Announcement

Collapse
No announcement yet.

Price for Russian gas doubles in Armenia, talks continue

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Price for Russian gas doubles in Armenia, talks continue

    Price for Russian gas doubles in Armenia, talks continue
    By AVET DEMOURIAN

    AP Worldstream; Apr 01, 2006

    Armenia began paying about twice the previous price for Russian
    natural gas on Saturday, but talks continued on rates and ways to
    ease the blow for the small Caucasus Mountain nation, officials said.

    Russia's state-controlled natural gas monopoly Gazprom, which has
    been raising prices for ex-Soviet republics, initially demanded that
    Armenia pay US$110 (A90) per thousand cubic meters as of Jan. 1,
    but later agreed to hold off on the increase until April 1.

    Officials at Gazprom's Armenian subsidiary and the Energy Ministry
    said that while the increase took effect Saturday, the two sides were
    still discussing prices and potential measures to lessen the impact
    on the nation, which relies entirely on Moscow for its gas supplies.

    The delay allowed Armenia _ Russia's chief ally in the strategic
    Caucasus Mountain region, partly thanks to its acceptance of a
    Russian military base on its territory _ to get through the cold
    winter without a price increase. But the rate hike appeared set to
    result in higher bills for Armenian consumers and companies.

    As of April 10, the price of a cubic meter of gas is set to rise by
    about 52 percent for domestic consumers and by about 85 percent for
    industrial users. The country's main electric power station, which is
    largely controlled by Russia, wants to raise its rates by 90 percent,
    which would likely lead to hikes in electric bills.

    "You don't need to be an economist to figure out how much this chain
    reaction will affect the (pocketbooks) of citizens," said Ashot
    Aramian, editor of an Armenian economic magazine called Basis. He
    said the government might have to revise the 2006 budget.

    Meanwhile, government opponents worry that the government will seek
    to ease gas prices by handing further control over Armenia's energy
    infrastructure to Russia _ including an under-construction pipeline
    that is to carry natural gas to Armenia from neighboring Iran.

    Gazprom has sharply raised prices recently for Ukraine, Georgia and
    Moldova, arguing that it is merely ending subsidies to ex-Soviet
    republics and bringing the rates closer to market prices but drawing
    fire from critics who say the Kremlin is using Russia's energy wealth
    as a political weapon.
Working...
X