Mher Grigoryan on the Gas Price at the Border and the Tariff in the Republic of Armenia

According to Armenia's Deputy Prime Minister Mher Grigoryan, negotiations regarding gas prices are an ongoing process. “In reality, it does not stop and is currently taking place. I can say one thing: essentially, we have consensus regarding the gas price at the border and the tariff in the territory of the Republic of Armenia because we have been engaged in intense and prolonged negotiations since 2019. I believe we have discussed this issue quite thoroughly and have reached some level of agreement,” he stated during a conversation with reporters.

Mher Grigoryan noted that the 5th energy block, which is a thermal power plant, was built based on an agreement from 2013. “Unfortunately, the plant is not operating right now; at the same time, all the investments being made in Armenia by the Gazprom group must generate around 9 percent annual profitability under the terms of the 2013 agreement. Naturally, building the plant is a significant and major investment, but today it is not generating the revenue that would ensure the profitability stipulated in the 2013 agreement. This issue remains on the agenda and continues to be discussed.

If we manage to find a solution to this issue, then we will have a very stable situation regarding gas prices, although you know that globally the price has reached at least $940 compared to our $165. However, even in this case, there will not be problems in the near foreseeable future if we manage to find solutions related to the 5th energy block and establish an optimal operating mode that complies with the logic stemming from the 2013 agreement,” said the Deputy Prime Minister of Armenia.