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BAKU: Russia Hails Cooperation With Armenia, Defends Gas Price Rise

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  • BAKU: Russia Hails Cooperation With Armenia, Defends Gas Price Rise

    RUSSIA HAILS COOPERATION WITH ARMENIA, DEFENDS GAS PRICE RISE

    Today, Azerbaijan
    April 3 2006

    Russia's ambassador to Armenia said Monday that the two countries were
    promoting stability in the Caucasus region, and that Gazprom's decision
    to raise natural gas prices for the former Soviet republic was in
    line with current policy to move towards free-market pricing schemes.

    "Our teamwork has had a positive effect on regional stability and
    integration processes among former Soviet republics," Nikolai Pavlov
    said in an interview to RIA Novosti.

    While acknowledging that Russia's decision to raise natural gas prices
    for Armenia had put some strain on bilateral relations, Pavlov said
    the move was part of Russian efforts to put the gas market on a
    free-market basis.

    In January, Russia doubled the price for natural gas supplies to
    Armenia from $54 per 1,000 cubic meters to $110.

    The move has stirred heated debate in Armenia, whose struggling
    economy is heavily dependent on Russian gas, and prompted some
    political groups to demand a review of relations with Moscow.

    Pavlov hailed bilateral contacts within the Collective Security Treaty
    Organization (CSTO), a regional security body founded in 2002 that
    also includes Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan.

    The organization, which some experts say was created to prevent NATO's
    further eastward expansion and keep some CIS countries under Russia's
    military protection, has a Collective Rapid Reaction Force with 1,500
    military personnel deployed in Central Asia.

    Pavlov also said that Russia remained Armenia's main trade partner,
    and in 2005 bilateral trade hiked 40%.

    URL: http://www.today.az/news/politics/24701.html

    From: Emil Lazarian | Ararat NewsPress
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