Tuesday, 11 April 2006

ARMENIAN OFFICIALS STRESS BENEFITS OF GAS DEAL WITH RUSSIA

Published in News Digest

By empty (4/11/2006 issue of the CACI Analyst)

Armenian Prime Minister Andranik Markarian denied on April 10 that the sale to Russia\'s Gazprom of the fifth unit of the Hrazdan thermal power plant will compromise Armenia\'s energy security, RFE/RL\'s Armenian Service reported. The opposition Armenian Pan-National Movement released a statement alleging that the sale does endanger national security and was undertaken to preclude mass protests over rising gas prices in the run-up to the parliamentary election due in 2007. Markarian also denied any link between that sale and the planned increase in the price of natural gas Armenia buys from Russia.
Armenian Prime Minister Andranik Markarian denied on April 10 that the sale to Russia\'s Gazprom of the fifth unit of the Hrazdan thermal power plant will compromise Armenia\'s energy security, RFE/RL\'s Armenian Service reported. The opposition Armenian Pan-National Movement released a statement alleging that the sale does endanger national security and was undertaken to preclude mass protests over rising gas prices in the run-up to the parliamentary election due in 2007. Markarian also denied any link between that sale and the planned increase in the price of natural gas Armenia buys from Russia. He said the new gas price ($110 per 1,000 cubic meters compared with the previous $56) will remain unchanged. President Robert Kocharian for his part said on April 8 during a visit to Kotayk that the sale of the Hrazdan facility will positively affect the Armenian economy insofar as it will be paid for in gas deliveries, according to Arminfo as reposted by Groong. Gazprom will reportedly pay $250 million for the Hrazdan facility -- $60 million in cash and the remainder in gas deliveries between now and the end of 2008 that will enable the government to peg gas prices to consumers at the current level. Also on April 10, the opposition Artarutiun bloc demanded that parliament create an ad hoc commission to investigate the terms of the deal with Gazprom, RFE/RL\'s Armenian Service reported. Parliament speaker Artur Baghdasarian rejected that demand as unnecessary. (RFE/RL)
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The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.

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