Energy minister speaks about $300 million debt to Russia

“From the second half of 2010, Russia began speaking about an increase in the natural gas price. Since that moment negotiations were held to keep the gas price at $180 per 1,000 cubic meters at the border,” Armenian Minister of Energy and Natural Resources Armen Movsisian said.

In his words, the negotiations did not produce results and the gas price was to be raised from April 2011. “Armenia and Russia reached an agreement that the established price would be considered as a reference price,” the minister said.

As a result of negotiations, the reference price was set at $180 and a 30% customs duty was used.

“The price regularly changed at the border since April 2011, but with the Russian side’s guarantee, gas was sold at $180 within the country. Due to this difference, a debt of $300 million had accumulated. The Russian side assumed half of the debt, and we repaid the other half by selling 20% of ArmRusGazprom Company’s shares to Russia,” the minister said.