Armenian economists propose formulas for calculating natural gas price

Economist Artak Manukyan says he supports ARF-D lawmaker Artsvik Minasyan’s proposal for calculating the natural gas price based on the exchange rate of the Russian Rouble.

Such price policies, according to him, would prevent a possible hike in case of instabilities in the US Dollar’s exchange rate.

Speaking to Tert.am, the economist particularly called attention to the fact that the differences in the purchase prices on border create unequal conditions for Russian, Belarussian and Armenian companies within common economic trade area of the Eurasian Economic Union (EEU).

“If that contributes to de-Dollarization and we are a partner company with Russia, it’s a little bit illogical that the gas price should depend on the Dollar. I think it would be desirable to fix it in Drams from our perspective  and in Roubles – from the perspective of Russia,” he said, stressing the need of revising the agreement.

It comes after Gazprom Armenia unveiled a plan for raising the tariffs for consumers using over 10 cubic meters of natural gas. The move stemmed from an earlier formula which proposed considering the average Dollar exchange rate on the stock market based on Central Bank records. 

Economist Ashot Yeghiazaryan says he doesn’t think that the agreement signed with the Russian company in December envisages creating a common natural gas market for the EEU members. What’s even more, under arrangements reached in Astana, Kazakhstan earlier this year, it is planned to launch a joint market no earlier than in 2025. Before the assigned date, the member states’ energy and gas markets will be considered national.

“Accordingly, the established differences in the purchase price on the foreign markets sought in a sense to only to offer cheap gas to Armenia to enable its membership in the [Eurasian] Customs Union,” he said.

In the long-run perspective, such a price for natural gas does not imply any advantages for Armenia against the backdrop of the slump on the international market.