Armenian willingness

15/03/2006 Babken TUNYAN

We can predict what the article is about based on the title. “The Russian government is trying to prevent most of its economy from being “swallowed” by foreign companies. The minister of economical development, German Greff announced in Moscow that the government may set limitations on foreign investments in about 39 fields of economy”. The minister first of all noted the defense and atomic production fields, as well as the fields that are strategic for the country. Among these fields are aviation, gold mining, oil production, etc. The reporter of this article, Andres Nisman writes this article with irony because he thinks that there is some “protectionism” in this activity. But on the other hand he agrees that countries first of all must take care of their national and economical security. He also writes that during the past several weeks some European countries have started to take steps in protecting their producers from foreign investors. It is worth mentioning that this law draft will be presented to the Duma at the end of this month.

What kind of relationship may these developments have with us? I can’t say whether it is by chance or a coincidence, but these days such a draft is discussed in the Natiobnal Assembly too, but the purpose is different. This amendment concerns the RA energetic legislation. The change was just a sentence, but it is very important. This proposed change is to take the 6th provision of the law on energy out. The first point of the 6th provision is the following: “Atomic energy is state monopoly”.

The one who recommended this was the deputy minister of energy, according to whom the main reason for this step is the fact that in 2016 the atomic station of Metsamor will be closed. And in order to build a new atomic station we need 1,5 billion dollars. Armenia doesn’t have such money and we may use private sector investments.

The draft was criticized by the opposition and “Rule of law”. The main question that remained unanswered was the following: “if the atomic station will be closed in 2016 why are they initiating such a law draft now?” Here we should draw on the speech of the head of the parliamentary group on budget, financial and economical issues, Gagik Minasyan, who was trying to bring up this draft along with his republican friend Gagik Melikyan. According to Mr. Minasyan there will be lack of energy in our country in 2016 because 40% less energy will be produced after closing the atomic station down. He was trying to make everyone believe that we have to think about our future now. It is amazing that Mr. Minasyan worries about what will happen in ten years while he doesn’t want to make any assumptions about the gas price change results, which we will see in a matter of months. As for the gas, the scenario is the same as described in the press. The third coalition member, ARF was not active regarding this issue. They are involved in more serious things like the provision on dual citizenship and discussing slogans on the Sumgait issue.

The important thing here is that the draft was sent back because there were several questions regarding the national security which remained unanswered. One of those questions was what Armenia would do if an originally Turkish company wanted to make investments. There haven’t been serious analysis done yet.

Besides that it is very important to note one thing: why are we going to take such steps if a country like Russia is trying to do everything to increase the level of its energetic security? Probably we are braver than Russia, because they haven’t made a final decision yet whether to join the WTO or not, but we didn’t hesitate to do that in 2001. When it is said that strategic fields must stay under the control of the state, it doesn’t concern Armenia: most of the Armenian strategic fields don’t belong to the state any more. 80% of the energetic field is controlled by Russians, which has already led to to bad results. Let’s take a look at what is happening now: the Russian “Gazprom” is selling gas to the Armenian “ArmRusgazard”, where the Russians own 55% of the stocks. The “ArmRusgazard” is also selling gas to the power distribution station of Hrazdan, which also belongs to the Russians. Then the power distribution station of Hrazdan is giving the energy to the “Armenian power distribution stations” and the new owners are the Russians too. In fact it turns out that we have an energetic carousel, where Armenians play under the control of the Russians. And the only thing we can do in our own country is to reduce the gas price from the disposed 108 dram to 90 dram, which was proudly announced by the state commission on price regulation.

We just have to understand one thing, which has been spoken before too. We shouldn’t blame anyone else. For instance we shouldn’t blame the Russians in trying to take control over our country and in taking some state properties instead of public debt. Even more, we shouldn’t blame them of increasing the gas price twice and prohibiting us to build a pipe line supplying gas from Iran with a bigger calibre. This is their national interest, because all countries try to protect their national interests. We either don’t understand this or dispute the national interests with the presonal ones.

Please note that this issue will be discussed in the NA later and now the Parliament is going to organize a hearing on March 15 on issues regarding the energetic field and security. We hope that there will not be good but baseless speeches and this hearing will bring to good results.