Armenia In Talks Over ArmRosgazprom Sale To Russia

ARMENIA IN TALKS OVER ARMROSGAZPROM SALE TO RUSSIA

Business New Europe, EU
June 21 2013

bne
June 21, 2013

An Armenian official has confirmed that the government is in talks
with Gazprom over a possible sale of the state’s 20% stake in gas
distribution company ArmRosgazprom. The move is part of ongoing
negotiations between Yerevan and Moscow over a recent hike in gas
prices.

Armenia’s Minister of Energy and Natural Resources Armen Movsisyan
told parliament on June 19 that no decision has yet been made and
talks with the Russian energy giant are due to be completed by the end
of 2013. A sale of the government’s stake in ArmRosgazprom would have
to be approved by the Armenian parliament, he added, according to
PanArmenian.

The issue was discussed during Movsisyan’s visit to Moscow on June 17.

The official said Yerevan is looking to ensure a long-term supply of
natural gas.

The government is currently struggling to deal with a price hike in
Gazprom’s gas exports to Armenia. The increase was introduced several
months ago, but consumer gas prices have so far been kept artificially
low.

The Armenian Public Services Regulatory Commission recently gave the
go-ahead to increase tariffs for both gas and electricity, since some
of Armenia’s power stations are gas-fired. The decision was
politically unpopular, and Armenian government officials say they are
still hoping to agree on a subsidy with Russia.