Energy Minister: Russian gas tariff for Armenia will make up $189 in case of Armenia's accession to Customs Union

 Russian gas tariff for Armenia will make up $189 in case of Armenia's accession to the Customs Union, Minister of Energy and Natural Resources of Armenia Armen Movsisyan told media, Tuesday. He recalled that the negotiations for a 30% subsidy of the gas tariff by Russia had been held yet before Yerevan's decision to access the Customs Union.

"Now that agreement will be significantly simplified. This means that the gas export tax in Russia will not apply to Armenia. It makes up some 30% of the gas tariff. If Armenia refused to join the Customs Union the current tariff - $270 per 1000 cu m - would be left unchanged. Meanwhile, in case of accessing the Union, the tariff will be reduced to $189. Gas will be delivered to Armenia nearly on the tariffs operating in Russia plus transit costs," the minister said.

He said that the tariff will not be increased in future. Neither will it be reduced.  In response to ArmInfo's question about the fate of Iran-Armenia gas pipeline, the minister said that it is an alternative gas pipeline from the viewpoint of the country's energy security, but it is not alternative from the viewpoint of economic efficiency. The minister said that Iranian gas costs $150 higher than the Russian.  Speaking of the date and terms of Armenia's accession to the Customs Union, Movsisyan said that a huge work is yet to be done; nearly 120 documents are to be coordinated and signed.  "I cannot announce any date," he said.  

The minister does not think the gas factor determining in the decision to join the CU. It is necessary to assess the economic possibilities of Armenia more realistically, as the key sales market of the Armenian products is Russia. This situation will not change for another 15-20 years, he said.