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Will Russia Cut Gas Price?

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  • Will Russia Cut Gas Price?

    WILL RUSSIA CUT GAS PRICE?
    Naira Hayrumyan

    Story from Lragir.am News:
    http://www.lragir.am/engsrc/economy27557.html
    Published: 12:38:04 - 01/10/2012

    The information on negotiations to review the gas price for Armenia
    passed unheeded as focus is on Vartan Oskanian. This information came
    from the Public Services Regulatory Commission. Nothing specific has
    been stated though.

    The first and foremost issue is whether the gas price will grow or
    drop. Almost everyone in Armenia is sure the prices will go up and
    the issue is how much. However, under the current electoral situation,
    Russia may cut the price with a view to supporting its candidate.

    Russia has not expressed its preference yet, as well as whether it
    wants the current administration to lose the election. It is evident
    that by boosting the price Russia will facilitate the collapse of Serzh
    Sargsyan's administration because it will trigger economic decline
    and protests. But, on the other hand, this may enhance anti-Russian
    moods in Armenia which are already there.

    Moscow cannot but understand that the boosted price of gas will
    lead to consolidation of pro-Western political forces around Serzh
    Sargsyan. Hence, Moscow may nevertheless cut the price referring it to
    the merits of the candidate Moscow will support. By the way, it can
    be Serzh Sargsyan. Cut price of gas may be the best "neutralization"
    of Sargsyan's pro-Western course.

    Russia may boost the price only in case it has no more hope to
    maitain its influence on Armenia. By boosting the price Moscow will
    just punch Armenia and the West, forcing Western foundations to shell
    out for gas supplied to Armenia.




    From: A. Papazian
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