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Global Insight
November 19, 2010
Armenia Aims to Convince Gazprom to Maintain Gas Price Discount for 2011
BYLINE: Andrew Neff
Armenia's Energy and Natural Resources Minister, Armen Moysisyan, told
the country's parliament this week that the Armenian government is
attempting to convince Russia's Gazprom not to raise gas prices for
Armenia to "European levels" beginning next year. Moysisyan told
lawmakers in the National Assembly that Armenia had presented its
arguments for maintaining the 10% discount to market prices that the
country currently enjoys in purchasing Russian gas, although he said
it was premature to say whether these arguments would be successful
since negotiations are continuing.
Significance:Armenia receives a discount in its price for gas imports
from Russia as a legacy of an earlier deal cut with Gazprom back in
2006, when the Russian gas firm first began pushing to end the
practice of providing subsidised gas supplies to ex-Soviet countries
(seeCIS: 7 April 2006:). Armenia's gas import price jumped sharply
this year, to about US$180 per 1,000 cm, as part of the transition to
European prices which is supposed to be completed in 2011. Armenia
pushed through a 37% increase in domestic gas prices for end-users on
1 April 2010 in response to the hike in the border price of imported
Russian gas, but the Armenian government is hopeful that it can keep
import prices from rising again in 2011, which could then help avoid
the need for another round of gas price increases for domestic
consumers.
From: A. Papazian
November 19, 2010
Armenia Aims to Convince Gazprom to Maintain Gas Price Discount for 2011
BYLINE: Andrew Neff
Armenia's Energy and Natural Resources Minister, Armen Moysisyan, told
the country's parliament this week that the Armenian government is
attempting to convince Russia's Gazprom not to raise gas prices for
Armenia to "European levels" beginning next year. Moysisyan told
lawmakers in the National Assembly that Armenia had presented its
arguments for maintaining the 10% discount to market prices that the
country currently enjoys in purchasing Russian gas, although he said
it was premature to say whether these arguments would be successful
since negotiations are continuing.
Significance:Armenia receives a discount in its price for gas imports
from Russia as a legacy of an earlier deal cut with Gazprom back in
2006, when the Russian gas firm first began pushing to end the
practice of providing subsidised gas supplies to ex-Soviet countries
(seeCIS: 7 April 2006:). Armenia's gas import price jumped sharply
this year, to about US$180 per 1,000 cm, as part of the transition to
European prices which is supposed to be completed in 2011. Armenia
pushed through a 37% increase in domestic gas prices for end-users on
1 April 2010 in response to the hike in the border price of imported
Russian gas, but the Armenian government is hopeful that it can keep
import prices from rising again in 2011, which could then help avoid
the need for another round of gas price increases for domestic
consumers.
From: A. Papazian