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“Assets for the debt”- 2, for the sake of the Customs Union

December 04,2013 15:32

Or, Armenia-Russian “friendship” for the sake of preservation of the power

Days after the Vilnius summit, the President of the Russian Federation Vladimir Putin arrived in Armenia. Stating about Armenia’s geopolitical orientation after September 3, Putin seems to have tried to “reward” Armenia people and the authorities of Armenia for his one day, protracted visit.

However, Putin’s objective was different… In the territory of the Republic of Armenia, he stated about today’s Russia’s intentions. “Russia has never had the intention of leaving the Southern Caucasus, on the contrary, we intend to strengthen our position in the region, based on the best that is passed to us from our ancestors,” notified Putin in Gyumri. According to Vladimir Putin, Serzh Sargsyan had said that the local experts and economists had estimated all benefits and possible advantages of this closer cooperation within integration to the Union and had made their choice. “This is Armenia’s people’s and Armenia’s leadership’s sovereign choice,” emphasized Putin, unwillingly pursuing the goal to dispel the doubts that the authorities had taken these steps under pressure.

As to which estimates of economists and experts cherished hope to the authorities is still unclear. Moreover, pursuant to the estimate of some economists and experts, after joining the Customs Unions, price rises are expected in Armenia. Since yesterday, representatives of the ruling elite promise that the ordinary citizen of Armenia “will feel on their skin” the positive outcome of Putin’s visit, and clarify that Putin’s visit reaffirmed the Armenia-Russia military cooperation.

Was the Armenian-Russian military cooperation undermined? Didn’t the Armenian-Russian cooperation within CSTO have any value…? So, for the sake of justice, it should be noted at least that Putin finally visited Armenia, because Armenia refused the EU Association Agreement. Moreover, on December 2, it appeared more clearly of why Armenia refused the EU Association Agreement.

Armenia has sold its last 20 % share in “Armrusgasprom” to Russia. The Chairman of “Gazprom” Alexei Miller also said that from now onwards the Russian gas will be sold to Armenia by Russian domestic prices, but it is not clear as to specifically by what domestic price.

But, whether ordinary consumers would feel the price difference… It appears, not. Yesterday, the President’s Chief of Staff Vigen Sargsyan said that the government’s share was transferred to the Russian side “to reimburse the difference in gas prices,” which was generated between the supply price calculated at the border and the amount calculated for the consumer. As a result, even though Russia is bringing the customs duty on gas export to zero as per arrangements, i.e. henceforth Armenia will obtain gas at about 30 percent of negotiated rate, however, the sales tariffs in the territory of Armenia will not be reviewed.

In the end of the Armenian-Russian negotiations, the Minister of Energy and Natural Resources, Armen Movsisyan, was asked whether the 20 % was reimbursing 30 % subsidy on the price of gas. “No. The idea of giving 20 %, on the one hand, was to reimburse the former, existing debts, on the

other hand, as I said, to comply the price and quality of the operation with the standards.” And, when he was asked how much the existing debt was, the Minister replied, “155 million dollars”.

The incident happened in Yerevan on December 2 is considered to be a “historic achievement” and “a deal of the century”. And no one raises the question on whether it was not possible to conclude such a deal with Russians when signing the EU Association Agreement, or what could prevent for the Armenian side to donate its last 20% share in “Armrusgasprom” to the Russian side prior to September 3, and the deal would be concluded, solely on the basis of the Armenian-Russian strategic alliance relationships. This is not the first time that the authorities of Armenia introduce deals to the Armenian community as “Assets for the debt”, is it?

Hence, the authorities of Armenia have paid this price since September 3 up to December 2. Could they act differently…? Hardly. It might cost them a loss of their power…

Emma GABRIELYAN

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