Serzh Sarkisyan: gas price may be abated for Armenia

Regnum, Russia
March 23 2006

Serzh Sarkisyan: gas price may be abated for Armenia

Price for gas, supplied by Russia to Armenia, may be considerably
lower, stated Armenian Defense Minister, co-Chairman of
Armenian-Russian intergovernmental commission Serzh Sarkisyan.

`After meeting of presidents of Armenia and Russia in Moscow, huge
work has been done. In accordance with order of President Robert
Kocharyan and after discussion in early March with the prime
minister, I sent a letter with a number of proposals to Gazprom’s
head Mr. Miller. On Friday we received Miller’s answer: Gazprom is
ready to sign appropriate documents till the end of March, which will
enable population and producers to pay lower prices comparing with
earlier ones,’ stated Sarkisyan. `I may not name the price, but I do
not believe the price rising will heavily influence budgets of
population and producers’, added he, Radio Liberty informs.

It is remarkable, Armenian Prime Minister Andranik Margaryan stated,
speaking with journalists today, that people should not expect
changing of gas tariffs. `Price of $110, fixed in the bilateral
agreement, is a final one and changes should not be expected,’
mentioned he. Also, the Armenian premier pointed out that the parties
specify possible variants of compensations.

It should be reminded, that average gas price for Armenian consumer
will total $162.95 per 1,000 cubic meters on April 10. For consumers,
using up to 10,000 cubic meters per month (for population), the
tariff will total 90 drams ($0.20) per 1 cubic meter; for consumers,
using more then 10,000 cubic meters (mainly enterprises of energy
sphere), tariff will total $146.51 per 1000 cubic meters. Gas tariff
will increase by about 52.5%, for enterprises – by 85.2%.
Recalculation of gas tariffs for domestic consumer is caused be fact
that price of gas, supplied to Armenia by Russia will nearly double –
from $56 up to $110 per 1,000 cubic meters since April 1. But the
Russian holding postponed introduction of new tariffs in Armenia till
April 1, and the talks between Yerevan and Moscow on the matter still
continue.