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Armenia Negotiating ‘Gas Price Cut’ With Russia


The Gazprom Armenia headquarters in Yerevan, Armenia
The Gazprom Armenia headquarters in Yerevan, Armenia

The Armenian government is negotiating with the Russian Ministry of Energy and Gazprom the possibility of reducing the price of natural gas supplied to Armenia, according to a minister.

“Negotiations are underway now over the formation of the gas price both at the border and within the internal structure,” said acting Minister of Energy and Natural Resources Garegin Baghramian at a briefing with reporters on Thursday.

“Naturally, the negotiations are being conducted towards the reduction [of the price],” the official said, without revealing other details.

“In order to avoid some influences on the negotiation process, I think we should wait for a little longer for the negotiations to be completed. Then we will publish the details,” he added.

Gazprom sells natural gas to its Armenia-based subsidiary at a price of $150 per thousand cubic meters. The subsidiary, which owns Armenia’s gas distribution network, then sells it to consumers in Armenia at a price of about $284, according to the current dollar exchange rate.

Prime Minister Nikol Pashinian reportedly discussed the price of natural gas supplied to Armenia during his meeting with Russian President Vladimir Putin in Moscow in September.

An Armenian parliament committee recently initiated discussions on how justified the current natural gas and electricity tariffs in the country are.

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