Will Gazprom raise gas price for Armenia a year earlier?

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Gazprom’s major strategy concerning Russia’s neighboring countries is equating tariffs for gas sold to these countries with the European level of prices, Gazprom’s Spokesman Sergey Kupriyanov said on air of Ekho Moskvy Radio. According to him, the cheapest price for CIS countries will be for Armenia. “The gas price for Armenia, $110 per 1,000 cubic meters, will be preserved under our agreement by 2008,” Kupriyanov said.

For Ukraine the gas will, as before, cost $130 for 1,000 cubic meters, the spokesman said. As he put it, this January’s crisis in Ukraine should not repeat next year. “There have been no agreements on gas prices with Belarus, Georgia and Moldova yet, but it is clear already the price will increase. Supposedly, Minsk will buy the Russian fuel at a price of $200 per 1,000 cubic meters. Gazprom is ready to sell gas to Georgia at a price over $200 per 1,000 cubic meters,” he informed.

Sergey Kurpiyanov admitted that Gazprom is pursuing a tough policy, however, the countries importing the gas fulfill their obligations. The spokesman also noted that the company will decrease significantly the amount of gas sold to Azerbaijan. Besides, the gas price for Baku will be also raised to the level the rest countries will pay – about $200, Kupriyanov said. At that he noted that the united economic space with the countries should be preserved at the expense of the gas tariffs.

It is worth mentioning, this year Gazprom and the Armenian government signed an agreement for 25 years on strategic principles of cooperation in gas and energy projects in the Armenian territory. The agreement fixes the gas price for Armenia at the level of $110 by January 1, 2009.