On December 2, 2013, the famous “gas” agreement was signed in Yerevan, which had two components: an agreement<\/a> on the sale and operation conditions of ArmRusGasArd shares, as well as an agreement<\/a> on the procedure of gas pricing.<\/p>\n According to the first agreement, the last 20% of ArmRusGasArd shares were transferred to Gazprom, and, in fact, it was guaranteed that the Armenian side will buy gas from Gazprom until the year 2043, and Gazprom Armenia even received a right of priority in exporting electricity.<\/p>\n The second agreement fixed the price of gas delivered to Armenia at the border until December 31, 2018.\u00a0Initially, it was 190 USD per 1,000 cubic meters, then it became 165 USD, and later was reduced to 150 USD (the Armenian side granted Gazprom Armenia further privileges for these reductions).<\/p>\n The price at the border<\/strong><\/p>\n The 2013 agreement was signed for five years, and was valid until January 1, 2019. From that day on, as a result of negotiations, the price of gas at the border was temporarily (and to date) fixed at 165 USD per 1,000 cubic meters.<\/p>\n In 2014, 190 USD was a beneficial price for Armenia compared to international market prices. However, over time, Russian gas price significantly dropped in the European market, and the gas quickly became more expensive for Armenia (Gazprom Armenia) compared to the price for the same gas delivered to Europe.<\/p>\n As of the first quarter of 2020, the average price of Russian gas delivered to Europe (at the border) is about 87 USD<\/a>, and at the Armenian border it is 165 or almost twice as expensive as in Europe.<\/p>\n Moreover, the decline in Russian gas price in Europe began even before the Coronavirus pandemic. In the third quarter of 2019, it was already cheaper than in Armenia, and in April 2020, the price of Russian gas in Europe was about $ 59 per 1,000 cubic meters.<\/p>\n The distribution cost <\/strong><\/p>\n However, these were the prices at which Gazprom Armenia purchases gas from Gazprom. In turn, Gazprom Armenia sells gas at tariffs set by the PSRC. Since 2014, the price of gas for household consumers\u00a0(when expressed in AMD) has only decreased, and for consumers of more than 10,000 cubic meters per month, it first increased (due to the devaluation of the AMD) and then decreased.<\/p>\n![\"\"](\"https:\/\/uic.am\/wp-content\/uploads\/2020\/05\/4444.jpg\")
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