PM Sargsyan confirms news about increase in gas prices

The issue that price of the Russian gas pumped up to Armenia can be increased was discussed yet during Russia’s President Dmitry Medvedev’s visit to Armenia in the mid August this year, Armenia’s Prime Minister Tigran Sargsyan told a press conference today.

Tigran Sargsyan comment comes after a recent statement by the Russian monopoly Gazprom, which said the price for the gas transported to Armenia will be increased in 2011.

Further Mr Sargsyan assured that the Government constantly focuses its attention on the issue, and that the relevant bodies continuously hold consultations.

The premier also mentioned that the management of ArmRosGazProm – the Armenian branch of Gazprom – has been instructed to proceed with the negotiations so that the policy and methodology to formulating the gas price is predictable for Armenia.

“The management of ArmRosGazProm will in a few months provide us with clear information about the results of the talks with the Russian side,” said Mr Sargsyan.

On September 8 Gazprom told Tert.am that it was holding discussions with the Armenian side over the increase in prices.

Earlier Gazprom’s Board Chairman Andrei Kruglov said that the price formulation for Armenia would be based on the market conditions in 2011, which means that the gas will be sold to Armenia at the European price – $308 USD per 1000 cubic meter.

In a regular session held on Thursday the Government decided to allot additional funds totaling to 3.2 billion drams to be used to pay social and retirement benefits.

The Government said the move was aimed to ease the burden for the socially vulnerable class that the 37 per cent increase in gas prices imposed this April is expected to cause. Some 104 families have been chosen to receive raised social benefits now.

“We have promised to raise the retirement benefits since 1 November; now we are allocating that financing,” said Mr Sargsyan.