ARMROSGASPROM: CURRENCY VARIATIONS IN ARMENIA WILL NOT BRING TO GAS PRICE INCREASE

ARKA
Feb 26, 2010

YEREVAN, February 26. /ARKA/. "ArmRosgasprom" will not apply to
Regulatory Commission of Public Services (RCPS) in case of dollar
rate change, said Karen Karapetyan, Chairman of the Board and General
Director of the company.

Today RCPS reviewed the application of "ArmRosgasprom" and carried
out decision on the increase of gas prices - current 96 drams will
increase up to 132 drams for 1 thousand cubic meters. People who use
more than 10 thousand cubic meters will pay $243.13 for 1 thousand
cubic meters instead of former $215.

"ArmRosgasprom" applied for gas price increase as the price of imported
gas to Armenia will be $180 versus current $154 for 1 thousand cubic
meters since April 1, 2010.

The company itself is not intended to change gas prices and make the
consumers lives unhappy. "We only react to market changes and it's
not our fault", said Karapetyan.

"Even if dollar rate will increase instead of current 386 drams up
to 420 drams or decrease up to 320 for 1 dollar, we will not change
the price. We want to create business environment for our upcoming
strategy", he said.

Some experts expect that in 2010 there will be devaluation in Armenia
but not as abrupt as in March 2009 when decrease of Armenian dram by
66.36 points to US dollar was 372.11 drams for 1 dollar.

"ArmRosgasprom" gives choice opportunity to the consumers - whether
use gas or other energy resources. "We don't say that our services
are cheap but they will be cheaper than other services", he said.

World financial-economic crisis influenced on the reduction of gas
consumption in Armenia. "We expected market increase by 12% but due
to crisis it was reduced by 20 %", he said.

CJSC "ArmRosgasprom" is a monopolist in the internal market of
Armenia. Gas enters Armenia by transit through Georgia. The company
was established in 1997. The share of Open JSC "Gasprom" is 80% in
the charter capital of the company, the share of the Government of
Armenia is 20%. ($1 - 384.37 drams).

From: Emil Lazarian | Ararat NewsPress