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10

Gas Prices Up for Armenia

The increase will be as much as 40 percent and it will be only the beginning

As reported by Interfax Armrosgazprom CEO Karen Karapetyan announced Tuesday, in time of the meeting with Armenian President Serge Sargsyan, that starting from April 1, 2009 Russia’s gas for Armenia’s clients will cost $154/ths cu meters. And it's only the beginning. The price will soar to $200/ths cu meters from April 1, 2010, Karapetyan said.

The growth is connected with the price increase on Russia’s energy market, but Armenia is expected to shift to European prices from 2011.

It was not of a big surprise for Armenia’s president. He said that negotiations with Gazprom were based on the gradual increase in gas prices. The growth in prices won’t significantly affect the population, Sargsyan promised, pointing out that it will create brilliant opportunity for the business to improve competitive ability.

Sargsyan urged Armrosgazprom to actively proceed with Armenia’s gasification.

Russia’s gas monopoly Gazprom signed in September of 2008 the contract for gas supplies to Armenia in 2009 and 2010. Gazprom supplied 2.05 billion cu meters in 2007.