The State Will Not Accumulate Debts Related to Gas Prices, Garegin Baghramyan

The price of imported gas has increased since January 1, while the tariffs for end consumers have not risen. The compensation for this difference is covered by the company. This was stated today by Acting Minister of Energy Infrastructure and Natural Resources Garegin Baghramyan during a conversation with reporters, responding to a question about how the increase in the price of gas at the border does not affect the gas tariffs.

He also denied reports that the state is accumulating debts. “I am clarifying this to dispel doubts that debts are being accumulated. I want to emphasize once again that no debts can be accumulated by the state,” he said.

Baghramyan noted that Gazprom Armenia has developed certain proposals regarding how the price subsidy will be implemented, but he cannot specify when the results will be clear, as these proposals need to be discussed with the Russian company Gazprom. Addressing the view that the subsidy comes from the dismissal of inspectors, Baghramyan stated that Gazprom Armenia has initiated an optimization process.

“A general optimization process has begun in the company, and within that framework, a certain number of inspectors may also be reduced. I do not believe that this only pertains to the lower levels, as the company itself decides in which direction to move. Regarding the questions about whether cuts could have been made earlier, it should be noted that there were some legislative issues until January 1, 2019. There were intergovernmental agreements between Russia and Armenia that had restrictions, and based on that, the Public Services Regulatory Commission, even with a strong desire, could not implement any changes,” he emphasized.

According to Garegin Baghramyan, at a recent Armenian-Russian intergovernmental meeting held in Moscow, an agreement was reached to present a draft of the agreement by July 1, which will outline the mechanisms for forming the price of gas at the border.