Recently, the Minister of Energy and Natural Resources Armen Movsisyan stated that they are negotiating with “Gazprom” owning 80% of “ArmRusGazArd” about concedeing 20% of Armenian share. “Gazprom” wants to become a 100% owner “ArmRusGazArd”. Whether transferring those 20% belonging to Armenia to the Russian side, we will not pay for the grant expected from Russia, with the help of which the government is going to make a 30% subsidy for the gas which will become expensive from the next month. The negotiations to receive a grant for the subsidy, as the government assures, are pending, but actually it’s not excluded that by just giving 20% of Armenian share of ” ArmRusGazArd “, the Russian grant will be paid. However, by estimations of economists, the volume of 30% subsidy coincides with the price of 20% of Armenian share. In a talk with “Aravot”, the Deputy of ARF faction, economist Artsvik Minasyan presented her analysis, according to which, only the balance value of the share of the Armenian side, calculated as of January 1, 20013, amounts to AMD 150-160 million, which coincides with our 20% participation in “ARG”. “This corresponds to the number which is the value of 30% subsidy of the last price increase of “Gazprom” for gas.
It is possible that we concede the share, because my calculations show that the numbers are the same. If we multiply the volume of gas entering Armenia during one year, and calculate 30%, the numbers are almost the same. If this is sitting on the negotiation table, then we may say that the statement made by the Government of Armenia again does not meet the reality, when talking about receiving grant from Russia. This is a simple transaction under the name share for the gas. But the subsidy cannot be a long-term, just 1-2 years.” As presented by Mr. Minasyan, if we take into account that ArmRusGazArd in addition of gas acquiring and distribution, is also implementing other energy projects, given the fact that the company has a strategic importance, monopoly position and is an extended company, the sale of 20% Armenian share must be viewed as a business sale, and 150-160 million balance must be multiplied by several times, and, in this respect, 20% is of a significant importance. As for losing 20% Armenian share of ArmRusGazArd, with which we are going to lose many
opportunities, Mr. Minasyan thinks that with that 20% so far the Government of Armenia did not use any serious opportunity and right. According to the Deputy, ArmRusGazArd is a closed joint-stock company, and 20% provides a number of rights in the joint-stock companies. “He enjoys the right to vote at the general meeting of shareholders, where the company’s strategic issues are determined, has the right to have a representative on the board of directors. In addition, 20% has a decisive importance in major and interested transactions, for example, if the “Gazprom” delivers its products to “ArmRusGazArd”, and the latter must make a decision, the right for making the decision in this case is reserved exclusively to 20%. The other important and fundamental right is the right to receive the dividend. In this sense, when we analyze to understand whether the Government of Armenia has used its rights or not, it appears that no annual or general meeting of the shares was held, where the Armenian side may speak against regarding the principal issues. Our government does not excel with remarkable efficiency in the composition of the Management Board, not any interested deal is mentioned or published, and when we send a written request to the Minister of Energy, they have noted that such deals were not made.
While it is clear that acquisition of gas is a big deal, if we do not account other investment projects. As for the right to receive dividend, we see that Armenia’s budget has not ever received any dividend, we haven’t received revenues, and why, it is a subject for another analysis. “In other words, according to Mr. Minasyan, with 20% and important rights equivalent to them, our government did not use them anyway. An opinion was expressed that it would be right if our government would sell 20% to Armenia business entities or residents of Armenia. In this regard, Artsvik Minasyan said that, of course, it would be nice, but for this reason the gas supplying company should become an open joint stock company from a closed join stock company, which, of course, they will not do. As viewed by the Deputy, “Armenia cannot sell its 20% share without “preliminary consent of Gazprom. “Gazprom” has a preferential right to purchase, after refusal of “Gazprom” other persons can make a proposal. And in this case, if the proposal is public, the organizational structure of the company must be changed, it must become an open and sell at the stock exchange.
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This would be a major step to become a public company. But I can confidently say that the Russian side would not agree.” Artsvik Minasyan pointed to another problem, the Government of Armenia, in fact, from now one will have to consider not “ArmRusGazArd” but “Gazprom” as an operator for selling gas to Armenia. The latter with the help of its daughter enterprise “Armrusgasprom” and its own “Transgaz” delivers services to Armenia. “And the fixed price at the boarder does not matter, except when calculated for VAT. The policy “Gazprom” is unprecedented because there is no such high rate in any other country in the territory. Here the government is able to influence and demanded from “Gazprom” to eliminate discriminatory policy towards Armenia, it remains only to wish. In other words, “Gazprom” receives profit from “Transgaz” and “Armrusgasard,” and residential viewpoint it does not have the right to implement a discriminatory policy: to sell gas to Armenians at more expensive price than, let’s say, to Russians.”
Nelli Babayan
“Aravot” Daily
Armenia cannot agree to sell its 20% share of “ArmRusGazArd to Gazprom! We are constantly selling state owned assets especially where energy is concerned.
What does Armenia have left!
We will be the slaves of foreign powers forever.
What happens if in the future if politics change and we find most of our state assets in the hands of those that are no longer Armenia’s friends……….
On the contrary Armenia should develop and strengthen the little assets it has left after all ARMENIA IS FOR ARMENIANS!!!!!!!!!!!!! DO NOT SELL!!! DO NOT SELL!!!
Keep the options open for possibly buying cheaper gas from our neighbours in the south.
If Gazprom buys 100% of ArmRusGazArd we will be dependant on one gas supplier which means they can keep raising gas prices confidently knowing Armenia has sold its one other life line…… Iranian gas!!!
Screw subsidization think of the future!!!!