Meeting of Board of Directors of Gazprom Armenia took place

ArmInfo. During the meeting of  the Board of Directors of CJSC Gazprom Armenia held on April 11, a  number of issues on the agenda were considered and approved.

As company's official website reports, the annual report and  financial statements of Gazprom Armenia for 2016 were submitted for  consideration by the Board of Directors. The Council approved the  Budget of Gazprom Armenia for 2017, the plan of measures to increase  revenues and cut costs of Gazprom Armenia for 2017, and the company's  investment schedule for 2017. Other issues of current activity of the  company were discussed at the meeting and appropriate decisions were  made. At the same time, the company does not quote any figures. As  ArmInfo informed earlier, at the meeting of the Commission on  Regulation of Public Services of Armenia on December 14, 2016, the  investment program of Gazprom-Armenia CJSC for the period of  2017-2019 was discussed and approved at 32.5 billion AMD, excluding  VAT, which will be aimed at the re-equipment of underground storage  facilities in Abovyan, the re-equipment of gas transmission and gas  distribution structures and systems, the connection of new  subscribers and etc.

Before the decision of the regulator, the Board of Directors of the  Russian Gazprom at the meeting on December 4, 2016 approved the  purchase of an additional issue of Gazprom Armenia. As Gazprom  reported, the gas holding will acquire 3,372,943 ordinary shares of  the company for 18,449,998,210 AMD ($ 38.3). "To approve the contract  that is interesting, the acquisition by PJSC Gazprom of 3,372,943  additional ordinary shares in Gazprom Armenia with a nominal value of  5 026.5 AMD each, with a total value of 16,954,097,989.5 AMD at a  placement price of 5,470 AMD for one share, with payment in cash for  a total of 18,449,998,110 AMD", the report reads.

The reasons for the additional issue are not reported. However,  independent experts believe that the additional issue will allow  Gazprom's "daughter" to compensate the costs incurred by the company  this year from the reduction of the tariff for natural gas in the  amount of 13.4 billion AMD. Moreover, the Russian holding company  promised to take all risks to reduce the tariff for gas in Armenia.   To note, starting from January 1, 2017, new tariffs for gas began to  operate in Armenia. For subscribers who consume less than 10 thousand  cubic meters per month, the tariff will make 139 thousand AMD for  each 1,000 cubic meters (including VAT) instead of the current 146.7  thousand AMD, and for subscribers using more than 10 thousand cubic  meters the tariff is set at 242.1 conditional Units (the final tariff  is calculated by multiplying cu by the average monthly exchange rate  of the US dollar to the AMD) instead of the current 257.56  conventional units. For socially unsecured families using annually  less than 600 cubic meters of gas, the price for fuel will be 100  thousand AMD for 1 thousand cubic meters (including VAT), and if  consumed over 600 cubic meters per year - 139 thousand AMD per 1  thousand cubic meters (VAT included ).