Envoy: Iran undisturbed by Armenia’s CU accession, may give gas discount

PanARMENIAN.Net - Armenia’s accession to Customs Union is no impediment for Iran in development of economic ties with Armenia, Iranian ambassador said, according to ARKA.

“Iran may apply non-market approach in exporting natural gas to friendly countries,” Mohammad Raiesi told journalists on Friday, December 6

“We maintain very good relations with Armenia,” he said adding that the agreement signed with Armenia a few years ago to export natural gas in exchange of electric energy is still in force. “We adhere to this agreement despite some changes in prices. Iran applies different policy to friendly countries - it may apply a system of discounts, but as a whole, we’re guided by international prices.”

The ambassador said that Iran sells natural gas to Turkey and other countries at current international prices, but may offer discounts to friendly countries – discounts depend on arrangements with these countries.

He cited a Tehran-Yerevan deal, where one cubic meter of gas is exchanged for 3 kilowatt per hour of electric power. “The deal not being quite beneficial to Iran, it remain loyal to its commitments,” the envoy said.

Asked whether Iran can provide natural gas to Armenia at a lower price than Russia, Raiesi said that it is not clear yet which price is higher.

He said the matter should be negotiated and it will become known which price is higher at the moment of signing the agreement.

“First of all, prices for Russian and Iranian natural gas must be specified to make it clear whether the countries can compete. We can sell gas at $400 to one country and at $100 to another country.”

Earlier, as Armenian media reported, Raiesi hinted that Iran might sell natural gas to Armenia at a lower-than-Russian price.

Commenting on the above, Armenian energy minister said that Iran’s offer would stand at $400 per 1,000 cubic meters against Russia-offered $189.

In reply, the envoy noted hasn’t seen am actual document confirming the price of $189.