Kommersant Daily: Kocharian Ready to Transfer 45% Stake in Iran-Armenia Gas Pipeline to Russia

PanARMENIAN.Net - Armenian President Robert Kocharian arrived in Moscow on a two-day visit yesterday to open the Year of Armenia in Russia. Yet, the main goal of Kocharian's trip is to negotiate the price on the Russian gas. Moscow has given an ultimatum for its strategic ally: either gas price will be raised to $110 or Armenia will hand to Gazprom its gas infrastructure and then enjoy cheap gas for one more year. Robert Kocharian accepted the ultimatum and is willing to transfer a 45% stake in the Iran-Armenia gas pipeline under construction to Russia, Kommersant Russian newspaper writes.



The event was just an occasion to discuss serious economic issues such as the gas problem which threatens to spoil the harmonious allied relations. Moscow came with an unexpected statement late last year saiying that Armenia should pay $110 for 1,000 cu. meters of gas instead of the former $54 from 2006. Moscow thus demanded that its sole strategic partner in Transcaucasia pay as much as the overtly unfriendly Georgia. Russia suggested pointblank: Armenia can pay for gas at the new price or it can hand the fifth power unit of the Hrazdan thermoelectric power station and the republic's gas transportation system as a payment for cheap gas.



The ultimatum caught Armenian officials unawares. Yerevan kept on hoping that their active pro-Russian stance and support of the Kremlin's foreign policy would help Armenia escape the common lot of other CIS nations. Russia, however, insisted on transferring gas relations on a market basis. The proposed gas price was considered impossible for the modest Armenia. President Kocharian thought over the Russian demand for almost a month only to brace himself to accept the terms imposed by the Kremlin, Kommersant said.



According to Kommersant, Robert Kocharian arrived in Moscow with a project proposing 45% in the Iran-Armenia gas pipeline the construction of which is planned to be over this year. Yerevan is ready to make the concession to maintain the previous price for Russian gas. As a matter of fact Armenia conveys to Russia the only strategically significant energy source, which will bring guaranteed income in future. However agreeing on such an unprofitable move Yerevan is not sure Russia will not demand a greater share in the abuilding gas pipeline. Receiving this pipe Russia will be able to control the further transit of the Iranian gas to Georgia, Ukraine and Europe.



"Yerevan is seriously concerned over such unfriendly behavior of the strategic partner. Armenian observers consider that Armenia's only trump card is the Russian military base for which Russia does not pay. The Armenian President can raise the issue of rental fee which could be annually corrected dependent on the friendly state of relations," Kommersant notes.