Armenia, Russia ‘Still In Talks On New Gas Tariff’

4, January 2006
Armenia Liberty
By Astghik Bedevian

Armenia has still not reached agreement with Russia on the cost of Russian natural gas which is certain to rise substantially and push up Armenian utility prices this year, officials in Yerevan said on Wednesday.
[...]
“Negotiations are still going on between ArmRosGazprom and Gazprom,” ARG spokeswoman Shushan Sardarian told RFE/RL.

But Sardarian made it clear that a price hike is inevitable and that the Russian-Armenian talks are focusing on “mechanisms of payment” for further gas deliveries. Armenian government officials likewise appear resigned to such a development, saying that they hope the Russians will somehow cushion its effects. The presidents of the two countries are expected to again discuss the issue at a meeting in Moscow later this month.
[...]
The gas price hike will also affect thermal power plants that generate more than one third of Armenia’s electricity. The deputy head of the state Public Service Regulatory Commission, Nikolay Grigorian, admitted that the existing electricity fees, already seen as too high by many Armenians, will go up as a result. Speaking to RFE/RL, Grigorian said the regulatory body will also likely sanction a considerable rise in the price of drinking water soon.

Note: Above are excerpts from the article. The full article appears here. Clarifications and comments by me are contained in {}. Deletions are marked by [...]. The bold emphasis is mine.