Armenian government continues holding negotiations aimed at reducing gas tariffs

ArmInfo. Armenian government continues holding negotiations with the Russian side aimed at reducing gas tariffs, Prime Minister Hovik Abrahamyan told journalists on March 16.

"There is no final decision on this issue yet. The discussions continue. Earlier presidents Vladimir Putin and Serzh Sargsyan discussed this issue, currently relative ministries of both countries and Gazprom Armenia are holding negotiations", he noted.  At the same time the Prime Minister did not agree with the comment that the government was not able to solve the issue of gas negotiations with Russia itself and the president had to tackle the problem. "No one has the right to speak scornfully about the government. We are one team and work for the benefit of people. If the president helps us in negotiations this does not mean that the government is untalented," stated the Prime Minister.

He also noticed that there is no progress in the issue of passing to calculations for gas in Russian Rubles on EEU space. "Prime Minister Dmitry Medvedev will arrive in Armenia on April 7 and on April 8 the meeting of heads of governments of member countries of Eurasian Economic Union will be held, during which this issue will also be discussed", he stated.

To note, energy cooperation, particularly price formation of the Russian gas supplied to Armenia was one of the topics of discussion during the negotiations between the presidents of Armenia and Russia on March 10. Meanwhile, on March 10 Armenian Government approved an amendment to the intergovernmental protocol to the Armenian-Russian Treaty on gas price and conditions of its sale dating back to 2013. According to this changes the price on gas for Armenia will be left unchanged - $165 per 1,000 cubic meters - until April 1 2016. After this the initial price will come into force-189 USD.

To recall, in September 2015 Gazprom, which is the owner of Armenian monopolist "Gazprom Armenia" reduced the price for Armenia from 189 to 165 USD for 1000 cubic meters. This was caused by sharp devaluation of Armenian dram against USD, as a result of which Gazprom Armenia suffered losses purchasing gas in USD and selling it in AMD. At the same time an agreement was reached that the tariffs will remain unchanged for the Armenian consumers.