Armenian PM did not rule out that his personality played a decisive role in Gazprom`s decision to reduce gas tariff

ArmInfo. Armenian Prime Minister Karen Karapetyan did not rule out that his personality played a decisive role in the Gazprom's decision to reduce tariff on gas for Armenian consumer. ''Are friendly relations, connections decisive in business environment? I think, they are'', Karen Karapetyan stated today at the press conference.  According to the Prime Minister this approach is practiced not only in post-soviet but also in developed countries. "BP (British oil company, ed. note) makes business in those countries, where it has reliable partners", the Prime Minister stated.

At the same time the Prime Minister assured that revision of tariff is not a part of pre-election campaign. "In any case I would make this step as I want to activate economy", Karapetyan stated.  At the same time the Prime Minister stressed that his personal ties help him to establish relations with other Russian partners as well.

                On November 25, the Public Services Regulatory Commission of Armenia (PSRC) approved Gazprom Armenia's request about revision of the natural gas tariffs for consumers in Armenia. The new tariffs will come into effect on 1 Jan 2017.  When presenting the draft decision, Garegin Baghramyan, Head of the PSRC Department for Tariff Policy, said that the company's request envisages diversification of subscribers and tariffs in five groups: 1. The subscribers having the right to social allowances and consuming less than 600 cu m of gas per annum will pay 100 thsd AMD per 1 thsd cu m; 2.  Greenhouse facilities will pay 212 conventional units per 1 thsd cu m from November 1 till March 31; 3.  Processing enterprises will pay 212 conventional units per 1 thsd cu m; 4.  Subscribers consuming less than 10 thsd cu m per month will pay 139 thsd AMD per 1 thsd cu m; 5.  Subscribers consuming more than 10 thsd cu m of gas per month will  pay 242.1 conventional units per 1 thsd cu m. Previously, Gazprom  Armenia requested the Public Services Regulatory Commission (PSRC) of  Armenia to revise the gas tariffs to prevent a decline in gas  nsumption, create favorable conditions for stabilization of the gas  consumption market, growth of gas consumption, as well as for stimulation of the gas consuming companies' activities.  Gazprom Armenia CJSC took into ount the expected decline in the price of natural gas transit via Georgia. The contract on transit of natural gas to Armenia expires in late 2016 and that a new contract should be signed between Gazprom Export LLC (the gas supplier to Armenia) and Georgian Gas Transportation Company LLC. Gazprom Armenia also took into account that consumption is expected to grow due to the reduction in natural gas tariffs for the consumers of Armenia.  Gazprom - the sole shareholder of Gazprom Armenia CJSC - is expected to finance the possible risks.  To recall, once appointed Prime Minister, Karen Karapetyan stressed the need to revise the gas and electricity tariffs.  He also pointed out the need to impact of the tariffs on the vulnerable social groups, as well as to ensure a galvanizing effect of the tariffs on business development, specifically in agriculture and processing industry. Gazprom Armenia CJSC is a 100% subsidiary of the Russian Gazprom and the supplier of natural gas to the domestic market of Armenia.