Gas price deal with Russia will be ‘alliance-based’ decision, says prime minister

In his recent interview with the Russian Kommersant, Prime Minister Nikol Pashinyan elaborated on his government’s negotiations with Moscow over the supply prices of natural gas, addressing also a range of other sensitive issues on the bilateral interstate agenda.

The Armenian leader expressed a firm belief that the talks between the strategic allies will yield their definite outcomes in the near future. “The issue is important for us not only in terms of the gas price but also as a matter of economic development. I think it is likewise important for our strategic ally, Russia, to establish the kind of prices that would not potentially break the economic development dynamics for the Republic of Armenia.”

Asked what would be the reasonable price under such conditions, the premier said they are now making the necessary calculations to finalize the figure. “It will be an alliance-based decision. We haven’t changed the domestic price for gas over the past year. As for the purchase price, it is a little bit different matter. It isn’t essentially significanct as much as the consumers are concerned. What matters to us is the unhampered operation of Gazprom-Armenia. We need to develop the kind of formulas that would ensure effectiveness both in Gazprom-Armenia’s activity and in terms of the gas price.”

Addressing the situation around South Caucasus Railway, the prime minister said he finds the issue “highly politicized by the media”.

“We are actively collaborating with South Caucasus Railways and have a preliminary agreement over further work to make the South Caucasus Railways’ investment project more effective,” Pashinyan said, ruling out any preconditions necessitating a termination of the contract with the railway operator.  

Commenting upon the canceled transaction with ORSIS, the Russian company which was Armenia’s weapons supplier for several years. The premier said he treats the matter as a “contest-related issue linked to the supply and demand”. “There isn’t anything to comment on in fact. Russia is Armenia’s number one ally when it comes to technical-military cooperation. Hence, I do not think that the situation with one company and one transaction alone is something that needs to be discussed now,” he added.