ARMENIAN AND RUSSIAN PRESIDENTS AGREE THAT PRICE OF NATURAL GAS FOR ARMENIAN CONSUMERS WILL NOT RISE THIS YEAR

/ARKA/
February 25, 2011
YEREVAN

Armenian and Russian presidents Serzh Sargsyan and Dmitry Medvedev have
agreed that the price of natural gas for Armenian consumers will not
rise this year, Armen Arzumanian, a spokesman for Armenian president,
told journalists today.

'We are satisfied with the results of the talks between the presidents
in St. Petersburg during which an agreement was reached on the price
of Russian natural gas deliveries to Armenia. The price of gas for
Armenian consumers will not be raised in 2011,' he said.

He added that gas s price for insecure Armenian households will be
lowered, saying also that president Sargsyan instructed relevant
bodies to develop special mechanisms to implement the accord.

Russian Gazprom that holds more than 80% in Armenia's national gas
operator ArmRosGazprom, raised the cost of gas for Armenia by 14
percent in 2009 and by another 17 percent in 2010 April to $180 per
thousand cubic meters.

Following it the Armenian Pubic Services Regulatory Commission (PSRC)
approved a 37.5 percent surge in the gas price for households requested
by ArmRosGazprom. Last September Gazprom said it would gradually bring
its gas tariffs for Armenia, Moldova and Belarus up to "market-based"
international levels in the coming years.

Gazprom currently sells gas to western and central European countries
for over $300 per thousand cubic meters.




From: A. Papazian