Natural Gas Tariffs During the Terms of Three Leaders of the Republic of Armenia: Suren Parsyan

The economist Suren Parsyan, responsible for the Economic Research Office of the ARF Bureau, has written an article analyzing the natural gas tariffs during the terms of three presidents of the Republic of Armenia. The article is as follows.

Over the past 20 years, the price of gas for Armenian consumers has increased almost threefold, which has adversely affected the economy and the living standards of the population. The price of Russian gas has always been dependent on political and economic factors. Certainly, in the case of Armenia, there have been significant political agreements, but these have been accompanied by the processes of transferring state property to the Russian side, particularly the sale of the 5th Energy Block of Hrazdan, the 20% state share of Hayrusgazard CJSC, and the foreign sales of the Armenia-Iran gas pipeline. Additionally, after the commissioning of the 400kV electric transmission lines between Armenia and Georgia, there have been guaranteed preferences for their connection, and so forth. The Russian side has, in turn, made substantial investments in these facilities, creating thousands of jobs.

However, it should be noted that the current natural gas tariffs in Armenia are a serious obstacle for businesses since they cause Armenian products to become even more expensive and lose their competitiveness in both domestic and foreign markets. The next government must effectively negotiate with the Russian side, using all political and personal connections, to reduce the gas price at the border by 30-40 US dollars.