The most important event in economy took place last week outside of Armenia. During a meeting with journalists, Russia’s Armenian Ambassador Armen Abrahamyan said that the price of the gas delivered to Armenia will increase. The proposed price will double the present price. Russia plans on demanding 120 dollars for the 1000 cubic meters in exchange for the 56 dollars. Basically, Russia is ready to sell us gas for the market price starting from January 1st, 2006, however, Armenian authorities have not reacted to this yet. During the past few years, Russian-Armenian economic relations are going through an extraordinary phase. There is no other type of economic relations like that of Russia and Armenia. We have stated many times that Russia is our only economic partner and that it does not pardon Armenia for anything. First of all, Russia cold-heartedly calculated its debt percentage after reasoning that it had redeemed its loans late. Then, when they found out that Armenia is not able to return the debt by paying a prepaid amount, Russia got the money back by using a pretty unique method. We are talking about the “Property in exchange for debt” program. Russia’s Finance Ministry recalculated Armenia’s debt by taking control of the serious loops and factories of Armenia’s energy. It turned out that Armenia had not redeemed the total debt. Russia demanded 3 million dollars for the amount and a fee for paying late. On October 3, 2005, Armenia paid the last part of the debt by making a prepaid payment. A month later, we find out about the gas price increase. If that happens, Armenian economy will suffer the next blow. Energy plays a major role in the economy of our country. By observing the calculations of prices on nutritional products, we can presume that they are calculations of the copper factory. The expenses made on energy for the price on the simplest products, such as jam, forms 30-35% of the price on jam.
In 1997, when a contract was signed based on the founding of “ArmRusGazard”, Armenians were sure that this would help economy rise. Today, “ArmRusGazard” says that “the 56 dollar gas in exchange for the 1000 cubic meters cost the company another 27 dollars. Eighty dollars was announced as the average price. With this price, “Gazard” sells the consumer gas for 120-125 dollars. Parallel to the valuation of the dram, its income increased. Currently, since 120 dollars is the fixed price for import, then it is obvious that the bargain prices on gas must rise.
President of the board on regulating the natural monopoly field Robert Nazaryan was the only official that made a reply regarding the rise in the price of gas. He simply reminded the people that there will be a rise in the price of gas only 60 days after making that decision. This is a legislative demand. It is obvious that “Gazard” will not “dare” to make any comment to Mr. Nazaryan about the demand for rise in gas prices until the constitutional amendments referendum day. This will happen in December and the people will see a rise in gas prices by February 2006. “ArmRusGazard” has almost completed work on gasifying the country’s residencies. This means to say that a majority of the people can not reject the expensive gasification. All expenses are made.
Armenian-Russian relations are expressed “strangely” through foreign politics. When “ArmRusGazard” was in the process of being founded, at the time, Armenian authorities knew that the country needed an alternative gas pipeline. In 1997, people still remembered the explosions that were taking place from time to time with the gas pipelines. Armenia was repairing the pipelines of the country and Georgia very often. It was then when the creation of the Iranian pipeline became an alternative. The Iranian pipeline started getting built in 2005. At the present, there is no official data as to how much Armenia is going to pay to import gas from Iran. What we do know is that this doesn’t sound too good for Armenia’s northern ally-Georgia. Chief of the presidential staff Artashes Tumanyan made the announcement about the increase in gas prices from Russia days before the meeting in Iran. During his visit to Iran, Tumanyan went to the pipeline construction area. It is hard to say whether this was a casual visit or not. It is also hard to say if Armenian-Russian strange relations are a result of Armenia’s foreign politics. There is one more standard of Armenian-Russian economic ties. Just when Russia makes a huge step in economy, any top-duty official of the country starts to comment on the centuries old relations between Russia and Armenia and makes promises for the economy of both countries. With that said, two days ago, president of the house of inspection of the State Duma of Russia Vladimir Stepshin promised that he will make the Russian side use the “Mars” factory-the factory that became Russia’s property according to the “Property in exchange for debt” program. However, that promise has not been fulfilled.