Gazprom To Monopolize Energy Market in Armenia

Russian gas monopoly Gazprom is to take control of Armenian pipelines and a power station in exchange for supplying gas to Arnenia on lower price until 2009.

Russia said it would raise gas prices to $110 per 1,000 cubic metres, almost double what is it now, but far cheaper than European rates.

Gazprom would be able to control part of a 40km (25 mile) long pipeline, bringing gas from Iran to Armenia, following this new arrangement.

The agreement would also allow Russia to export electricity from the Razdan-5 gas fired power plant.