It Needs to be Clarified Why and How does Gas Price Increase for the Consumer, when Russia Cheapens it: Simonov

“Armenia’s population should clarify how does the gas price increase after the border?” Konstantin Simonov, founder and CEO of Russian National Energy Security Foundation, economic and political analyst, said in an interview with 168.am, touching upon Armenia-Russia negotiations on gas.

Note, Hovik Abrahamyan, RA Prime Minister, submitted a letter-request to Dmitri Medvedev, RF Prime Minister, as a result of which Armenia-Russia negotiations on gas price are in process, and, according to Levon Yolyan, RA Minister of Energy and Natural Resources, purpose of those negotiations is reducing price for gas supplied to population and enterprises.

“As of today, negotiations are being held, so that we may have the possibility of reducing tariffs for the population. Let negotiations be over and we’ll inform you about the results,” the Minister said to the reporters.

The day before, RA Prime Minister also reflected to this issue, stating, “There is no resolution yet on gas price, but there is discussion, president of the Republic met the president of Russia and the issue was covered by them, currently, Ministries hold negotiations with Gazprom-Armenia Company on gas price.”

Note also that recently all changes of gas price have bypassed Armenia’s consumer, as price fall reached the border, then was risen for the consumer after passing it. Despite circulating essential discontent among Armenia’s population, Konstantin Simonov stated that Russia supplies cheap gas both to Armenia and to Belarus, as compared to prices for gas supplied to the Ukraine and other countries. According to him, it’s another issue that people complain of prices, as the prices change on border.

“Regarding that issue the population should direct its discontent to Armenia’s authorities, and they need to clarify how the price increases after passing the border. This is a problem, and I’m also interested, how and under which factors the price changes so much. However, I consider, negotiations on gas will have positive implications for Armenia, as gas price will more decrease for Armenia, conditioned by prices for oil. Upon my calculations, this fall will comprise about 15-20% on account of fall in price for oil,” Simonov said. In his conviction, the issue was covered during Sargsyan-Putin meeting as well.

To the question whether anything will become certain after Medvedev’s visit in April, Simonov replied that it shouldn’t be excluded. “I’m not familiarized with the visit agenda, however, I’m sure, the Prime Ministers won’t bypass this issue, as negotiations currently are in process,” he noted.  Note also that price for gas at Armenian border comprises USD 165, however the price is valid till April 1. To the final consumer, i.e. Armenia’s population, gas is supplied with about twice more expensive price—USD 320.

By Araks Martirosyan