Armenia: Russia Discounts Gas Price for Yerevan

Russia has promised to lower natural gas fees to crisis-ravaged Armenia, the Kremlin's only stable political foothold in the South Caucasus.

Starting from April 2010, Russian energy giant Gazprom will charge Armenia $180 per 1,000 cubic meters (tcm) of gas -- a 10 percent discount on the planned price of $200/tcm, the official RIA Novosti news agency reported on November 20. Armenia currently pays $154/tcm for the Russian gas that flows via Georgia to Armenia.

Armenian Energy Minister Armen Movsisian told reporters on November 19 that the agreement was reached after a series of negotiations between Gazprom and its Armenian subsidiary, ArmRosGazprom. Movsisian denied media speculation that the discount came in return for Russian participation in construction of a new nuclear power plant in Armenia, RIA reported.