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    Armenia to Request Gas Price Discount From Russia

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Summary

The Armenian government says it is requesting a discount Russian gas imports, as a result of a request from Armenian manufacturers and exporters.

by: Erica Mills

Posted in:

Natural Gas & LNG News, News By Country, Russia, , Armenia

Armenia to Request Gas Price Discount From Russia

The Armenian government says it is requesting a discount on the price of gas imported from Russia, as a direct result of a request from Armenian domestic household and food product manufacturers and exporters.

In their request, the manufacturers and exporters asked the government to "reduce the tariff on imported gas and pin the pricing policies on the national currency," a government press release says.

In the press release, which was published on the official Armenian government website on January 16, the government says that the manufacturers and exporters are concerned about remaining competitive and ensuring employment given the current gas tariffs.

The meeting was undertaken between the manufacturers and exporters and Armenia's prime minister Hovik Abrahamyan. In response to those concerns, Abrahamyan said the price of Russian gas could not be so high as to affect competition or to necessitate job cuts.

"[The prime minister] noted that the Armenian authorities have already appealed to the Russian government and, given the strategic nature of our partnership with the Russian Federation, are looking forward to a positive response," the statement says. 

Russia is Armenia's primary source of gas supply, with Russian companies wholly owning all of Armenia's gas and electricity networks. Armenia has already received a discount for gas from Russia within the past year. In September 2015, an agreement was signed between the two countries' energy ministers to reduce the import price of imported Russian gas from $189/'000 m3 to $165/'000 m3.