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Armenian and Russian PMs agree on subsidizing rise of price of natur

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  • Armenian and Russian PMs agree on subsidizing rise of price of natur

    Armenian and Russian prime ministers agree on subsidizing rise of
    price of natural gas for Armenia


    YEREVAN, June 1. / ARKA /. Armenian Prime Minister Tigran Sargsyan and
    his Russian counterpart Dmitry Medvedev met in Minsk, Belarus, and
    discussed Russia's possible involvement in subsidizing the sharp rise
    of natural gas price, shipped to Armenia by Russian Gazprom, the
    Armenian government said today.

    Earlier Tigran Sargsyan said his government would subsidize 30% of the
    price hike. He was followed by energy and natural resources minister
    Armen Movsisyan who said the government was trying to get the Russian
    side in the process of subsidizing the increased price of gas,
    `because 80 percent in Armenia's national gas operator, ArmRosGazprom
    (ARG) is owned by Russian Gazprom.'

    The Armenian government said Sargsyan and Medvedev agreed in Minsk
    that Russia's assistance will be in the form of a grant. It said the
    talks to this end still continue.

    On May 14, ArmRosGazprom asked the regulator to revise upward the
    current tariff for Russian natural gas. It wants to raise the price
    for consumers using up to 10 thousand cubic meters a month from
    current 132,000 drams per one thousand cubic meters (including VAT) to
    221,000 drams. Armenia's Public Services Regulatory Commission (PSRC)
    said late last month that consumers using up to 10,000 cubic meters of
    natural gas per month will be paying 156 thousand drams, including
    VAT, for one thousand cubic meters, up form current 132,000 drams.
    Corporate and other enterprises consuming 10,000 and more cubic meters
    will be paying about $276.98. The new prices will come into force
    from June 7 to 10.

    The government press office said also the two prime ministers spoke in
    Minsk about organization of an international conference that should
    approve large-scale economic assistance to Armenia. Medvedev said
    Russia was willing to help Yerevan in organization of the donor
    conference. The EU first expressed readiness to organize such a forum
    in late 2011.

    Back in 2012 Russian newspaper `Nezavisimaya Gazeta" said citing its
    sources in the Armenian that Yerevan was trying to persuade Moscow
    to postpone for a while the increase in gas prices and provide it
    with a $1 billion loan. According to the newspaper, rumors about the
    talks between Armenian and Russian governments on a fresh loan
    appeared at the end of May after it emerged that the EU wanted to
    postpone the conduction of donor conference for Armenia. -0-

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