Talks underway with Russia for lower gas price for final consumers

ArmInfo. Minister of Energy and Natural Resources of Armenia Levon Yolyan told reporters after the Government meeting on March 17 that the negotiations with Russia over the gas price pursue a lower price for final consumers.

He said the negotiations are held "in warm, healthy and work environment." Without specifying the negotiated price, the minister expressed hope that the negotiations will be a success and the gas price for final consumers will be reduced.   

The March 10 talks of the Armenian and Russian Presidents in the Kremlin covered a number of issues, including energy cooperation, particularly, the price formation for the Russian natural gas supplied to Armenia.  Meanwhile, on March 10, the Armenian government approved amendments to the protocols to the Russian- Armenian agreements (dated 2013) on the gas price and terms of sale of the Armenian government's stake in ArmRusgasprom.  Under the amendments, the gas price for Armenia will remain at 165 USD per 1,000 cu m until 1 April 2016.  Afterwards, the gas price for Armenia is to get back to its initial level - 189 USD.    

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.