{"id":21489,"date":"2020-01-23T09:15:19","date_gmt":"2020-01-23T05:15:19","guid":{"rendered":"https:\/\/uic.am\/21489"},"modified":"2020-01-23T09:15:19","modified_gmt":"2020-01-23T05:15:19","slug":"history-of-gas-pricing-and-the-reasons-for-the-rise-in-prices","status":"publish","type":"post","link":"https:\/\/uic.am\/en\/21489","title":{"rendered":"History of gas pricing and the reasons for the rise in prices"},"content":{"rendered":"

On December 2, 2013, the famous \u201cgas\u201d agreement was signed in Yerevan, which had 2 components: an agreement<\/a> on the conditions of sales and operation of \u201cArmRusGasArd\u201d shares, as well as an agreement<\/a> on the procedures of the formation of gas prices. Weeks later, the National Assembly ratified the treaties, despite attempts by Nikol Pashinyan and Zaruhi Postanjyan to hinder the process, as well as those of \u00a0journalists protesting in the Assembly and demonstrators in Baghramyan avenue.<\/p>\n

Recently it became known that Gazprom Armenia is likely to submit a request to the Public Services Regulatory Commission (PSRC) to raise the gas tariff in Armenia. In the light of this information, the Union of Informed Citizens decided to publish some indicators of gas price dynamics following the “gas” agreements.<\/p>\n

The price at the border<\/strong><\/p>\n

By the first agreement,the last 20% of ArmRusGasArd shares were transferred to Gazprom, and, in fact, it was guaranteed, that by 2043 the Armenian side will buy gas from Gazprom, and Gazprom-Armenia even received advantages in exporting electricity.<\/p>\n

The second agreement fixed the price of gas delivered to Armenia at the border by December 31, 2018. Initially, it was 190 USD per 1,000 cubic meters, then it became 165 USD and then was reduced to 150 (Armenian side granted Gazprom Armenia more privileges for these reductions). However, th2013 agreement was signed for five years, and ceased to be effective on January 1, 2019. Since that day, as a result of negotiations, at the border, the price of gas was temporarily (and to date) fixed at 165 USD per 1,000 cubic meters.<\/p>\n

However, if in 2014, 190 USD\u00a0 was a profitable price for Armenia compared to international market prices, over time, Russian gas\u00a0 became significantly devalued in the European market, and eventually the gas was more expensive for Armenia (Gazprom Armenia) than for Europe.<\/p>\n