
Haykakan Zhamanak: Gas price may should have declined to $110 after ruble’s depreciation
‘Haykakan Zhamanak’ daily writes that under the agreement signed between the governments of Armenia and Russia on December 2, 2013, the price of Russian gas supplied to Armenia is set based on the price of gas in Russia’s Orenburg region during the same period.
“The point is that the gas price in Orenburg is calculated in rubles, but gas is sold to Armenia in dollars. The ruble has sharply depreciated since 2014 so the price of gas supplied to Armenia shall decline too. The price of 1,000 cubic meters of gas in Orenburg was 3,200 rubles or $100 in 2014, whereas now the gas price in Orenburg is the same, i.e. 3,200 rubles which currently amounts to $50. According to the formula included in the agreement, after the ruble’s depreciation, the price of 1,000 cubic meters shall be $110, and not $165 which is the case now. The answer of Armenian Energy Ministry regarding the problem was the following: “The tariff of gas supplied to Armenia has declined from $189 to $165 this years,” the paper says.
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