Friday, January 24 2020 13:01
David Stepanyan

Economist: Unlike its predecessors, the new government of Armenia has  no personal interest in the "gas talks."

Economist: Unlike its predecessors, the new government of Armenia has  no personal interest in the "gas talks."

ArmInfo. Unlike its predecessors, the current Armenian government does not have a  personal interest in negotiations with Gazprom. We have repeatedly  had the opportunity to make sure that the previous authorities had a  similar personal interest in pricing natural gas for our consumers. A  similar opinion was expressed by ArmInfo economist Vahagn  Khachatryan.  

"I am convinced that our authorities are negotiating  with the sole purpose of achieving an acceptable gas price for our  citizens and entrepreneurs. The government will do everything to  protect the interests of citizens. And even if the gas price  increases, the government should convince us of the advisability of  this.  It should also it should be very clear that maintaining the  existing tariffs should not take place at the expense of the dignity  of our state, "he stressed.

At the same time, the economist assesses the situation in which the  PSRC presents the application of Gazprom Armenia CJSC as an  accomplished fact, while there is no such application yet, as quite  strange.  According to him, such "preparation" is unacceptable, since  it creates a rather tense general situation in society.

According to Khachatryan's assumptions, the discussion of domestic  gas tariffs in the face of changes in the cost at the border may be  due to the relevant agreement reached last year. At the same time,  the economist is convinced that in reality, de facto, Armenia is  provided with gas by only one company - PJSC Gazprom, since Gazprom  Armenia is its 100% subsidiary. And the cost of gas supplied to the  end user is not $ 165 - at the border, but $ 290 per 1000 cubic  meters. 

At the same time, Khachatryan noted that the year 2019 was the year  of receiving the lowest profit for Gazprom Armenia over the past 10  years. According to him, in response to his request for a possible  accumulation of gas debt by the state as a result of price increases  at the border from $ 150 to $ 165 per 1,000 cubic meters. m. from  PSRC received a response that the preservation of tariffs for  consumers took place solely due to the saving of resources of Gazprom  Armenia.

As a problem pedaling in negotiations with the government of Gazprom  Armenia, the economist noted the presence of investment programs, the  refusal to implement which will affect the overall efficiency of the  system. Moreover, according to his estimates, this problem has a  second side, in particular, the validity of such investments.

"In the past, we came across a program of universal gasification of  the country. However, later it suddenly became clear that the volume  of gas consumed from this practically did not increase. Moreover,  from 2017 to 2019 they were constantly falling. Thus, additional  costs for gasification were laid down in tariff, however, in the  absence of an increase in the number of consumers, these costs burden  already existing subscribers, "he said.

The economist estimates this situation as the result of illiterate  management. In this light, Gazprom Armenia, in his opinion, should  completely change its approaches to long-term programs. Of course,  together with the PSRC, which is to consider the "sensational"  application.

Answering the question of MP Arman Babajanyan about the likelihood of  rising gas prices addressed to the Prime Minister Nikol Pashinyan on  January 22, Deputy Prime Minister Mher Grigoryan noted that there  have been and will be many discussions on this subject. "Gazprom  insists on an investment program.  Settlements are made for 10 years.  Of course, there are disagreements. We do not exclude that an  application will be submitted after April 1. Answers to all questions  will be received when the application is submitted, and then we will  give our arguments. If it turns out that the margin between the price  at the border and the tariff is inflated or not justified, it is  unlikely that the tariff will be approved, "said the Deputy Prime  Minister.

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