 billion cubic meters of natural gas to
Armenia in 2007.