"Gasprom" confirms that the rise of gas tariffs is Moscow's reply to Armenia's intractability
Rise of gas prices was resulted by Yerevan's refusal to give the control of the 5th block of Hrazdan heat power plant and the gas pipeline under construction.
Recently the official representative of "Gasprom" made an official statement where for the first time he indirectly confirmed that the decision to raise the tariffs of gas supplied to Armenia had also a political implication. Denis Ignatyev - the head of "Gasprom" press-service department of links with foreign mass media announced that the price of gas for Armenia could be more affordable if official Yerevan did not reject the proposals made. From the words of Mr. Ignatyev it became clear that the rise of gas tariffs is Gasprom's requital for the Armenian government's decision, which was so unexpected for Moscow.
"Gasprom" representative explained that saying "proposals made" he meant the joint application of "Gasprom" and RAO "UES of Russia" to take part in the tender for the purchase of the 5th block of Hrazdan heat power plant and implementation of the second phase of Iran-Armenia gas pipeline construction. It should be reminded that the government of Armenian preferred Russians to Iranian "Sanir" and "MAR" companies. This choice can be easily explained taking into account that the Russian companies did not conceal their intention to achieve control over the 5th block of the heat power plant and the gas pipeline with an aim to prevent utilization of Iranian gas for the internal needs of Armenia. Meanwhile, the Armenian government openly states that Iran-Armenia gas pipeline is also viewed as an alternative source of gas. If the claim of Russian companies were allowed Armenia would drop out of the project, which is absolutely undesirable for us. The proposal actually consisted in the following: the Iranian gas is supplied to Armenia through the pipeline built by Russians and gets to Russian owned 5th block of Hrazdan power plant where it is transformed to electricity and is delivered back to Iran through Russian owned electricity network. In this case Armenia only receives assignments to state budget from the profits of Russian companies. Thus, it is fairly obvious that the proposal of Russians was fraught with full loss of control over the gas pipeline. Could the Armenian government accept such a solution? Can the wish of Armenian government to follow first of all national interests be qualified as an anti-Russian demarche...?
Talking about the Russian proposals rejected by Yerevan, Mr. Ignatiev also mentioned the refusal to receive credit. It should be reminded that Moscow proposed to give credit to Armenia for compensating the budget gap, which can open as a result of the rise of gas tariffs. A very simple arithmetic calculation will make it clear that taking into account the volume of gas necessary for Armenia, the rise of gas price from 56 to 110 dollars will demand additional 90 million dollars which is almost 10 percent of Armenian state budget. Moscow offered Armenia not to seek for donors elsewhere and to take a credit from Russia. Armenian prime minister replied with a polite refusal saying that he knows address of international financial institutions, which are ready to propose commercial credits on more affordable conditions. This statement of the Armenian prime minister was interpreted in Moscow almost as an anti-Russian demarche.
Nevertheless many Russian political analysts forecast a compromise settlement of the dispute over gas tariffs. Besides the 5th block of Hrazdan heat power plant and the second section of the gas pipeline there are many other energetic objects, which arouse the interest of the Russian party. Those are gas-distributing stations, gas networks of low pressure and small hydroelectric power stations. It is possible that the issue of control over a part of the mentioned objects will be discussed in the course of the meeting between Russian and Armenian presidents and will allow to find a mutually acceptable solution to the problem. Yerevan is ready to display flexibility. The stimulus, which encourages the Russian party to compromise, is the speeded up construction of Iran-Armenia gas pipeline. It is noteworthy that recently Russian governmental "Rosiyskaya gazeta" newspaper published an article where it is mentioned that Iran will be ready to supply gas to Armenia for 95 dollars. It can be assumed that the appearance of the article, as well as the mentioned price is not at all a fortuity.
Talking about the Russian proposals rejected by Yerevan, Mr. Ignatiev also mentioned the refusal to receive credit. It should be reminded that Moscow proposed to give credit to Armenia for compensating the budget gap, which can open as a result of the rise of gas tariffs. A very simple arithmetic calculation will make it clear that taking into account the volume of gas necessary for Armenia, the rise of gas price from 56 to 110 dollars will demand additional 90 million dollars which is almost 10 percent of Armenian state budget. Moscow offered Armenia not to seek for donors elsewhere and to take a credit from Russia. Armenian prime minister replied with a polite refusal saying that he knows address of international financial institutions, which are ready to propose commercial credits on more affordable conditions. This statement of the Armenian prime minister was interpreted in Moscow almost as an anti-Russian demarche.
Nevertheless many Russian political analysts forecast a compromise settlement of the dispute over gas tariffs. Besides the 5th block of Hrazdan heat power plant and the second section of the gas pipeline there are many other energetic objects, which arouse the interest of the Russian party. Those are gas-distributing stations, gas networks of low pressure and small hydroelectric power stations. It is possible that the issue of control over a part of the mentioned objects will be discussed in the course of the meeting between Russian and Armenian presidents and will allow to find a mutually acceptable solution to the problem. Yerevan is ready to display flexibility. The stimulus, which encourages the Russian party to compromise, is the speeded up construction of Iran-Armenia gas pipeline. It is noteworthy that recently Russian governmental "Rosiyskaya gazeta" newspaper published an article where it is mentioned that Iran will be ready to supply gas to Armenia for 95 dollars. It can be assumed that the appearance of the article, as well as the mentioned price is not at all a fortuity.
