Expert: Prolongation of period of Russian gas supplies to Armenia at more affordable prices is in both states interests

ArmInfo. Both Armenia and Russia are interested in the Russian gas supplies to Armenia at more affordable prices, economist Vardan Bostanjyan said at a press conference on March 18.    

The expert said that Armenia's opportunity to import gas from Russia for $165 per 1,000 cu m versus the previous $189 will enable Russia to have certain influence on Armenia. Otherwise, Russia will lose this opportunity and this will result in certain political discrepancies.

"I think the current negotiations with Russia are based on mutual consent, because Armenia, which is a small state, could not be the only initiator of such an interstate dialogue. Anyway, Russia could easily refuse the talks," the economist said, noting that in the context of the intergovernmental agreement on the prices of imported raw materials prices Armenia should exert efforts towards retaining the gas prices within the fixed limits.

When replying to ArmInfo's question, Bostanjyan said that the given arrangement will be long-term and there are only some details about the supply to be regulated.  

To recall, in 2015 Russia approved a preferential gas price for Armenia on the border - 165 USD per 1,000 thsd cu m. The draft Armenian-Russian protocol was approved during the Armenian Government's sitting on August 18. However, the reduction does not concern the consumers - they keep paying the previous price (156 thsd AMD or $318 at the current exchange rate), while the large consumers purchasing over 10,000 cu m per month pay $277 for 1,000 cu m. It was also reported that the agreement would be in effect until 31 Dec 2015, with a new agreement to be signed if needed.