Russia Strengthens Ties with Armenia

Russia’s Gazprom will annually provide Armenia with 2.5 billion cubic meters of gas, reads a note released by the world’s biggest gas exploration and production company. Armenia will pay a price determined by ‘a formula linked to the pricing mechanism for natural gas in Russia.’

At the same time, Russian Energy Minister Alexander Novak and Armenian Energy and Natural Resources Minister Armen Movsisyan signed an intergovernmental Sales and Purchase Agreement for ArmRosgazprom's shares. The company led by Alexey Miller will increase its stake in ArmRosgazprom from 80% to 100%.

The signing happened during the ceremony dedicated to launching the commercial operation of a 480 MW power generating unit at the Hrazdan Thermal Power Plant (TPP) in Armenia.  According to the note, the fifth power unit is equipped with ‘state-of-the-art gas turbines.’ 

“Our strategic cooperation with Armenia is a vivid example of how it's possible to effectively build up the long-term and mutually beneficial partnership. Our direct engagement in the Armenian power market, meaning the whole value chain, gives some undoubted advantages to the Republic. This includes adequate supplies of natural gas at a fair price, investment in modern power generating capacities, development of the power generation sector and creation of new jobs. I am confident that our successful cooperation will be on a strong track,” Alexey Miller commented.