Political analysts see political reasons behind Russian gas prices (video)
There is a strong possibility Russia may lower the price of gas for Armenian consumers. The issue will be discussed by Serzh Sargsyan and Russian Prime Minister Dmitry Medvedev during the latter’s visit to Yerevan in April. “The possible reduction of gas prices will likely be one of the most important achievements of the meeting. There will be an agreement with the Russian side on a gas price reduction at the border,” says Khosrov Harutyunyan, a lawmaker of the republican party of Armenia (HHK) faction. Political analysts in Armenia believe that raising or lowering the price of gas is merely a political decision. “This is a political move. That is why Poland buys gas from Russian Gasprom much cheaper than Germany. Gazprom sells gas based on its political interests, to solve political problems,” said political analyst Armen Manvelyan. “I do not think that Russia sells gas to Armenia and all other post-Soviet countries based on real economic calculations. This is a political and geopolitical resource,” Sergey Minasyan added. At present, Armenia gets the bulk of its gas from Gazprom at a price of $165 per 1,000 cubic meters. Russia lowered the price for Armenia last September but ordinary consumers did not feel the reduction of gas prices. “I think the retail price of natural gas should be lowered for the population and businesses. Why should Russia, a key member of the Eurasian Economic Union, not be interested in the recovery of Armenian economy and lower gas prices for Armenia? I think it is within the interests of Russia,” said Khosrov Harutyunyan. Armenia can annually import about 2.3 billion cubic meters through the Iran-Armenian gas pipeline, but we use only 15% of the pipeline capacity. “I do not think that Iran is ready to spoil its relations with Russia for Armenia. Should Iran seek its benefits from the pipeline, it would start negotiations with Russia,” Mr Harutyunyan stressed. Specialists estimate that if gas prices are lowered by 12%, Armenian households will pay AMD 146 per 1,000 cubic meters against the current AMD 156.
