Gas prices will remain unchanged for consumers in Armenia, the Minister of Energy and Natural Resources told a press conference on Wednesday, May 13.
After long negotiations, the Russian gas price at the border was lowered by $25, but the reduction will not affect consumers in Armenia, Yervand Zakharyan said, according to ARKA.
The price of the Russian gas supplied to Armenia will be reduced from current $190 down to $165 per 1,000 cubic meters, as per the agreement reached between the Gazprom board of directors chair Aleksey Miller and President Serzh Sargsyan in April. The agreement is still to be put in writing.
The Minister said the extra funds will be spent to make up for the dollar to ruble rate differences and to implement investment programs. Gazprom Armenia, fully owned by Russian Gazprom, deals with gas supplies to Armenia. The company is also engaged in transportation, storage, distribution and sale of natural gas, reconstruction and expansion of the gas transmission system and underground gas storage facilities.
In December 2013, Gazprom and Gazprom Armenia inked a deal on natural gas supplies in 2014-2018. According to the contract, Gazprom will deliver up to 2.5 billion cubic meters of gas every year. The gas price will be determined by a formula linked to the Russian gas pricing scheme.