Gazprom Takes Over Armenian Energy
Gazprom has reported the signing of a 25-year agreement with Armenia on strategic partnership in gas projects. Armenian Foreign Minister Vardan Oskanian is to hand a draft agreement signed in Yerevan to his Russian counterpart, Sergey Lavrov today. Under the document, Gazprom takes control over all gas pipeline projects of the country. In return, Armenia will get the guaranteed volume of gas supplies for the next 25 years and the fixed gas price of $110 per 1,000 cu. meters for the next three years.
The visit of the Armenian foreign minister to Moscow is timed to the Year of Armenia in Russia. Yet, Armenia is set to discuss a more pressing issue in Moscow – that of gas prices. Gazprom announced last December an intention to raise gas prices for Armenia to $110 per 1,000 cu. meters from $56. In the end, Moscow offered Erevan a deal designed to cushion the price blow.
Gazprom and Armenia’s government initialed an agreement on long-term cooperation in late March, according to the information Kommersant obtained. Gazprom is to increase its share in Armrosgaz, the joint venture controlling all gas transportation in Armenia, to 82 percent from 45 percent. The Armenian government is currently holding 45 percent in the company and 10 percent is owned by Itera. Under the agreement, Gazprom will bring funds to the Armenian budget which will make up for the price hike for local customers.
Gazprom officially confirmed that Armrosgaz will buy the 40km-long portion of the Megri-Kazharan gas pipeline from Iran to Armenia. The gas main is to be put into operation by the end of the year.
Ara Tatevosian, Erevan; Alexander Reutov, Nataliya Grib
All the Article in Russian as of Apr. 07, 2006
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