Mass Media: There is a preliminary agreement on reduction of Russian gas price for Armenia by 12%

ArmInfo. A Yerevan-based newspaper Haykakan Zhamanak writes that a preliminary agreement has been made on reduction of the Russian gas price for Armenia by 12%.

At present, the gas price for Armenia is 165 USD per 1,000 cu m. This price may be reduced to 145 USD-146 USD per 1,000 cu m. In case of the final agreement, the new gas price will be made public in the course of Russian Prime Minister Dmitry Medvedev's visit to Armenia on April 7-8.  In case of successful talks, the newspaper writes, the new gas price will be "backdated." "The Public Services Regulatory Committee will meet extraordinarily to reduce the gas price for the population from the current 156 drams per cu m to146 drams per cu m. For commercial consumers, the gas price will be reduced from the current 272 USD per 1,000 cu m to 260 USD per 1,000 cu m," the paper writes.

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.