Russian gas price for Armenia to be left unchanged until March 31 2016

 

The Government approved a draft suggestion to leave the entire additional profit for Q1 2016 to Gazprom Armenia "to cover the damage caused by the AMD/USD exchange rate fluctuations and help Gazprom return its investments in the assets of Gazprom Armenia."  Otherwise, the deputy minister of energy and natural resources Iosif Isayan said, the country would have to recompense that damage by increasing the gas price, which would affect the electricity price too. "The sides agree to develop and approve a model to calculate the financial flows by November 1 2016," Isayan said.

 

In 2015, Russia approved the preferential gas price for Armenia (on the border). The Government of Armenia signed a relevant protocol to the Armenian-Russian Treaty dating back to Dec 2 2013 on August 18. Under the protocol, Armenia would be importing the Russian gas for $165 per 1000 cu m instead of $189 in the period from Jan 1 up to Dec 31 2015. It was reported then that a new document would be signed in 2016 if necessary.  The reduced price did not apply to ordinary consumers, however.  In mid-January, Armenia's government applied to Russia for a lower gas price. The negotiations are still underway.