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When you exclude the possibility of weakening the position of monopoly

June 21,2013 11:05

The mistake comes from the previous government. The Russian gas which was supplied to Ukraine by German RWE company is $ 100 cheaper than gas supplied by the “Gazprom”. Such statement was made by the Prime Minister of Ukraine Nikolai Azarov during a meeting with French businesses representatives. Azarov said that the long chain of intermediaries, contrary to the logic, only reduces the price for Russian gas, in comparison with the direct supply from Russia. “We now buy gas from RWE, it passes through Poland, Slovakia and Hungary. We are buying that gas cheaper than the Russian gas, which we buy at the border with Russia, RWE sell to us the same gas, which the company is buying from Russia. The gas passing through the long chain of pipelines, comes back to us becoming 100 dollars cheaper”, – said Azarov.

This information is interesting on the background of the “gas” chaos in Armenia. Yesterday, the Minister of Energy Armen Movsisyan confirmed that they are negotiating with “Gazprom” on the information to concede the shares. The Government of Armenia will end up the negotiations with the Russian “Gazprom” company by the end of this month, during which, as it turned out, despite the rise in gas prices, the possibility of conceding the last 20 % of shares owned by the Republic of Armenia in the “ArmRusGasArd” to “Gazprom” company is also discussed. But what is behind the government of Armenia in exchange for the 20 percent of share, Armen Movsisyan refuses to detail noting that it will hamper the negotiations. “The shares to transfer to “Gazprom” company are sitting on the table, of course, we will find the right equivalent solution to obtain from them”, – said Movsisyan, without denying that the alternatives are also discussed. Starting from July 7, cubic meter of gas one instead of the current 132 will cost 156 drams for citizens. Due to rising gas prices, the cost for electricity will increase by AMD 8 to 1 kilowatt per hour. At one time, Armenia had 45% of share in the company, but the local authorities handed it over to the Russian side.

Now the possibility of transferring the last 20% again to the company is discussed. That is, if it becomes a reality, “ArmRusGasArd” will no longer be an Armenian-Russian joint venture, it will become a Russian company, which will possess Armenia gas supply chain. What is expected to our society if the last 20% of the shares is conceded to “Gazprom”? For example, the Russian side does not intend to raise the price of gas supplied to Armenia every year, it is conditioned with the fact whether Armenia’s authorities justify this-and-that expectations of Russia in non-economic issues, or not … The Minister of Energy said on this occasion,- “The issue is not so raised that next year they can do whatever they want. The negotiations are held not because they can do whatever they want, but to have a long-term better gas supply.” The authorities are also silent on the issue of whether the idea of giving one hundred percent of management possibility to “Gazprom” occurred with the authorities of the Armenian side or the Russian side. However, the Minister Energy made one issue clear, in the issue of just gas supply, there is no compulsion for Armenia to enter the Eurasian Union. It seems that if the compulsion was there, they should confess. To say that with its 20 per cent of shares the Armenian side, in the negotiations with the Russian side, could extract crucial decisions for the benefit of our society, of course, would be a naivety. It is clear for everyone that the mistake comes from the previous Government of Armenia. If there is no alternative in any field, we must be ready for any surprise. And if the Russian side having

even the monopoly position decides to sell gas for a cheaper price, again the question arises, as to what for it becomes cheaper…. Consequently, transferring the entire gas supply network of Armenia to the Russian company incorporates serious risks to all aspects, regardless of whether the Russian side will raise or lower the price for gas.

 

In the result of the policy implemented by the former President of Armenia Robert Kocharyan, the most importance strategic facilities, including almost the entire energy system was given to Russia. Moreover, the authorities were found so “smart” that they transferred the Iran-Armenia gas pipeline of already small diameter to the Russia, excluding the possibility of weakening the Russian position of monopoly. But despite everything, one should also notice the political trend in this whole process, after summing up the phases of three elections in Armenia, the Russian side plays more openly. And as long as there are leverages and even in the areas where the Russian side is in a monopoly position, the resistance will be more difficult. But, as people say, we must think about it in time.

Emma GABRIELYAN

“Aravot” Daily

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