Armenia and Russia have reached a preliminary agreement to reduce natural gas price by 12%, reported Yerevan-based Aikakan Zhamanak newspaper on March 29. 2016.
In January 2016 Armenian authorities have requested Russia to reduce fees for the natural gas imported into the republic. Armenia already receives Russian gas at reduced fees. According to the protocol signed in September 2015, the base price of gas imported from Russia to Armenia was reduced from $189 to $165 per 1000 cub.m. This fee is effective since April 1, 2016.
Meanwhile, reduction of price did not affect the local consumers. The population keeps paying Gasprom Armenia $320 per 1000 cub.m. of natural gas. Big consumers pay $272 in the USD equivalent.
Aikakan Zhamanak reported that if price is reduced by 12%, it will go down to $146 from $165. If the agreement is finally reached, it will be announced during the visit of Russian Premier Dmitrii Medvedev to Yerevan on April 7-8.
The new price will be effective from April 1, 2016. The Armenian Commission for Regulation of Public Services will hold an urgent session to make a decision on reduction of price for the consumers. According to the newspaper, gas price for the population could go down by 10 drams to 146 drams (0.30 cents) per 1 cub.m. against the current price of 156 drams and it will go down to $260 for the big consumers.
Gasprom Armenia (Gasprom’s 100% daughter company) has the monopoly right for delivery and distribution of gas that is exported from Russia to Armenia through Georgia. In December 2015 Gasprom and Gasprom Armenia signed the contract to deliver gas to Armenia between 2014 and 2018. According to the contract, Gasprom must supply up to 2.5 bcm of gas a year to Armenia.
