Armenia and Gazprom Reach Agreement on Gas Pricing

The Armenian government has reached an agreement with Gazprom on the pricing of natural gas supplied to Armenia. This was reported by Interfax, citing a statement from Mher Grigoryan.

"We already have an agreement regarding the gas price at the border and within Armenia. We have had long and difficult negotiations since 2019, and all issues have been discussed quite thoroughly; we have reached agreement on some of them," he stated.

Grigoryan identified the main issue of the negotiations as the condition of the 5th energy block in Hrazdan, which belongs to Gazprom and has not operated since 2019. "The energy block was constructed in 2013. Unfortunately, the plant is not operational. All of Gazprom's investments in Armenia, based on the 2013 agreement, must yield a 9 percent return. The construction of the plant was a serious investment, yet it does not generate such income, leaving this issue on the agenda. If we manage to find a solution to this matter, we will have a very stable situation regarding gas prices at the border as well as within Armenia. We want the 5th energy block to become part of Armenia's energy system," he added.